Coupang: Decelerating Revenue, Sporadic Profitability and Still Expensive
191 Views, 12 May 2022 16:14
Coupang (CPNG US)’s 1Q22 results were mixed with revenue 2.5% below consensus but an operating loss of $205.7m was $94.3m lower than consensus through a 3% gross margin improvement.
- The company’s comments on the gross margin outlook are a bit concerning and make us think that the improvement in Q1 was just a one-off.
- Coupang is fundamentally expensive on EV/GMV+Retail Sales. With selling pressure from Softbank and a significant downside to revenue estimates, we remain Short Coupang.