Coupang Announces Results for Second Quarter 2024
Coupang (NYSE: CPNG) reported its Q2 2024 results, showing notable growth in several key metrics. Net revenues rose 25% YoY to $7.3 billion, with a gross profit increase of 41% YoY to $2.1 billion. Product Commerce segment adjusted EBITDA reached $530 million with an 8.2% margin.
The company saw a net loss of $105 million, primarily due to Farfetch losses and an administrative fine. Excluding these, net income attributable to stockholders was about $124 million. Diluted EPS was negative $0.04, but excluding Farfetch and the fine, it was $0.07. Operating cash flow over the trailing twelve months was $2.2 billion, and free cash flow was $1.5 billion.
The Developing Offerings segment saw revenues of $892 million, up 472% YoY. However, adjusted EBITDA for this segment was negative $200 million, impacted by Farfetch.
Coupang (NYSE: CPNG) ha riportato i risultati del secondo trimestre 2024, evidenziando una crescita notevole in diversi indicatori chiave. I ricavi netti sono aumentati del 25% rispetto all'anno precedente, raggiungendo i 7,3 miliardi di dollari, con un incremento del profitto lordo del 41% YoY, pari a 2,1 miliardi di dollari. L'EBITDA rettificato del segmento Product Commerce ha raggiunto 530 milioni di dollari con un margine dell'8,2%.
La società ha registrato una perdita netta di 105 milioni di dollari, principalmente a causa delle perdite di Farfetch e di una multa amministrativa. Escludendo questi fattori, il reddito netto attribuibile agli azionisti è stato di circa 124 milioni di dollari. L'EPS diluito è stato negativo 0,04 dollari, ma escludendo Farfetch e la multa, è stato 0,07 dollari. Il flusso di cassa operativo negli ultimi dodici mesi è stato di 2,2 miliardi di dollari, mentre il flusso di cassa libero è stato di 1,5 miliardi di dollari.
Il segmento Developing Offerings ha registrato ricavi di 892 milioni di dollari, in aumento del 472% rispetto all'anno precedente. Tuttavia, l'EBITDA rettificato per questo segmento è stato negativo per 200 milioni di dollari, influenzato da Farfetch.
Coupang (NYSE: CPNG) informó sus resultados del segundo trimestre de 2024, mostrando un crecimiento notable en varios indicadores clave. Los ingresos netos aumentaron un 25% interanual, alcanzando 7.3 mil millones de dólares, con un incremento en el beneficio bruto del 41% interanual, equivalente a 2.1 mil millones de dólares. El EBITDA ajustado del segmento de Comercio de Productos alcanzó 530 millones de dólares con un margen del 8.2%.
La empresa registró una pérdida neta de 105 millones de dólares, principalmente debido a las pérdidas de Farfetch y una multa administrativa. Excluyendo estos elementos, el ingreso neto atribuible a los accionistas fue de aproximadamente 124 millones de dólares. El EPS diluido fue negativo en 0.04 dólares, pero excluyendo a Farfetch y la multa, fue de 0.07 dólares. El flujo de caja de operación durante los últimos doce meses fue de 2.2 mil millones de dólares, mientras que el flujo de caja libre fue de 1.5 mil millones de dólares.
El segmento de Ofertas en Desarrollo vio ingresos de 892 millones de dólares, un aumento del 472% interanual. Sin embargo, el EBITDA ajustado de este segmento fue negativo por 200 millones de dólares, impactado por Farfetch.
쿠팡(NYSE: CPNG)은 2024년 2분기 실적을 발표하며 여러 주요 지표에서 눈에 띄는 성장을 보여주었습니다. 순수익은 전년 대비 25% 증가하여 73억 달러에 달했고, 총 이익은 전년 대비 41% 증가하여 21억 달러에 도달했습니다. 제품 상거래 부문의 조정된 EBITDA는 5억 3천만 달러에 달하며 마진은 8.2%였습니다.
회사는 주로 Farfetch의 손실과 행정 벌금으로 인해 1억 5천만 달러의 순손실을 기록했습니다. 이 부분을 제외하면 주주에게 귀속된 순이익은 약 1억 2천4백만 달러였습니다. 희석 EPS는 -0.04 달러였으나 Farfetch와 벌금을 제외하면 0.07 달러였습니다. 지난 12개월 동안의 영업 현금 흐름은 22억 달러였고, 자유 현금 흐름은 15억 달러였습니다.
개발 중인 제안 부문은 8억 9천2백만 달러의 수익을 기록했으며, 이는 전년 대비 472% 증가한 수치입니다. 그러나 이 부문의 조정 EBITDA는 Farfetch의 영향으로 -2억 달러로 나타났습니다.
Coupang (NYSE: CPNG) a publié ses résultats pour le deuxième trimestre 2024, montrant une croissance notable dans plusieurs indicateurs clés. Les revenus nets ont augmenté de 25 % d'une année sur l'autre, atteignant 7,3 milliards de dollars, avec une augmentation du bénéfice brut de 41 % d'une année sur l'autre, qui s'élève à 2,1 milliards de dollars. L'EBITDA ajusté du segment Commerce de Produits a atteint 530 millions de dollars avec une marge de 8,2 %.
L'entreprise a enregistré une perte nette de 105 millions de dollars, principalement en raison des pertes de Farfetch et d'une amende administrative. En excluant ces éléments, le revenu net attribuable aux actionnaires s'élevait à environ 124 millions de dollars. Le BPA dilué était négatif à 0,04 dollars, mais en excluant Farfetch et l'amende, il s'élevait à 0,07 dollars. Le flux de trésorerie d'exploitation sur les douze derniers mois s'élevait à 2,2 milliards de dollars, et le flux de trésorerie disponible était de 1,5 milliard de dollars.
