Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Jumia's Results Conference Call for the Second Quarter of 2024. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. With us today are Francis Dufay, CEO of Jumia; and Antoine Maillet-Mezeray, Executive Vice President, Finance & Operations. We'll start by covering the safe harbor. We would like to remind you that our discussions today will include forward-looking statements. Actual results may differ materially from those indicated in the forward-looking statements. Moreover, these forward-looking statements may speak only to our expectations as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the risk factors that could cause actual results to differ from the forward-looking statements expressed today, please see the Risk Factors section of our Annual Report on Form 20-F as published on March 28, 2024, as well as our other submissions with the SEC. In addition, on this call, we will refer to certain financial measures not reported in accordance with IFRS. You can find reconciliations of these non-IFRS financial measures to the corresponding IFRS financial measures in our earnings press release, which is available on our Investor Relations website. With that, I'll hand it over to Francis.

Good morning, everyone, and thank you for joining us today. I will begin with an overview of our performance during the second quarter and will offer an update on our business and strategic objectives. I will then turn the call over to Antoine for a more in-depth look at our financials followed by Q&A. Building off of the momentum we saw in the first three months of the year, we delivered improvement in our usage KPIs in Q2 '24 and continued taking a diligent approach to cost management while further strengthening cash efficiency. As part of this, we continue to prioritize executing against our strategic initiatives and building healthy fundamentals. Importantly, our efforts are delivering results and our progress is evident in our second quarter performance. In Q2 '24, orders grew a solid 6.9% year-over-year and increased 4.9% on a sequential basis. GMV in constant currency grew 35% year-over-year, driven by more efficient market expense and continued efforts to enhance our product assortment. GMV in USD did decline by 5% year-over-year due to the impact of last quarter's devaluations in our two largest markets, Nigeria and Egypt. Devaluations also impacted top line revenue which declined 17.2% year-over-year in the quarter. However, we have seen some signs of stabilization in Egypt along with a sharp reduction of the spread between the official and parallel market rates. More importantly, our ability to drive GMV growth in constant currency illustrates that our value proposition is working. This is even more evident at the country level. In Q2 '24, six of our countries delivered GMV growth, up from 5% (ph) in the first quarter. For example, in Ghana, GMV grew 116.4% year-over-year in constant currency and was up 72.1% year-over-year in USD. This further validates that our strategy and value proposition are well suited…

Thank you, Francis, and thank you, everyone for joining us today. I will now provide an in-depth look at our second quarter results. Starting with the top-line. Revenue was $36.5 million, down 17.2% year-over-year and up 15% on a constant currency basis. Marketplace revenue was $20 million, down 10.1% year-over-year, or up 27.2% on a constant currency basis, primarily impacted by Nigeria's currency devaluation in the first quarter and partially offset by higher commissions. Diving a little deeper, while Nigeria's currency devaluation dampened revenue, we did see improvement across our revenue drivers in constant currency. Value added services was $3.6 million, up 3.7% in constant currency. Fulfillment revenues was $3.8 million, up 14.1% in constant currency. And commissions was $10.2 million, up 62.9% in constant currency, driven primarily by third-party corporate sales in Egypt. Revenue from first-party sales was $16.1 million, down 23.8% and up 4% on a constant currency basis, primarily driven by a decrease in corporate sales in Egypt. Gross profit for the quarter was $21.6 million, down 5.7% year-over-year or up 34.5% on a constant currency basis. Gross profit margin as a percentage of GMV remained relatively stable at 12.7% compared to 12.8% in Q2 '23. These results were driven primarily by the currency devaluation in Nigeria, offset by 17% year-over-year reduction in customer incentives and promotions in the quarter as part -- as our improved marketing spend efficiency. Looking at expenses, we continue to improve our cost base with fulfillment expenses of $9.3 million, down 12.2% year-over-year and up 17.7% on a constant currency basis. Fulfillment expense per Order, excluding JumiaPay app Orders, which do not incur logistics cost, decreased 15.9% year-over-year, but increased 12.6% on a constant currency basis. The increase in constant currency was primarily driven by fuel cost, which are priced in USD…

Thanks, Antoine. Based on our continued strong performance, we are reiterating our outlook for 2024. We remain committed to reducing our losses and accelerating our progress towards cash efficiency and profitable growth. Specifically, we aim to further reduce our cash utilization as compared to full year '23. And based on the positive impact of our growth strategy, Jumia projects an increase in both orders and GMV in 2024, excluding the potential impact of foreign exchange. As we move forward, we are confident in Jumia's future and our ability to accelerate our growth. We have the right plan and the right team to advance on the path towards profitability and look forward to keeping you updated on our progress. We can now open the call for Q&A.

Thank you. At this time, we will be conducting a question-and-answer session. [Operator Instructions] Your first question for today is from Fawne Jiang with Benchmark.

Hi. Hey, Francis, Antoine. Thank you for taking my questions. A couple here. First, in terms of growth, GMV growth was very solid in second quarter. I think Francis did point out, you know, a few factors. I just wonder, going forward, in terms of sustainability [Technical Difficulty]

Hello?

