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Shares of Coupang (NYSE: CPNG) were moving higher today after the technology company reported better-than-expected results in its fourth-quarter earnings report. As of 11:44 a.m. ET, the stock was up 4.6%.
Coupang keeps growing
Coupang -- which is headquartered in Seattle, operates in several countries, and generates sales primarily in South Korea -- has embraced an Amazon-like business model, with e-commerce anchoring a number of satellite businesses. It said that revenue in the quarter rose 21%, or 28% on a currency-neutral basis, to $7.96 billion. That was short of estimates at $8.14 billion, but that may be due to greater-than-expected currency headwinds.
Where Coupang's growth came from was also important. Product commerce, its core e-commerce business, rose 9%, or 16% on a currency-neutral basis, to $6.9 billion. Active customers rose 10% to 22.8 million. However, the real highlight seemed to be growth in its developing offerings, which include international business, food delivery under Coupang Eats, mobile games under Coupang Play, fintech, and Farfetch, the luxury online fashion platform it acquired last year. Revenue from developing offerings jumped 124%, excluding Farfetch, showing sharp growth in those businesses, and overall revenue in the category reached $1.1 billion, including Farfetch.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 43% to $421 million, showing Coupang's margins are expanding. Adjusted earnings per share fell from $0.08 to $0.04 as the company lapped a tax benefit from the quarter a year ago, which beat estimates of $0.01 per share.
What's next for Coupang
Coupang did not provide guidance for the current quarter or 2025, but the company seems to be executing on its growth plan, growing its core business, growing its newer complementary businesses, and expanding its margins.
The company may need to make some more progress at the current valuation to get a significant response from investors, but the long-term opportunity continues to look appealing for Coupang. The stock looks like a good bet to move higher over the long term.
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