Coupang, the prominent e-commerce player listed on Nasdaq, has posted impressive financial results for the second quarter of this year, defying weakening consumer sentiment brought on by inflation and economic recession concerns.

The company reported a substantial growth in sales, with second-quarter revenues reaching $5.8 billion, marking a notable 16 percent increase compared to the same period last year. This surge was mirrored in operating profits, which saw a remarkable improvement, increasing by $221 million to reach $145 million.

Coupang’s adjusted EBITDA stood at $300 million, reflecting a margin of 5.1 percent. This metric, short for earnings before interest, taxes, depreciation, and amortization, is a crucial measure of a company’s financial stability and its ability to generate cash.

Highlighting its robust financial performance, the firm demonstrated a significant surge in operating cash flow over the past year, registering a remarkable $2 billion, which represents a year-on-year growth of $2.3 billion. Similarly, free cash flow for the same period soared to $1.1 billion, marking a remarkable increase of $2.2 billion compared to the previous year.

Moreover, Coupang experienced a 10 percent rise in the number of active customers, with a total of 19.7 million customers engaged with its services.

Founder of Coupang, Bom Kim, expressed his confidence in the company’s future growth and improved profitability. He highlighted the impressive achievements, including the doubling of corporate free cash flow in the April-June quarter and the company’s first-ever surplus of $451 million registered on a cumulative 12-month basis.

Kim stated, “We achieved both profitability and extended growth,” and underlined the company’s ability to generate substantial operating cash flow and surplus free cash flow over the past year. He also indicated confidence in achieving the long-term target guidance for an adjusted EBITDA margin exceeding 10 percent.

To further enhance its services, Coupang plans to offer Coupang Eats discounts as part of its wow membership monthly subscription benefit. The initiative has resulted in a significant increase in paid wow membership subscriptions, and Kim noted the upsurge in the number of wow members using Coupang Eats, leading to increased spending and market share.

Additionally, Coupang’s expansion plans are gaining momentum, supported by a $400 million investment in Taiwan. The company’s expansion drive in Taiwan has yielded impressive results, with Coupang’s app becoming the most downloaded app in the country during the second quarter.

Analyst Nam Seong-hyun from IBK Securities emphasized that Coupang’s active customer growth and improving profitability indicate a turnaround and potential for further expansion. It is anticipated that the company’s share of the massive retail market will witness significant growth in the upcoming quarters.