SEATTLE - Coupang, Inc. (NYSE:CPNG) reported second-quarter earnings that beat analyst estimates, but revenue fell short of expectations, causing the stock to drop 3% in after-hours trading.
The South Korean e-commerce giant posted adjusted earnings per share of $0.07, surpassing the analyst consensus of -$0.01. However, revenue for the quarter came in at $7.32 billion, missing the $7.4 billion estimate. Despite the revenue miss, Coupang's top line grew 25% YoY on a reported basis and 30% YoY on an FX-neutral basis.
Coupang's gross profit increased 41% YoY to $2.1 billion, with gross profit margin improving by 310 basis points to 29.3%. The company's Product Commerce segment, which includes its core e-commerce business, saw net revenues rise 13% YoY to $6.4 billion. Active customers in this segment grew 12% YoY to 21.7 million.
"This quarter we continued to see deeper levels of engagement from our customers, powered by our relentless focus on providing even greater levels of selection, service, and savings for customers," said Gaurav Anand, CFO of Coupang.
The company's Developing Offerings segment, which includes international operations, Coupang Eats, Play, Fintech, and Farfetch (OTC:FTCHQ), saw significant growth with net revenues up 472% YoY to $892 million. However, this segment reported an adjusted EBITDA loss of $200 million.
Coupang's overall adjusted EBITDA for the quarter was $330 million, with a margin of 4.5%, down 60 basis points from the previous year. The company's operating cash flow for the trailing twelve months increased by $250 million YoY to $2.2 billion.
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