Not cool, Gmarket
As South Korea's leading auction website, I though that you were far removed from the marketplace hiccups that we're seeing with eBay
Instead, my faith took a beating.
A 26% spike in revenue to $56.9 million isn't good enough. A 7% profit uptick to $0.13 per share is quite frankly embarrassing. Wall Street had you down for a profit of $0.16 a share on $60.9 million in revenue.
I guess rattling my faith wasn't enough. You had to rough up those margins, too.
I get it. It's hard to get folks to pay for auctions. You have to make that up elsewhere. With 17.9 million unique monthly visitors during the period, serving up ads and skimming a little on the fee-based side makes sense. So even though your site shepherded $848.1 million worth of transactions, you posted just a 15% uptick in transaction-fee revenue, compared to a 46% spike everywhere else.
You have excuses? The Chuseok holiday that fell into the third quarter this time around -- instead of the fourth quarter, as it did last year -- trimmed four online shopping days from the quarter? A hot September delayed the demand for warm fall clothing?
I believe you, honestly. And since these factors will reverse themselves in the current quarter, I'd better see a blowout quarterly report in three months. I know October went well. Can you keep that going?
And until you do, where will I get my publicly traded growth-stock fix? MercadoLibre
So that brings me back to you, Gmarket. I guess I'm a glutton for punishment. Either that, or I really believe that the current quarter will find you back in your familiar market-trouncing pose. Beating Wall Street in five of your first seven quarters as a public company in three months? I've seen better, but you'll have to do.
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Longtime Fool contributor Rick Munarriz doesn't normally talk to stocks, but he felt it would be therapeutic this time. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool's disclosure policy is brushing up on its hangul.