Coupang Inc (NYSE:CPNG) stock fell 7.03% (As on March 1, 11:08:35 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 22. Total gross profit increased 59% YoY to $1.3 billion, with gross profit margin of 24.0%, an improvement of over 810 bps YoY. Net income was $102 million, an improvement of $507 million over last year. Adjusted EBITDA was $211 million, an improvement of $496 million over last year. Product Commerce net revenues was $5.2 billion, up 5% YoY on a reported basis, or 21% on an FX-neutral basis. Product Commerce segment adjusted EBITDA margin reached a record 5.1%, further demonstrating the long-term profit potential of our core offerings. Developing Offerings recorded an adjusted EBITDA loss of $55 million, an improvement of $105 million over last year. Cash flow from operations was $580 million for the quarter. The TTM cash flow from operations was $565 million, an improvement of $976 million YoY. Free cash flow was $462 million for the quarter. The TTM FCF was $(246) million, an improvement of $837 million YoY. WOW membership program had 11 million paid members at the end of 2022, an increase of over 20% YoY.

CPNG in the fourth quarter of FY 22 has reported the adjusted earnings per share of 6 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 5 percent to $5.33 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue by 0.19%.

For  2023, the company expects to see margin expansion, though it may not be meaningful or consistent each quarter, and the strong foundation and momentum give the company confidence in the ability to drive further penetration in the vast retail market while delivering new moments of ‘wow’ for the customers

Meanwhile, while the Company is insured on property losses from the FC Fire that occurred in 2021, investigations surrounding the fire continue. In December 2022, the Company received a refundable insurance cash advance payment of $79 million, which is included within other current liabilities and reflected as an inflow for operating cash flows. The Company has not recognized any insurance benefit in the consolidated statements of operations to date.