Coupang Stock Rises After Q4 Earnings Beat Expectations

Coupang shares rise 4.6% following a strong fourth-quarter earnings report demonstrating impressive revenue growth despite missing estimates. Investors eye future opportunities as the company continues its growth trajectory.

Date: 26-02-2025

AI Rating: 7

Overview of Coupang's Earnings Report

Coupang reported a revenue increase of 21%, reaching $7.96 billion, albeit falling short of the $8.14 billion estimates, which may be attributed to unfavorable currency effects. Despite this miss, there were significant positive indicators in the overall performance.

Revenue Details

The company's core e-commerce business, product commerce, saw a growth rate of 9% to $6.9 billion. Furthermore, Coupang showed remarkable expansion in its developing offerings, which jumped by 124%, signaling a robust demand for its newer services, including food delivery and fintech solutions. This demonstrates Coupang's ability to innovate and meet customer needs, contributing positively to investor sentiment.

EBITDA and Earnings Per Share

Adjusted EBITDA rose 43% to $421 million, indicating improved margins. However, adjusted earnings per share (EPS) fell from $0.08 to $0.04, which came after the company benefited from a tax advantage a year prior, yet it still managed to exceed estimates of $0.01 per share. This suggests that, while the EPS has declined, the company's operational performance continues to impress.

Future Outlook

No guidance was provided for the next quarter or for 2025, but the company is viewed as executing well on its growth strategy. The emphasis on expanding margins alongside a growing customer base reinforces the potential for sustained growth. The market's positive reaction, reflected in the increase in stock price, indicates investor confidence in Coupang's long-term outlook.

Stocks: CPNG