Jumia harboured its first post-IPO earnings call and braved a short-sell assault in May, with Wall Street showing confidence in the Pan-African e-commerce company.
On the numbers, key takeaways were that Jumia’s Gross Merchandise Value( GMV) — the total amount of goods exchanged over the period — grew by 58% to EUR2 40 million. Marketplace revenue germinated 102% to EUR1 6 million, and gross profits as percentages per of GMV grew by 6.5% in Q1 2019.
Overall, Jumia’s operating losings for the period dilated to EUR4 5.4 million from EUR3 4.3, and negative EBITDAincreased to EUR3 9.5 million from EUR3 0.2.
So the startup’s still losing money — read the big losings reported in the IPO filing — but is improving its ability to earn.
CEO Sacha Poignonnec also shared a longer-term revenue strategy on Jumia’s Q1 earnings announce. The startup plans to convert its JumiaPay and Jumia Logistics capabilities to standalone business across Africa.
Founded in Lagos in 2012, the company currently controls severals online verticals in 14 African countries — from B2C buyer retail to travel bookings.
For Jumia, going public has been an up and down affair. After becoming the first tech startup operating in Africa to schedule on a major exchange( the NYSE in April ), the company ascertained its share rise 70% after schedule on the NYSE in April at $14.50.
Then in May, Jumia’s stock plummeted when it is a matter under assault from a short-seller, Andrew Left, who accused the company of fraud. On the earnings call the startup’s CEO responded to the short-seller claims saying,” Jumia stands by our prospectus and audited financials…and will not be distracted by all the persons who look…to profit at our expenditure .” Poignonnec later took to media and refuted declares as” grocery rumors rather than facts .”
Citibank analyst Andrew Howell published his own response, much of it discrediting Citron Research.
Overall, Wall street seemed confident in Jumia’s post-IPO results and outreach, with Raymond James and Berenberg upgrading their Jumia stock recommendations to buy-equivalent ratings. Jumia’s stock has remained stable since, closing at $25.81 Monday.