Net Revenues of $8.0 billion, up 21% YoY and
28% on an FX-neutral basis
Gross Profit of $2.5 billion, up 48%
YoY
Operating Cash Flow of $1.9 billion and Free
Cash Flow of $1.0 billion for the full year
Please replace the release with the following corrected version
to remove a quote.
The updated release reads:
COUPANG ANNOUNCES RESULTS FOR FOURTH QUARTER
2024
Net Revenues of $8.0 billion, up 21% YoY and
28% on an FX-neutral basis
Gross Profit of $2.5 billion, up 48%
YoY
Operating Cash Flow of $1.9 billion and Free
Cash Flow of $1.0 billion for the full year
Coupang, Inc. (NYSE: CPNG) today announced financial results for
its fourth quarter ended December 31, 2024.
Q4 2024 Consolidated Highlights:
- Net revenues were $8.0 billion, up 21% YoY on a reported basis
and 28% YoY on an FX-neutral basis. Excluding Farfetch, the growth
was 14% YoY on a reported basis and 21% YoY on an FX-neutral
basis.
- Gross profit increased 48% YoY to $2.5 billion. Gross profit
margin was 31.3%, an improvement of 570 bps YoY. Excluding Farfetch
and the fulfillment center (FC) fire insurance gain recorded in Q4,
gross profit was $2.2 billion, growing 29% YoY with a gross profit
margin 29.0%, an improvement of over 330 bps over last year.
- Net income was $131 million and net income attributable to
Coupang stockholders was $156 million, a decrease of $876 million
from last year. The decrease was due to the non-cash tax benefit of
$895 million in Q4 2023 from changes in tax-related reserves,
including the release of valuation allowances related to certain
deferred tax assets. Net income attributable to Coupang
stockholders excluding the FC fire insurance gain was $24 million,
and adjusted net income attributable to Coupang stockholders
excluding Farfetch and the FC fire insurance gain was approximately
$77 million for the quarter.
- Diluted EPS was $0.08, a decrease of $0.49 over last year,
primarily driven by the $0.49 benefit from changes in tax-related
reserves in Q4 2023. Excluding the FC fire insurance gain, diluted
EPS was $0.01. Excluding Farfetch and the FC fire insurance gain,
diluted EPS was $0.04.
- Adjusted EBITDA for the quarter was $421 million with a margin
of 5.3%, up 80 bps from last year. Excluding Farfetch, adjusted
EBITDA was $391 million with a margin of 5.2%, up over 70 bps
YoY.
Q4 2024 Segment Highlights:
- Product Commerce segment net revenues were $6.9 billion, up 9%
YoY on a reported basis and 16% YoY on an FX-neutral basis.
- Product Commerce Active Customers reached 22.8 million, growing
10% YoY.
- Product Commerce gross profit increased 31% YoY to $2.3 billion
with a gross profit margin of 32.7%. Excluding the FC fire
insurance gain recorded in Q4, gross profit was $2.1 billion,
growing 24% YoY with a margin of 31.0%, up over 370 bps YoY and 100
bps QoQ.
- Product Commerce segment adjusted EBITDA was $539 million, up
$95 million YoY, with a margin of 7.8%, up over 70 bps YoY and 100
bps QoQ.
- Developing Offerings segment (including International, Coupang
Eats, Play, Fintech and Farfetch) net revenues were $1.1 billion,
up 296% YoY on a reported basis and 308% YoY on an FX-neutral
basis. Excluding Farfetch, the growth was 124% YoY on a reported
basis and 136% YoY on an FX-neutral basis.
- Developing Offerings segment adjusted EBITDA was negative $118
million, an improvement of $32 million YoY, which includes a $30
million benefit from the consolidation of Farfetch.
FY2024 Consolidated Highlights:
- Total net revenues for 2024 were $30.3 billion, increasing 24%
YoY on a reported basis and 29% YoY on an FX-neutral basis.
Excluding Farfetch, the growth was 17% YoY on a reported basis and
23% YoY on an FX-neutral basis.
- Total gross profit improved 43% YoY to $8.8 billion with a
gross profit margin of 29.2%, an expansion of 380 bps YoY.
