Jumia(US:JMIA)2025-11-12 14:32Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $45.6 million, up 25% year-over-year, or up 22% on a constant currency basis [18] - Adjusted EBITDA loss improved to $14 million compared to $17 million in the same quarter last year [10] - Loss before income tax was $17.7 million, a 1% decrease year-over-year, or an 8% decline on a constant currency basis [10][24] Business Line Data and Key Metrics Changes - Physical goods GMV grew by 26% year-over-year, adjusting for perimeter effects, and by 37% when excluding corporate sales [4][7] - First-party sales revenue was $23.8 million, up 54% year-over-year, driven by strong momentum with key international brands [20] - Third-party sales were $19 million, up 5% year-over-year, or 2% on a constant currency basis [18] Market Data and Key Metrics Changes - Active customers increased by 22% year-over-year, marking the highest increase in the past three years [7] - Orders from up-country regions represented 60% of total volume this quarter, up from 54% in the same quarter last year [11] - Nigeria's physical goods orders were up 30% year-over-year, while GMV increased by 43% [12] Company Strategy and Development Direction - The company aims to achieve full-year profitability by 2027, focusing on driving profitable growth through efficiency and strategic investments [5][27] - Jumia is phasing out non-core digital transactions to streamline operations and enhance organizational efficiency [6] - The company is expanding its logistics and commercial infrastructure to serve secondary cities and rural regions, which are driving some of the fastest growth [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing strong customer demand and operational improvements [9][27] - The competitive environment remains stable, with some global entrants pulling back, allowing Jumia to gain local market share [16] - Management highlighted the importance of adapting to local market conditions, which presents challenges for international platforms [53][55] Other Important Information - The average order value for physical goods in Q3 2025 stood at $35, down from $38 in Q3 2024 [8] - The company ended Q3 2025 with a liquidity position of $82.5 million, including $81.5 million in cash and cash equivalents [24] - Fulfillment cost per order decreased by 22% year-over-year to $1.86, driven by structural efficiencies [10] Q&A Session Summary Question: Guidance for PBT and cost attribution - Management expects significant acceleration in usage in Q4 due to strong seasonality, which will translate into revenue and monetization [33] - Fulfillment cost per order is expected to remain at the new baseline of $1.86, reflecting improved efficiency [34] 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 [39] 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 [43] Question: Competitive environment and supply access - Management noted that international platforms are facing challenges in Africa due to logistics and customs issues, which Jumia is well-positioned to navigate [53][55] 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 [87][88]