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Coupang outperforms analyst projections

Published 2024-02-27, 04:34 p/m
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CPNG
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NEW YORK - Coupang, Inc. (NYSE: CPNG) delivered a robust fourth quarter, surpassing Wall Street expectations with its earnings and revenue figures. The e-commerce giant reported an adjusted earnings per share (EPS) of $0.08, outperforming analyst projections by $0.02. The company's revenue for the quarter reached $6.6 billion, topping the consensus estimate of $6.4 billion.

The reported net revenues represent a significant 23% increase year-over-year (YoY) and a 20% rise on an FX-neutral basis. The growth could have been even higher, an estimated 940 basis points more, if not for an accounting change in FLC revenue that the company started recording on a net basis from the second quarter of 2023. Gross profit saw an impressive 32% YoY increase to $1.7 billion, with the gross profit margin improving by 160 bps YoY to 25.6%.

Coupang's active customer base grew by 16% YoY, surpassing 21 million. The company's founder and CEO, Bom Kim, attributed the growth to Coupang's focus on creating 'wow' moments for customers through selection, price, and service. He highlighted that the company provided a record $3 billion in benefits and savings to WOW members during the year, offering relief amidst high inflation.

Following the earnings release, Coupang shares experienced a positive market response, climbing over 3.69%

Coupang's CFO, Gaurav Anand, expressed pride in the team's achievements and optimism about the company's future prospects. He noted the company's relatively small market share in Korea and Taiwan, suggesting ample room for growth.

Investors have responded positively to the earnings news, with Coupang's stock price rising by 4.06% as a reflection of the earnings and revenue beat. This uptick suggests that the market is confident in the company's ability to continue delivering strong financial results.

The company's financial success in the fourth quarter is a testament to its strategic focus on customer satisfaction and expansion in its service offerings. As Coupang continues to capitalize on its market position and invest in its WOW membership program, it remains poised for further growth and shareholder value creation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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