Chewy Inc (NYSE:CHWY) stock rose 6.67% (As on December 9, 12:33:34 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Net income of $2.3 million, including share-based compensation expense of $46.1 million and net margin expanded 160 basis points to 0.1 percent. Adjusted EBITDA was $70.4 million and adjusted EBITDA margin expanded 250 basis points to 2.8 percent. Third quarter gross margin expanded 200 basis points year over year, to 28.4 percent. Approximately half of the year-over-year improvement is the result of favorable comps against third quarter last year when global supply chain disruptions and product cost inflation adversely affected our gross margin. The balance came from continuation of the strong pricing trends that emerged last quarter and greater efficiency in outbound shipping costs, which resulted from bigger basket sizes and the favorable progress the company have made in the supply chain and logistics initiatives. The company has ended the third quarter with 20.5 million active customers. Gross customer additions accelerated 6 percent sequentially and are up 9 percent compared to Q3 2019.

CHWY in the third quarter of FY 22 has reported the adjusted earnings per share of 1 cents, beating the analysts’ estimates for the adjusted loss per share of 8 cents, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 14.5 percent to $2.53 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $2.45 billion. The topline results were anchored by the predictable nature of the Autoship customer sales, which grew 18.8 percent to 73.3 percent of net sales, and by rising customer engagement, as measured NSPAC, which grew 13.8 percent to $477.

For the current quarter ending in January, Chewy said it expects revenue in the range of $2.63 billion to $2.65 billion. The company expects full-year revenue in the range of $10.02 billion to $10.04 billion.

Meanwhile, the company has recently announced the expansion of CarePlus, the exclusive suite of insurance and wellness offerings with plans provided by Lemonade. Combining products from Lemonade and Trupanion under the CarePlus banner enables the company to diversify the product offerings across the full spectrum of price points and coverage options in order to meet the needs of a wider range of pet parents. The company is targeting a nationwide launch of the Lemonade offerings beginning in Spring 2023.