I think two major drags on profitability are the jump in digital advertising costs on Facebook (which a lot of online businesses have faced across the world ) and the investment in developing Germany market. The negative impact of these two factors on profitability is diminishing . I think with savings from cost cutting initiatives (as outlined in the post by @SanketB ) kicking, chances are that the stock has bottomed out as far as margins is concerned. The post-Covid soft landing has been experienced by a lot of e-commerce businesses. There is a lot of pessimism built in the stock price. (Discl: A small tracking position)
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