Advertisement
New Zealand markets close in 3 hours 24 minutes
  • NZX 50

    12,795.97
    -49.67 (-0.39%)
     
  • NZD/USD

    0.6103
    -0.0010 (-0.17%)
     
  • NZD/EUR

    0.5584
    +0.0002 (+0.04%)
     
  • ALL ORDS

    8,510.10
    +18.60 (+0.22%)
     
  • ASX 200

    8,232.00
    +17.50 (+0.21%)
     
  • OIL

    74.39
    -1.17 (-1.55%)
     
  • GOLD

    2,664.10
    -12.20 (-0.46%)
     
  • NASDAQ

    20,271.97
    +30.17 (+0.15%)
     
  • FTSE

    8,253.65
    +15.92 (+0.19%)
     
  • Dow Jones

    42,863.86
    +409.76 (+0.97%)
     
  • DAX

    19,373.83
    +162.93 (+0.85%)
     
  • Hang Seng

    21,251.98
    +614.78 (+2.98%)
     
  • NIKKEI 225

    39,605.80
    +224.90 (+0.57%)
     
  • NZD/JPY

    91.0250
    -0.1180 (-0.13%)
     

Coupang Announces Results for Second Quarter 2024

Net Revenues of $7.3 billion, up 25% YoY and 30% on an FX-neutral basis

Gross Profit of $2.1 billion, up 41% YoY

Product Commerce segment adjusted EBITDA of $530 million, up $122 million YoY, with a margin of 8.2%

SEATTLE, August 06, 2024--(BUSINESS WIRE)--Coupang, Inc. (NYSE: CPNG) today announced financial results for its second quarter ended June 30, 2024.

Consolidated Highlights:

  • Net revenues were $7.3 billion, up 25% YoY on a reported basis and 30% YoY on an FX-neutral basis. Excluding Farfetch, the growth was 18% YoY on a reported basis and 23% YoY on an FX-neutral basis.

  • Excluding Farfetch, net revenues growth rate would have been an estimated 660 bps higher than the 23% FX-neutral growth rate without the accounting change in FLC revenue, which we began recording on a net basis starting in Q2 last year.

  • Gross profit increased 41% YoY to $2.1 billion. Gross profit margin was 29.3%, an improvement of 310 bps YoY. Excluding Farfetch, gross profit was $1.9 billion, growing 27% YoY, and gross profit margin was 28.3%.

  • Net loss was $105 million and net loss attributable to Coupang stockholders was $77 million, a decrease of $222 million from last year. This is primarily due to the inclusion of the operating losses incurred at Farfetch and $121 million relating to the estimated KFTC administrative fine.

  • Excluding the Farfetch loss and the administrative fine, net income attributable to Coupang stockholders was approximately $124 million.

  • Diluted EPS was negative $0.04, a decline of $0.12 over last year, primarily driven by the operating losses incurred at Farfetch and the administrative fine. Excluding the Farfetch loss and the administrative fine, diluted EPS was $0.07.

  • Adjusted EBITDA for the quarter was $330 million with a margin of 4.5%, down 60 bps from last year. Excluding Farfetch, adjusted EBITDA was $361 million with a margin of 5.3%.

  • Operating cash flow for the trailing twelve months was $2.2 billion, an increase of $250 million YoY.

  • Free cash flow was $1.5 billion for the trailing twelve months, an increase of $420 million YoY.

Segment Highlights:

  • Product Commerce segment net revenues was $6.4 billion, up 13% YoY on a reported basis and 18% on an FX-neutral basis. These growth rates would have been an estimated 650 and 680 bps higher, respectively, without the accounting change in FLC revenue.

  • Product Commerce Active Customers reached 21.7 million, growing 12% YoY.

  • Product Commerce segment adjusted EBITDA was $530 million, up $122 million YoY, with a margin of 8.2%, up 110 bps YoY.

  • Developing Offerings segment (including International, Coupang Eats, Play, Fintech and Farfetch) net revenues was $892 million, up 472% YoY on a reported basis and 483% on an FX-neutral basis. Excluding Farfetch, the growth was 177% YoY on a reported basis and 188% YoY on an FX-neutral basis.