Excluding Farfetch and the FC fire insurance gain, adjusted gross
profit was $8.0 billion, growing 29% YoY, and adjusted gross profit
margin was 28.0%.
- Net income was $66 million, and net income attributable to
Coupang stockholders was $154 million, a decrease of $1.2 billion
from last year. The decrease was mainly due to the non-cash tax
benefit of $895 million in 2023 from changes in tax-related
reserves, including the release of valuation allowances related to
certain deferred tax assets. Net income attributable to Coupang
stockholders excluding the FC fire insurance gain was $22 million,
and adjusted net income attributable to Coupang stockholders
excluding the FC fire insurance gain, the KFTC administrative fine
recorded in Q2 and Farfetch losses, was $407 million.
- Diluted EPS was $0.08. Excluding the FC fire insurance gain,
diluted EPS was $0.01. Excluding Farfetch, the FC fire insurance
gain, and the KFTC administrative fine, diluted EPS was $0.22.
- Adjusted EBITDA was $1.4 billion with a margin of 4.5%, a YoY
improvement of over 10 bps. Excluding Farfetch, adjusted EBITDA was
$1.4 billion with a margin of 4.9%.
- Operating cash flow for the full year was $1.9 billion, a
decrease of $766 million YoY, and free cash flow was $1.0 billion,
a decrease of $759 million YoY. These decreases were primarily due
to certain non-recurring working capital benefits in the prior
year.
FY2024 Segment Highlights:
- Product Commerce segment net revenues reached $26.7 billion,
growing 13% YoY on a reported basis and 18% YoY on an FX-neutral
basis.
- Product Commerce segment adjusted EBITDA was $2.0 billion with
a margin of 7.5%, an expansion of 100 bps YoY.
- Developing Offerings segment net revenues were $3.6 billion, up
352% YoY on a reported basis and 363% YoY on an FX-neutral basis.
Excluding Farfetch, the growth was 142% YoY on a reported basis and
153% YoY on an FX-neutral basis.
- Developing Offerings segment adjusted EBITDA was negative $631
million, compared to negative $466 million in the prior year.
Fourth Quarter 2024 Results
Consolidated Financial Summary
Three Months Ended December
31,
As Reported
Excluding the Impact from the
FC Fire Insurance Gain(5)
(in millions, except net revenues per
Product Commerce Active Customer and earnings per share)
2024(3)
2023
% Change
2024(3)
% Change
Total net revenues
$
7,965
$
6,561
21
%
Total net revenues growth, constant
currency(1)
28
%
Net revenues per Product Commerce Active
Customer
$
302
$
302
—
%
Net revenues per Product Commerce Active
Customer, constant currency
$
320
6
%
Product Commerce Active Customers
22.8
20.8
10
%
Gross profit(2)
$
2,491
$
1,681
48
%
$
2,375
41
%
Net income (loss)
$
131
$
1,032
(87
)%
$
(1
)
(100
)%
Net income attributable to Coupang
stockholders
$
156
$
1,032
(85
)%
$
24
(98
)%
Adjusted EBITDA(1)
$
421
$
294
43
%
Earnings per share, basic
$
0.09
$
0.58
(84
)%
$
0.01
(98
)%
Earnings per share, diluted
$
0.08
$
0.57
(86
)%
$
0.01
(98
)%
Adjusted diluted earnings per
share(1)(4)
$
0.04
$
0.08
(50
)%
Net cash provided by operating
activities
$
676
$
609
11
%
Free cash flow(1)
$
463
$
382
21
%
The following summarizes the impact Farfetch had on our results
for the three months and year ended December 31, 2024:
Impact from
Farfetch(3)
(in millions, except earnings per
share)
Three Months Ended
December 31, 2024
Year Ended December 31,
2024
Consolidated
Total net revenues
$
471
$
1,658
Gross profit(2)
$
205
$
713
Net loss
$
(78
)
$
(352
)
Net loss attributable to Coupang
stockholders
$
(53
)
$
(264
)
Diluted earnings per share
$
(0.03
)
$
(0.14
)
Adjusted EBITDA(1)
$
30
$
(34
)
Developing Offerings
Net revenues
$
471
$
1,658
Segment adjusted EBITDA
$
30
$
(34
)
Segment Information
Three Months Ended December
31,
(in millions)
