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Coupang Announces Results for Third Quarter 2023

November 07, 2023

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:

  • Net revenues were $6.2 billion, up 21% YoY on a reported basis and 18% YoY on an FX-neutral basis.
  • The revenue growth rate would have been an estimated 635 bps higher than the 18% growth without the accounting change in FLC revenue, which we began recording on a net basis starting in Q2 2023.
  • Gross profit increased 27% YoY to $1.6 billion.
  • Gross profit margin was 25.3%, an improvement of 113 bps YoY. The accounting change in FLC revenue this quarter had a positive 140 bps impact.
  • Net income was $91 million with a margin of 1.5%, an improvement of $1 million over last year.
  • EPS was $0.05, consistent with the prior year.
  • Adjusted EBITDA for the quarter was $239 million with a margin of 3.9%, an improvement of 10 bps over last year.
  • Adjusted EBITDA for the trailing twelve months was $991 million with a margin of 4.3%, a YoY improvement of 490 bps.
  • Operating cash flow for the trailing twelve months was $2.6 billion, an increase of $2.8 billion YoY.
  • Free cash flow was $1.9 billion for the trailing twelve months, an increase of $2.9 billion YoY.
  • Active customers surpassed 20.4 million, growing at 14% YoY.

Segment Highlights:

  • Product Commerce segment net revenues was $6.0 billion, up 21% YoY on a reported basis and 18% on an FX-neutral basis.
  • Product Commerce segment adjusted EBITDA was $399 million, up $160 million YoY.
  • Product Commerce segment adjusted EBITDA margin was 6.7%, up 190 bps YoY.
  • Developing Offerings segment (including International, Coupang Eats, Play and Fintech) net revenues was $218 million, up 41% YoY on a reported basis and 40% on an FX-neutral basis.
  • Developing Offerings segment adjusted EBITDA was negative $161 million.

“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

  • 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 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.

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

S eptember 30,

 

Nine Months Ended

S eptember 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

%

 

Investor Contact:
Coupang IR
ir@coupang.com

Media Contact:
Coupang PR
press@coupang.com

Source: Coupang

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