Coupang Announces Results for Fourth Quarter 2023
Net Revenues of
Gross Profit of
Operating Cash Flow of
Q4 2023 Key Financial and Operational Highlights
-
Net revenues were
, up$6.6 billion 23% YoY on a reported basis and20% YoY on an FX-neutral basis. -
The net revenues growth rate would have been an estimated 940 bps higher than the
20% growth without the accounting change in FLC revenue, which we began recording on a net basis starting in Q2 2023. -
Gross profit increased
32% YoY to . Gross profit margin was$1.7 billion 25.6% , an improvement of 160 bps YoY. -
Net income was
, and adjusted net income was$1.0 billion after adjusting for the non-cash tax benefit of$137 million from changes in tax-related reserves, including the release of valuation allowances related to certain deferred tax assets.$895 million -
Diluted EPS was
, and adjusted diluted EPS was$0.57 after adjusting for the$0.08 benefit from changes in tax-related reserves.$0.49 -
Adjusted EBITDA for the quarter was
with a margin of$294 million 4.5% , an improvement of 50 bps over last year. The accounting change in FLC revenue this quarter had a positive impact of 40 bps on margin. -
Product Commerce segment net revenues was
, up$6.3 billion 21% YoY on a reported basis and18% on an FX-neutral basis. -
Product Commerce segment adjusted EBITDA was
with a margin of$444 million 7.1% , an improvement of 190 bps YoY. The Q2 accounting change in FLC revenue had a positive impact of 60 bps on margin. -
Developing Offerings segment (including International, Coupang Eats, Play and Fintech) net revenues was
, up$273 million 105% YoY on a reported basis and102% on an FX-neutral basis. -
Developing Offerings segment adjusted EBITDA was negative
, compared to negative$150 million in the prior year.$55 million -
Active customers surpassed 21 million, growing at
16% YoY.
FY2023 Key Financial and Operational Highlights
-
Total net revenues were
, increasing$24.4 billion 18% YoY on a reported basis and20% YoY on an FX-neutral basis. -
The revenue growth rate would have been an estimated 520 bps higher than the
20% growth without the accounting change in FLC revenue, which we began recording on a net basis starting in Q2 2023. -
Total gross profit improved
31% YoY to with gross profit margin of$6.2 billion 25.4% , an expansion of over 250 bps YoY. -
Net income was
, and adjusted net income was$1.4 billion after adjusting for the non-cash tax benefit of$465 million from the changes in certain tax-related reserves, including the release of valuation allowances related to certain deferred tax assets.$895 million -
Diluted EPS was
, and adjusted diluted EPS was$0.75 after adjusting for the$0.26 benefit from the changes in tax-related reserves.$0.50 -
Adjusted EBITDA was
with a margin of$1.1 billion 4.4% , a YoY improvement of over 250 bps. The Q2 accounting change in FLC revenue had a positive impact of 30 bps on margin. -
Product Commerce segment net revenues reached
, growing$23.6 billion 18% YoY on a reported basis and19% on an FX-neutral basis. -
Product Commerce segment adjusted EBITDA was
with a margin of$1.5 billion 6.5% , an expansion of 350 bps YoY. The Q2 accounting change in FLC revenue had a positive impact of 40 bps on margin. -
Developing Offerings segment net revenues was
, up$789 million 26% YoY on a reported basis and27% on an FX-neutral basis. -
Developing Offerings segment adjusted EBITDA was negative
, compared to negative$466 million in the prior year.$225 million -
Cash flow from operations was
, an improvement of$2.7 billion YoY.$2.1 billion -
Free cash flow was
, an improvement of$1.8 billion YoY.$2.0 billion -
WOW membership program had 14 million paid members at the end of 2023, an increase of
27% YoY.