2024(3)
2023
% Change
Product Commerce
Net revenues
$
6,883
$
6,288
9
%
Net revenues growth, constant
currency(1)
16
%
Gross profit
$
2,251
$
1,717
31
%
Segment adjusted EBITDA
$
539
$
444
21
%
Developing Offerings
Net revenues
$
1,082
$
273
296
%
Net revenues growth, constant
currency(1)
308
%
Gross profit
$
240
$
(36
)
NM(6)
Segment adjusted EBITDA
$
(118
)
$
(150
)
(21
)%
Full Year 2024 Results
Consolidated Financial Summary
Year Ended December
31,
As Reported
Excluding the Impact from the
FC Fire Insurance Gain(5)
(in millions, except earnings per
share)
2024(3)
2023
% Change
2024(3)
% Change
Total net revenues
$
30,268
$
24,383
24
%
Total net revenues growth, constant
currency(1)
29
%
Gross profit(2)
$
8,831
$
6,190
43
%
$
8,715
41
%
Net income (loss)
$
66
$
1,360
(95
)%
$
(66
)
(105
)%
Net income attributable to Coupang
stockholders
$
154
$
1,360
(89
)%
$
22
(98
)%
Adjusted EBITDA(1)
$
1,375
$
1,074
28
%
Earnings (loss) per share, basic
$
0.09
$
0.76
(88
)%
$
0.01
(99
)%
Earnings per share, diluted
$
0.08
$
0.75
(89
)%
$
0.01
(99
)%
Adjusted diluted earnings per
share(1)(4)
$
0.22
$
0.26
(15
)%
Net cash provided by operating
activities
$
1,886
$
2,652
(29
)%
Free cash flow(1)
$
1,016
$
1,775
(43
)%
Segment Information
Year Ended December
31,
(in millions)
2024(3)
2023
% Change
Product Commerce
Net revenues
$
26,699
$
23,594
13
%
Net revenues growth, constant
currency(1)
18
%
Gross profit
$
8,105
$
6,282
29
%
Segment adjusted EBITDA
$
2,006
$
1,540
30
%
Developing Offerings
Net revenues
$
3,569
$
789
352
%
Net revenues growth, constant
currency(1)
363
%
Gross profit
$
726
$
(91
)
NM(6)
Segment adjusted EBITDA
$
(631
)
$
(466
)
35
%
_________
(1)
Total net revenues growth,
constant currency, adjusted net income (loss), adjusted diluted
earnings per share, adjusted EBITDA and free cash flow are non-GAAP
measures. See “Non-GAAP Financial Measures” and “Reconciliations of
Non-GAAP Measures” below for the reconciliation of the non-GAAP
measures with their comparable amounts prepared 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)
We completed the acquisition of
the assets of Farfetch at the end of January in Q1 2024. For 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 December 31, 2024, the
operating results of Farfetch are included in our consolidated
results and in our Developing Offerings segment.
(4)
Adjusted diluted earnings per
share excludes the impact of the Farfetch acquisition, the KFTC
administrative fine, and the FC fire insurance gain.
(5)
Gross profit excluding the impact
from the FC fire insurance gain, net income (loss) excluding the
impact from the FC fire insurance gain, net income attributable to
Coupang stockholders excluding the impact from the FC fire
insurance gain, basic earnings (loss) per share excluding the
impact from the FC fire insurance gain, and diluted earnings (loss)
per share excluding the impact from the FC fire insurance gain are
non-GAAP measures. See “Non-GAAP Financial Measures” and
“Reconciliations of Non-GAAP Measures” below for the reconciliation
of the non-GAAP measures with their comparable amounts prepared in
accordance with U.S. GAAP.
(6)
Non-meaningful
Webcast and Conference Call
Coupang, Inc. will host a conference call to discuss fourth
quarter results on February 25, 2025 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 U.S. GAAP measures,
as well as our fourth quarter earnings presentation, are also
available on that site.
About Coupang
Coupang is a technology and Fortune 200 company listed on the
New York Stock Exchange (NYSE: CPNG) that provides retail,
restaurant delivery, video streaming, and fintech services to
customers around the world under brands that include Coupang,
Coupang Eats, Coupang Play and Farfetch.
