Earning Date, Transcript Summary & Report

Strategic Growth Progress: Overall, 2024 was a year marked by continued progress against our strategic growth initiatives.

Core Marketplace Growth: Excluding South Africa and Tunisia, our core marketplace business accelerated in Q4 '24, with physical goods order growth of 18% year over year.

Active Customer Growth: Quarterly active customers increased by 8%, underscoring the strength of our platform and the value we deliver.

Reduced Marketing Spend: Marketing spend was reduced from $6.2 million in Q4 '23 to $4.8 million in Q4 '24, demonstrating commitment to cost-efficient marketing strategies.

Black Friday Sales Impact: The Black Friday sales event was a key growth driver, showcasing our ability to meet customer demand effectively.

International Sourcing Growth: 3.4 million gross items sourced from international sellers, mostly from China, accounted for 31% of gross items, up 61% year over year.

Customer Loyalty Improvement: Net Promoter Score rose to 63 in Q4 '24, a 17 points year-over-year increase, reflecting stronger customer loyalty and satisfaction.

Customer Retention Improvement: 40% of new customers who placed an order in Q3 '24 made another purchase within 90 days, up from 37% in Q3 2023.

GMV Growth Resilience: Despite macroeconomic headwinds, GMV grew 13% year over year in constant currency, indicating resilience in demand.

Top-Line Growth Strategy: In 2025, we will focus on driving top-line growth and achieving broader operational efficiencies to enhance profitability and strengthen cash flow.

Upcountry Order Increase: Upcountry orders accounted for 56% of Q4 '24 and 54% of full year 2024 orders, up from 49% and 48% in Q4 '23 and full year '23, respectively.

International Sales Growth: $9.5 million gross items sold from international sellers, mostly from China, accounted for 28% of gross items, up 38% year over year.

J-Force Agent Growth: The number of active J-Force agents reached 29,000 in Q4 '24, representing a 39% increase year over year.

Gross Profit Achievement: We are delivering positive gross profit after deducting all full shipment expenses, with $57.6 million in 2024, which is 8% of total GMV.

Projected Order Growth: We anticipate physical goods orders to grow between 15% and 20% year over year in 2025, reflecting strong demand driven by strategic initiatives.

Sales Performance Decline: GMV declined 12% in USD, indicating a significant drop in overall sales performance.

Q4 Revenue Decline: Revenue in Q4 was $45.7 million, down 23% year over year, reflecting a challenging market environment.

Decline in Adjusted EBITDA: Adjusted EBITDA was negative $13.7 million, a substantial decline from the previous year, indicating worsening operational performance.

Continuing Operations Loss: Loss before income tax from continuing operations was $17.6 million, slightly higher than the previous year, showing ongoing financial struggles.

Decline in Average Order Value: Average order value for physical goods orders decreased from $45.5 to $35.5, suggesting reduced consumer spending.

Quarterly Cash Burn Increase: Cash burn for the quarter was $30.6 million, an increase from $26.8 million in the previous year, highlighting cash flow issues.

Rising Fulfillment Expenses: Fulfillment expenses increased by 11% year over year, indicating rising operational costs despite efforts to streamline operations.

Marketplace Revenue Decline: Marketplace revenue for Q4 was down 31% year over year, reflecting a significant decline in sales from this segment.

Gross Profit Margin Decline: Gross profit margin decreased to 12% from 16% in Q4 '23, indicating reduced profitability on sales.

Gross Profit Decline: The company experienced a $13.2 million decline in gross profit, primarily due to reduced corporate sales in Egypt.