  • Developing Offerings segment adjusted EBITDA was negative $200 million, which includes a negative $31 million impact from the consolidation of Farfetch.

"This quarter we continued to see deeper levels of engagement from our customers, powered by our relentless focus on providing even greater levels of selection, service, and savings for customers," said Gaurav Anand, CFO of Coupang. "We remain focused on creating moments of WOW for our customers every day, while driving continuous improvement across our operations by leveraging our investments in infrastructure, technology, and automation."

Second Quarter 2024 Results

Consolidated Financial Summary

 

(in millions, except net revenues per Product Commerce Active Customer and earnings per share)

Three Months Ended June 30,

 

 

2024(3)

 

2023

 

% Change

Total net revenues

$

7,323

 

 

$

5,838

 

25

%

Total net revenues growth, constant currency(1)

 

 

 

 

30

%

Net revenues per Product Commerce Active Customer

$

296

 

 

$

293

 

1

%

Net revenues per Product Commerce Active Customer, constant currency(1)

$

309

 

 

 

 

5

%

Product Commerce Active Customers

 

21.7

 

 

 

19.4

 

12

%

Gross profit(2)

$

2,142

 

 

$

1,524

 

41

%

Net (loss) income

$

(105

)

 

$

145

 

(172

)%

Net (loss) income attributable to Coupang stockholders

$

(77

)

 

$

145

 

(153

)%

Adjusted EBITDA(1)

$

330

 

 

$

300

 

10

%

Earnings per share, basic and diluted

$

(0.04

)

 

$

0.08

 

(150

)%

Adjusted diluted earnings per share(1)

$

0.07

 

 

$

0.08

 

(13

)%

Net cash provided by operating activities

$

664

 

 

$

820

 

(19

)%

Free cash flow(1)

$

488

 

 

$

450

 

8

%

The following summarizes the impact Farfetch had on our results for the three and six months ended June 30, 2024:

 

Impact from Farfetch(3)

 

Three Months
Ended June 30,

 

Six Months
Ended June 30,

(in millions, except earnings per share)

2024

Consolidated

 

 

 

Total net revenues

$

460

 

 

$

748

 

Gross profit(2)

$

203

 

 

$

325

 

Net loss

$

(108

)

 

$

(230

)

Net loss attributable to Coupang stockholders

$

(80

)

 

$

(173

)

Diluted earnings per share

$

(0.04

)

 

$

(0.10

)

Adjusted EBITDA(1)

$

(31

)

 

$

(62

)

 

 

 

 

Developing Offerings

 

 

 

Net revenues

$

460

 

 

$

748

 

Segment adjusted EBITDA

$

(31

)

 

$

(62

)

Segment Information

 

 

Three Months Ended June 30,

 

 

(in millions)

2024(3)

 

2023

 

% Change

Product Commerce

 

 

 

 

 

Net revenues

$

6,431

 

 

$

5,682

 

 

13

%

Net revenues growth, constant currency(1)

 

 

 

 

18

%

Segment adjusted EBITDA

$

530

 

 

$

408

 

 

30

%

Developing Offerings

 

 

 

 

 

Net revenues

$

892

 

 

$

156

 

 

472

%

Net revenues growth, constant currency(1)

 

 

 

 

483

%

Segment adjusted EBITDA

$

(200

)

 

$

(107

)

 

87

%

_________

(1)

Total net revenues growth, constant currency, net revenues per Product Commerce Active Customer, constant currency, adjusted EBITDA, adjusted diluted earnings per share and free cash flow are non-GAAP financial measures as defined by the Securities and Exchange Commission (the "SEC"). See the "Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Measures" sections herein for more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

(2)

Gross profit is calculated as total net revenues minus cost of sales.

(3)

We completed the acquisition of the assets of Farfetch at the end of January in Q1 2024. For the six months ended June 30, 2024, the operating results of Farfetch from February 2024 are included in our consolidated results and in our Developing Offerings segment. For the three months ended June 30, 2024, the operating results of Farfetch are included in our consolidated results and in our Developing Offerings segment.

