Jumia Technologies Stock Sinks After Q4 Earnings Miss

Core Viewpoint - Jumia Technologies AG reported disappointing fourth-quarter EPS results, leading to a significant decline in share price despite revenue exceeding expectations [1][6]. Group 1: Earnings Report - The company reported a fourth-quarter EPS loss of 8 cents, which was worse than Wall Street's expectation of a 5 cent loss [2]. - Revenue for the fourth quarter was $61.395 million, slightly above the consensus estimate of $60.657 million, marking a year-over-year increase from $45.7 million, representing a 34% growth [2]. Group 2: Operational Performance - Jumia experienced a 36% increase in gross merchandise value (GMV), reaching $279.5 million, indicating improved platform activity [3]. - The operating loss improved to $10.6 million, and the adjusted EBITDA loss narrowed to $7.3 million, reflecting progress in profitability metrics [3]. Group 3: Liquidity Position - The company ended the quarter with a liquidity position of $77.8 million, and net cash used in operating activities decreased to $1.7 million from $26.5 million a year ago, indicating reduced cash burn [4]. Group 4: Future Guidance - For 2026, Jumia projected GMV growth of 27% to 32% and an adjusted EBITDA loss of $25 to $30 million, with a goal of achieving adjusted EBITDA breakeven in Q4 2026 and full-year profitability in 2027 [5]. - The company plans to exit the Algerian market, which accounted for about 2% of 2025 GMV, to focus on higher-potential markets [5].