Jumia sets 18 November results date. What its sales figures will tell readers

Jumia Technologies plans to release its third-quarter results on Wednesday, 18 November, before the US stock market opens. The company announced the date on 4 November. Management will discuss the results in a live webcast on its investor relations website at 8.30am US Eastern time, or 2.30pm in Nigeria.

For readers following Nigerian online shopping, the first number to check is what the company calls gross merchandise value, or GMV. Jumia’s definition counts the value of orders placed for goods and services, including shipping fees and value-added tax. It counts them before discounts or vouchers are deducted, even if an order is cancelled or returned.

That is a measure of activity on the platform. It cannot tell you how much Jumia kept from the transactions. For example, an order placed with an independent seller contributes to the value passing through the marketplace. The full price of that order need not be revenue for the company that operates the marketplace.

Jumia’s previous report shows how wide the difference can be. For the quarter that ended on 30 June, the group reported $216.3 million in GMV, $52 million in revenue and $30.7 million in gross profit. After operating expenses, it recorded an operating loss of $12.4 million. The figures describe different stages of the business during the same three months.

Geography matters too. Jumia separately reported that Nigerian GMV rose 36 per cent and orders rose 34 per cent compared with the corresponding quarter a year earlier. Those percentages describe growth in Nigeria. They do not turn the group’s $216.3 million figure into a Nigerian total or tell readers the group’s result for the next quarter.

What it means for you. When the November release appears, check whether a headline measures the number of orders, their value, company revenue or profit. Then check the countries and the comparison period. Wednesday’s announcement gives a date for the results. The June figures provide a worked example of how to read them, not a prediction of what the new numbers will be.