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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Coupang Inc | NYSE:CPNG | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.05 | 0.24% | 21.11 | 21.42 | 21.01 | 21.06 | 7,123,090 | 01:00:00 |
Net Revenues of $6.2 billion, up 21% YoY and 18% on an FX-neutral basis
Gross Profit of $1.6 billion, up 27% YoY
Operating Cash Flow of $2.6 billion and Free Cash Flow of $1.9 billion for the trailing twelve months
Coupang, Inc. (NYSE: CPNG) today announced financial results for its third quarter ended September 30, 2023.
Q3 2023 Key Financial and Operational Highlights
Consolidated Highlights:
Segment Highlights:
“Our unrelenting focus on the customer experience and operational excellence drove record results again this quarter,” said Bom Kim, Founder and CEO of Coupang. “Our revenue and active customers growth accelerated for the third consecutive quarter. Our Developing Offerings also generated over 40% revenue growth this quarter. In Taiwan, we’ve expanded Rocket Delivery and helped 12,000 small business export their products to a new market over the past year.”
“Over the past twelve months, we’ve generated a record $991 million in adjusted EBITDA, increasing margins by 490 basis points,” said Coupang’s CFO, Gaurav Anand. “We’ve expanded profitability while making investments in Developing Offerings, and we expect our consolidated margin to continue its march upwards on an annual basis.”
Third Quarter 2023 Results
Consolidated Financial Summary
Three Months Ended September 30,
(in thousands, except net revenues per Active Customer and net income per share)
2023
2022
% Change
Total net revenues
$
6,183,555
$
5,101,334
21
%
Total net revenues growth, constant currency(1)
18
%
Active Customers
20,421
17,992
14
%
Total net revenues per Active Customer
$
303
$
284
7
%
Total net revenues per Active Customer, constant currency(1)
$
296
4
%
Gross profit(2)
$
1,565,787
$
1,233,888
27
%
Net income
$
91,300
$
90,679
1
%
Adjusted EBITDA(1)
$
238,672
$
194,919
22
%
Net income attributable to Class A and Class B common stockholders per share, basic and diluted
$
0.05
$
0.05
—
%
Net cash provided by operating activities
$
721,639
$
58,164
NM(3)
Free cash flow(1)
$
536,237
$
(222,446
)
NM(3)
Segment Information
Three Months Ended September 30,
(in thousands)
2023
2022
% Change
Product Commerce
Net revenues
$
5,966,027
$
4,947,174
21
%
Net revenues growth, constant currency(1)
18
%
Segment adjusted EBITDA
$
399,494
$
239,222
67
%
Developing Offerings
Net revenues
$
217,528
$
154,160
41
%
Net revenues growth, constant currency(1)
40
%
Segment adjusted EBITDA
$
(160,822
)
$
(44,303
)
NM(3)
_________
(1)
Total net revenues growth, constant currency, total net revenues per Active Customer, constant currency, and adjusted EBITDA 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)
Non-meaningful
Webcast and Conference Call
Coupang, Inc. will host a conference call to discuss third quarter results on November 7, 2023 at 5:30 PM Eastern Time (November 8, 2023 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 U.S. GAAP measures, as well as our third quarter earnings presentation, are also available on that site.
About Coupang
Coupang is one of the largest retailers in Asia, with a mission to revolutionize the everyday lives of its customers and create a world where people wonder, “How did we ever live without Coupang?” Coupang offers a variety of services, including same-day and next-morning delivery of general merchandise and groceries, delivery of prepared foods through Coupang Eats, and video streaming through Coupang Play. Coupang is headquartered in the United States, with operations and support services performed in markets including South Korea, Taiwan, Singapore, China, and India.
