|
Net Revenues of $7.9 billion, up 27% YoY and 32% on an FX-neutral basis
|
|
Gross Profit of $2.3 billion, up 45% YoY
|
| Coupang, Inc. (NYSE: CPNG) today announced financial results for its third quarter ended September 30, 2024. |
| Consolidated Highlights: |
- Net revenues were $7.9 billion, up 27% YoY on a reported basis and 32% YoY on an FX-neutral basis. Excluding Farfetch, the growth was 20% YoY on a reported basis and 25% YoY on an FX-neutral basis.
|
- Gross profit increased 45% YoY to $2.3 billion. The gross profit margin was 28.8%, an improvement of 350 bps YoY. Excluding Farfetch, gross profit was $2.1 billion, growing 33% YoY, and gross profit margin was 28.1%.
|
- Net income was $64 million and net income attributable to Coupang stockholders was $70 million, a decrease of $21 million from last year. Excluding Farfetch, net income attributable to Coupang stockholders was approximately $108 million for the quarter.
|
- Diluted EPS was 4 cents, a decline of 1 cent over last year, primarily driven by the operating losses incurred at Farfetch. Excluding the Farfetch loss, diluted EPS was 6 cents.
|
- Adjusted EBITDA for the quarter was $343 million with a margin of 4.4%, up 50 bps from last year. Excluding Farfetch, adjusted EBITDA was $345 million with a margin of 4.6%.
|
- Operating cash flow for the trailing twelve months was $1.8 billion, a decrease of $805 million YoY. This is primarily due to certain non-recurring working capital benefits in the prior trailing twelve-month period.
|
- Free cash flow was $935 million for the trailing twelve months, a decrease of $920 million YoY. This is primarily due to certain non-recurring working capital benefits in the prior trailing twelve-month period, as well as the timing of capital expenditure payments.
|
| Segment Highlights: |
- Product Commerce segment net revenues were $6.9 billion, up 16% YoY on a reported basis and 20% on an FX-neutral basis.
|
- Product Commerce Active Customers reached 22.5 million, growing 11% YoY.
|
- Product Commerce segment adjusted EBITDA was $470 million, up $71 million YoY, with a margin of 6.8%, up 10 bps YoY and down 140bps QoQ.
|
- Developing Offerings segment (including International, Coupang Eats, Play, Fintech and Farfetch) net revenues were $975 million, up 347% YoY on a reported basis and 356% on an FX-neutral basis. Excluding Farfetch, the growth was 146% YoY on a reported basis and 155% YoY on an FX-neutral basis.
|
- Developing Offerings segment adjusted EBITDA was negative $127 million, a decrease of $34 million YoY and $73 million QoQ, which includes a negative $2 million impact from the consolidation of Farfetch.
|
| “This quarter we continued the strong momentum we’ve seen throughout this year, delivering robust growth in revenues and margins,” said Gaurav Anand, CFO of Coupang. “Our newer offerings and categories, like Fulfillment and Logistics by Coupang (FLC) and R.Lux, a new luxury offering, are examples of the massive growth opportunity from selection expansion on Rocket Delivery. We also achieved an important milestone in Developing Offerings this quarter, reaching near-break-even profitability in Farfetch, earlier than planned. We remain focused on our relentless pursuit of customer wow and operational excellence.” |
| Third Quarter 2024 Results |
|
|
|
| Consolidated Financial Summary |
|
|
|
| (in millions, except net revenues per Product Commerce Active Customer and earnings per share) |