Webcast and Conference Call

Coupang, Inc. will host a conference call to discuss second quarter results on August 6, 2024 at 5:30 PM Eastern Time. A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable U.S. GAAP measures, as well as our second quarter earnings presentation, are also available on that site.

About Coupang

Coupang is a Fortune 200 technology company listed on the NYSE, that provides retail, restaurant delivery, video streaming and fintech services to customers around the world. Coupang’s mission is to revolutionize the everyday lives of its customers and create a world where people wonder, "How did I ever live without Coupang?" Headquartered in the United States, Coupang has operations and support services in geographies including South Korea, Taiwan, Singapore, China, India and Europe.

FORWARD-LOOKING STATEMENTS

This earnings release or related management commentary may contain statements that may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws.

We have based the forward-looking statements contained in this report on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. Actual results and outcomes could differ materially for a variety of reasons, including, among others: the continued growth of the retail market and the increased acceptance of online transactions by potential customers, competition in our industry, managing our growth and expansion into new markets and offerings, risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments, our financial performance, to the extent to which we owe income or other taxes, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, legal and regulatory developments, and the impact of the global economy including inflation, foreign currency exchange rates and other geopolitical events. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent filings. All forward-looking statements in this earnings release or related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.aboutcoupang.com), our filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with investors and the general public about our company, our offerings, and other issues. It is possible that the information that we make available on our website may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.

COUPANG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

(in millions, except per share amounts)

2024

 

2023

 

2024

 

2023

Net retail sales

$

5,779

 

 

$

5,140

 

 

$

11,674

 

 

$

10,345

 

Net other revenue

 

1,544

 

 

 

698

 

 

 

2,763

 

 

 

1,293

 

Total net revenues

 

7,323

 

 

 

5,838

 

 

 

14,437

 

 

 

11,638

 

 

 

 

 

 

 

 

 

Cost of sales

 

5,181

 

 

 

4,314

 

 

 

10,366

 

 

 

8,695

 

Operating, general and administrative

 

2,167

 

 

 

1,376

 

 

 

4,056

 

 

 

2,689

 

Total operating cost and expenses

 

7,348

 

 

 

5,690

 

 

 

14,422

 

 

 

11,384

 

 

 

 

 

 

 

 

 

Operating income

 

(25

)

 

 

148

 

 

 

15

 

 

 

254

 

 

 

 

 

 

 

 

 

Interest income

 

53

 

 

 

42

 

 

 

108

 

 

 

73

 

Interest expense

 

(37

)

 

 

(13

)

 

 

(64

)

 

 

(21

)

Other income (expense), net

 

12

 

 

 

(6

)

 

 

3

 

 

 

(11

)

Income before income taxes

 

3

 

 

 

171

 

 

 

62

 

 

 

295

 

 

 

 

 

 

 

 

 

Income tax expense

 

108

 

 

 

26

 

 

 

191

 

 

 

59

 

 

 

 

 

 

 

 

 

Net (loss) income

 

(105

)

 

 

145

 

 

 

(129

)

 

 

236

 

Net loss attributable to noncontrolling interests

 

(28

)

 

 

 

 

 

(57

)

 

 

 

Net (loss) income attributable to Coupang stockholders

 

(77

)

 

 

145

 

 

 

(72

)

 

 

236

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Basic

$

(0.04

)

 

$

0.08

 

 

$

(0.04

)

 

$

0.13

 

Diluted

$

(0.04

)

 

$

0.08

 

 

$

(0.04

)

 

$

0.13

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding

 

 

 

 

 

 

 

Basic

 

1,789

 

 

 

1,780

 

 

 

1,791

 

 

 

1,777

 

Diluted

 

1,789

 

 

 

1,800

 

 

 

1,791

 

 

 

1,797

 

COUPANG, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

(in millions, except par value)

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Cash and cash equivalents

$

5,536

 

 

$

5,243

 

Restricted cash

 

257

 

 

 

353

 

Accounts receivable, net

 

547

 

 

 

314

 

Inventories

 

1,992

 

 

 

1,666

 

Prepaids and other current assets

 

477

 

 

 

316

 

Total current assets

 

8,809

 

 

 

7,892

 

 

 

 

 

Property and equipment, net

 

2,563

 