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, our financial performance, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and logistics infrastructure, other legal and regulatory developments, and the impact of the global economy including inflation and foreign currency exchange rates. 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 September 30,
Nine Months Ended September 30,
(in thousands, except per share amounts)
2023
2022
2023
2022
Net retail sales
$
5,314,683
$
4,540,393
$
15,659,829
$
13,577,665
Net other revenue
868,872
560,941
2,162,145
1,678,176
Total net revenues
6,183,555
5,101,334
17,821,974
15,255,841
Cost of sales
4,617,768
3,867,446
13,312,472
11,824,754
Operating, general and administrative
1,478,303
1,156,468
4,167,601
3,626,515
Total operating cost and expenses
6,096,071
5,023,914
17,480,073
15,451,269
Operating income (loss)
87,484
77,420
341,901
(195,428
)
Interest income
50,237
15,403
123,728
26,301
Interest expense
(13,295
)
(6,485
)
(34,386
)
(19,996
)
Other (expense) income, net
(7,776
)
11,224
(19,556
)
2,485
Income (loss) before income taxes
116,650
97,562
411,687
(186,638
)
Income tax expense
25,350
6,883
84,340
7,468
Net income (loss)
91,300
90,679
327,347
(194,106
)
Net income (loss) attributable to Class A and Class B common stockholders per share:
Basic and diluted
$
0.05
$
0.05
$
0.18
$
(0.11
)
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:
Basic
1,784,363
1,767,275
1,779,606
1,762,465
Diluted
1,808,311
1,790,941
1,801,006
1,762,465
COUPANG, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except par value)
September 30, 2023
December 31, 2022
Assets
Cash and cash equivalents
$
4,857,920
$
3,509,334
Restricted cash
400,255
176,316
Accounts receivable, net
285,081
184,463
Inventories
1,640,567
1,656,851
Prepaids and other current assets
245,868
303,166
Total current assets
7,429,691
5,830,130
Long-term restricted cash
2,435
1,624
Property and equipment, net
2,200,638
1,819,945
Operating lease right-of-use assets
1,484,273
1,405,248
Long-term lease deposits and other
445,732
455,956
Total assets
$
11,562,769
$
9,512,903
Liabilities and stockholders' equity
Accounts payable
$
4,616,045
$
3,622,332
Accrued expenses
311,886
298,869
Deferred revenue
85,529
92,361
Short-term borrowings
232,094
175,403
Current portion of long-term debt
382,430
128,936
Current portion of long-term operating lease obligations
351,025
325,924
Other current liabilities
526,765
418,681
Total current liabilities
6,505,774
5,062,506
Long-term debt
527,711
537,880
Long-term operating lease obligations
1,295,117
1,233,680
Defined severance benefits and other
305,790
264,924
Total liabilities
8,634,392
7,098,990
Contingencies
Stockholders' equity
Class A common stock, $0.0001 par value, 10,000,000 shares authorized, 1,611,084 and 1,597,804 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively; Class B common stock, $0.0001 par value, 250,000 shares authorized, 174,803 shares issued and outstanding as of September 30, 2023 and December 31, 2022
179
177
Additional paid-in capital
8,401,998
8,154,076
Accumulated other comprehensive (loss) income
(58,588
)
2,219
Accumulated deficit
(5,415,212
)
(5,742,559
)
Total stockholders' equity
2,928,377
2,413,913
Total liabilities and stockholders' equity
$
11,562,769
$
9,512,903
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended September 30,
(in thousands)
2023
2022
Operating activities
Net income (loss)
$
327,347
$
(194,106
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
197,816
174,063
Provision for severance benefits
117,243
124,056
Equity-based compensation
240,098
191,584
