Investing.com — African e-commerce company Jumia Technologies AG (NYSE:JMIA) has seen a sharp selloff in its shares after it reported its third quarter earnings before the bell on Tuesday.
Jumia’s stock hit a low of $14.41 following the report. It is currently down 20.2%, at $14.77.
The company, an Africa-focused tech startup that listed on the New York Stock Exchange 2019, reported positive customer growth, with annual active consumers increasing to 7.3 million, up 8% year-over-year. Meanwhile, orders increased by 28% year-over-year.
However, the company’s adjusted earnings before interest, taxes, depreciation and amortization, and operating loss during the quarter increased 94% and 93% year-over-year, respectively.
“Orders for the quarter reached an all-time high of 8.5 million, accelerating by 28% year-over-year, the fastest growth rate of the past 7 quarters. Annual Active Consumers reached 7.3 million, up 8% year-over-year. As a result of the acceleration in consumers and orders, we are reaching an inflection point in the GMV trajectory leading to an increase in GMV of 8% year-over-year, reaching $238mm,” said Jeremy Hodara and Sacha Poignonnec, co-CEOs of Jumia.
“Our growth acceleration strategy initiated at the end of the second quarter of 2021 is starting to pay off. We are making investments in Sales & Advertising and Technology to further enhance consumer education, brand consideration as well as the relevance and convenience of our platform,” they added
The company said it is focused on accelerating usage growth on the platform. As a result, in Q4 it will increase investments in Sales and Advertising, Technology and staff costs expenses.
However, Jumia warned that the ongoing Covid-19 pandemic and macroeconomic challenges result in “substantial uncertainty” concerning the operating environment and financial outlook.