Jumia Technologies AG – ADR (NYSE: JMIA) stock price fell 7.61% after its Q3 earnings results were released.
The e-commerce company reported a 28% increase in customer orders, which were 8.5 million compared to Q3 2020 when it recorded 6.6 million orders.
Jumia’s annual active customers grew 8.1% to 7.3 million compared to the 6.7 million active users in Q3 2020.
The company’s gross profits fell to $ 25.5 million compared to the $27.1 million generated in a similar period last year. However, its net profits after deducting fulfilment expenses fell to $3.5 million compared to the $7.6 million generated last year.
Jumia’s sales and advertising expenses surged 227.9% to $24 million compared to the $7.3 million used last year. In addition, its technology and content expenses rose to $9.4 million versus the $7.4 million recorded last year.
Sacha Poignonnec and Jeremy Hodara, Jumia’s Co-CEO’s, commented: “We are pleased to see growth acceleration during the third quarter of 2021 across all reported usage KPIs. Orders for the quarter reached an all-time high of 8.5 million, accelerating by 28% year-over-year, the fastest growth rate of the past seven quarters. Annual Active Consumers reached 7.3 million, up 8% year-over-year. As a result of the acceleration in consumers and orders, we are reaching an inflection point in the GMV trajectory leading to an increase in GMV of 8% year-over-year, reaching $238mm,”
They added:
“Our growth acceleration strategy initiated at the end of the second quarter of 2021 is starting to pay off. We are making investments in Sales & Advertising and Technology to further enhance consumer education, brand consideration, as well as the relevance and convenience of our platform.”
*This is not investment advice.
Jumia stock price.
Jumia Stock’s price fell 7.61% premarket to trade at $17.11, falling from Monday’s closing price of $18.52.
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