Non-cash operating lease expense
247,938
231,333
Other
99,594
56,536
Change in operating assets and liabilities:
Accounts receivable, net
(114,032
)
(39,325
)
Inventories
(86,692
)
(288,761
)
Other assets
(65,268
)
(273,554
)
Accounts payable
1,235,365
163,508
Accrued expenses
15,400
(6,359
)
Other liabilities
(172,116
)
(154,012
)
Net cash provided by (used in) operating activities
2,042,693
(15,037
)
Investing activities
Purchases of property and equipment
(662,273
)
(703,074
)
Proceeds from sale of property and equipment
12,461
10,600
Other investing activities
(13,898
)
(25,979
)
Net cash used in investing activities
(663,710
)
(718,453
)
Financing activities
Proceeds from issuance of common stock, equity-based compensation plan
7,826
14,998
Proceeds from short-term borrowings and long-term debt
416,508
543,185
Repayment of short-term borrowings and long-term debt
(63,654
)
(337,071
)
Net short-term borrowings and other financing activities
1,222
5,377
Net cash provided by financing activities
361,902
226,489
Effect of exchange rate changes on cash and cash equivalents, and restricted cash
(167,549
)
(243,132
)
Net increase (decrease) in cash and cash equivalents, and restricted cash
1,573,336
(750,133
)
Cash and cash equivalents, and restricted cash, as of beginning of period
3,687,274
3,810,347
Cash and cash equivalents, and restricted cash, as of end of period
$
5,260,610
$
3,060,214
Supplemental Financial Information
Share Information
As of September 30,
(in thousands)
2023
2022
Outstanding common stock
1,785,887
1,768,943
Outstanding equity-based awards
63,594
58,259
Outstanding common stock and equity-based awards
1,849,481
1,827,202
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 Korea 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 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 Active Customers as a key indicator of our potential for growth in total net revenues, the reach of our network, the awareness of our brand, and the engagement of our customers.
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 success in increasing the share of wallet.
Three Months Ended September 30,
(in thousands, except net revenues per Active Customer)
2023
2022
% Change
Active Customers
20,421
17,992
14
%
Total net revenues per Active Customer
$
303
$
284
7
%
Total net revenues per Active Customer, constant currency (YoY)
$
296
4
%
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
Adjusted EBITDA Margin
Constant Currency Revenue
Constant Currency Revenue Growth
Free Cash Flow
Less: purchases of property and equipment,
Plus: proceeds from sale of property and equipment.
Segment Gross Profit
Segment Gross Profit Margin
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 U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted:
Constant Currency Revenue and Constant Currency Revenue Growth (YoY)
Three Months Ended September 30,
2023
2022
Year over Year Growth
(in thousands)
As Reported
Exchange Rate Effect
Constant Currency Basis
As Reported
Exchange Rate Effect
Constant Currency Basis
As
Reported
Constant Currency Basis
Consolidated
Net retail sales
$
5,314,683
$
(132,709
)
$
5,181,974
$
4,540,393
$
723,839
$
5,264,232
17
%
14
%
Net other revenue
868,872
(11,527
)
857,345
560,941
89,440
650,381
55
%
53
%
Total net revenues
$
6,183,555
$
(144,236
)
$
6,039,319
$
5,101,334
$
813,279
$
5,914,613
21
%
18
%
Net Revenues by Segment
Product Commerce
$
5,966,027
$
(141,996
)
$
5,824,031
$
4,947,174
$
788,061
$
5,735,235
21
%
18
%
Developing Offerings
217,528
(2,240
)
215,288
154,160
25,218
179,378
41
%
40
%
Total net revenues
$
6,183,555
$
(144,236
)
$
6,039,319