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.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited)
Three Months Ended December
31,
Year Ended December
31,
(in millions, except per share
amounts)
2024
2023
2024
2023
Net retail sales
$
6,052
$
5,563
$
23,866
$
21,223
Net other revenue
1,913
998
6,402
3,160
Total net revenues
7,965
6,561
30,268
24,383
Cost of sales
5,474
4,881
21,437
18,193
Operating, general and administrative
2,179
1,550
8,395
5,717
Total operating cost and expenses
7,653
6,431
29,832
23,910
Operating income
312
130
436
473
Interest income
53
54
216
178
Interest expense
(40
)
(13
)
(140
)
(48
)
Other expense, net
(46
)
—
(39
)
(19
)
Income before income taxes
279
171
473
584
Income tax expense (benefit)
148
(861
)
407
(776
)
Net income
$
131
$
1,032
$
66
$
1,360
Net loss attributable to noncontrolling
interests
(25
)
—
(88
)
—
Net income attributable to Coupang
stockholders
156
1,032
154
1,360
Earnings per share
Basic
$
0.09
$
0.58
$
0.09
$
0.76
Diluted
$
0.08
$
0.57
$
0.08
$
0.75
Weighted average shares outstanding
Basic
1,800
1,789
1,794
1,782
Diluted
1,837
1,810
1,826
1,803
COUPANG, INC.
CONSOLIDATED BALANCE
SHEETS
(unaudited)
(in millions)
December 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
5,879
$
5,243
Restricted cash
151
353
Accounts receivable, net
407
314
Inventories
2,099
1,666
Prepaids and other current assets
458
316
Total current assets
8,994
7,892
Property and equipment, net
2,813
2,465
Operating lease right-of-use assets
2,016
1,601
Intangible assets, net
271
37
Deferred tax assets
622
925
Long-term lease deposits and other
628
426
Total assets
$
15,344
$
13,346
Liabilities, redeemable noncontrolling
interests and stockholders' equity
Accounts payable
$
5,554
$
5,099
Accrued expenses
461
352
Deferred revenue
141
97
Short-term borrowings
479
282
Current portion of long-term debt
66
203
Current portion of long-term operating
lease obligations
422
386
Other current liabilities
593
526
Total current liabilities
7,716
6,945
Long-term debt
988
529
Long-term operating lease obligations
1,770
1,387
Defined severance benefits and other
693
381
Total liabilities
11,167
9,242
Commitments and contingencies
Redeemable noncontrolling interest
75
15
Equity
Common Stock
—
—
Class A — shares authorized 10,000,
outstanding 1,643 and 1,616
Class B — shares authorized 250,
outstanding 158 and 175
Additional paid-in capital
8,736
8,489
Accumulated other comprehensive loss
(404
)
(17
)
Accumulated deficit
(4,229
)
(4,383
)
Noncontrolling interests
(1
)
—
Total Coupang equity
4,102
4,089
Total liabilities, redeemable
noncontrolling interests and equity
$
15,344
$
13,346
COUPANG, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(unaudited)
(in millions)
2024
2023
Operating activities
Net income
$
66
$
1,360
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
433
275
Provision for severance benefits
187
159
Equity-based compensation
433
326
Non-cash operating lease expense
432
338
Deferred income taxes
225
(884
)
Fulfillment center fire insurance gain
(175
)
—
Non-cash others
250
140
Change in operating assets and
liabilities:
Accounts receivable, net
209
(133
)
Inventories
(376
)
(44
)
Other assets
(152
)
(153
)
Accounts payable
507
1,514
Accrued expenses
60
43
Other liabilities
(213
)
(289
)
Net cash provided by operating
activities
1,886
2,652
Investing activities
Purchases of property and equipment
(879
)
(896
)
Proceeds from sale of property and
equipment
9
19
Net cash acquired in acquisition
68
—
Other investing activities
(17
)
(50
)
Net cash used in investing activities
(819
)
(927
)
Financing activities
Proceeds from issuance of common stock,
equity-based compensation plan
4
9
Repurchase of Class A common stock
(178
)
—
Proceeds from short-term borrowings and
long-term debt
857
572
Repayment of short-term borrowings and
long-term debt
(794
)
(392
)
Net short-term borrowings and other
financing activities
42
10
Net cash (used in) provided by financing
activities
(69
)
199
Effect of exchange rate changes on cash
and cash equivalents, and restricted cash
(564
)
(14
)
Net increase (decrease) in cash and cash
equivalents, and restricted cash
434
1,910
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
$
6,031
$
5,597
Supplemental Financial
Information
Share Information
As of December 31,
(in millions)
2024
2023
Outstanding common stock
1,801
1,791
Outstanding equity-based awards
79
63
Outstanding common stock and equity-based
awards
1,880
1,854
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 December
31,
(in millions, except net revenues per
Product Commerce Active Customer)
2024
2023
% Change
Net revenues per Product Commerce Active
Customer
$
302
$
302
—
%
Net revenues per Product Commerce Active
Customer (Constant Currency)
$
320
6
%
Product Commerce Active Customers
22.8
20.8
10
%
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
• 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 U.S. dollar (“USD”) and changes in foreign exchange rates can
significantly affect our reported results and consolidated trends.
For example, our business generates sales predominantly in Korean
Won (“KRW”), which are favorably affected as the USD weakens
relative to the KRW, and unfavorably affected as the USD
strengthens relative to the KRW.
• 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 U.S. GAAP results helps improve the
ability to understand our performance because they exclude the
effects of foreign currency volatility that are not indicative of
our actual results of operations.
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.
Product Commerce Gross Profit Excluding
the Impact from the FC Fire Insurance Gain
• Product Commerce gross profit excluding
the impact of the FC fire insurance gain.
• We believe Product Commerce gross profit
and Product Commerce gross profit margin excluding the FC Fire
insurance gain provide useful supplemental information for
investors to compare Product Commerce gross profit and gross profit
margin from one period to another exclusive of the FC Fire
insurance gain which impacts comparability with the prior period.
This measure is a performance measure and should not be used as a
measure of liquidity.
Product Commerce Gross Profit Margin
Excluding the Impact from the FC Fire Insurance Gain
• Product Commerce gross profit excluding
the impact of the FC fire insurance gain as a percentage of Product
Commerce net revenues.
Adjusted Net Income Attributable to
Coupang Stockholders
• Net income attributable to Coupang
Stockholders, excluding the impact of the FC fire insurance gain,
the change in income tax valuation allowance and other tax
reserves, the KFTC administrative fine, and the Farfetch
acquisition.
• We believe adjusted net income
attributable to Coupang stockholders and adjusted diluted earnings
per share provides useful supplemental information for investors,
in the year of an acquisition, to compare our current earnings
results from one period to another as they remove the impact of
Farfetch and other certain items that are not representative of our
ongoing business. 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 FC fire insurance gain, the change in income tax valuation
allowance and other tax reserves, the KFTC administrative fine, and
the Farfetch acquisition divided by the weighted average dilutive
shares outstanding for the period.
Adjusted Net (Loss) Income Excluding the
Impact from the FC Fire Insurance Gain
• Net income excluding the impact of the
FC fire insurance gain.
• We believe adjusted net (loss) income
excluding the impact from the FC fire insurance gain, adjusted
basic earnings per share excluding the impact from the FC fire
insurance gain, net income attributable to Coupang stockholders'
excluding the impact from the FC fire insurance gain and diluted
earnings per share excluding the impact from the FC fire insurance
gain provide useful supplemental information for investors to
compare our current earnings results from one period to another as
they remove the impact of FC Fire Insurance gain which is not
representative of our ongoing business. Diluted earnings per share
excluding the impact from the FC Fire insurance gain is a
performance measure and should not be used as a measure of
liquidity.
Adjusted Basic Earnings per Share
Excluding the Impact from the FC Fire Insurance Gain
• Net income excluding the impact of the
FC fire insurance gain divided by the weighted average basic shares
outstanding for the period.
Net Income Attributable to Coupang
Stockholders' Excluding the Impact from the FC Fire Insurance
Gain
• Net income attributable to Coupang
Stockholders, excluding the impact of the FC fire insurance
gain.
