1/n
$JMIA Some interesting facts.
* JumiaPay +58% in 2020 while GMV excl electronics +15%
Implication: JumiaPay adoption is running high
$JMIA Some interesting facts.
* JumiaPay +58% in 2020 while GMV excl electronics +15%
Implication: JumiaPay adoption is running high
2/n
$JMIA
CFDR (cancellations, failed deliveries, or returns) dropped from 30% of GMV to 25%.
The bearish thesis was that this would rise, not shrink.
There is tangible and material improvement.
(As a tentpole, $AMZM is 15%+ just for 'R.')
$JMIA
CFDR (cancellations, failed deliveries, or returns) dropped from 30% of GMV to 25%.
The bearish thesis was that this would rise, not shrink.
There is tangible and material improvement.
(As a tentpole, $AMZM is 15%+ just for 'R.')
3/n
$JMIA
On the call the CEO was very clear.
They will turn a profit first, likely within 3 quarters, then push to grow.
That's it.
They will prove the prejudicial voices wrong with a profit, and then grow with that as ammunition for any doubters about profitability.
$JMIA
On the call the CEO was very clear.
They will turn a profit first, likely within 3 quarters, then push to grow.
That's it.
They will prove the prejudicial voices wrong with a profit, and then grow with that as ammunition for any doubters about profitability.
4/n
$JMIA
As for the focus on profitability:
* Gross Profit per order: +15%
* Fulfillment Exp: -16%
* S&A per order: -33%
* Tech, G&A Exp per order: -28%
* Adj EBITDA loss per order: -46%
$JMIA
As for the focus on profitability:
* Gross Profit per order: +15%
* Fulfillment Exp: -16%
* S&A per order: -33%
* Tech, G&A Exp per order: -28%
* Adj EBITDA loss per order: -46%
5/n
$JMIA
While turning to profitability, the company saw market place e-commerce (like a Shopify model but they are the platform) grow 7%.
When they reach profitability in three quarters, that will then turn to growth (see prior tweets in thread).
$JMIA
While turning to profitability, the company saw market place e-commerce (like a Shopify model but they are the platform) grow 7%.
When they reach profitability in three quarters, that will then turn to growth (see prior tweets in thread).
6/n
$JMIA But...
... Jumia made a clever move.
They have to throttle expenses for market place, but can still grow in other places which may end up being bigger than e-commerce.
Check this out...
$JMIA But...
... Jumia made a clever move.
They have to throttle expenses for market place, but can still grow in other places which may end up being bigger than e-commerce.
Check this out...
7/n
$JMIA
Jumia introduced a new revenue stream in 2020 with the opening of Jumia Logistics platform to third parties.
Clever: Let other companies burn their cash on marketing, Jumia will deliver the final mile in an asset light logistics platform.
$JMIA
Jumia introduced a new revenue stream in 2020 with the opening of Jumia Logistics platform to third parties.
Clever: Let other companies burn their cash on marketing, Jumia will deliver the final mile in an asset light logistics platform.
8/n
$JMIA
Jumia logistics as a service role examples from large players:
1. Logistics provider for payment
cards distribution for Nigeria's first mobile-only bank licensed by the Central Bank (kuda).
$JMIA
Jumia logistics as a service role examples from large players:
1. Logistics provider for payment
cards distribution for Nigeria's first mobile-only bank licensed by the Central Bank (kuda).
9/n
$JMIA
2. Domestic shipping services to
deliver SIM Cards and other e-commerce products to customers of Medi Telcom a leading global telco operator, and one of 3 operators in Morocco.
$JMIA
2. Domestic shipping services to
deliver SIM Cards and other e-commerce products to customers of Medi Telcom a leading global telco operator, and one of 3 operators in Morocco.
10/n
$JMIA
3. Logistics solutions from Premier
Foods main warehouse in Nairobi to all their distribution centers across. Premier is a global food and packaged goods producer
$JMIA
3. Logistics solutions from Premier
Foods main warehouse in Nairobi to all their distribution centers across. Premier is a global food and packaged goods producer
11/n
$JMIA
Cash used in operations and investment was $27M.
Cash on hand now: $304M
For haters, that bankruptcy cry will go unsatisfied.
Jumia is here to stay.
Jumia will turn a profit.
Jumia will grow until then.
Jumia will grow faster after then.
$JMIA
Cash used in operations and investment was $27M.
Cash on hand now: $304M
For haters, that bankruptcy cry will go unsatisfied.
Jumia is here to stay.
Jumia will turn a profit.
Jumia will grow until then.
Jumia will grow faster after then.
12/n
$JMIA
The data that seems to have been missed.
Jumia introduced advertising on its e-commerce platform, like $AMZN does.
* Advertising revenue streams increased 30% year-over-year.
$JMIA
The data that seems to have been missed.
Jumia introduced advertising on its e-commerce platform, like $AMZN does.
* Advertising revenue streams increased 30% year-over-year.
13/n
$JMIA As a technologist, I so appreciate all of the tech stack, but we all have to realize that still, even today, the most powerfully monetized part of technology is...
... advertising:: wah wah sound effect
$JMIA As a technologist, I so appreciate all of the tech stack, but we all have to realize that still, even today, the most powerfully monetized part of technology is...
... advertising:: wah wah sound effect
14/n
There was no room in any bearish or bullish theses that Jumia could have a meaningful *advertising* business, and yes, they didn't share numbers (I think), buy they did share the +30% number and named the advertisers.
These were the world's largest companies.
There was no room in any bearish or bullish theses that Jumia could have a meaningful *advertising* business, and yes, they didn't share numbers (I think), buy they did share the +30% number and named the advertisers.
These were the world's largest companies.
15/n
$JMIA
But there were things I didn't love too.
* At such a low burn rate (11 quarters in cash), why not grow faster as of Q1 2021?
* Break out ad $ as an item
* Break out logistics as a service $ as an item
* Break out JumiaPay usage not on platform as an item.
$JMIA
But there were things I didn't love too.
* At such a low burn rate (11 quarters in cash), why not grow faster as of Q1 2021?
* Break out ad $ as an item
* Break out logistics as a service $ as an item
* Break out JumiaPay usage not on platform as an item.
16/n
$JMIA
As detail for advertisers:
"L’Oreal, Huawei, P&G, Intel, Exxon Mobil and many more."
$JMIA
As detail for advertisers:
"L’Oreal, Huawei, P&G, Intel, Exxon Mobil and many more."
17/n
$JMIA
But a closer look shows that GMV for other items (non electronics and phones) grew rapidly:
* Digital Services GMV grew 41% yoy
* Food Delivery GMV grew 32% yoy
$JMIA
But a closer look shows that GMV for other items (non electronics and phones) grew rapidly:
* Digital Services GMV grew 41% yoy
* Food Delivery GMV grew 32% yoy
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