Financial Data and Key Metrics Changes - Revenue rose by 25% year over year to $45.6 million, demonstrating resilience in the core business [6][26] - Loss before income tax narrowed to $16.3 million, a 28% decrease year over year [6][33] - Cash burn significantly reduced to $12.4 million, driven by higher revenue and disciplined execution [6][15] Business Line Data and Key Metrics Changes - Physical goods orders increased by 18% year over year, with GMV up 10% excluding exits from South Africa and Tunisia [5][6] - Excluding corporate sales, physical goods GMV grew by 24%, indicating strong underlying consumer demand [5][6] - Revenue from first-party sales surged by 47% year over year, driven by strong demand from key international brands [26][28] Market Data and Key Metrics Changes - Nigeria saw physical goods orders rise by 25% year over year, with GMV up 36% [19] - Kenya experienced a 38% increase in physical goods orders, with GMV up 31% [19] - Egypt showed a decline in physical goods orders by 6% year over year, but GMV excluding corporate sales grew by 6% [21] Company Strategy and Development Direction - The company is focused on scaling physical goods e-commerce while reducing emphasis on JumiaPay app transactions [8] - Strategic initiatives include enhancing logistics reliability, expanding into underserved regions, and improving customer acquisition and retention [16][24] - The company aims to achieve profitability by 2027, with a focus on operational efficiency and cost reduction [6][25] Management's Comments on Operating Environment and Future Outlook - Management noted stable macroeconomic conditions and improved customer value propositions as key drivers for growth [43][44] - The company is optimistic about accelerating GMV growth in the second half of the year, supported by improved marketing strategies [12][39] - Management expressed confidence in achieving revised financial guidance for 2025, driven by strong operational execution [37][39] Other Important Information - The company has reduced overall headcount by 5% since the beginning of the year, reinforcing cost management efforts [13] - Jumia's anniversary campaign contributed significantly to order growth, with over 38,500 sellers participating [16] - The logistics platform, Jumia Delivery, is now operational in multiple countries, targeting social commerce vendors and individuals [22][63] Q&A Session Summary Question: What is driving the July acceleration in growth? - Management indicated that the acceleration is primarily driven by improvements in customer value propositions and a renewed focus on online marketing channels [42][43] Question: How is the company planning for inventory and cash use during the holiday season? - The company plans to build inventory starting in early October, with expectations of manageable working capital volatility [48] Question: What is the potential for growth in underserved areas? - Management believes there is significant untapped potential in secondary cities, with ongoing plans for expansion [50][52] Question: How is the company addressing supply from international suppliers? - The company anticipates increased attention from Chinese manufacturers due to tariff changes, which should enhance supply security [54][56] Question: What are the margins like for the Jumia Delivery service? - The delivery service is expected to be profitable from the outset, with competitive pricing strategies in place [61][67] Question: What is the outlook for Ivory Coast's growth? - Management noted that growth in Ivory Coast is slower due to market maturity and a deliberate focus on profitability over rapid growth [96][98]