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Jumia Technologies (NYSE:JMIA) stock is taking a beating on Tuesday after the African e-commerce company posted earnings results from its second quarter of 2024.
That Jumia Technologies earnings report starts off badly with its revenue of $36.5 million. That’s below Wall Street’s estimate of $41.7 million for the quarter. It’s also down 17% year-over-year (YOY) from $44 million.
Jumia notes that this comes from its marketplace revenue dropping 10% from Q2 2023 to $20 million. It also saw First-Party sales revenue drop 24% YOY to $16.1 million.
Despite the revenue drop, Jumia CEO Francis Dufay is putting a positive spin on the results:
“Our quarterly cash burn declined 55%, or $10.4 million, quarter-over-quarter to $8.7 million in the second quarter of 2024 as a result of disciplined cost management and reductions in finance costs. Year-over-year our marketing spend declined 19% as we continued to invest in proven channels, such as CRM, SEO and local offline channels.”
JMIA Stock: Guidance Reiterated
Jumia Technologies is still holding to its 2024 outlook. That includes expectations it will further reduce its cash utilization and and increase in orders and GMV for the year.
JMIA stock is down 47.9% as of Tuesday morning. However, the shares are still up 62.5% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