|
Three Months Ended September 30, |
|
|
|
2024 (3) |
|
2023 |
|
% Change |
| Total net revenues |
|
$ |
7,866 |
|
|
$ |
6,184 |
|
27 |
% |
| Total net revenues growth, constant currency (1) |
|
|
|
|
|
32 |
% |
| Net revenues per Product Commerce Active Customer |
|
$ |
307 |
|
|
$ |
296 |
|
4 |
% |
| Net revenues per Product Commerce Active Customer, constant currency (1) |
|
$ |
318 |
|
|
|
|
8 |
% |
| Product Commerce Active Customers |
|
|
22.5 |
|
|
|
20.2 |
|
11 |
% |
| Gross profit (2) |
|
$ |
2,269 |
|
|
$ |
1,566 |
|
45 |
% |
| Net income |
|
$ |
64 |
|
|
$ |
91 |
|
(30 |
)% |
| Net income attributable to Coupang stockholders |
|
$ |
70 |
|
|
$ |
91 |
|
(23 |
)% |
| Adjusted EBITDA (1) |
|
$ |
343 |
|
|
$ |
239 |
|
44 |
% |
| Earnings per share, basic |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
(20 |
)% |
| Earnings per share, diluted. |
|
$ |
0.04 |
|
|
$ |
0.05 |
|
(20 |
)% |
| Adjusted diluted earnings per share (1) |
|
$ |
0.06 |
|
|
$ |
0.05 |
|
20 |
% |
| Net cash provided by operating activities |
|
$ |
334 |
|
|
$ |
722 |
|
(54 |
)% |
| Free cash flow (1) |
|
$ |
(42 |
) |
|
$ |
536 |
|
(108 |
)% |
The following summarizes the impact Farfetch had on our results for the three and nine months ended September 30, 2024: |
| |
|
Impact from Farfetch (3) |
| |
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
| (in millions, except earnings per share) |
|
2024 |
| Consolidated |
|
|
|
|
| Total net revenues |
|
$ |
439 |
|
|
$ |
1,187 |
|
| Gross profit (2) |
|
$ |
183 |
|
|
$ |
508 |
|
| Net loss |
|
$ |
(44 |
) |
|
$ |
(274 |
) |
| Net loss attributable to Coupang stockholders |
|
$ |
(38 |
) |
|
$ |
(211 |
) |
| Diluted earnings per share |
|
$ |
(0.02 |
) |
|
$ |
(0.12 |
) |
| Adjusted EBITDA (1) |
|
$ |
(2 |
) |
|
$ |
(64 |
) |
| |
|
|
|
|
| Developing Offerings |
|
|
|
|
| Net revenues |
|
$ |
439 |
|
|
$ |
1,187 |
|
| Segment adjusted EBITDA |
|
$ |
(2 |
) |
|
$ |
(64 |
) |
| Segment Information |
|
|
|
|
|
| |
|
Three Months Ended September 30, |
|
|
| (in millions) |
|
2024 (3) |
|
2023 |
|
% Change |
| Product Commerce |
|
|
|
|
|
|
| Net revenues |
|
$ |
6,891 |
|
|
$ |
5,966 |
|
|
16 |
% |
|
| Net revenues growth, constant currency (1) |
|
|
|
|
|
20 |
% |
| Segment adjusted EBITDA |
|
$ |
470 |
|
|
$ |
399 |
|
|
18 |
% |
|
| Developing Offerings |
|
|
|
|
|
|
| Net revenues |
|
$ |
975 |
|
|
$ |
218 |
|
|
347 |
% |
|
| Net revenues growth, constant currency (1) |
|
|
|
|
|
356 |
% |
| Segment adjusted EBITDA |
|
$ |
(127 |
) |
|
$ |
(161 |
) |
|
(21 |
)% |
|
|
|
|
|
|
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|
| (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 (“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 by accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
| (2) |
|
Gross profit is calculated as total net revenues minus cost of sales. |
| (3) |
|
We completed the acquisition of the assets of Farfetch at the end of January in Q1 2024. For the nine months ended September 30, 2024, the operating results of Farfetch from February 2024 are included in our consolidated results and our Developing Offerings segment. For the three months ended September 30, 2024, the operating results of Farfetch are included in our consolidated results and our Developing Offerings segment. |
|
| For the full document click the link below: |
| Coupang, Inc |
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