Jumia(US:JMIA)2025-11-12 14:30Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $45.6 million, up 25% year over year, with first-party sales representing 52% of total revenue [7][16] - Adjusted EBITDA loss improved to $14 million compared to $17 million in the same quarter last year, reflecting operating leverage and cost discipline [9][20] - Loss before income tax was $17.7 million, a 1% decrease year over year [9][20] Business Line Data and Key Metrics Changes - Physical goods GMV grew by 26% year over year, and by 37% when excluding corporate sales [6][7] - Adjusted for perimeter effects, physical goods orders grew 34% year over year, driven by strong consumer demand and improved product offerings [5][6] - Marketing and advertising revenue totaled $1.3 million, down 24% year over year, reflecting lower spending from large sellers [17][55] Market Data and Key Metrics Changes - Nigeria saw physical goods orders up 30% year over year, with GMV up 43% [11] - Kenya experienced physical goods orders up 56% year over year, driven by up-country expansion [11] - Ghana delivered outstanding performance with physical goods orders up 94% year over year and GMV increasing 157% [14] Company Strategy and Development Direction - The company aims to achieve full-year profitability by 2027, focusing on profitable growth through efficiency and strategic investments [5][23] - Continued emphasis on up-country expansion to unlock opportunities beyond major urban centers [10][52] - The company is phasing out non-core digital transactions to streamline operations and enhance efficiency [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong customer demand and operational improvements [8][23] - The competitive environment remains stable, with some global entrants pulling back, allowing the company to gain local market share [15][39] - Management highlighted the importance of adapting to local market conditions to maintain a competitive edge [39][40] Other Important Information - The average order value for physical goods in Q3 2025 was $35, down from $38 in Q3 2024, mainly due to reduced corporate sales in Egypt [7][18] - The total headcount declined by 7% to just over 2,010 employees, reflecting a leaner organization [9][21] - The company launched Jumia Instant, offering four-hour delivery in Nairobi, to compete with quick delivery platforms [12][42] Q&A Session Summary Question: Guidance for PBT and cost management - Management expects significant acceleration in usage in Q4 due to strong seasonality, which will translate into revenue and monetization [26][27] - Fulfillment cost per order is expected to remain at the new baseline of $1.86, reflecting improved efficiency [28] Question: Working capital movements for Q4 - Management indicated that they do not expect significant changes in working capital dynamics for Q4, as they can ramp up inventory faster [30][31] Question: October order and GMV growth - Management confirmed that the above 30% growth in October is indicative of continued momentum, but they remain cautious about expectations for the full quarter [32][33] Question: Supply access in Q4 - Management noted that currency stability is positively impacting supply, with increased willingness from local and international sellers to commit inventory to Africa [35][36] Question: Competitive environment - Management observed reduced marketing investment from international platforms, indicating challenges for them in operating at scale in Africa [37][38] Question: Advertising monetization opportunities - Management sees significant upside potential in advertising revenue, aiming to reach around 2% of GMV in the mid to long term [55][56]