SEATTLE - (BUSINESS WIRE) February 25, 2025—Coupang, Inc. (NYSE: CPNG) today announced financial results for its fourth quarter ended December 31, 2024.

•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.

•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.

•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.

•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.

The following summarizes the impact Farfetch had on our results for the three months and year ended December 31, 2024:

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(1)Total net revenues growth, constant currency, adjusted net income (loss), adjusted diluted earnings per share, adjusted EBITDA and free cash flow are non-GAAP measures. See “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared 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)We completed the acquisition of the assets of Farfetch at the end of January in Q1 2024. For 2024, the operating results of Farfetch from February 2024 are included in our consolidated results and in our Developing Offerings segment. For the three months ended December 31, 2024, the operating results of Farfetch are included in our consolidated results and in our Developing Offerings segment.

(4)Adjusted diluted earnings per share excludes the impact of the Farfetch acquisition, the KFTC administrative fine, and the FC fire insurance gain.

(5)Gross profit excluding the impact from the FC fire insurance gain, net income (loss) excluding the impact from the FC fire insurance gain, net income attributable to Coupang stockholders excluding the impact from the FC fire insurance gain, basic earnings (loss) per share excluding the impact from the FC fire insurance gain, and diluted earnings (loss) per share excluding the impact from the FC fire insurance gain are non-GAAP measures. See “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” below for the reconciliation of the non-GAAP measures with their comparable amounts prepared in accordance with U.S. GAAP.

(6)Non-meaningful

Coupang, Inc. will host a conference call to discuss fourth quarter results on February 25, 2025 at 5:30 PM Eastern 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 fourth quarter earnings presentation, are also available on that site.

Coupang is a technology and Fortune 200 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play and Farfetch.

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, risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments, our financial performance, to the extent to which we owe income or other taxes, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, legal and regulatory developments, and the impact of the global economy including inflation, foreign currency exchange rates and other geopolitical events. 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.

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.

Net revenues per Product Commerce Active Customer is the net revenues generated in a period divided by the total number of Product Commerce Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of customers who are shopping on our Product Commerce apps or websites. We therefore view net revenues per Product Commerce Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth, though there may be a short-term dilutive impact when a large number of new Product Commerce active customers are added in a recent period.

As of the last date of each reported period, we determine our number of Product Commerce Active Customers by counting the total number of individual customers who have ordered at least once directly from our Product Commerce 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 Product Commerce 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 Product Commerce Active Customers as an indicator of future growth in our net revenue, the reach of our network, the awareness of our brand, and the engagement of our customers.

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. Certain amounts may not foot due to rounding.

The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted:

(a)Adjusted basic earnings per share includes the effect of basic shares as a result of adjusted net income excluding the impact of the FC Fire insurance gain. Basic weighted average shares used for three months and year ended calculation was 1,800 million and 1,794 million for December 31, 2024 and 1,789 million and 1,782 million for December 31, 2023, respectively.

(a)Adjusted diluted earnings per share includes the effect of dilutive shares as a result of adjusted net income attributable to Coupang stockholders. Diluted weighted average shares used for three months and year ended calculations were 1,837 million and 1,826 million for December 31, 2024 and 1,810 million and 1,803 million for December 31, 2023 respectively.