Sam Boughedda

Investing.com — African ecommerce company Jumia Technologies AG The stock of (NYSE:) plunged sharply after the company reported third quarter earnings on Tuesday.

Following the news, Jumia stock fell to $14.41. At $14.77, it is down currently by 20.2%.

This tech startup, which is primarily focused on Africa, was listed on the New York Stock Exchange 2019. It reported positive customer growth with an increase of 8% in annual active customers to 7.3million, an 8 percent increase year-over-year. Orders grew by 28% over the same period.

The company’s adjusted earnings prior to interest, taxes and depreciation increased by 94% and 93%, respectively, year-over-year. 

The quarter’s orders reached an all-time record of 8.5 million. This was 28% more than the previous 7 quarters. The number of annual active consumers increased by 8% to 7.3million. Due to the rapid growth in orders and consumers, we have reached an inflection in our GMV trajectory, leading to an increase GMV of 8% annually, at $238mm,” commented Sacha Poignonnec (CEOs, Jumia).

“Our growth acceleration strategy, which we initiated in the last quarter of 2021, is beginning to pay off. We are making investments in Sales & Advertising and Technology to further enhance consumer education, brand consideration as well as the relevance and convenience of our platform,” they added

Company stated that it is concentrating on growing the use of the platform. The company will invest more in advertising and technology in the fourth quarter.

Jumia, however, warned that there is “substantial uncertainty” regarding the operational environment and the future financial outlook due to the Covid-19 epidemic and other macroeconomic problems.