 

 

2,465

 

Operating lease right-of-use assets

 

1,993

 

 

 

1,601

 

Deferred tax assets

 

757

 

 

 

925

 

Intangible assets, net

 

319

 

 

 

37

 

Long-term lease deposits and other

 

754

 

 

 

426

 

Total assets

$

15,195

 

 

$

13,346

 

 

 

 

 

Liabilities, redeemable noncontrolling interests, and equity

 

 

 

Accounts payable

$

5,621

 

 

$

5,099

 

Accrued expenses

 

516

 

 

 

352

 

Deferred revenue

 

139

 

 

 

97

 

Short-term borrowings

 

336

 

 

 

282

 

Current portion of long-term debt

 

165

 

 

 

203

 

Current portion of long-term operating lease obligations

 

427

 

 

 

386

 

Other current liabilities

 

654

 

 

 

526

 

Total current liabilities

 

7,858

 

 

 

6,945

 

 

 

 

 

Long-term debt

 

1,047

 

 

 

529

 

Long-term operating lease obligations

 

1,740

 

 

 

1,387

 

Defined severance benefits and other

 

603

 

 

 

381

 

Total liabilities

 

11,248

 

 

 

9,242

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

Redeemable noncontrolling interests

 

92

 

 

 

15

 

 

 

 

 

Equity

 

 

 

Common stock

 

 

 

 

 

Class A — shares authorized 10,000, outstanding 1,615 and 1,616

Class B — shares authorized 250, outstanding 175 and 175

 

 

 

Additional paid-in capital

 

8,509

 

 

 

8,489

 

Accumulated other comprehensive loss

 

(198

)

 

 

(17

)

Accumulated deficit

 

(4,455

)

 

 

(4,383

)

Noncontrolling interests

 

(1

)

 

 

 

Total equity

 

3,855

 

 

 

4,089

 

Total liabilities, redeemable noncontrolling interests and equity

$

15,195

 

 

$

13,346

 

COUPANG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

Six Months Ended June 30,

(in millions)

2024

 

2023

Operating activities

 

 

 

Net (loss) income

$

(129

)

 

$

236

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

201

 

 

 

130

 

Provision for severance benefits

 

90

 

 

 

76

 

Equity-based compensation

 

197

 

 

 

156

 

Non-cash operating lease expense

 

211

 

 

 

163

 

Deferred income taxes

 

103

 

 

 

 

Other

 

118

 

 

 

85

 

Change in operating assets and liabilities, net of acquisition:

 

 

 

Accounts receivable, net

 

23

 

 

 

41

 

Inventories

 

(163

)

 

 

18

 

Other assets

 

(132

)

 

 

8

 

Accounts payable

 

351

 

 

 

579

 

Accrued expenses

 

111

 

 

 

(28

)

Other liabilities

 

(105

)

 

 

(143

)

Net cash provided by operating activities

 

876

 

 

 

1,321

 

 

 

 

 

Investing activities

 

 

 

Purchases of property and equipment

 

(285

)

 

 

(472

)

Proceeds from sale of property and equipment

 

4

 

 

 

7

 

Net cash acquired in acquisition

 

68

 

 

 

 

Other investing activities

 

(82

)

 

 

(47

)

Net cash used in investing activities

 

(295

)

 

 

(512

)

 

 

 

 

Financing activities

 

 

 

Proceeds from issuance of common stock, equity-based compensation plan

 

1

 

 

 

5

 

Repurchase of Class A common stock

 

(178

)

 

 

 

Proceeds from short-term borrowings and long-term debt

 

104

 

 

 

319

 

Repayment of short-term borrowings and long-term debt

 

(62

)

 

 

(37

)

Other financing activities

 

55

 

 

 

42

 

Net cash (used in) provided by financing activities

 

(80

)

 

 

329

 

Effect of exchange rate changes on cash and cash equivalents, and restricted cash

 

(304

)

 

 

(81

)

Net increase in cash and cash equivalents, and restricted cash

 

197

 

 

 

...

