The stock market reacted positively after Jumia shared its financial results for the fourth quarter of 2023, with shares of the Africa-focused e-commerce company closing at $4.56 on Thursday, a 41.18% jump.

Jumia cut its operating loss in Q4 2023 to $4.5 million after several significant strategic changes, but profitability remains elusive.

Metrics like Gross Merchandise Value (GMV), active customers and revenue declined compared to Q4 2022 figures, but shareholders are reacting positively to the fact that despite Jumia cutting its spend on advertising and promotions, revenue was up in constant currency terms.

One big positive in Jumia’s report is the reduction of its losses to the lowest in four years. The company has also had to make difficult business decisions in the last two years. It shuttered its food delivery business in December 2023. On Thursday, TechCabal exclusively reported that the company laid off employees in January 2024. 

CEO Francis Dufay talked about building a “leaner, more agile and more focused company.”

Macroeconomic conditions across many of its African markets has made business difficult withnflation and currency devaluation in some of its major markets like Nigeria and Egypt contributing to the reduction in the company’s GMV. 

One thing is clear: Jumia is keen on being profitable in 2024.

“We are seeing signs of stability and growth in other markets,” Dufay said on the earnings call.