SEATTLE, Washington and SEOUL, South Korea - (BUSINESS WIRE) May 9, 2023—Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2023.

•Net revenues were $5.8 billion, up 13% YoY on a reported basis, or 20% YoY on an FX-neutral basis.

•Gross profit increased 36% YoY to $1.4 billion.

•Gross profit margin was 24.5%, an improvement of over 400 bps YoY.

•Net income was $91 million, an improvement of $300 million over last year.

•Adjusted EBITDA was $241 million with a margin of 4.2%, an improvement of nearly 600 bps over last year.

•Operating Cash flow for trailing twelve months was positive $1.1 billion, an increase of $1.4 billion YoY.

•Achieved milestone of positive free cash flow of $451 million for trailing twelve months, an increase of $1.5 billion YoY.

•Active customers exceeded 19 million, up 5% both YoY and QoQ.

•Product Commerce segment net revenues was $5.7 billion, up 15% YoY on a reported basis, or 21% on an FX-neutral basis.

•Product Commerce segment adjusted EBITDA was positive $288 million, up $285 million YoY.

•Product Commerce segment adjusted EBITDA margin was 5.1%, up over 500 bps YoY.

•Developing Offerings segment (including Coupang Eats, International, Play and Fintech) adjusted EBITDA was negative $47 million, an improvement of $46 million over last year.

“We have an opportunity to transform the lives of our customers in the coming years,” said Bom Kim, Founder and CEO of Coupang. “The overwhelming majority of the retail market is still offline, where prices are high and selection limited. According to one study, Korean consumers have access to less than 10% of the retail space per capita available to their US counterparts. We’ve made unmatched investments to offer customers something much better: vast selection, low prices, and exceptional service. And now any merchant can capture the growth of our end-to-end network through Fulfillment and Logistics by Coupang, or Rocket Growth, where units sold are up nearly 90% year over year. This program will expand selection on Rocket dramatically for customers. We’ve been delighted by the response from merchants and customers alike and are excited about the growth ahead. We’ve also started rolling out new Coupang Eats benefits to all WOW members. These benefits will generate more savings for customers and make WOW even harder to resist. Our goal is to keep expanding membership benefits to make WOW the best deal on the planet.”

“2022 was a year of significant milestones, and we begin 2023 with another major achievement. In Q1, we generated positive free cash flow of $451M on a trailing twelve-month basis,” added Coupang’s CFO, Gaurav Anand. “This milestone again demonstrates the power of our accelerating flywheel and the commitment of our teams to deliver our goals. Thanks to our sustained focus on operational excellence, we’ve now achieved a level of financial strength that positions us well for the future.”

(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. will host a conference call to discuss first quarter results on May 9, 2023 at 5:30 PM Eastern Daylight Time (May 10, 2023 at 6:30 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 first quarter earnings presentation, are also available on that site.

Coupang is one of the largest e-Commerce 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, and China.

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 delivery 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 products, 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.

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.

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 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 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.

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.

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: