0001834584FALSE00018345842023-11-072023-11-07
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
November 7, 2023
Date of Report
(Date of earliest event reported)
COUPANG, INC.
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | | | | |
Delaware | | 001-40115 | | 27-2810505 |
(State or other jurisdiction of incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification Number) |
720 Olive Way, Suite 600
Seattle, Washington 98101
(Address of principal executive offices, including zip code)
(206) 333-3839
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | | | | |
Class A Common Stock, par value $0.0001 per share | | CPNG | | New York Stock Exchange |
(Title of Each Class) | | (Trading Symbol) | | (Name of Each Exchange on Which Registered) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 7, 2023, Coupang, Inc. released its financial results for the third quarter 2023. A copy of the press release is attached as Exhibit 99.1 to this current Report on Form 8-K and is incorporated herein by reference.
The information in Item 2.02 and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | | | | | | |
Exhibit Number | | Description of Exhibit |
99.1 | | |
104 | | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | |
COUPANG, INC. (REGISTRANT) |
| |
By: | /s/ Jonathan Lee |
| Jonathan Lee |
| Chief Accounting Officer |
Dated: November 7, 2023
Coupang Announces Results for Third Quarter 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
SEATTLE - (BUSINESS WIRE) November 7, 2023—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.”
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 1 |
Third Quarter 2023 Results
Consolidated Financial Summary
| | | | | | | | | | | | | | | | | |
(in thousands, except net revenues per Active Customer and net income per share) | Three Months Ended September 30, | | |
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
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 2 |
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.
| | | | | | | | | | | | | | |
Investor Contact: | | | | Media Contact: |
Coupang IR | | | | Coupang PR |
ir@coupang.com | | | | press@coupang.com |
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 3 |
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. | | Q3 2023 Earnings Release | 4 |
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. | | Q3 2023 Earnings Release | 5 |
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. | | Q3 2023 Earnings Release | 6 |
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 | |
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 7 |
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.
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 8 |
| | | | | | | | |
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. |
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 9 |
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:
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 10 |
Constant Currency Revenue and Constant Currency Revenue Growth (YoY)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | Year over Year Growth |
| 2023 | 2022 |
(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, | Year over Year Growth |
| 2023 | 2022 |
(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 September 30, | | Nine Months Ended September 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 | |
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 11 |
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 | % |
| | | | | | | | | | | | | | |
| Coupang, Inc. | | Q3 2023 Earnings Release | 12 |
v3.23.3
Cover
|
Nov. 07, 2023 |
Cover [Abstract] |
|
Document Type |
8-K
|
Document Period End Date |
Nov. 07, 2023
|
Entity Registrant Name |
COUPANG, INC.
|
Entity Incorporation, State or Country Code |
DE
|
Entity File Number |
001-40115
|
Entity Tax Identification Number |
27-2810505
|
Entity Address, Address Line One |
720 Olive Way
|
Entity Address, City or Town |
Seattle
|
Entity Address, Postal Zip Code |
98101
|
City Area Code |
206
|
Local Phone Number |
333-3839
|
Written Communications |
false
|
Soliciting Material |
false
|
Pre-commencement Tender Offer |
false
|
Pre-commencement Issuer Tender Offer |
false
|
Title of 12(b) Security |
Class A Common Stock, par value $0.0001 per share
|
Trading Symbol |
CPNG
|
Security Exchange Name |
NYSE
|
Entity Emerging Growth Company |
false
|
Entity Central Index Key |
0001834584
|
Amendment Flag |
false
|
Entity Addresses [Line Items] |
|
Entity Address, State or Province |
WA
|
Local Phone Number |
333-3839
|
Entity Address, Address Line One |
720 Olive Way
|
Entity Address, City or Town |
Seattle
|
Entity Address, Postal Zip Code |
98101
|
City Area Code |
206
|
Entity Address, Address Line Two |
Suite 600
|
Document Period End Date |
Nov. 07, 2023
|
Document Information [Line Items] |
|
Document Type |
8-K
|
X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
+ Details
Name: |
dei_AmendmentFlag |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
+ Details
Name: |
dei_DocumentPeriodEndDate |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:dateItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
+ Details
Name: |
dei_DocumentType |
Namespace Prefix: |
dei_ |
Data Type: |
dei:submissionTypeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
+ References
+ Details
Name: |
dei_EntityAddressAddressLine1 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionAddress Line 2 such as Street or Suite number
+ References
+ Details
Name: |
dei_EntityAddressAddressLine2 |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- Definition
+ References
+ Details
Name: |
dei_EntityAddressCityOrTown |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCode for the postal or zip code
+ References
+ Details
Name: |
dei_EntityAddressPostalZipCode |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the state or province.
+ References
+ Details
Name: |
dei_EntityAddressStateOrProvince |
Namespace Prefix: |
dei_ |
Data Type: |
dei:stateOrProvinceItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLine items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.
+ References
+ Details
Name: |
dei_EntityAddressesLineItems |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:stringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityCentralIndexKey |
Namespace Prefix: |
dei_ |
Data Type: |
dei:centralIndexKeyItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionIndicate if registrant meets the emerging growth company criteria.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityEmergingGrowthCompany |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
+ Details
Name: |
dei_EntityFileNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:fileNumberItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
+ References
+ Details
Name: |
dei_EntityIncorporationStateCountryCode |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarStateCountryItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityRegistrantName |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b-2
+ Details
Name: |
dei_EntityTaxIdentificationNumber |
Namespace Prefix: |
dei_ |
Data Type: |
dei:employerIdItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionLocal phone number for entity.
+ References
+ Details
Name: |
dei_LocalPhoneNumber |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:normalizedStringItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 13e -Subsection 4c
+ Details
Name: |
dei_PreCommencementIssuerTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 14d -Subsection 2b
+ Details
Name: |
dei_PreCommencementTenderOffer |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTitle of a 12(b) registered security.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection b
+ Details
Name: |
dei_Security12bTitle |
Namespace Prefix: |
dei_ |
Data Type: |
dei:securityTitleItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionName of the Exchange on which a security is registered.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Number 240 -Section 12 -Subsection d1-1
+ Details
Name: |
dei_SecurityExchangeName |
Namespace Prefix: |
dei_ |
Data Type: |
dei:edgarExchangeCodeItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Exchange Act -Section 14a -Number 240 -Subsection 12
+ Details
Name: |
dei_SolicitingMaterial |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
+ References
+ Details
Name: |
dei_TradingSymbol |
Namespace Prefix: |
dei_ |
Data Type: |
dei:tradingSymbolItemType |
Balance Type: |
na |
Period Type: |
duration |
|
X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ ReferencesReference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Securities Act -Number 230 -Section 425
+ Details
Name: |
dei_WrittenCommunications |
Namespace Prefix: |
dei_ |
Data Type: |
xbrli:booleanItemType |
Balance Type: |
na |
Period Type: |
duration |
|
Coupang (NYSE:CPNG)
Historical Stock Chart
From Aug 2024 to Sep 2024
Coupang (NYSE:CPNG)
Historical Stock Chart
From Sep 2023 to Sep 2024