Jumia Technologies AG announced its third-quarter results for 2024, revealing a mixed performance amid ongoing strategic adjustments. The company reported a revenue decline of 13% year-over-year, totaling $36.4 million, although marketplace revenue increased by 7% to $20.6 million.
Active customer counts rose by 1% to 2 million, marking the first year-over-year increase since Q3 2022. The 90-day repurchase rate improved by 304 basis points, indicating enhanced customer retention without reliance on promotions.
Jumia's gross merchandise volume (GMV) grew by 29% in constant currency but decreased by 1% in reported currency, primarily due to currency devaluations in Nigeria and Egypt. The company is in the process of consolidating several fulfillment centers across key markets, including Ghana and Nigeria, to improve efficiency and reduce delivery times.
The operating loss for Q3 2024 stood at $20.1 million, compared to $18.3 million in the same quarter last year. Adjusted EBITDA loss increased to $17 million, influenced by the absence of a one-time provision release from the previous year.
In a significant strategic move, Jumia announced its exit from the South African and Tunisian markets, where the company faced unique challenges and lower market potential. This decision aims to concentrate resources on more promising markets.
Looking ahead, Jumia remains focused on enhancing its logistics network and leveraging technology to improve customer experience. The company aims to further reduce cash utilization in 2024 while preparing for its annual Black Friday event, which runs from November 1 to November 30.