Jumia Technologies AG (NYSE:JMIA) Q3 2021 Earnings Conference Call November 16, 2021 8:30 AM ET
Company Participants
Sacha Poignonnec – Co-CEO
Jeremy Hodara – Co-CEO
Safae Damir – Investor Relations
Conference Call Participants
Aaron Kessler – Raymond James
Lamont Williams – Stifel
Joshua Korn – Mastercard Capital
Sarah Simon – Berenberg
Sacha Poignonnec
To accelerate the development of products and features for an even more engaging and seamless user experience, as well as of course, the development of JumiaPay. We are comfortable with the increased level of loss given the strength of first unit economics that will come in a minute. The good signs of growth than we have just seen. And of course, our cash position of $584 million at the end of the quarter. Now, let's review on Page 6, the unit economics, which obviously are a key enabler for these growth investments. On this page, you can see that the average order value now stands at $28. As we continue to shift our mix towards more of the everyday product categories.
An entire land, our gross profit after fulfillment expenses, excluding consumer incentives, which are given from revenues, stands at $1.3 per older, which represents 4.6% of the value of each older. 2 years ago, same numbers were $0.5 and 1.2%. Given this -- given the strength of the unit economies, we are investing more into scaling the platform and this includes targeted investments in consumer adoption. We can see on this chart that we have increased consumer incentives to $0.9 per order, which -- a level which is similar to the ones that we had 2 years ago. And our sales and advertising for order are now standing at $2.8. We believe that we have very strong unit economics. And this will continue to allow us to invest into scaling the platform. With this, let me now hand over to Jeremy, who will give us more details [Indiscernible]
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