Pan African Online shopping Mall Jumia has published its financial report of Q3 indicating an increase in the number of orders and revenue.
In the report published online yesterday on November 16, orders made on Jumia reached an all time high of 8.5 million, representing a 28% year-over-year growth while the total value of goods sold in Jumia rose by 8.1% to $238 Million.
Revenue in the third quarter grew by 8.5%, from $39.3 million in Q2 to $42.7 million in Q3, beating the expected $40.2 million revenue.
Despite an increase in total value of goods sold, orders and revenue, compounding losses increased to $52.5 million EBITDA (Earnings before Interests, Taxes and Depreciation) and a net loss of $64 million over all.
As a reaction to the loss, stock prices fell from $17.52 to $14.96 representing a 19.22% fall.
The loss came as a result of increased aggressive advertisement where the amount of money used in advertisement reached $24 Million which is an increase of 228% from last year’s third quarter. Technology and content expenses increased by 27% to $9.4 million, as indicated by the company in the report.
In 2019, Jumia became the first African start up to list on New York Stock Exchange, 7 years after its founding. Jumia has since then closed markets in Rwanda, Tanzania and Cameroon. The company’s stock price was at $14.5 at IPO and peaked at $50 before crushing to just below $5 by the end of the year, having rose to $22 by the end of the 2020 increasing the companies Market cap to $2.1 Billion, the stock price has been on a free fall since the start of 2021.