“Our accelerating growth in revenues, active customers, and WOW members reflect our unrelenting focus on creating ‘wow’ for our customers across selection, price, and service,” said Bom Kim, Founder and CEO of Coupang. “This year we provided a record
“While we are pleased with the progress we made this quarter, we see even greater opportunity in front of us, as we represent just a single digit share of the vast retail spend in
Fourth Quarter 2023 Results
Consolidated Financial Summary
|
Three Months Ended December 31, |
|
|
|||||
(in millions, except net revenues per Active Customer and earnings per share) |
2023 |
2022 |
|
% Change |
||||
Total net revenues |
$ |
6,561 |
|
$ |
5,327 |
|
23 |
% |
Total net revenues growth, constant currency(1) |
|
|
|
|
20 |
% |
||
Active Customers |
|
21.0 |
|
|
18.1 |
|
16 |
% |
Total net revenues per Active Customer |
$ |
312 |
|
$ |
294 |
|
6 |
% |
Total net revenues per Active Customer, constant currency(1) |
$ |
303 |
|
|
|
3 |
% |
|
Gross profit |
$ |
1,681 |
|
$ |
1,278 |
|
32 |
% |
Net income |
$ |
1,032 |
|
$ |
102 |
|
NM(3) |
|
Adjusted net income(1) |
$ |
137 |
|
$ |
62 |
|
121 |
% |
Adjusted EBITDA(1) |
$ |
294 |
|
$ |
211 |
|
39 |
% |
Earnings per share, basic |
$ |
0.58 |
|
$ |
0.06 |
|
NM(3) |
|
Earnings per share, diluted |
$ |
0.57 |
|
$ |
0.06 |
|
NM(3) |
|
Adjusted diluted earnings per share(1) |
$ |
0.08 |
|
$ |
0.03 |
|
167 |
% |
Net cash provided by operating activities |
$ |
609 |
|
$ |
580 |
|
5 |
% |
Free cash flow(1) |
$ |
382 |
|
$ |
462 |
|
(17 |
) % |
Segment Information
|
Three Months Ended December 31, |
|
|
|||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
Product Commerce |
|
|
|
|
|
|||||
Net revenues |
$ |
6,288 |
|
|
$ |
5,194 |
|
|
21 |
% |
Net revenues growth, constant currency(1) |
|
|
|
|
18 |
% |
||||
Segment adjusted EBITDA |
$ |
444 |
|
|
$ |
266 |
|
|
67 |
% |
Developing Offerings |
|
|
|
|
|
|||||
Net revenues |
$ |
273 |
|
|
$ |
133 |
|
|
105 |
% |
Net revenues growth, constant currency(1) |
|
|
|
|
102 |
% |
||||
Segment adjusted EBITDA |
$ |
(150 |
) |
|
$ |
(55 |
) |
|
173 |
% |
Growth Rates
|
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
||||
Active Customers |
5 |
% |
|
10 |
% |
|
14 |
% |
|
16 |
% |
Total net revenues |
13 |
% |
|
16 |
% |
|
21 |
% |
|
23 |
% |
Total net revenues (constant currency) |
20 |
% |
|
21 |
% |
|
18 |
% |
|
20 |
% |
Impact from FLC accounting change in Q2 2023 (constant currency) |
— |
|
|
+3 % |
|
+6 % |
|
+9 % |
Full Year 2023 Results
Consolidated Financial Summary
|
Year Ended December 31, |
|
|
||||||
(in millions, except net revenues per Active Customer and earnings per share) |
|
2023 |
|
|
2022 |
|
|
% Change |
|
Total net revenues |
$ |
24,383 |
|
$ |
20,583 |
|
|
18 |
% |
Total net revenues growth, constant currency(1) |
|
|
|
|
20 |
% |
|||
Gross profit(2) |
$ |
6,190 |
|
$ |
4,710 |
|
|
31 |
% |
Net income (loss) |
$ |
1,360 |
|
$ |
(92 |
) |
|
NM(3) |
|
Adjusted net income (loss)(1) |
$ |
465 |
|
$ |
(133 |
) |
|
NM(3) |
|
Adjusted EBITDA(1) |
$ |
1,074 |
|
$ |
381 |
|
|
182 |
% |
Earnings per share, basic |
$ |
0.76 |
|
$ |
(0.05 |
) |
|
NM(3) |
|
Earnings per share, diluted |
$ |
0.75 |
|
$ |
(0.05 |
) |
