Jumia Technologies AG Q4 FY2024 earnings call

• 2024 was a year of progress against strategic growth initiatives, including upcountry expansion, product assortment expansion, improved cost structure, and logistics capabilities.
• Exited South Africa and Tunisia, with core marketplace business accelerating in Q4 '24: physical goods orders grew 18% year-over-year, quarterly active customers increased 8%.
• Reduced marketing spend from $6.2 million in Q4 '23 to $4.8 million in Q4 '24. Black Friday sales event was strong, with electronics and phones in high demand.
• International sourcing was strong in Q4 '24: 3.4 million gross items sourced from international sellers, mostly China, accounting for 31% of gross items, up 61% year-over-year.
• Net Promoter Score rose to 63 in Q4 '24, 90-day repurchase rate increased 325 basis points, reflecting stronger customer loyalty.

Fourth quarter revenue was $45.7 million, down 23% year-over-year in USD and 2% in constant currency. Marketplace revenue for Q4 was $22.8 million, down 31% year-over-year and 11% in constant currency. First party sales revenue was $22.5 million, down 14% year-over-year but 8% in constant currency. Gross profit in Q4 was $23.9 million, down 36% year-over-year but 18% in constant currency. Fulfillment expense was $12.9 million, up 11% year-over-year. Sales and advertising expense was $4.8 million, down 24% year-over-year. Technology and content expense was $10 million, up 1% year-over-year. G&A expense (excluding share-based payment expense) was $12.9 million, up 5% year-over-year. Adjusted EBITDA was negative $13.7 million.

• Anticipates physical goods orders to grow between 15% and 20% year-over-year in 2025.
• Projects GMV to be between $795 million and $830 million in 2025, a year-over-year increase of 10% to 15% excluding foreign exchange impacts.
• Forecasts loss before income tax to be in the range of negative $65 million to negative $70 million in 2025, a year-over-year decrease of 28% to 33%.

• Macro headwinds affecting performance, including currency devaluations and cyclical nature of demand.
• Reduction in corporate sales, particularly in Egypt, which impacted revenue and gross profit.

Q: Brad Erickson asks about trends in Q1 and supply constraints.

A: Francis Dufay says the supply side is the challenge in markets, with ample demand but poor supply, and focus is on increasing supply and value for money.

Q: About the mix of 1P vs 3P sales.

A: Francis Dufay mentions decline in corporate sales (largely 1P) in Egypt due to macroeconomic uncertainty, and mix not expected to change drastically.

Q: Physical order growth and AOV mix shift.

A: Francis Dufay explains growth is driven by various levers, and mix shift is an opportunity for penetration in specific categories while maintaining unit economics.

Q: Impact of warehouse consolidation.

A: Antoine Maillet-Mezeray says consolidating warehouses improved efficiency and will lead to cost savings in 2025.

Q: Fixed cost base and volume for profitability.

A: Antoine Maillet-Mezeray states fixed cost structure requires volumes 2-3x current to achieve profitability.

Q: Balance sheet and inventory strategy.

A: Antoine Maillet-Mezeray and Francis Dufay mention increased working capital in Q4, which will moderate in future, helping fuel growth and supplier relationships.