Delaware | 001-40115 | 27-2810505 | ||||||||||||
(State or other jurisdiction of
incorporation)
|
(Commission File Number) |
(I.R.S. Employer
Identification Number)
|
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) |
Exhibit Number | Description of Exhibit | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
COUPANG, INC. (REGISTRANT) | |||||
By: | /s/ Jonathan Lee | ||||
Jonathan Lee | |||||
Chief Accounting Officer |
Coupang, Inc. | Q3 2023 Earnings Release |
1 |
(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) |
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) |
Coupang, Inc. | Q3 2023 Earnings Release |
2 |
Investor Contact: | Media Contact: | |||||||||||||
Coupang IR | Coupang PR | |||||||||||||
ir@coupang.com | press@coupang.com |
Coupang, Inc. | Q3 2023 Earnings Release |
3 |
Coupang, Inc. | Q3 2023 Earnings Release |
4 |
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 |
(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 |
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 |
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 |
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 | % | |||||||||||||
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 |
Coupang, Inc. | Q3 2023 Earnings Release |
10 |
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 | % |
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 |
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) | % |
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 |