1,057

 

Cash and cash equivalents, and restricted cash, as of beginning of period

 

5,597

 

 

 

3,687

 

Cash and cash equivalents, and restricted cash, as of end of period

$

5,794

 

 

$

4,744

 

Supplemental Financial Information

Share Information

 

 

As of June 30,

(in millions)

2024

 

2023

Outstanding common stock

1,790

 

1,781

Outstanding equity-based awards

81

 

66

Outstanding common stock and equity-based awards

1,871

 

1,847

Key Business Metrics and Non-GAAP Financial Measures

We review the key business and financial metrics discussed below. We use these measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Key Business Metrics

Net Revenues per Product Commerce Active Customer

Net revenues per Product Commerce Active Customer is the net revenues generated in a period divided by the total number of Product Commerce Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of customers who are shopping on our Product Commerce apps or websites. We therefore view net revenues per Product Commerce Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth, though there may be a short-term dilutive impact when a large number of new Product Commerce active customers are added in a recent period.

Product Commerce Active Customers

As of the last date of each reported period, we determine our number of Product Commerce Active Customers by counting the total number of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the relevant period. A customer is anyone who has created an account on our apps or websites, identified by a unique email address. The change in Product Commerce Active Customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the period. We view the number of Product Commerce Active Customers as an indicator of future growth in our net revenue, the reach of our network, the awareness of our brand, and the engagement of our customers.

 

Three Months Ended June 30,

(in millions, except net revenues per Product Commerce Active Customer)

2024

 

2023

 

% Change

Net revenues per Product Commerce Active Customer

$

296

 

$

293

 

1

%

Net revenues per Product Commerce Active Customer (Constant Currency)

$

309

 

 

 

5

%

Product Commerce Active Customers

 

21.7

 

 

19.4

 

12

%

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance. These non-GAAP financial measures may be different than similarly titled measures used by other companies.

Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with U.S. GAAP. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These measures should only be used to evaluate our results of operations in conjunction with the corresponding U.S. GAAP measures.

Non-GAAP Measure

Definition

How We Use The Measure

Adjusted EBITDA

• Net income (loss), excluding the effects of:

- depreciation and amortization,

- interest expense,

- interest income,

- other income (expense), net,

- income tax expense (benefit),

- equity-based compensation,

- impairments, and

- other items not reflective of our ongoing operations.

• Provides information to management to evaluate and assess our performance and allocate internal resources.

• We believe Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by investors and other interested parties in evaluating companies in the retail industry for period-to-period comparisons as they remove the impact of certain items that are not representative of our ongoing business, such as material non-cash items, acquisition-related transaction and restructuring costs, significant costs related to certain non-ordinary course legal and regulatory matters, and certain variable charges.

Adjusted EBITDA Margin

• Adjusted EBITDA as a percentage of total net revenues.

Constant Currency Revenue

• Constant currency information compares results between periods as if exchange rates had remained constant.

• We define constant currency revenue as total revenue excluding the effect of foreign exchange rate movements, and use it to determine the constant currency revenue growth on a comparative basis.

• Constant currency revenue is calculated by translating current period revenues using the prior period exchange rate.

• The effect of currency exchange rates on our business is an important factor in understanding period-to-period comparisons. Our financial reporting currency is the U.S. dollar ("USD") and changes in foreign exchange rates can significantly affect our reported results and consolidated trends. For example, our business generates sales predominantly in Korean Won ("KRW"), which are favorably affected as the USD weakens relative to the KRW, and unfavorably affected as the USD strengthens relative to the KRW.

• We use constant currency revenue and constant currency revenue growth for financial and operational decision-making and as a means to evaluate comparisons between periods. We believe the presentation of our results on a constant currency basis in addition to U.S. GAAP results helps improve the ability to understand our performance because they exclude the effects of foreign currency volatility that are not indicative of our actual results of operations.

Constant Currency Revenue Growth

• Constant currency revenue growth (as a percentage) is calculated by determining the increase in current period revenue over prior period revenue, where current period foreign currency revenue is translated using prior period exchange rates.

Free Cash Flow

• Cash flow from operations

Less: purchases of property and equipment,

Plus: proceeds from sale of property and equipment.

