Jumia Technologies (JMIA) Reports Q4 Revenues of EUR41.8M

Jumia Technologies (NYSE: JMIA) reported Q4 revenue for the quarter came in at EUR41.8 million, versus EUR49.3 million reported last year.

Results highlights for the fourth quarter 2020

• GMV was €231.1 million, a quarter-on-quarter acceleration of 23% supported by the Black Fridays event in November 2020. GMV was down 21% year-over-year, as the effects of the business mix rebalancing initiated late 2019 continued playing out during the fourth quarter of 2020
• Gross profit reached €27.9 million, a year-over-year increase of 12%.
• Gross profit after Fulfillment expense reached a record €8.4 million, compared to €1.0 million in the fourth quarter of 2019.
• Sales & Advertising expense was €10.2 million, a year-over-year decrease of 34%.
• General & Administrative costs, excluding share-based compensation expense, reached €21.8 million, a decrease of 36% year-over-year.
• Adjusted EBITDA loss was €28.3 million, decreasing by 47% year-over-year.
• JumiaPay TPV reached €59.3 million, increasing by 30% year-over-year. On-platform TPV penetration increased from 15.6% of GMV in the fourth quarter of 2019 to 25.7% of GMV in the fourth quarter of 2020.

“We continued to make significant strides towards breakeven during the fourth quarter of 2020. Gross Profit after Fulfillment expense reached a record €8.4 million during the quarter. In parallel, efficiencies across the full cost structure allowed us to decrease Fulfillment, Sales & Advertising and General & Administrative expenses (excluding share-based compensation) by 18%, 34% and 36% respectively, year-over-year. As a result, Adjusted EBITDA loss contracted by 47% year-over-year, reaching €28.3 million”, commented Jeremy Hodara and Sacha Poignonnec, Co-Chief Executive Officers of Jumia.

“While 2020 has been a challenging year operationally with COVID-19 related supply and logistics disruption, it has been a transformative one for our economic model, as we firmly put the business on track towards breakeven. In addition, we raised approximately €203 million in a primary offering in December 2020. This strengthened our balance sheet, enhanced our unit economics and overall positioned Jumia to scale efficiently towards profitability. Beyond the near-term objective of breakeven, our long-term focus remains on fueling the growth of our e-commerce and payment platforms in Africa for decades to come.”

GUIDANCE

Our focus continues to be on making further progress towards breakeven and we remain committed to reducing our Adjusted EBITDA loss in absolute terms in 2021 compared to 2020.

The ongoing COVID-19 pandemic as well as the ensuing economic challenges result in substantial uncertainty concerning our operating environment and financial outlook. This may be further exacerbated by instances of social protests or political disruption, as experienced in Nigeria over the course of October 2020 as part of the End SARS campaign or in Uganda in January 2021 where internet was suspended ahead of the presidential election.

These external factors, combined with continued focus on cost efficiency and, to a lesser extent, the continued effects of the business mix rebalancing, are likely to drive continued volatility across some of our key performance indicators.

For earnings history and earnings-related data on Jumia Technologies (JMIA) click here.

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