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Coupang reported Q2 EPS of $0.08, beating the analyst estimate of $0.05. Revenue for the quarter came in at $5.8 billion versus the consensus estimate of $5.7B. Sales rose 16% year-over-year.
“We have only a single-digit share of a massive retail market,” said Coupang’s CFO, Gaurav Anand. “Our Active Customer growth accelerated while we continued to deliver record profitability, highlighted by 7.2% adjusted EBITDA margin in our Product Commerce segment. And over the trailing twelve months, we generated $2 billion of operating cash flow and over $1 billion of free cash flow. We are consistently expanding profitability and generating high growth because of our unmatched investment in technology and infrastructure, and an unwavering focus on wowing the customer.”
Deutsche Bank analysts downgraded CPNG stock to Hold, citing “full valuation.”
“The result showed continued strong execution, but valuation is fair leading to our downgrade,” the analysts said in a note.
Bernstein analysts are much more cautious than their DB colleagues, remaining Underperform-rated.
“We encourage investors to focus on “0%” growth in developing offerings despite the international business expansion including Taiwan in this quarter,” they said.