|
NM(3) |
|
Adjusted diluted earnings per share(1) |
$ |
0.26 |
|
$ |
(0.08 |
) |
|
NM(3) |
|
Net cash provided by operating activities |
$ |
2,652 |
|
$ |
565 |
|
|
NM(3) |
|
Free cash flow(1) |
$ |
1,775 |
|
$ |
(246 |
) |
|
NM(3) |
Segment Information
|
Year Ended December 31, |
|
|
|||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
Product Commerce |
|
|
|
|
|
|||||
Net revenues |
$ |
23,594 |
|
|
$ |
19,955 |
|
|
18 |
% |
Net revenues growth, constant currency(1) |
|
|
|
|
19 |
% |
||||
Segment adjusted EBITDA |
$ |
1,540 |
|
|
$ |
606 |
|
|
154 |
% |
Developing Offerings |
|
|
|
|
|
|||||
Net revenues |
$ |
789 |
|
|
$ |
628 |
|
|
26 |
% |
Net revenues growth, constant currency(1) |
|
|
|
|
27 |
% |
||||
Segment adjusted EBITDA |
$ |
(466 |
) |
|
$ |
(225 |
) |
|
107 |
% |
|
Webcast and Conference Call
Coupang, Inc. will host a conference call to discuss fourth quarter results on February 27, 2024 at 5:30 PM Eastern Time (February 28, 2024 at 7:30 AM Korea Standard 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
About Coupang
Coupang is one of the largest retailers in
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, 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 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 presentation 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.
Additional information relating to certain of our financial measures contained herein, including non-GAAP financial measures, is available in the appendix to this presentation, our most recent earnings release and at our website at www.ir.aboutcoupang.com.
COUPANG, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions, except per share amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net retail sales |
$ |
5,563 |
|
|
$ |
4,761 |
|
|
$ |
21,223 |
|
|
$ |
18,338 |
|
Net other revenue |
|
998 |
|
|
|
566 |
|
|
|
3,160 |
|
|
|
2,245 |
|
Total net revenues |
|
6,561 |
|
|
|
5,327 |
|
|
|
24,383 |
|
|
|
20,583 |
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
4,881 |
|
|
|
4,049 |
|
|
|
18,193 |
|
|
|
15,873 |
|
Operating, general and administrative |
|
1,550 |
|
|
|
1,195 |
|
|
|
5,717 |
|
|
|
4,822 |
|
Total operating cost and expenses |
|
6,431 |
|
|
|
5,244 |
|
|
|
23,910 |
|
|
|
20,695 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss) |
|
130 |
|
|
|
83 |
|
|
|
473 |
|
|
|
(112 |
) |
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
54 |
|
|
|
27 |
|
|
|
178 |
|
|
|
53 |
|
Interest expense |
|
(13 |
) |
|
|
(7 |
) |
|
|
(48 |
) |
|
|
(27 |
) |
Other expense, net |
|
— |
|
|
|
(9 |
) |
|
|
(19 |
) |
|
|
(7 |
) |
Income (loss) before income taxes |
|
171 |
|
|
|
94 |
|
|
|
584 |
|
|
|
(93 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax benefit |
|
(861 |
) |
|
|
(8 |
) |
|
|
(776 |
) |
|
|
(1 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
1,032 |
|
|
$ |
102 |
|
|
$ |
1,360 |
|
|
$ |
(92 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings per share |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.58 |
|
|
$ |
0.06 |
|
|
$ |
0.76 |
|
|
$ |
(0.05 |
) |
Diluted |
$ |
0.57 |
|
|
$ |
0.06 |
|
|
$ |
0.75 |
|
|
$ |
(0.05 |
) |
Weighted average shares outstanding |
|
|
|
|
|
|
|
||||||||
Basic |
