The future of Jumia is JumiaPay. I see the double play between Alibaba & Alipay, and Flipkart & PhonePe, developing here. Jumia is so confident of the promise of JumiaPay that it reports its numbers separately. JumiaPay hit €35.5 million TPV (total payment volume) over 2.3 million transactions in Q1 2020. The GMV dropped 11% to €190 million year on year indicating that Covid-19 did not provide any “advantage” to ecommerce operations in Jumia markets. No one can ascertain anything even with the shrinking of operating loss by 4%, year on year, to €43.7 million.
More below from the earnings report.
Adjusted EBITDA loss decreases by 10% year-over-year, reaching its lowest level in the past 6 quarters. Operating loss decreases by 4% year-over-year
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Jumia Technologies AG (NYSE: JMIA) (“Jumia” or the “Company”) announced today its financial results for the quarter ended March 31, 2020.
Results highlights
- Usage growth
- Annual Active Consumers reached 6.4 million, a year-over-year increase of 51%.
- Orders reached 6.4 million, a year-over-year increase of 28%.
- GMV was €190 million, a year-over-year decrease of 11% compared to GMV adjusted for perimeter changes as well as previously reported improper sales practices of €214 million in the first quarter of 2019. This trajectory was attributable to the continued effects from the business mix rebalancing initiated in 2019 as well as the supply and logistics disruption caused by the COVID-19 pandemic.
- JumiaPay development
- TPV reached €35.5 million, a year-over-year increase of 71%, taking on-platform TPV penetration from 10% in the first quarter of 2019 to 19% in the first quarter of 2020.
- JumiaPay Transactions reached 2.3 million, a year-over-year increase of 77%, representing 35% on-platform penetration in terms of Orders.
- Monetization development
- Gross profit reached €18.4 million, a year-over-year increase of 21%.
- Cost efficiency
- Gross profit after Fulfillment expense reached a record €2.5 million, compared to less than €0.1 million in the first quarter of 2019.
- Sales & Advertising expense was €8.9 million, the lowest level since 2017, and a year-over-year decrease of 25%. 12-month Sales & Advertising expense per Annual Active Consumer decreased by 26% from €11 in the first quarter of 2019 to €8 in the first quarter of 2020.
- Adjusted EBITDA loss was €35.6 million, the lowest level in the past 6 quarters and a year-over-year decrease of 10%.
- Operating loss was €43.7 million, a 4% decrease year-over-year.
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Let them keep pushing, if what they reported was what happened, then there’s a future for Jumia.
If Jumia is seeing its future on payment, then we need to start looking for another ecommerce company, the major friction that needs fixing is ecommerce, and not payment, irrespective of how great it performs on the latter.
Nothing showed that the Covid-19 offered any advantage, so it’s like a traditional store reporting its numbers; the ‘ecommerce’ is still in name only, for now.