• Provides information to management and investors about the amount of cash generated from our ongoing operations that, after purchases and sales of property and equipment, can be used for strategic initiatives, including investing in our business and strengthening our balance sheet, including paying down debt, and paying dividends to stockholders.

Segment Gross Profit

• Gross profit for a period attributable to each respective reportable segment.

• We believe segment gross profit and segment gross profit margin are frequently used by investors and other interested parties in evaluating companies in the retail industry for period-to-period comparisons. However, other companies may calculate segment gross profit and segment gross profit margin in a manner different from ours and therefore they may not be directly comparable to similar terms used by other companies.

Segment Gross Profit Margin

• Segment gross profit as a percentage of segment net revenues.

Adjusted Net Income Attributable to Coupang Stockholders

• Net income attributable to Coupang Stockholders, excluding the impact of the Farfetch acquisition and the KFTC administrative fine.

• We believe adjusted net income excluding Farfetch and adjusted diluted earnings per share excluding Farfetch provides useful supplemental information for investors, in the year of an acquisition, to compare our current earnings results from one period to another. Adjusted diluted earnings per share is a performance measure and should not be used as a measure of liquidity.

Adjusted Diluted Earnings Per Share

• Adjusted net income excluding the impact of the Farfetch acquisition and the KFTC administrative fine divided by the weighted average dilutive shares outstanding for the period.

Total net revenues excluding Farfetch

• Total net revenues excluding the impact of the Farfetch acquisition.

• We believe total net revenues excluding Farfetch, gross profit excluding Farfetch, adjusted EBITDA excluding Farfetch and Developing Offerings net revenues excluding Farfetch and Developing Offerings net revenues, constant currency excluding Farfetch provide useful supplemental information for investors, in the year of a significant acquisition, to compare our revenues, gross profit, adjusted EBITDA and segment revenues from one period to another exclusive of certain items that impact comparability with the prior period. These measures are performance measures and should not be used as a measure of liquidity.

Gross Profit excluding Farfetch

• Gross profit excluding the impact of the Farfetch acquisition.

Adjusted EBITDA excluding Farfetch

• Adjusted EBITDA excluding the impact of the Farfetch acquisition.

Developing Offerings net revenues excluding Farfetch

• Developing Offerings net revenues excluding the impact of the Farfetch acquisition.

Developing Offerings net revenues, constant currency excluding Farfetch

• Developing Offerings net revenues, constant currency excluding the impact of the Farfetch acquisition.

Reconciliations of Non-GAAP Measures

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Although, it is important to note that these factors could be material to Coupang’s results computed in accordance with GAAP. Certain amounts may not foot due to rounding.

The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted:

Constant Currency Revenue and Constant Currency Revenue Growth

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

2024

 

2023

 

Year over Year Growth

(in millions)

 

As Reported

 

Exchange Rate Effect

 

Constant Currency Basis

 

As Reported

 

As Reported

 

Constant Currency Basis

Consolidated

Net retail sales

 

$

5,779

 

$

239

 

$

6,018

 

$

5,140

 

12

%

 

17

%

Net other revenue

 

 

1,544

 

 

55

 

 

1,599

 

 

698

 

121

%

 

129

%

Total net revenues

 

$

7,323

 

$

294

 

$

7,617

 

$

5,838

 

25

%

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenues by Segment

 

 

 

 

 

 

 

Product Commerce

 

$

6,431

 

$

275

 

$

6,706

 

$

5,682

 

13

%

 

18

%

Developing Offerings

 

 

892

 

 

18

 

 

910

 

 

156

 

472

%

 

483

%

Total net revenues

 

$

7,323

 

$

294

 

$

7,617

 

$

5,838

 

25

%

 

30

%

Free Cash Flow

 

 

 

 

Three Months Ended

June 30,

 

Trailing Twelve Months Ended June 30,

(in millions)

 

2024

 

2023

 

2024

 

2023

Net cash provided by operating activities

 

$

664

 

 

$

820

 

 

$

2,206

 

 

$

1,960

 

Adjustments:

 

 

 

 

 

 

 

 

Purchases of land and buildings

 

 

(33

)

 

 

(271

)

 

 

(118

)

 

 

(477

)

Purchases of equipment

 

 

(145

)

 

 

(105

)

