CPNG - Coupang stock slides after Q3 earnings miss

2023-11-08 06:01:40 ET

Coupang ( NYSE: CPNG ) shares fell ~7% premarket on Wednesday after the online retailer's third quarter earnings missed analysts' estimates.

The company reported stronger revenue growth in the quarter but its earnings of $0.05 per share, consistent with the prior year, fell short of Wall Street estimates.

Total net revenues grew 21% year-over-year this quarter or 18% in constant currency to $6.2B, exceeding consensus estimates. Active customers surpassed 20.4M, growing at 14% Y/Y. Coupang ( CPNG ) has added 2.3M customers so far this year.

Gross profit margin for the quarter was 25.3%, growing over 110 basis points year-over-year but decreasing nearly 80 basis points quarter-over-quarter. This was driven by improved margin within Product Commerce segment, primarily offset by the increased investments in Developing Offerings segment.

However, adjusted EBITDA margin of 3.9% for Q3 was essentially flat year-over-year and down nearly 130 basis points quarter-over-quarter.

In an earnings call , the management said, "While there may not always be quarterly improvements, we expect to continue generating meaningful improvements in consolidated adjusted EBITDA dollars and margin on a full-year basis, while investing into our nascent growth opportunities in Developing Offerings. We are confident in our ability to achieve our entitlement adjusted EBITDA margins of over 10%."

More on Coupang

• Coupang, Inc. (CPNG) Q3 2023 Earnings Call Transcript
• Coupang: A Leading E-Commerce Player With Expanding TAM And Improving Profitability
• Coupang's Strategic Focus: Customer Expansion And Profitability
• Coupang Q3 2023 Earnings Preview
• Seeking Alpha’s Quant Rating on Coupang

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