Le segment des Offres en Développement a vu des revenus de 892 millions de dollars, en hausse de 472 % par rapport à l'année précédente. Cependant, l'EBITDA ajusté pour ce segment était négatif à 200 millions de dollars, impacté par Farfetch.
Coupang (NYSE: CPNG) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht und zeigt ein bemerkenswertes Wachstum in mehreren Schlüsselkennzahlen. Die Nettoeinnahmen stiegen im Jahresvergleich um 25% auf 7,3 Milliarden Dollar, während der Bruttogewinn im Jahresvergleich um 41% auf 2,1 Milliarden Dollar zunahm. Das bereinigte EBITDA des Produktcommerce-Segments erreichte 530 Millionen Dollar bei einer Marge von 8,2%.
Das Unternehmen verzeichnete einen Nettoverlust von 105 Millionen Dollar, hauptsächlich aufgrund von Verlusten bei Farfetch und einer Verwaltungsstrafe. Ohne diese betrugen die dem Aktionär zurechenbaren Nettoerträge etwa 124 Millionen Dollar. Der verwässerte EPS lag bei -0,04 Dollar, ohne Farfetch und die Strafe war es 0,07 Dollar. Der Betriebs Cashflow der letzten zwölf Monate betrug 2,2 Milliarden Dollar, der freie Cashflow belief sich auf 1,5 Milliarden Dollar.
Der Segment für Entwicklungsangebote verzeichnete Einnahmen von 892 Millionen Dollar, was einem Anstieg von 472% im Jahresvergleich entspricht. Das bereinigte EBITDA dieses Segments lag jedoch bei -200 Millionen Dollar, was auf Farfetch zurückzuführen ist.
- Net revenues up 25% YoY to $7.3 billion
- Gross profit increased 41% YoY to $2.1 billion
- Product Commerce segment adjusted EBITDA of $530 million with an 8.2% margin
- Operating cash flow of $2.2 billion, up $250 million YoY
- Free cash flow of $1.5 billion, up $420 million YoY
- Net loss of $105 million
- Diluted EPS of negative $0.04
- Developing Offerings segment adjusted EBITDA of negative $200 million
Coupang's Q2 2024 results show strong growth, but with some complexities. Net revenues increased
The company reported a net loss of
While growth is strong, investors should watch the integration of Farfetch and its impact on profitability closely.
Coupang's Q2 results reveal interesting market dynamics. The Product Commerce Active Customers grew
The Developing Offerings segment shows explosive growth, up
Coupang's focus on selection, service and savings appears to be resonating with customers. The company's investments in infrastructure, technology and automation are likely contributing to operational improvements. These factors, combined with strong customer engagement, position Coupang well in the competitive e-commerce landscape.
Coupang's Q2 results highlight the company's technological prowess. The
The Product Commerce segment's adjusted EBITDA improvement of
However, the Developing Offerings segment, including Farfetch, shows that integrating new tech platforms can be challenging, as evidenced by the negative adjusted EBITDA. Coupang's ability to leverage its tech expertise to turn around Farfetch and other developing offerings will be important for future growth and profitability.
Net Revenues of
Gross Profit of
Product Commerce segment adjusted EBITDA of
Consolidated Highlights:
-
Net revenues were
$7.3 billion 25% YoY on a reported basis and30% YoY on an FX-neutral basis. Excluding Farfetch, the growth was18% YoY on a reported basis and23% 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 29.3% , an improvement of 310 bps YoY. Excluding Farfetch, gross profit was$1.9 billion 27% YoY, and gross profit margin was28.3% . -
Net loss was
$105 million $77 million $222 million $121 million -
Excluding the Farfetch loss and the administrative fine, net income attributable to Coupang stockholders was approximately
$124 million -
Diluted EPS was negative
$0.04 $0.12 $0.07 -
Adjusted EBITDA for the quarter was
$330 million 4.5% , down 60 bps from last year. Excluding Farfetch, adjusted EBITDA was$361 million 5.3% . -
Operating cash flow for the trailing twelve months was
$2.2 billion $250 million -
Free cash flow was
$1.5 billion $420 million
Segment Highlights:
-
Product Commerce segment net revenues was
$6.4 billion 13% YoY on a reported basis and18% 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 $122 million 8.2% , up 110 bps YoY. -
Developing Offerings segment (including International, Coupang Eats, Play, Fintech and Farfetch) net revenues was
$892 million 472% YoY on a reported basis and483% on an FX-neutral basis. Excluding Farfetch, the growth was177% YoY on a reported basis and188% YoY on an FX-neutral basis. -
Developing Offerings segment adjusted EBITDA was negative
$200 million $31 million
“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
|
|
Six Months
|
|||||
(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 |
|
(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
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
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
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, 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
• 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 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
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
|
|
Trailing Twelve Months Ended
|
|||||||||||||
(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/
Investor Contact:
Coupang IR
ir@coupang.com
Media Contact:
Coupang PR
press@coupang.com
Source: Coupang
FAQ
What were Coupang's Q2 2024 net revenues?
What was Coupang's Q2 2024 gross profit?
What is the Q2 2024 adjusted EBITDA for Coupang's Product Commerce segment?
How much did Coupang's Developing Offerings segment grow in Q2 2024?
What was Coupang's Q2 2024 diluted EPS?
What was Coupang's operating cash flow for the trailing twelve months?
