Jumia(JMIA) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The adjusted EBITDA loss for Q3 '23 was $15 million, the lowest since the company's IPO in 2019, representing a decrease of$ 31 million or 67% year-over-year [25] - Revenue reached $45 million, down 11% year-over-year but up 19% on a constant currency basis [27] - GMV was$ 181 million, declining by 25% year-over-year and by 3% on a constant currency basis [27] Business Line Data and Key Metrics Changes - The GMV of physical goods was down by 17% year-over-year but increased by 10% on a constant currency basis [35] - Fulfillment expenses per order, excluding JumiaPay, reached $2.1, down by 26% year-over-year [11] - The share of items sold from non-core categories decreased from 21% in Q3 '22 to 13% in Q3 '23, while average order value for physical goods improved from$ 37 to $39 [38] Market Data and Key Metrics Changes - Five countries reported positive GMV growth year-over-year on physical goods, accounting for 49% of the GMV from physical goods in Q3 '23 [7] - Ghana experienced significant growth in GMV despite a challenging macroeconomic backdrop with 38% year-over-year inflation [15] - The share of transactions paid through JumiaPay increased from 17.8% in Q3 '22 to 27.1% in Q3 '23 for physical goods [44] Company Strategy and Development Direction - The company aims to reduce losses and move towards profitability, focusing on building a lean organization and improving operational efficiencies [4][5] - A strategic decision was made to prioritize physical goods and streamline unprofitable categories such as FMCG [28] - The long-term strategy includes capturing the growth of consumption and e-commerce in Africa, with a focus on core categories like electronics and home goods [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging microeconomic trends, including high inflation and currency devaluations, but expressed confidence in the strategy to mitigate these challenges [15] - The company is excited about the next phase of its turnaround, emphasizing the importance of cash efficiency and profitable growth [26] - Future guidance for adjusted EBITDA loss has been revised to a range of$ 80 million to $90 million, indicating a significant reduction compared to previous projections [77] Other Important Information - The liquidity position at the end of Q3 '23 was$ 147 million, reflecting a decrease of $19 million compared to Q2 '23 [51] - The company has made significant reductions in sales and advertising expenses, down 74% year-over-year [48] - The total number of orders in Q3 '23 was 7.2 million, down 23% year-over-year but up 11% compared to Q2 '23 [34] Q&A Session Summary - There were no questions during the Q&A session, and the conference call concluded without any inquiries from participants [55]