Coupang Shares Decline Following Third Quarter Earnings

SEATTLE - Coupang, Inc. (NYSE:CPNG) announced third-quarter earnings that exceeded analyst expectations, but the company's stock fell 3.5% in after-hours trading.

The South Korean e-commerce giant reported an adjusted earnings per share of $0.06, compared to analyst estimates of $0.01. Revenue for the quarter came in at $7.87 billion, surpassing the consensus estimate of $7.77 billion, reflecting a 27% year-over-year increase on a reported basis and a 32% increase on a constant currency basis.

Gross profit rose 45% year-over-year to $2.3 billion, while the gross profit margin increased by 350 basis points to 28.8%. The Product Commerce segment, which includes the company's core e-commerce business, saw net revenues rise 16% year-over-year to $6.9 billion.

Coupang's CFO, Gaurav Anand, commented on the results: "In this quarter, we achieved solid growth in revenues and margins, maintaining the strong momentum we have seen throughout the year."

The company's international operations, under the Emerging Offerings segment that includes Coupang Eats and Farfetch, recorded significant growth with net revenues increasing by 347% year-over-year to $975 million. However, this segment reported an adjusted EBITDA loss of $127 million, an increase of $34 million from the previous year.

Coupang's active customer base in the Product Commerce segment grew 11% year-over-year to reach 22.5 million. The company also noted that its new services, such as Fulfillment and Logistics by Coupang (FLC) and luxury offering R.Lux, present significant growth opportunities.