|
1,789 |
|
|
|
1,771 |
|
|
|
1,782 |
|
|
|
1,765 |
|
Diluted |
|
1,810 |
|
|
|
1,793 |
|
|
|
1,803 |
|
|
|
1,765 |
|
COUPANG, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions) |
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
5,243 |
|
|
$ |
3,509 |
|
Restricted cash |
|
353 |
|
|
|
176 |
|
Accounts receivable, net |
|
314 |
|
|
|
184 |
|
Inventories |
|
1,666 |
|
|
|
1,657 |
|
Prepaids and other current assets |
|
316 |
|
|
|
304 |
|
Total current assets |
|
7,892 |
|
|
|
5,830 |
|
|
|
|
|
||||
Property and equipment, net |
|
2,465 |
|
|
|
1,820 |
|
Operating lease right-of-use assets |
|
1,601 |
|
|
|
1,405 |
|
Deferred tax assets |
|
925 |
|
|
|
40 |
|
Long-term lease deposits and other |
|
463 |
|
|
|
418 |
|
Total assets |
$ |
13,346 |
|
|
$ |
9,513 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Accounts payable |
$ |
5,099 |
|
|
$ |
3,622 |
|
Accrued expenses |
|
352 |
|
|
|
299 |
|
Deferred revenue |
|
97 |
|
|
|
92 |
|
Short-term borrowings |
|
282 |
|
|
|
175 |
|
Current portion of long-term debt |
|
203 |
|
|
|
129 |
|
Current portion of long-term operating lease obligations |
|
386 |
|
|
|
326 |
|
Other current liabilities |
|
526 |
|
|
|
420 |
|
Total current liabilities |
|
6,945 |
|
|
|
5,063 |
|
|
|
|
|
||||
Long-term debt |
|
529 |
|
|
|
538 |
|
Long-term operating lease obligations |
|
1,387 |
|
|
|
1,234 |
|
Defined severance benefits and other |
|
381 |
|
|
|
264 |
|
Total liabilities |
|
9,242 |
|
|
|
7,099 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Redeemable noncontrolling interest |
|
15 |
|
|
|
— |
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Common Stock |
|
— |
|
|
|
— |
|
Class A — shares authorized 10,000, outstanding 1,616 and 1,598 Class B — shares authorized 250, outstanding 175 and 175 |
|
|
|
||||
Additional paid-in capital |
|
8,489 |
|
|
|
8,154 |
|
Accumulated other comprehensive (loss) income |
|
(17 |
) |
|
|
3 |
|
Accumulated deficit |
|
(4,383 |
) |
|
|
(5,743 |
) |
Total stockholders' equity |
|
4,089 |
|
|
|
2,414 |
|
Total liabilities and stockholders' equity |
$ |
13,346 |
|
|
$ |
9,513 |
|
COUPANG, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in millions) |
|
2023 |
|
|
|
2022 |
|
Operating activities |
|
|
|
||||
Net income (loss) |
$ |
1,360 |
|
|
$ |
(92 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
275 |
|
|
|
231 |
|
Provision for severance benefits |
|
159 |
|
|
|
161 |
|
Equity-based compensation |
|
326 |
|
|
|
262 |
|
Non-cash operating lease expense |
|
338 |
|
|
|
310 |
|
Deferred income taxes |
|
(884 |
) |
|
|
(41 |
) |
Non-cash others |
|
140 |
|
|
|
112 |
|
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(133 |
) |
|
|
(34 |
) |
Inventories |
|
(44 |
) |
|
|
(367 |
) |
Other assets |
|
(153 |
) |
|
|
(249 |
) |
Accounts payable |
|
1,514 |
|
|
|
444 |
|
Accrued expenses |
|
43 |
|
|
|
7 |
|
Other liabilities |
|
(289 |
) |
|
|
(179 |
) |
Net cash provided by operating activities |
|
2,652 |
|
|
|
565 |
|
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(896 |
) |
|
|
(824 |
) |
Proceeds from sale of property and equipment |
|
19 |
|
|
|
13 |
|
Other investing activities |
|
(50 |
) |
|
|
(37 |
) |
Net cash used in investing activities |
