In its Q1 2024 earnings report, Jumia indicated an upward trajectory in revenue and gross merchandise volume (GMV), though it faced a decline in quarterly active customers. The company's revenue climbed 19% year-over-year (57% in constant currency) to $48.9 million, while GMV increased by 5% year-over-year (39% in constant currency) to $181 million.

Despite a nearly 5% drop in active customers—from 2 million to 1.9 million—due to scaled-back customer incentives and reduced shipping costs, Jumia managed to cultivate a more engaged and higher-quality customer base, leading to an increased repurchase rate. The average order value grew by 3%, hitting $39.6 million. Moreover, Jumia saw a 1.9% rise in quarterly orders, totalling 4.6 million, bolstered by enhancements in supply and product diversity.

"This quarter marks a return to growth in GMV and orders after a period of scepticism about our ability to grow amidst significant operational cuts. With a significantly reduced workforce—down 40% since late 2022—we've not only sustained but grown, underscoring the untapped market potential,"

explained CEO Francis Dufay in reaction to the report

The revenue increase was driven largely by sales of high-ticket items such as electronics and home goods, alongside higher commissions and corporate sales. The GMV gains reflect more effective marketing strategies and leaner customer incentives, with marketing expenditures down 30% from the previous year's first quarter.

Jumia's strategic cost management and logistics optimization also led to a reduction in its quarterly cash burn to $19.1 million, down from $22.0 million in Q1 2023. This fiscal discipline resulted in a 71% decrease in operating loss and an 83% reduction in adjusted EBITDA loss, to $8 million and $4 million respectively.

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A pivotal factor in Jumia's path to profitability has been the expansion of JumiaPay, which saw orders involving physical goods rise from 20% to 32.5%. The continued rollout of JumiaPay, particularly on delivery services in Nigeria and Kenya, has bolstered cashless transactions, with JumiaPay transactions growing 52% year-over-year, and total processing volume (TPV) increasing by 10% year-over-year to $45.4 million.

As of Q1 2024, Jumia reported a liquidity position of $101.5 million, comprising $28.6 million in cash and cash equivalents and $72.8 million in financial assets, with 79% of this liquidity in USD, shielding the company from local currency fluctuations. Notably, the firm incurred a $5.9 million loss due to currency translation impacts, primarily from devaluations in Egypt and Nigeria, its key markets.