Coupang, Inc. (NYSE: CPNG) has once again demonstrated its financial prowess with stellar results for the third quarter ending September 30, 2023. The South Korean e-commerce giant reported impressive figures, showing significant growth and an unwavering commitment to customer experience and operational excellence.
Key Financial Highlights for Q3 2023:
- Net Revenues: Coupang reported net revenues of $6.2 billion, marking a 21% year-over-year (YoY) increase on a reported basis and an impressive 18% YoY growth on an FX-neutral basis.
- Gross Profit: Gross profit surged by 27% YoY, reaching $1.6 billion.
- Gross Profit Margin: The company’s gross profit margin improved by 113 basis points (bps) YoY, reaching 25.3%. An accounting change in FLC revenue had a positive 140 bps impact this quarter.
- Net Income: Coupang reported a net income of $91 million, with a margin of 1.5%, a $1 million improvement over the previous year.
- EPS: Earnings per share (EPS) remained consistent with the prior year at $0.05.
- Adjusted EBITDA: For the quarter, Coupang’s adjusted EBITDA reached $239 million, with a margin of 3.9%, showing an improvement of 10 bps over the previous year. The trailing twelve months’ adjusted EBITDA was $991 million with a margin of 4.3%, a YoY improvement of 490 bps.
- Operating Cash Flow: Over the trailing twelve months, operating cash flow grew to $2.6 billion, representing a remarkable increase of $2.8 billion YoY.
- Free Cash Flow: Coupang reported free cash flow of $1.9 billion for the trailing twelve months, a substantial growth of $2.9 billion YoY.
- Active Customers: The company celebrated the milestone of surpassing 20.4 million active customers, growing at 14% YoY.
- Product Commerce Segment: Net revenues for the Product Commerce segment reached $6.0 billion, up 21% YoY on a reported basis and 18% on an FX-neutral basis. The segment’s adjusted EBITDA was $399 million, marking a $160 million YoY increase. The adjusted EBITDA margin for the Product Commerce segment was 6.7%, up 190 bps YoY.
- Developing Offerings Segment: This segment, which includes International, Coupang Eats, Play, and Fintech, reported net revenues of $218 million, showing a significant 41% YoY growth on a reported basis and 40% on an FX-neutral basis. The segment’s adjusted EBITDA was negative $161 million.
Coupang’s Founder and CEO, Bom Kim, expressed his pride in the company’s continuous focus on customer experience and operational excellence. He noted the acceleration in revenue and active customer growth for the third consecutive quarter and the impressive 40% revenue growth in Developing Offerings. In Taiwan, Coupang has expanded Rocket Delivery and facilitated 12,000 small businesses in exporting their products to new markets over the past year.
Gaurav Anand, Coupang’s CFO, highlighted the company’s financial achievements, with a record $991 million in adjusted EBITDA over the past twelve months, reflecting a substantial increase in margins by 490 basis points. He emphasized the company’s ability to expand profitability while making investments in Developing Offerings, with a positive outlook for future consolidated margins.
Coupang’s impressive Q3 2023 results showcase its commitment to growth, innovation, and customer satisfaction, making it a notable player in the global e-commerce landscape.