Coupang

Coupang: Decelerating Revenue, Sporadic Profitability and Still Expensive

Equity Bottom-Up
191 Views, 12 May 2022 16:14
EXECUTIVE SUMMARY
  • 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.
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Oshadhi Kumarasiri
Equity Analyst
LightStream Research
JapanEquity Bottom-UpEquity Capital Markets

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's... 

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