Jumia(JMIA)2025-05-08 13:32Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $36.3 million, down 26% year over year and down 18% in constant currency, primarily due to lower corporate sales in Egypt and currency devaluation [19][36]. - Adjusted EBITDA loss was $15.7 million in Q1 2025, compared to a loss of $4.3 million in Q1 2024 [19][41]. - Loss before income tax was $16.5 million, a significant improvement from $39.6 million in the same period last year [19][41]. Business Line Data and Key Metrics Changes - Marketplace revenue for Q1 was $18.1 million, down 30% year over year [36]. - Revenue from first-party sales was $17.8 million, down 21% year over year [36]. - Fulfillment expense per order decreased to $2.07, down 14% year over year, indicating improved efficiency [39][11]. Market Data and Key Metrics Changes - GMV declined 11% year over year, primarily due to currency headwinds and lower corporate sales, particularly in Egypt [16][19]. - Excluding corporate sales, GMV would have grown 10% year over year, highlighting strengths in the consumer business [16][19]. - Physical Goods orders grew 21% year over year, driven by strong demand [15][19]. Company Strategy and Development Direction - The company aims to reduce losses, drive efficiency, and deliver measurable financial improvements, with a focus on margin expansion and financial discipline [6][7]. - Jumia is expanding its logistics network to monetize its infrastructure beyond the core marketplace, which is expected to enhance cost efficiency [28][62]. - The company is targeting profitability by 2027, with a loss before income tax forecasted to improve significantly in 2026 [9][45]. Management's Comments on Operating Environment and Future Outlook - Management noted that while currency headwinds have impacted profitability, they expect to see improved growth trends moving forward as these effects have lapped [18][32]. - The company remains confident in its strategy and believes it is well-positioned to capture supply from Asia as global trade dynamics shift [32][56]. - Management emphasized the importance of operational discipline and cost management in achieving sustainable growth [43][33]. Other Important Information - The company has reduced its total headcount by about 3% as part of its cost control measures [11]. - Jumia's liquidity position at the end of Q1 was $110.7 million, including cash and cash equivalents [42]. - The company remains debt-free, with borrowing related solely to lease liabilities [43]. Q&A Session Summary Question: Can you explain the relationship between orders and GMV? - Corporate sales are typically high-value orders that generate significant GMV with few orders, leading to a disconnect when corporate sales decrease [49]. Question: How should we think about cash use from inventory levels? - A significant part of cash burn is due to increased working capital for inventory ahead of major campaigns, but lower impacts are expected in the coming quarters [54]. Question: Have you seen an uptick in supply from Asia? - There has been a strong trend in item sales from international vendors, particularly from China, with a 61% increase in gross items sold [55]. Question: What is the monetization strategy for the Jumia delivery business? - The delivery business is designed to be higher margin and lower volume compared to marketplace revenue, with profitability from day one [90]. Question: How significant is the deliveries business to revenue for Ivory Coast? - The deliveries business is profitable but lower than marketplace revenues, with potential for further scaling [93].