 

 

(591

)

 

 

(400

)

Total purchases of property and equipment

 

 

(178

)

 

 

(376

)

 

 

(709

)

 

 

(876

)

Proceeds from sale of property and equipment

 

 

2

 

 

 

6

 

 

 

16

 

 

 

13

 

Total adjustments

 

$

(176

)

 

$

(370

)

 

$

(693

)

 

$

(864

)

Free cash flow

 

$

488

 

 

$

450

 

 

$

1,513

 

 

$

1,096

 

Net cash used in investing activities

 

$

(178

)

 

$

(429

)

 

$

(710

)

 

$

(931

)

Net cash (used in) provided by financing activities

 

$

(132

)

 

$

251

 

 

$

(210

)

 

$

495

 

Adjusted EBITDA and Adjusted EBITDA Margin

 

 

 

 

Three Months Ended

June 30,

 

Trailing Twelve Months Ended June 30,

(in millions)

 

2024

 

2023

 

2024

 

2023

Total net revenues

 

$

7,323

 

 

$

5,838

 

 

$

27,182

 

 

$

22,067

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to Coupang shareholders

 

 

(77

)

 

 

145

 

 

 

1,051

 

 

 

429

 

Net loss attributable to noncontrolling interests

 

 

(28

)

 

 

 

 

 

(57

)

 

 

 

Net (loss) income

 

 

(105

)

 

 

145

 

 

 

994

 

 

 

429

 

Net (loss) income margin

 

 

(1.4

)%

 

 

2.5

%

 

 

3.7

%

 

 

1.9

%

Adjustments:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

106

 

 

 

66

 

 

 

345

 

 

 

242

 

Interest expense

 

 

37

 

 

 

13

 

 

 

90

 

 

 

35

 

Interest income

 

 

(53

)

 

 

(42

)

 

 

(212

)

 

 

(115

)

Income tax expense (benefit)

 

 

108

 

 

 

26

 

 

 

(645

)

 

 

57

 

Other (income) expense, net

 

 

(12

)

 

 

6

 

 

 

6

 

 

 

11

 

Acquisition and restructuring related costs

 

 

19

 

 

 

 

 

 

77

 

 

 

 

Estimated KFTC administrative fine

 

 

121

 

 

 

 

 

 

121

 

 

 

 

Equity-based compensation

 

 

109

 

 

 

86

 

 

 

367

 

 

 

290

 

Adjusted EBITDA

 

$

330

 

 

$

300

 

 

$

1,143

 

 

$

947

 

Adjusted EBITDA margin

 

 

4.5

%

 

 

5.1

%

 

 

4.2

%

 

 

4.3

%

Segment Gross Profit and Segment Gross Profit Margin

 

 

 

 

Three Months Ended June 30,

(in millions)

 

2024

 

2023

Gross profit

 

$

2,142

 

 

$

1,524

 

Segment gross profit and gross profit margin:

 

 

 

 

Product Commerce

 

 

1,950

 

 

 

1,547

 

Gross profit margin

 

 

30.3

%

 

 

27.2

%

Developing Offerings

 

 

192

 

 

 

(23

)

Gross profit margin

 

 

21.5

%

 

 

(14.6

)%

Adjusted Net Income Attributable to Coupang Stockholders

 

 

 

 

Three Months Ended June 30,

(in millions)

 

2024

 

2023

Net (loss) income attributable to Coupang stockholders

 

$

(77

)

 

$

145

Adjustments:

 

 

 

 

Farfetch losses, excluding taxes

 

 

96

 

 

 

Net losses attributable to noncontrolling interests

 

 

(28

)

 

 

Farfetch tax effect

 

 

12

 

 

 

Estimated KFTC administrative fine

 

$

121

 

 

$

Adjusted net income attributable to Coupang stockholders

 

$

124

 

 

$

145

Adjusted Diluted Earnings Per Share

 

 

 

 

Three Months Ended June 30,

 

 

2024

 

2023

Diluted earnings per share

 

$

(0.04

)

 

$

0.08

Adjustments:

 

 

 

 

Farfetch losses, excluding taxes

 

 

0.05

 

 

 

Net losses attributable to noncontrolling interests

 

 

(0.02

)

 

 

Farfetch tax effect

 

 

0.01

 

 

 

Estimated KFTC administrative fine

 

 

0.07

 

 

 

Adjusted diluted earnings per share (a)

 

$

0.07

 

 

$

0.08

(a)

 

Adjusted diluted earnings per share includes the effect of dilutive shares as a result of adjusted net income attributable to Coupang stockholders. Diluted weighted average shares used for the three months ended June 30, 2024 calculation was 1,823 (in millions).

