Coupang reports earnings with Farfetch in the mix

Coupang (NYSE:CPNG) traded lower in post-market action on Tuesday after investors digested the Q1 earnings report.

The South Korean e-commerce player reported revenue was up 23% year-over-year on a reported basis for Q4 and 28% higher on a FX-neutral basis. Excluding the Farfetch business, the growth was 18% on a reported basis and 23% on an FX-neutral basis. The tally of product active customers was up 16% during the quarter to 21.5M, while net revenue per active customer improved 3% to $315. Adjusted EBITDA was up 17% Y/Y to $281M vs. $277M consensus. Free cash flow fell 74% during the quarter to $107M. Coupang (CPNG) missed the consensus EPS estimate by a penny.

“We continue to be focused on wowing our customers as we remain just single digit share of a massive and highly fragmented $560 billion commerce opportunity in Korea, and an even smaller share in Taiwan,” updated Coupang CFO Gaurav Anand. “With the addition of Farfetch results in our Developing Offerings segment, we now estimate that our 2024 adjusted EBITDA losses for Developing Offerings will be around $750 million, an increase of just $100 million. We also anticipate that Farfetch will achieve close to positive adjusted EBITDA on a run-rate basis by the end of 2024,” he added.

Shares of Coupang (CPNG) were down 4.94% to $21.97 post-market trading, after shedding 1.50% during the regular session.