Coupang Inc (NYSE:CPNG) stock fell 6.32% (As on August 6, 11:27:17 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY25. Coupang reported $2.6 billion in consolidated gross profit, growing 20% year-over-year, with a consolidated gross profit margin of 30%. Product Commerce gross profit was $2.4 billion, with a record 32.6% margin. Operating income was $149 million, up 55% over last year (excluding a prior year fine). Net income attributable to Coupang stockholders was $32 million. Developing Offerings reported EBITDA losses of $235 million, reflecting increased investment, particularly in Taiwan. On a trailing 12-month basis, operating cash flow was $1.9 billion and free cash flow was $784 million, which Anand attributed to the timing of CapEx and working capital fluctuations.

Moreover, the Taiwan business as a “prime example” of a high-potential developing market, as after ending last year in Q4 with a quarter-over-quarter revenue growth of 23%, this quarter revenues surged 54% quarter-over-quarter, more than double the pace of revenue growth from just 2 quarters ago. Year-over-year revenue growth was triple digits in Q2, and the company expects that to be even higher in Q3. The company launched Sports Pass for Coupang Play, expanding premium sports content, and made Play available to all Coupang customers in Korea, supported by advertising. In addition, the company highlighted strategic investments in expanding Rocket selection, which added over 0.5 million new items in the quarter, and noted a more than 40% increase in same-day and on-delivery volume. The Fresh category saw revenue rise 25% in constant currency year-over-year, fueled by expanded assortment in produce, meat, and seafood.

CPNG in the second quarter of FY25 has reported the adjusted earnings per share of 2 cents, missing the analysts’ estimates for the adjusted earnings per share of 7 cents. The company had reported the adjusted revenue growth of 16 percent to $8.5 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $8.31 billion. Product Commerce segment revenues grew 14% year-over-year or 17% in constant currency. This growth was driven by both higher spend levels per active customer as well as an acceleration of growth in Product Commerce active customers to 10% this quarter.

Management reiterated a constant currency consolidated growth rate of roughly 20% for the full year. For Developing Offerings, Anand updated full-year adjusted EBITDA loss expectations to between $900 million and $950 million.