One moment, please. It looks like her line disconnected. Fawne, your line is unmuted. Fawne?

Hey. Can you guys hear me? Yep. Can you guys hear me now?

Yes.

All right. Just quickly repeat my question earlier. So in terms of sustainability of your GMV growth, it seems like you have more countries which growing in the second quarter versus first quarter. So are we looking for more countries to -- you know, to be growth countries or are we looking at higher growth on the existing, you know, growth countries? So in other words, whether it's from country perspective, category perspective, any color in terms of sustainability, as well as the magnitude of your GMV growth? That would be very helpful.

All right. So thanks a lot, Fawne. So looking at GMV growth this quarter and overall usage growth, we are pleased to see continued acceleration on all usage KPIs that we see as most relevant, being the stabilization of the active consumer base, being growth in Orders by 7% year-over-year, which is a continued improvement over the past five quarters, and GMV growth in local currency, which is up by 35%, very close to what we had last quarter. We do not foresee any reason why this would not be sustainable. And maybe let me remind you of some of the factors that are behind -- that are behind that, and that makes me say that we believe this is sustainable. We are rolling out the same actions and similar actions across all markets with what we see as similar impacts. So we mentioned the example of other countries and the expansion that we're doing in smaller cities. And, and as we push -- we gave, we gave the example of Kenya and Nigeria. As we push -- I mean, as we roll out the same actions and tactics that we started in other countries before, we're seeing similar impacts and positive growth in those, in those cities. So bottom line, as we, as we roll out and we execute with the right quality of execution, our plan across countries, we see similar impact, and we benefit from kind of compounded impact of those actions. I think we've been operating in Africa for over 10 years now. We know how to navigate all macro challenges that have happened over the past two years. And we see very clearly that the action plan and the strategy that we've laid out for the Company is working in more and more countries. So going forward, yes, we expect countries to -- I mean, we expect the Group to accelerate. We expect countries to be growing. I cannot comment or guide on numbers and number of countries or level of growth. But bottom line, our actions that are being rolled out have delivered impact and will keep on delivering more impact. So we, we don't see any issue -- any reason why we cannot sustain growth in the future.

Understood. Thanks, Francis. Second question, especially regarding your monetization, your peak rate, if I calculate correctly, your marketplace commission rate, it was, you know, growing year-on-year, but it seems like a fairly big decline quarter-on-quarter. Any driver behind it? And how should we think about your commission rate -- you know, the take rate going forward?

So I will share the answer with Antoine. Looking at our -- looking at our marketplace and commissions, we've kept our commissions fairly stable across the marketplace over the past year and a half. We want to provide our vendors with stabilities, so we make sure that we incentivize them to bring more supply to our platform and we can enhance our assortment and value proposition. That's our very clear business priority, making sure we deliver a better value proposition. And it comes with providing stable environment for vendors. I will let Antoine comment on taking technical and financials here.

Yes. On the year-over-year variance, we are pretty stable because of what Francis just said. And if we compare to Q1 '24, the decrease is mainly due to the corporate sales in, in some countries like Egypt.

Got you. Any color going forward?

I think -- I mean, we intend to keep our GP1 stable around this quarter percentage, but we will, we will keep on working on capturing the opportunities in, in, in corporate sales, which may be a boost. But as, as Francis said, we do not want to increase monetization because it would hurt the vendors' participation to the, to the ecosystem.

Got you. My next question is actually regarding your sales and marketing. Noticed that there was a moderate uptake, your sales and marketing spending quarter-on-quarter. I just wonder, you know, how should we look at sales and marketing spending going forward, especially in combination with your capital raising? Are we expecting you're reaccelerating the growth? I mean, one, you know, sales and marketing activities? And secondly, what level of, I think, customer --active customer growth could we anticipate?

Yeah. So, indeed, you noticed that we spent a little more in marketing this quarter than, than in the previous quarter. In this specific quarter in Q2 '24, it was meant as a, as a slight boost, so we could support our second biggest commercial event of the year, which is Jumia's Anniversary Sale, which worked well as you can see in the, in the usage KPIs. Going forward, I mean, we -- and particularly in, in light with the, with the, with the new shares offering, we want to make sure that we have the opportunity to accelerate on customers acquisition, which may happen through increased spend in marketing, of course. So we want to make sure that we can grow our customer base, which we've just stabilized this quarter, which is quite a milestone for Jumia because they've been shrinking for a while and, and we believe that now we can capture, of course, a lot more consumers across the African continent. We're working within countries with over 600 million people, so we can have a much bigger customer base and definitely new customers acquisition will be an important topic for us in the coming quarters. As we believe that we've made significant progress on quality of service, expanding the supply chain and enhancing our assortment and value proposition, it may be the right time, indeed, to accelerate in customer value proposition which will mobilize marketing budgets, indeed.

Got you. That's it. Thank you so much.

Thank you, Fawne.

This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.