Diluted Earnings Per Share Excluding the
Impact from the FC Fire Insurance Gain
• Net income attributable to Coupang
Stockholders, excluding the impact of the FC fire insurance gain
divided by the weighted average dilutive shares outstanding for the
period.
Gross Profit Excluding the Impact from the
FC Fire Insurance Gain
• Gross profit excluding the impact of the
FC fire insurance gain.
• We believe gross profit excluding the FC
Fire insurance gain provides useful supplemental information for
investors to compare our gross profit from one period to another
exclusive of the FC Fire insurance gain which impacts comparability
with the prior period. This measure is a performance measure and
should not be used as a measure of liquidity.
Total Net Revenues Excluding Farfetch
• Total net revenues excluding the impact
of the Farfetch acquisition.
• We believe total net revenues excluding
Farfetch, adjusted gross profit excluding Farfetch, adjusted EBITDA
excluding Farfetch, 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.
Adjusted Gross Profit Excluding
Farfetch
• Gross profit excluding the impact of the
Farfetch acquisition and the FC fire insurance gain recorded in
Cost of sales.
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 U.S.
GAAP measure to its corresponding non-GAAP measure for the periods
noted:
Constant Currency Revenue and Constant Currency Revenue
Growth
Three Months Ended December
31,
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
$
6,052
$
340
$
6,392
$
5,563
9
%
15
%
Net other revenue
1,913
90
2,003
998
92
%
101
%
Total net revenues
$
7,965
$
430
$
8,395
$
6,561
21
%
28
%
Net Revenues by Segment
Product Commerce
$
6,883
$
397
$
7,280
$
6,288
9
%
16
%
Developing Offerings
1,082
33
1,115
273
296
%
308
%
Total net revenues
$
7,965
$
430
$
8,395
$
6,561
21
%
28
%
Year Ended December
31,
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
$
23,866
$
1,039
$
24,905
$
21,223
12
%
17
%
Net other revenue
6,402
245
6,647
3,160
103
%
110
%
Total net revenues
$
30,268
$
1,284
$
31,552
$
24,383
24
%
29
%
Net Revenues by Segment
Product Commerce
$
26,699
$
1,197
$
27,896
$
23,594
13
%
18
%
Developing Offerings
3,569
85
3,654
789
352
%
363
%
Total net revenues
$
30,268
$
1,284
$
31,552
$
24,383
24
%
29
%
Free Cash Flow
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Net cash provided by operating
activities
$
676
$
609
$
1,886
$
2,652
Adjustments:
Purchases of land and buildings
(14
)
(43
)
(245
)
(374
)
Purchases of equipment
(200
)
(191
)
(634
)
(522
)
Total purchases of property and
equipment
$
(214
)
$
(234
)
$
(879
)
$
(896
)
Proceeds from sale of property and
equipment
1
7
9
19
Total adjustments
$
(213
)
$
(227
)
$
(870
)
$
(877
)
Free cash flow
$
463
$
382
$
1,016
$
1,775
Net cash used in investing activities
$
(141
)
$
(263
)
$
(819
)
$
(927
)
Net cash provided by (used in) financing
activities
$
20
$
(163
)
$
(69
)
$
199
Adjusted EBITDA and Adjusted EBITDA
Margin
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Total net revenues
$
7,965
$
6,561
$
30,268
$
24,383
Net income attributable to Coupang
shareholders
156
1,032
154
1,360
Net loss attributable to noncontrolling
interests
(25
)
—
(88
)
—
Net income
131
1,032
66
1,360
Net income margin
1.6
%
15.7
%
0.2
%
5.6
%
Adjustments:
Depreciation and amortization
120
77
433
275
Interest expense
40
14
140
48
Interest income
(53
)
(54
)
(216
)
(178
)
Income tax expense (benefit)
148
(861
)
407
(776
)
Other expense, net
46
—
39
19
Acquisition and restructuring related
costs
42
—
127
—
KFTC administrative fine
—
—
121
—
FC Fire insurance gain
(175
)
—
(175
)
—
Equity-based compensation
122
86
433
326
Adjusted EBITDA
$
421
$
294
$
1,375
$
1,074
Adjusted EBITDA margin
5.3
%
4.5
%
4.5
%
4.4
%
Segment Gross Profit and Segment Gross