Total Net Revenues excluding Farfetch

 

 

 

 

Three Months Ended June 30,

(in millions)

 

2024

 

2023

Total net revenues

 

$

7,323

 

 

$

5,838

Revenues of Farfetch

 

 

(460

)

 

 

Total net revenues excluding Farfetch

 

$

6,863

 

 

$

5,838

Total Net Revenues excluding Farfetch Constant Currency Revenue and Constant Currency Revenue Growth (YoY)

 

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

2024

 

2023

 

Year over Year Growth

(in millions)

 

As Reported

 

Exchange Rate Effect

 

Constant Currency Basis

 

As Reported

 

As Reported

 

Constant Currency Basis

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

$

7,323

 

 

$

294

 

$

7,617

 

 

$

5,838

 

25

%

 

30

%

Revenues of Farfetch

 

 

(460

)

 

 

 

 

(460

)

 

 

 

 

 

 

Total net revenues excluding Farfetch

 

$

6,863

 

 

$

294

 

$

7,157

 

 

$

5,838

 

18

%

 

23

%

Gross Profit excluding Farfetch

 

 

 

 

Three Months Ended June 30,

(in millions)

 

2024

 

2023

Gross Profit

 

$

2,142

 

 

$

1,524

 

Gross Profit of Farfetch

 

 

(203

)

 

 

 

Gross Profit excluding Farfetch

 

$

1,939

 

 

$

1,524

 

Gross profit margin excluding Farfetch

 

 

28.3

%

 

 

26.1

%

Adjusted EBITDA excluding Farfetch

 

 

 

 

Three Months Ended
June 30,

 

Trailing Twelve Months Ended
June 30,

(in millions)

 

2024

 

2023

 

2024

 

2023

Adjusted EBITDA

 

$

330

 

 

$

300

 

 

$

1,143

 

 

$

947

 

Adjusted EBITDA of Farfetch

 

 

31

 

 

 

 

 

 

62

 

 

 

 

Adjusted EBITDA excluding Farfetch

 

$

361

 

 

$

300

 

 

$

1,205

 

 

$

947

 

Adjusted EBITDA margin excluding Farfetch

 

 

5.3

%

 

 

5.1

%

 

 

4.6

%

 

 

4.3

%

Developing Offerings Net Revenues excluding Farfetch

 

 

 

 

Three Months Ended June 30,

(in millions)

 

2024

 

2023

Developing Offerings net revenues

 

$

892

 

 

$

156

Revenues of Farfetch

 

 

(460

)

 

 

Developing Offerings net revenues excluding Farfetch

 

$

432

 

 

$

156

Developing Offerings Net Revenues excluding Farfetch Constant Currency Revenue and Constant Currency Revenue Growth (YoY)

 

 

 

 

 

Three Months Ended June 30,

 

 

 

 

2024

 

2023

 

Year over Year Growth

(in millions)

 

As Reported

 

Exchange Rate Effect

 

Constant Currency Basis

 

As Reported

 

As Reported

 

Constant Currency Basis

Net Revenues by Segment

 

 

 

 

 

 

 

 

 

 

Developing Offerings net revenues

 

$

892

 

 

$

18

 

$

910

 

 

$

156

 

472

%

 

483

%

Revenues of Farfetch

 

 

(460

)

 

 

 

 

(460

)

 

 

 

 

 

 

Developing Offerings net revenues excluding Farfetch

 

$

432

 

 

$

18

 

$

450

 

 

$

156

 

177

%

 

188

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806444642/en/

Contacts

Investor Contact:
Coupang IR
ir@coupang.com

Media Contact:
Coupang PR
press@coupang.com