Coupang Announces Results for Fourth Quarter 2024
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 ...
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
SEATTLE: 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 | % |
|
|
|
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| |||
Free cash flow(1) | $ | 463 |
|
| $ | 382 |
| 21 | % |
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| |||
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 | ||||
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 | % |
|
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