Jumia Technologies (NYSE:JMIA) shares are ticking higher in the early session today after the eCommerce company announced its results for the third quarter, with revenue declining by 11% year-over-year to $45 million.
The quarter was characterized by a 24.3% decline in Jumia’s number of active customers to 2.3 million, and a 23.2% drop in the number of orders processed on its platform to 7.2 million. Further, its GMV (Gross Merchandise Value) dropped by 25% to $81 million.
Still, the company managed to narrow its operating loss to $19 million from $43 million in the year-ago period. Jumia also lowered the net cash flows used in operating activities to $24 million from $54 million in the year-ago quarter. Amid a challenging macro environment, Jumia has been focusing on moving away from costly marketing channels and enhancing its supply in the key physical goods product categories.
Encouragingly, the company is seeing improved supply in its core categories and is witnessing positive growth in the GMV of physical goods in five of its eleven operating countries.
Buoyed by these green shoots of growth, the company has revised its expectations of adjusted EBITDA loss for Fiscal year 2023 to a range of $80 million to $90 million, compared to the previous outlook in the range of $90 million to $100 million.
What Is the Target Price for JMIA?
Today’s price gains come on top of a nearly 7% rise in Jumia shares over the past month. Meanwhile, Citi’s Catherine O’Neill, the sole analyst tracking Jumia, has reiterated a Hold rating on JMIA stock without setting a price target.
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