The shares of South Korea-based e-commerce company Coupang (NYSE:CPNG) are advancing this morning after the company reported that its revenue had surged 32% year over year last quarter to an all-time record of $5.1 billion Moreover, Coupang noted that its net loss had narrowed by 29% YOY, while its gross profit jumped 42% YOY. And Coupang’s per-share loss came in at 12 cents, versus analysts’ average estimate of a per-share loss of 59 cents. In early trading, CPNG stock is climbing 16%.
“We … recorded the highest gross profit and gross profit margin in the Company’s history, which in turn helped our Product Commerce segment to achieve profitability in Q1,” said Coupang CFO Gaurav Anand in a statement.
“While we saw some headwinds from inflation and supply chain disruptions in the past quarter, our results were net positive due to improvements around process and technology, utilization of capacity, supply chain optimization, and continued scaling of advertising, among other areas,” CEO Bom Kim, said on its Q1 earnings conference call yesterday.
Citi Upgraded CPNG Stock
In a note to investors today, Citi analyst John Yu responded to the company’s results by upgrading CPNG stock to “buy” from “neutral.” Applauding what he sees as the company’s “profit-centered strategy,” Yu thinks that its “near-term” earnings outlook has become more certain. As a result, he believes that the company can achieve its “long-term guidance of 7~10% adj. EBITDA margin,” excluding some items.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.