$CPNG reported earnings after market close Wednesday and is up 19% after hours.
Quick Q1 SWOT:
- Strength: Gross margins improved 450 bps and gross profits grew 42% YoY, leading to its Product Commerce segment's (e-commerce and fresh grocery delivery) first EBITDA-positive quarter.
- Weakness: Active customers only grew 13% -- it's first quarter below 20% growth after 16 straight quarters above.
- Opportunity: Its Developing Offerings segment (food delivery, fintech, ads, international, video streaming) grew by 79% YoY and provides a strong value proposition to customers signed up for a Rocket WOW membership (think Amazon Prime).
- Threat: Coupang needs to prove its Fresh (grocery) and Eats (food delivery) operations can thrive with South Korea's high population density. Their U.S. peers are yet to find meaningful, long-term profitability here, but our density is more widespread.
Keeping a long-term horizon -- the pros outweigh the cons, and I am happy to continue holding and adding to this one over the long term.