Jumia Technologies AG (NYSE:JMIA) shares are trading higher after the company reported fourth-quarter FY23 financial results.

Revenue declined 2% Y/Y and was up 28% in constant currencies to $59 million in the quarter.

Marketplace revenue declined 10% Y/Y to $32.9 million in the quarter. Orders decreased by 3.7% Y/Y to 6.6 million, and quarterly active consumers fell 16.3% Y/Y to 2.3 million.

Total payment value (TPV) decreased 9.9% Y/Y to $59.3 million. The gross merchandise value (GMV) plunged 7.6% Y/Y to $233.3 million.

Gross profit dropped 0.6% Y/Y to $37.1 million, with profit as a percentage of GMV reaching 16% vs 15% a year ago, aided by improved margins and reduced spending on customer incentives and promotions.

Operating loss narrowed to $(4.5) million from $(44.7) million the prior year on significant cost reductions. Adjusted EBITDA loss narrowed 98.5% Y/Y to $(0.6) million.

As of December 31, 2023, the company held $35.5 million in cash and cash equivalents and $85.1 million in term deposits and other financial assets.

Outlook: Jumia expects an increase in orders and GMV in 2024, excluding the potential impact of foreign exchange.

Also Read: Jumia Technologies Narrows FY23 Adj. EBITDA Loss Outlook, Thanks To Cost Savings: Details

Price Action: JMIA shares are up 34.4% at $4.34 on the last check Thursday.