|
(927 |
) |
|
|
(848 |
) |
Financing activities |
|
|
|
||||
Proceeds from issuance of common stock/units, equity-based compensation plan |
|
9 |
|
|
|
18 |
|
Proceeds from short-term borrowings and long-term debt |
|
572 |
|
|
|
701 |
|
Repayment of short-term borrowings and long-term debt |
|
(392 |
) |
|
|
(467 |
) |
Net short-term borrowings and other financing activities |
|
10 |
|
|
|
(5 |
) |
Net cash provided by financing activities |
|
199 |
|
|
|
247 |
|
Effect of exchange rate changes on cash and cash equivalents, and restricted cash |
|
(14 |
) |
|
|
(87 |
) |
Net increase (decrease) in cash and cash equivalents, and restricted cash |
|
1,910 |
|
|
|
(123 |
) |
Cash and cash equivalents, and restricted cash, as of beginning of period |
|
3,687 |
|
|
|
3,810 |
|
Cash and cash equivalents, and restricted cash, as of end of period |
$ |
5,597 |
|
|
$ |
3,687 |
|
Supplemental Financial Information
Share Information
|
As of December 31, |
||
(in millions) |
2023 |
|
2022 |
Outstanding common stock |
1,791 |
|
1,773 |
Outstanding equity-based awards |
63 |
|
57 |
Outstanding common stock and equity-based awards |
1,854 |
|
1,830 |
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
Active Customers
As of the last date of each reported period, we determine our number of Active Customers by counting the total number of individual customers who have ordered at least once directly from our apps or websites in
Total Net Revenues per Active Customer
Total net revenues per Active Customer is the total net revenues generated in a period divided by the total number of Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of Active Customers who are shopping on our apps or websites. We therefore view total net revenues per Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth.
|
Three Months Ended December 31, |
|
|
|||||
(in millions, except net revenues per Active Customer) |
|
2023 |
|
|
2022 |
|
% Change |
|
Active Customers |
|
21.0 |
|
|
18.1 |
|
16 |
% |
Total net revenues per Active Customer |
$ |
312 |
|
$ |
294 |
|
6 |
% |
Total net revenues per Active Customer, constant currency (YoY) |
$ |
303 |
|
|
|
3 |
% |
Non-GAAP Financial Measures
We report our financial results in accordance with
Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with
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 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
• 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 |
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 (loss) |
• Net income (loss), excluding the effects of tax valuation allowance releases and other tax reserve adjustments not reflective of our ongoing operations. |
• We believe adjusted net income (loss) and adjusted diluted earnings provides useful supplemental information for investors to compare our current earnings results from one period to another exclusive of certain items that are not reflective of our ongoing operations. 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 (loss) divided by the weighted average dilutive shares outstanding for the period. |
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.
The following tables present the reconciliations from each
