Coupang tops estimates as the Farfetch business boosts results

Coupang (NYSE:CPNG) traded lower in postmarket action on Tuesday after posting a mixed Q3 earnings report. Revenue rose 27.3% year-over-year, and topped the consensus estimate by $140 million. Excluding Farfetch, the revenue growth was 20% year-over-year on a reported basis and 25% on an FX-neutral basis.

Revenue was up 16% to $6.9 billion in the product commerce segment during the quarter, while the developing offerings segment (including International, Coupang Eats, Play, Fintech and Farfetch) saw revenue jump 347% to were $975 million. Adjusted EBIDTA shot up 44% to $343 million.

Gross profit increased 45% Y/Y during the quarter to $2.3 billion. Excluding Farfetch, gross profit was up 33% to $2.1 billion. The gross profit margin rate of 28.8% matched the consensus expectation. EPS was reported at $0.06 vs. $0.01 consensus and $0.05 a year ago.

Operating cash flow for the trailing twelve months was $1.8 billion, which was down $805 million from a year ago due mainly to certain nonrecurring working capital benefits in the prior trailing twelve-month period.

CFO Gaurav Anand highlighted that newer offerings and categories such as Fulfillment and Logistics by Coupang and R.Lux are examples of the massive growth opportunity from selection expansion on Rocket Delivery. He also pointed out that Coupang (CPNG) achieved an important milestone in the developing offerings segment during the quarter by reaching near break-even profitability in Farfetch at an earlier stage than planned.

Shares of Coupang (CPNG) were down 6.10% postmarket after gaining 4.63% during the regular session and carving out a new 52-week high of $28.00 along the way.