Jumia Technologies Narrows FY23 Adj. EBITDA Loss Outlook, Thanks To Cost Savings: Details
Portfolio Pulse from Lekha Gupta
Jumia Technologies AG (NYSE:JMIA) reported a Q3 FY23 sales decline of 11.1% Y/Y to $44.9 million, missing analyst expectations. Orders, active consumers, TPV, and GMV all saw significant year-over-year decreases. However, gross profit margin improved slightly, and operating loss and adjusted EBITDA loss narrowed significantly due to cost savings. The company revised its FY23 adjusted EBITDA loss guidance to a narrower range. JMIA shares rose 8.68% to $2.86 following the report.
November 15, 2023 | 4:58 pm
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Jumia Technologies AG reported lower sales and volumes but improved margins and reduced losses due to cost savings. The company also provided a better-than-expected EBITDA outlook for FY23.
Despite the decline in sales and volumes, the market reacted positively to Jumia's improved profit margins and narrower losses, as well as the updated EBITDA guidance, which suggests a better financial trajectory. The positive price action reflects investor optimism in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100