$
5,101,334
$
813,279
$
5,914,613
21
%
18
%
Nine Months Ended September 30,
2023
2022
Year over Year Growth
(in thousands)
As Reported
Exchange Rate Effect
Constant Currency Basis
As Reported
Exchange Rate Effect
Constant Currency Basis
As
Reported
Constant Currency Basis
Consolidated
Net retail sales
$
15,659,829
$
387,762
$
16,047,591
$
13,577,665
$
1,655,356
$
15,233,021
15
%
18
%
Net other revenue
2,162,145
53,539
2,215,684
1,678,176
204,599
1,882,775
29
%
32
%
Total net revenues
$
17,821,974
$
441,301
$
18,263,275
$
15,255,841
$
1,859,955
$
17,115,796
17
%
20
%
Net Revenues by Segment
Product Commerce
$
17,305,966
$
428,524
$
17,734,490
$
14,760,758
$
1,799,596
$
16,560,354
17
%
20
%
Developing Offerings
516,008
12,777
528,785
495,083
60,359
555,442
4
%
7
%
Total net revenues
$
17,821,974
$
441,301
$
18,263,275
$
15,255,841
$
1,859,955
$
17,115,796
17
%
20
%
Free Cash Flow
Three Months Ended
September 30,
Nine Months Ended
September 30,
Trailing Twelve Months Ended
September 30,
(in thousands)
2023
2022
2023
2022
2023
2022
Net cash provided by (used in) operating activities
$
721,639
$
58,164
$
2,042,693
$
(15,037
)
$
2,623,169
$
(217,783
)
Adjustments:
Purchases of land and buildings
(32,670
)
(156,782
)
(331,281
)
(205,274
)
(352,594
)
(243,609
)
Purchases of equipment
(157,980
)
(126,618
)
(330,992
)
(497,800
)
(430,867
)
(627,574
)
Total purchases of property and equipment
(190,650
)
(283,400
)
(662,273
)
(703,074
)
(783,461
)
(871,183
)
Proceeds from sale of property and equipment
5,248
2,790
12,461
10,600
15,043
11,504
Total adjustments
$
(185,402
)
$
(280,610
)
$
(649,812
)
$
(692,474
)
$
(768,418
)
$
(859,679
)
Free cash flow
$
536,237
$
(222,446
)
$
1,392,881
$
(707,511
)
$
1,854,751
$
(1,077,462
)
Net cash used in investing activities
$
(151,590
)
$
(288,755
)
$
(663,710
)
$
(718,453
)
$
(793,511
)
$
(887,166
)
Net cash provided by financing activities
$
33,222
$
145,821
$
361,902
$
226,489
$
382,765
$
131,148
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended
September 30,
Nine Months Ended
September 30,
Trailing Twelve Months Ended
September 30,
(in thousands)
2023
2022
2023
2022
2023
2022
Total net revenues
$
6,183,555
$
5,101,334
$
17,821,974
$
15,255,841
$
23,148,748
$
20,332,534
Net income (loss)
91,300
90,679
327,347
(194,106
)
429,411
(599,085
)
Net income (loss) margin
1.5
%
1.8
%
1.8
%
(1.3
)%
1.9
%
(2.9
)%
Adjustments:
Depreciation and amortization
67,393
54,424
197,816
174,063
254,718
229,677
Interest expense
13,295
6,485
34,386
19,996
41,559
27,307
Interest income
(50,237
)
(15,403
)
(123,728
)
(26,301
)
(150,225
)
(29,496
)
Income tax expense
25,350
6,883
84,340
7,468
75,809
8,299
Other expense (income), net
7,776
(11,224
)
19,556
(2,485
)
28,756
949
Equity-based compensation
83,795
63,075
240,098
191,584
310,780
247,479
Adjusted EBITDA
$
238,672
$
194,919
$
779,815
$
170,219
$
990,808
$
(114,870
)
Adjusted EBITDA margin
3.9
%
3.8
%
4.4
%
1.1
%
4.3
%
(0.6
)%
Segment Gross Profit and Segment Gross Profit Margin
Three Months Ended September 30,
Nine Months Ended September 30,
(in thousands)
2023
2022
2023
2022
Gross profit
$
1,565,787
$
1,233,888
$
4,509,502
$
3,431,087
Segment gross profit and gross profit margin:
Product Commerce
$
1,619,339
$
1,217,593
4,564,390
3,410,027
Gross profit margin
27.1
%
24.6
%
26.4
%
23.1
%
Developing Offerings
(53,552
)
16,295
(54,888
)
21,060
Gross profit margin
(24.6
)%
10.6
%
(10.6
)%
4.3
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20231107604451/en/
Investor Contact: Coupang IR ir@coupang.com
Media Contact: Coupang PR press@coupang.com
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