Profit Margin
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Gross profit
$
2,491
$
1,681
$
8,831
$
6,190
Segment gross profit and gross profit
margin:
Product Commerce
$
2,251
$
1,717
$
8,105
$
6,282
Gross profit margin
32.7
%
27.3
%
30.4
%
26.6
%
Developing Offerings
$
240
$
(36
)
$
726
$
(91
)
Gross profit margin
22.2
%
(13.3
)%
20.3
%
(11.6
)%
Product Commerce Gross Profit and Gross
Profit Margin Excluding the Impact from the FC Fire Insurance
Gain
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Product Commerce gross profit
$
2,251
$
1,717
$
8,105
$
6,282
FC Fire insurance gain
(116
)
—
(116
)
—
Product Commerce gross profit excluding
the impact from the FC Fire insurance gain
$
2,135
$
1,717
$
7,989
$
6,282
Product Commerce gross profit margin
excluding the impact from the FC Fire insurance gain
31.0
%
27.3
%
29.9
%
26.6
%
Adjusted Net (Loss) Income Excluding the
Impact from the FC Fire Insurance Gain
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Net income
$
131
$
1,032
$
66
$
1,360
Adjustments:
FC Fire insurance gain
(175
)
—
(175
)
—
Tax impact on FC Fire insurance gain
43
—
43
—
Adjusted net (loss) income excluding
the impact from the FC Fire insurance gain
$
(1
)
$
1,032
$
(66
)
$
1,360
Adjusted Basic Earnings per Share
Excluding the Impact from the FC Fire Insurance Gain
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Basic earnings per share
$
0.09
$
0.58
$
0.09
$
0.76
Adjustments:
FC Fire insurance gain
(0.10
)
—
(0.10
)
—
Tax impact on FC Fire insurance gain
0.02
—
0.02
—
Adjusted basic earnings per share
excluding the impact from the FC Fire insurance gain(a)
$
0.01
$
0.58
$
0.01
$
0.76
(a)
Adjusted basic earnings per share includes
the effect of basic shares as a result of adjusted net income
excluding the impact of the FC Fire insurance gain. Basic weighted
average shares used for three months and year ended calculation was
1,800 million and 1,794 million for December 31, 2024 and 1,789
million and 1,782 million for December 31, 2023, respectively.
Net Income Attributable to Coupang
Stockholders Excluding the Impact from the FC Fire Insurance Gain
and Adjusted Net Income Attributable to Coupang Stockholders
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Net income attributable to Coupang
stockholders
$
156
$
1,032
$
154
$
1,360
Adjustments:
FC Fire insurance gain
(175
)
—
(175
)
—
Tax impact on FC Fire insurance gain
43
—
43
—
Net income attributable to Coupang
stockholders excluding the impact from the FC Fire insurance
gain
24
1,032
22
1,360
Adjustments:
Change in income tax valuation allowance
and other tax reserves
—
(895
)
—
(895
)
KFTC administrative fine
—
—
121
—
Farfetch losses attributable to Coupang
stockholders
53
—
264
—
Adjusted net income attributable to
Coupang stockholders
$
77
$
137
$
407
$
465
Diluted Earnings per Share Excluding the
Impact from the FC Fire Insurance Gain and Adjusted Diluted
Earnings per Share
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Diluted earnings per share
$
0.08
$
0.57
$
0.08
$
0.75
Adjustments:
FC Fire insurance gain
(0.10
)
—
(0.10
)
—
Tax impact on FC Fire insurance gain
0.02
—
0.02
—
Diluted earnings per share excluding the
impact from the FC Fire insurance gain
0.01
0.57
0.01
0.75
Adjustments:
Change in income tax valuation allowance
and other tax reserves
—
(0.49
)
—
(0.50
)
KFTC administrative fine
—
—
0.07
—
Farfetch losses attributable to Coupang
stockholders
0.03
—
0.14
—
Adjusted diluted earnings per
share(a)
$
0.04
$
0.08
$
0.22
$
0.26
(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 three months and year ended calculations
were 1,837 million and 1,826 million for December 31, 2024 and
1,810 million and 1,803 million for December 31, 2023
respectively.
