Why Jumia Stock Popped Today
Shares of African e-commerce company Jumia Technologies (NYSE: JMIA) popped on Wednesday after a very promising financial report for the second quarter of 2022. In relative terms, the company showed improvement in most every performance metric. And that's why Jumia stock was up 13% as of 10:15 a.m. ET.
In Q2, Jumia's revenue was up 42.5% year over year to $57.3 million. And its operating loss only increased 31.3% from the prior-year period, reaching $67.7 million. Operating losses aren't ideal. But in relative terms, it's good to see revenue growth outpace growth in operating expenses.
Key performance indicators were also positive. Active customers, orders, merchandise volume, and payment volume were all up, not just year over year, but also up from the previous quarter. Moreover, its fulfillment expenses dropped from the first quarter, suggesting it's gaining a little operating leverage in its logistics network with growth.
Source Fool.com