Constant Currency Revenue and Constant Currency Revenue Growth (YoY)
|
Three Months Ended December 31, |
|
|
|
|||||||||||
|
2023 |
|
2022 |
|
Year over Year Growth |
||||||||||
(in millions) |
As Reported |
Exchange
|
Constant Currency Basis |
|
As Reported |
|
As Reported |
Constant Currency Basis |
|||||||
Consolidated |
|
|
|
|
|
|
|
||||||||
Net retail sales |
$ |
5,563 |
$ |
(167 |
) |
$ |
5,397 |
|
$ |
4,761 |
|
17 |
% |
13 |
% |
Net other revenue |
|
998 |
|
(21 |
) |
|
977 |
|
|
566 |
|
76 |
% |
73 |
% |
Total net revenues |
$ |
6,561 |
$ |
(187 |
) |
$ |
6,374 |
|
$ |
5,327 |
|
23 |
% |
20 |
% |
|
|
|
|
|
|
|
|
|
|||||||
Net Revenues by Segment |
|
|
|
|
|
|
|
||||||||
Product Commerce |
$ |
6,288 |
$ |
(183 |
) |
$ |
6,106 |
|
$ |
5,194 |
|
21 |
% |
18 |
% |
Developing Offerings |
|
273 |
|
(5 |
) |
|
268 |
|
|
133 |
|
105 |
% |
102 |
% |
Total net revenues |
$ |
6,561 |
$ |
(187 |
) |
$ |
6,374 |
|
$ |
5,327 |
|
23 |
% |
20 |
% |
|
Year Ended December 31, |
|
|
|
||||||||||
|
2023 |
|
2022 |
|
Year over Year Growth |
|||||||||
(in millions) |
As Reported |
Exchange
|
Constant Currency Basis |
|
As Reported |
|
As Reported |
Constant Currency Basis |
||||||
Consolidated |
|
|
|
|
|
|
|
|||||||
Net retail sales |
$ |
21,223 |
$ |
221 |
$ |
21,444 |
|
$ |
18,338 |
|
16 |
% |
17 |
% |
Net other revenue |
|
3,160 |
|
33 |
|
3,193 |
|
|
2,245 |
|
41 |
% |
42 |
% |
Total net revenues |
$ |
24,383 |
$ |
254 |
$ |
24,637 |
|
$ |
20,583 |
|
18 |
% |
20 |
% |
|
|
|
|
|
|
|
|
|
||||||
Net Revenues by Segment |
|
|
|
|
|
|
|
|||||||
Product Commerce |
$ |
23,594 |
$ |
246 |
$ |
23,840 |
|
$ |
19,955 |
|
18 |
% |
19 |
% |
Developing Offerings |
|
789 |
|
8 |
|
797 |
|
|
628 |
|
26 |
% |
27 |
% |
Total net revenues |
$ |
24,383 |
$ |
254 |
$ |
24,637 |
|
$ |
20,583 |
|
18 |
% |
20 |
% |
Constant Currency Revenue and Constant Currency Revenue Growth (QoQ)
|
Three Months Ended December 31, |
|
Quarter over Quarter Growth |
|||||||||||
|
2023 |
|
2022 |
|
||||||||||
(in millions) |
As Reported |
Exchange Rate Effect |
Constant Currency Basis |
|
As Reported |
|
As Reported |
Constant Currency Basis |
||||||
Total net revenues |
$ |
6,561 |
$ |
44 |
$ |
6,605 |
|
$ |
5,327 |
|
6 |
% |
7 |
% |
Constant Currency Revenue and Constant Currency Revenue Growth (YoY) Prior Quarters
|
Three Months Ended |
|
Year over Year Growth |
||||||||||||
(in millions) |
2023 |
|
2022 |
|
|||||||||||
Total net revenues |
As Reported |
Exchange Rate Effect |
Constant Currency Basis |
|
As Reported |
|
As Reported |
Constant Currency Basis |
|||||||
Q1 |
$ |
5,801 |
$ |
340 |
|
$ |
6,141 |
|
$ |
5,117 |
|
13 |
% |
20 |
% |
Q2 |
$ |
5,838 |
$ |
246 |
|
$ |
6,083 |
|
$ |
5,038 |
|
16 |
% |
21 |
% |
Q3 |
$ |
6,184 |
$ |
(144 |
) |
$ |
6,039 |
|
$ |
5,101 |
|
21 |
% |
18 |
% |
Free Cash Flow
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
609 |
|
|
$ |
580 |
|
|
$ |
2,652 |
|
|
$ |
565 |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
Purchases of land and buildings |
|
(42 |
) |
|
|
(21 |
) |
|
|
(374 |
) |
|
|
(226 |
) |
Purchases of equipment |
|
(191 |
) |
|
|
(100 |
) |
|
|
(522 |
) |
|
|
(598 |
) |
Total purchases of property and equipment |
$ |
(233 |
