Coupang (NYSE:CPNG) shares rocketed higher in Wednesday’s extended session after reporting record gross profits and gross margins.
The Korean eCommerce company beat analyst estimates on earnings per share, posting a lighter loss than expected, while a hefty revenue report of $5.12 billion came up only slightly short of expectations, but up 22% year over year. Of particular note, gross profit margin improved over 450 basis points from the prior quarter despite a confluence of supply chain, inflation, and geopolitical issues.
"Powered by our unmatched customer experience and services, we continued to grow at multiples of the overall e-commerce segment with 32% year over year constant currency revenue growth," CFO Gaurav Anand said. "We also 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.”
He added that innovations and operational shifts will continue to protect margins moving forward and keep the company on a path to overall profitability.
Shares roared over 20% higher shortly after the results crossed newswires.
Read JP Morgan’s recent bullish review of the company amid a steep selloff.