Coupang, Inc. CPNG shares are trading higher premarket on Wednesday after the company reported third-quarter results on Tuesday.
Net revenues rose 27% year over year (+32% on an FX-neutral basis) to $7.9 billion, beating the consensus of $7.76 billion. Excluding Farfetch, net revenue growth was 20% on a reported basis and 25% FX-neutral.
Gross profit rose 45% to $2.3 billion, with a margin of 28.8%, up 350 bps. Excluding Farfetch, gross profit came in at $2.1 billion, up 33%, with a margin of 28.1%.
Adjusted EBITDA was $343 million, reflecting a margin of 4.4%, an increase of 50 bps year-over-year. Excluding Farfetch, adjusted EBITDA stood at $345 million with a margin of 4.6%.
Product Commerce segment net revenues came in at $6.9 billion, up 16% on a reported basis and 20% on an FX-neutral basis. Active customers in the segment reached 22.5 million, growing 11% in the quarter.
Adjusted EBITDA for the Product Commerce segment rose to $470 million, an increase of $71 million YoY, with a margin of 6.8%, up 10 bps YoY but down 140 bps QoQ.
Adjusted EPS of $0.06 topped the consensus of $0.01.
Operating cash flow and free cash flow for the trailing twelve months stood at $1.8 billion and $935 million, respectively.
Gaurav Anand, CFO of Coupang said, “Our newer offerings and categories, like Fulfillment and Logistics by Coupang (FLC) and R.Lux, a new luxury offering, are examples of the massive growth opportunity from selection expansion on Rocket Delivery.”
”We also achieved an important milestone in Developing Offerings this quarter, reaching near break-even profitability in Farfetch, earlier than planned.”
Apart from this, Coupang announced that its founder and CEO, Bom Kim, adopted a pre-arranged stock trading plan several months ago under SEC Rule 10b5-1 and Coupang’s stock transaction policies.
The plan allows Kim to sell up to 15,000,000 shares of Coupang Class A Common Stock, starting no earlier than November 11, 2024, subject to certain terms and conditions.
Investors can gain exposure to the stock via Advisor Managed Portfolios Miller Value Partners Appreciation ETF MVPA and ProShares Online Retail ETF ONLN.
Price Action: CPNG shares are down 8.18% at $24.69 premarket at the last check Wednesday.
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