) |
|
$ |
(121 |
) |
|
$ |
(896 |
) |
|
$ |
(824 |
) |
Proceeds from sale of property and equipment |
|
7 |
|
|
|
3 |
|
|
|
19 |
|
|
|
13 |
|
Total adjustments |
$ |
(227 |
) |
|
$ |
(118 |
) |
|
$ |
(877 |
) |
|
$ |
(811 |
) |
Free cash flow |
$ |
382 |
|
|
$ |
462 |
|
|
$ |
1,775 |
|
|
$ |
(246 |
) |
Net cash used in investing activities |
$ |
(263 |
) |
|
$ |
(130 |
) |
|
$ |
(927 |
) |
|
$ |
(848 |
) |
Net cash provided by (used in) financing activities |
$ |
(163 |
) |
|
$ |
21 |
|
|
$ |
199 |
|
|
$ |
247 |
|
Adjusted EBITDA and Adjusted EBITDA Margin
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Total net revenues |
$ |
6,561 |
|
|
$ |
5,327 |
|
$ |
24,383 |
|
|
$ |
20,583 |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
1,032 |
|
|
|
102 |
|
|
1,360 |
|
|
|
(92 |
) |
Net income (loss) margin |
|
15.7 |
% |
|
|
1.9 |
% |
|
5.6 |
% |
|
|
(0.4 |
) % |
Adjustments: |
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
77 |
|
|
|
57 |
|
|
275 |
|
|
|
231 |
|
Interest expense |
|
13 |
|
|
|
7 |
|
|
48 |
|
|
|
27 |
|
Interest income |
|
(54 |
) |
|
|
(26 |
) |
|
(178 |
) |
|
|
(53 |
) |
Income tax benefit |
|
(861 |
) |
|
|
(9 |
) |
|
(776 |
) |
|
|
(1 |
) |
Other expense, net |
|
— |
|
|
|
9 |
|
|
19 |
|
|
|
7 |
|
Equity-based compensation |
|
86 |
|
|
|
71 |
|
|
326 |
|
|
|
262 |
|
Adjusted EBITDA |
$ |
294 |
|
|
$ |
211 |
|
$ |
1,074 |
|
|
$ |
381 |
|
Adjusted EBITDA margin |
|
4.5 |
% |
|
|
4.0 |
% |
|
4.4 |
% |
|
|
1.9 |
% |
Segment Gross Profit and Segment Gross Profit Margin
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Gross profit |
$ |
1,681 |
|
|
$ |
1,278 |
|
|
$ |
6,190 |
|
|
$ |
4,710 |
|
Segment gross profit and gross profit margin: |
|
|
|
|
|
|
|
||||||||
Product Commerce |
$ |
1,717 |
|
|
$ |
1,265 |
|
|
$ |
6,282 |
|
|
$ |
4,675 |
|
Gross profit margin |
|
27.3 |
% |
|
|
24.4 |
% |
|
|
26.6 |
% |
|
|
23.4 |
% |
Developing Offerings |
$ |
(36 |
) |
|
$ |
14 |
|
|
$ |
(91 |
) |
|
$ |
35 |
|
Gross profit margin |
|
(13.3 |
) % |
|
|
10.3 |
% |
|
|
(11.6 |
) % |
|
|
5.5 |
% |
Adjusted Net Income (Loss) Reconciliation
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) |
$ |
1,032 |
|
|
$ |
102 |
|
$ |
1,360 |
|
|
$ |
(92 |
) |
Adjustment: |
|
|
|
|
|
|
||||||||
Change in income tax valuation allowance and other tax reserves |
|
(895 |
) |
|
|
(41 |
) |
|
(895 |
) |
|
|
(41 |
) |
Adjusted net income (loss) |
$ |
137 |
|
|
$ |
62 |
|
$ |
465 |
|
|
$ |
(133 |
) |
Adjusted Diluted Earnings per Share Reconciliation
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||
(in millions) |
|
2023 |
|
|
|
2022 |
|
|
2023 |
|
|
|
2022 |
|
Diluted earnings per share |
$ |
0.57 |
|
|
$ |
0.06 |
|
$ |
0.75 |
|
|
$ |
(0.05 |
) |
Adjustment: |
|
|
|
|
|
|
||||||||
Change in income tax valuation allowance and other tax reserves |
|
(0.49 |
) |
|
|
(0.02 |
) |
|
(0.50 |
) |
|
|
(0.02 |
) |
Adjusted diluted earnings per share |
$ |
0.08 |
|
|
$ |
0.03 |
|
$ |
0.26 |
|
|
$ |
(0.08 |
) |
Certain amounts may not foot due to rounding
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227252388/en/
Investor Contact:
Coupang IR
ir@coupang.com
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press@coupang.com
Source: Coupang