Total Net Revenues Excluding Farfetch
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Total net revenues
$
7,965
$
6,561
$
30,268
$
24,383
Revenues of Farfetch
(471
)
—
(1,658
)
—
Total net revenues excluding
Farfetch
$
7,494
$
6,561
$
28,610
$
24,383
Total Net Revenues Excluding Farfetch
Constant Currency Revenue and Constant Currency Revenue Growth
(YoY)
Three Months Ended December
31,
Year over Year Growth
2024
2023
(in millions)
As Reported
Exchange Rate Effect
Constant Currency
Basis
As Reported
As Reported
Constant Currency
Basis
Consolidated
Total net revenues
$
7,965
$
430
$
8,395
$
6,561
21
%
28
%
Revenues of Farfetch
(471
)
—
(471
)
—
Total net revenues excluding
Farfetch
$
7,494
$
430
$
7,924
$
6,561
14
%
21
%
Year Ended December
31,
Year over Year Growth
2024
2023
(in millions)
As Reported
Exchange Rate Effect
Constant Currency
Basis
As Reported
As Reported
Constant Currency
Basis
Consolidated
Total net revenues
$
30,268
$
1,284
$
31,552
$
24,383
24
%
29
%
Revenues of Farfetch
(1,658
)
—
(1,658
)
—
Total net revenues excluding
Farfetch
$
28,610
$
1,284
$
29,894
$
24,383
17
%
23
%
Gross Profit Excluding the Impact from the
FC Fire Insurance Gain and Adjusted Gross Profit Excluding
Farfetch
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Gross profit
$
2,491
$
1,681
$
8,831
$
6,190
Adjustments:
FC Fire insurance gain
(116f
)
—
(116
)
—
Gross profit excluding the impact from
the FC Fire insurance gain
2,375
1,681
8,715
6,190
Gross profit margin excluding impact from
FC Fire insurance gain
29.8
%
25.6
%
28.8
%
25.4
%
Adjustments:
Gross profit of Farfetch
(205
)
—
(713
)
—
Adjusted gross profit excluding
Farfetch
$
2,170
$
1,681
$
8,002
$
6,190
Adjusted gross profit margin
29.0
%
25.6
%
28.0
%
25.4
%
Adjusted EBITDA Excluding Farfetch
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Adjusted EBITDA
$
421
$
294
$
1,375
$
1,074
Adjusted EBITDA of Farfetch
(30
)
—
34
—
Adjusted EBITDA excluding
Farfetch
$
391
$
294
$
1,409
$
1,074
Adjusted EBITDA margin excluding
Farfetch
5.2
%
4.5
%
4.9
%
4.4
%
Developing Offerings Net Revenues
Excluding Farfetch
Three Months Ended December
31,
Year Ended December
31,
(in millions)
2024
2023
2024
2023
Developing Offerings net
revenues
$
1,082
$
273
$
3,569
$
789
Revenues of Farfetch
(471
)
—
(1,658
)
—
Developing Offerings net revenues
excluding Farfetch
$
611
$
273
$
1,911
$
789
Developing Offerings Net Revenues
Excluding Farfetch Constant Currency Revenue and Constant Currency
Revenue Growth (YoY)
Three Months Ended December
31,
Year over Year Growth
2024
2023
(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
$
1,082
$
33
$
1,115
$
273
296
%
308
%
Revenues of Farfetch
(471
)
—
(471
)
—
Developing Offerings net revenues
excluding Farfetch
$
611
$
33
$
644
$
273
124
%
136
%
Year Ended December
31,
Year over Year Growth
2024
2023
(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
$
3,569
$
85
$
3,654
$
789
352
%
363
%
Revenues of Farfetch
(1,658
)
—
(1,658
)
—
Developing Offerings net revenues
excluding Farfetch
$
1,911
$
85
$
1,996
$
789
142
%
153
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225462800/en/
Investor Contact: Coupang IR ir@coupang.com
Media Contact: Coupang PR press@coupang.com
Coupang (NYSE:CPNG)
Historical Stock Chart
From Jan 2025 to Feb 2025
Coupang (NYSE:CPNG)
Historical Stock Chart
From Feb 2024 to Feb 2025
