Coupang (CPNG)

[winston]

vested

Coupang Vows to Accelerate Expansion Even as Losses Triple

(Bloomberg) -- Coupang Inc., South Korea’s leading e-commerce company, said it would accelerate its expansion after raising capital in a March initial public offering, despite a surge in losses in its first quarter as a public company.

Its net loss increased to $295 million in the March quarter, compared with $105.3 million a year earlier.

Revenue rose 74% to $4.2 billion. Shares fell about 6% in late U.S. trading.

Bom Kim, the company’s co-founder and chief executive officer, said in a conference call after the results that he planned to build on the company’s lead in fast deliveries and broad selections.

Coupang aims to add 50% to its e-commerce infrastructure in a single year, compared with what it built since its founding in 2010.

SoftBank-Backed Coupang Raises $4.6 Billion in U.S. IPO

In South Korea, Coupang is known for speed and selection. Customers can order same-day delivery of millions of items, and have their purchases waiting for them at 7 a.m., including perishables like milk.

Coupang has pledged to invest total 800 billion won ($708 million) and hire 6,500 workers to construct logistics facilities in South Korea after it raised $3.5 billion in its March IPO.

Source: Bloomberg

https://finance.yahoo.com/news/coupang- ... 57301.html

[winston]

vested

Coupang Revenue Soars 74% In First Report Since Its Blockbuster IPO

by BRIAN DEAGON

Coupang said it ended the quarter with 16 million active customers, up 21%.

Total net revenue per active customer was $262, up 44%.

Gross profit was $733 million, a 70% increase.

For 2020, Coupang reported revenue of $11.9 billion, up 72% from the year-ago period. It reported a net loss of $474.6 million. However, that's an improvement from a loss of $699 million in the prior year.

Source: IBD

https://www.investors.com/news/technolo ... src=A00220

[winston]

vested

Aping Amazon, Korea’s Coupang has a labor problem

Korean firm leads the way in ultra-competitive on-demand delivery services but faces reputation risk for burning through workers

By ANDREW SALMON

Source: Asia Times

https://asiatimes.com/2021/05/aping-ama ... 340db87eb1

[winston]

Global Stocks to Buy: Coupang (CPNG)

The South Korean e-commerce company seems worth considering for a diversified long-term portfolio. After listing, CPNG stock touched a high of $69. However, there has been a meaningful correction and the stock currently trades at nearly $39.

For the first quarter of 2021, Coupang reported healthy revenue growth of 74% year-over-year to $4.2 billion. This growth was driven by a 21% increase in active customers to 16 million. At the same time, the net revenue per active customer increased by 44%.

Coupang did report an adjusted EBITDA loss of $133 million. Operating level losses widened due to expansion in fulfillment center capacity along with investment in technology and infrastructure.

The e-commerce business model has proved to be a cash cow and near-term cash burn is not a concern.

In terms of the market size, Korea’s total e-commerce spend was $128 billion in fiscal year 2019. This is expected to expand to $206 billion by FY2024.

However, the company’s addressable market is bigger. The online grocery and customer food service segment are fast expanding and Coupang has growing presence in these segments.

Recently, Deutsche Bank upgraded CPNG stock to “buy” from “neutral.” Given the strong growth and diversified business offering, the stock is attractive at current levels.

Source: Investor Place

[winston]

vested

Coupang Is Expanding to Japan and Singapore: Here's What It Means for the Stock

by Brett Schafer

The company might be on the road to unlocking new growth opportunities, with plans to move into Singapore, Japan, and possibly Malaysia sometime soon.

For Coupang stock to perform well over the coming years, it will likely need to succeed with these international expansion plans.

This business is growing rapidly within its home market, but at a market cap of $68 billion, the valuation is still expensive relative to its trailing financials.

In Q1, revenue grew 74% year over year to $4.2 billion, with trailing-12-month revenue coming in at $18.5 billion.

While these revenue numbers are looking strong, Coupang has low gross margins, at 17.4% last quarter, which puts a low ceiling on its profit margin potential.

It will also need to make billions in capital investments over the next few years to build out its end-to-end logistics network in these new markets. At the end of Q1, Coupang had $4 billion in cash, so it has plenty of dry powder to make these investments, but they will be a drag on cash generation for at least the next few years, if not longer.

Source: Motley Fool

https://www.fool.com/investing/2021/06/ ... -it-means/

[winston]

not vested

Coupang set to begin operation in Singapore

E-commerce firm aims to replicate Amazon's success with similar models in Asia

By Kim Yoo-chul

Source: Korea Times

https://www.koreatimes.co.kr/www/tech/2 ... .html?gonw

[winston]

not vested

Coupang Losses Widen With Expansion Spending and Fire Damage

by Sohee Kim

Sales at the company were up 71% to $4.5 billion in the quarter ended June, while the number of active customers increased 26% to 17 million. Net losses widened to $518.6 million, including $296 million.

Added Tokyo and Taipei to its one-hour delivery locations.

Growing uncertainty about rising costs and competition.

Probe into allegations that Coupang manipulated search algorithms to prioritize its own products over those of suppliers.

Source: Bloomberg

https://finance.yahoo.com/news/coupang- ... 14318.html