Earnings Recap – November 12th
Wix reported a loss of 21 cents per share in the third quarter of 2021, beating the consensus analyst expectation of a 43-cent loss. One important thing to note though is that this was a wider loss than the third quarter of 2020, which could be a signal for the long-term future. Revenue increased by 26 percent year over year to $320.8 million, slightly edging the estimate of $314.8 million. To close it off, CEO Avishai Abrahami explained that their guidance for the fourth quarter of 2021 looks to be 15 to 20 percent higher than 2020, showing that Wix has taken advantage of economic conditions to deliver growth in the last year.
Coupang’s third quarter earnings displayed a tough time for the Korean online retail business. They reported a loss of 19 cents per share, when analysts expected a loss of 17 cents per share, and this was reflected in revenue, too. The estimate was $4.8 billion, and Coupang saw only $4.64 billion, missing by a slight margin. In their earnings call, they said they spent $95 million in operational costs due to COVID-19 restrictions in Korea, and fulfilment center infrastructure costs rose by 90 percent, with the number set to reach 100 percent by the end of the year. This earnings report shows that Coupang is facing similar problems to other companies in its industry, and we’ll see if those changes.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.