Why Jumia Technologies Jumped This Week
Shares of Jumia Technologies (NYSE: JMIA) jumped as much as 33.6% this week, according to data from S&P Global Market Intelligence. The African e-commerce company reported better-than-expected earnings, driving investors to bid up the stock. As of this writing, shares are up 22% this week.
Jumia reported its second-quarter earnings on Aug. 10. Revenue grew 42.5% year over year to $57.3 million. This was driven by a 25% growth in active customers to 3.4 million and a 31% growth in total payment volume (TPV) to $74.2 million. The revenue growth was better than analysts expected for the period, a big reason Jumia's stock price jumped the day after the results came out.
While revenue growth looked solid, profitability has still been hard to find for this company. Gross profit only grew 13.6% in the period to $30.4 million and operating loss was $67.7 million, or over 100% of revenue. Operating loss widened from $51.6 million in the year-ago period.
Source Fool.com
