Coupang, Inc. CPNG shares are trading higher premarket on Wednesday after the company reported third-quarter results on Tuesday.

Net revenues rose 27% year-over-year (+32% on a currency-neutral basis) to $7.9 billion, surpassing the $7.76 billion consensus. Excluding Farfetch, net sales growth was 20% on a reported basis and 25% currency neutral.

Gross profit rose 45% to $2.3 billion, with a margin of 28.8%, an increase of 350 basis points. Excluding Farfetch, gross profit was $2.1 billion, up 33%, with a margin of 28.1%.

Adjusted EBITDA was $343 million, reflecting a margin of 4.4%, up 50 basis points year over year. Excluding Farfetch, adjusted EBITDA was $345 million with a margin of 4.6%.

Product Commerce segment net revenues were $6.9 billion, up 16% on a reported basis and 20% on a currency-neutral basis. The number of active customers in the segment reached 22.5 million, a growth of 11% in the quarter.

Adjusted EBITDA for the Product Commerce segment increased to $470 million, up $71 million year-over-year, with a margin of 6.8%, up 10 basis points year-over-year but down 140 basis points quarter-over-quarter.

Adjusted earnings per share of $0.06 beat the consensus of $0.01.

Operating cash flow and free cash flow for the trailing twelve months were $1.8 billion and $935 million, respectively.

Gaurav Anand, CFO of Coupang, said: “Our newer offerings and categories, such as Fulfillment and Logistics by Coupang (FLC) and R.Lux, a new luxury offering, exemplify the tremendous growth opportunities arising from the expansion of offerings on Rocket Delivery.”

“We also achieved a major milestone in offering development this quarter, achieving near break-even profitability at Farfetch ahead of schedule.”

In addition, Coupang announced that founder and CEO Bom Kim had several months ago adopted a pre-established stock trading plan under SEC Rule 10b5-1 and Coupang’s stock transaction policy.

The plan allows Kim to sell up to 15,000,000 shares of Coupang Class A common stock no earlier than November 11, 2024, subject to certain conditions.

Investors can gain exposure to the stock through Managed portfolio advisor Miller Value Partners Appreciation ETF MVPA And ProShares Online Retail ETF ONLN.

Price promotion: CPNG shares are down 8.18% to $24.69 premarket at last check Wednesday.

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