Coupang Inc. (CPNG) experienced a significant after-hours plunge of 6.65% following the release of its first-quarter financial results, which fell short of analyst expectations on both the top and bottom lines.
The South Korean e-commerce giant reported Q1 revenue of $8.5 billion, missing the consensus estimate of $8.637 billion. More critically, the company's adjusted EBITDA plummeted 92% year-over-year to $29 million, far below the $113.5 million analysts had anticipated. Coupang swung to a net loss of $266 million for the quarter, compared to a profit in the same period last year.
Margin pressure was evident across the business, with the consolidated gross profit margin falling to 27.0% and the adjusted EBITDA margin dropping to 0.3%. While the company's Developing Offerings segment showed revenue growth of 28%, losses in this segment widened significantly, contributing to the overall earnings disappointment that triggered the after-hours sell-off.
Comments