Coupang, Inc. unveiled its financial achievements for the first quarter of 2024, marking significant gains in revenue and customer growth, albeit with a modest net income due to strategic acquisitions. The e-commerce powerhouse recorded a net revenue of $7.1 billion, reflecting a 23% year-over-year increase, and a 28% rise on an FX-neutral basis. Notably, the revenue surge was propelled by its Product Commerce sector, which alone generated $6.5 billion, up 15% from the previous year.
Gross profits soared to $1.9 billion, up 36% compared to Q1 2023, with the gross profit margin improving by 260 basis points to 27.1%. This profitability enhancement underscores Coupang’s efficient cost management and high-margin product strategies. However, net income attributable to Coupang stockholders slightly decreased to $5 million, down from $91 million in the same quarter last year, largely due to the losses from the recent Farfetch integration.
Coupang’s adjusted EBITDA stood at $281 million, with a 3.9% margin, slightly down from 4.1% last year, indicating ongoing investments in business expansion and technology. The company also reported robust operating cash flow of $2.4 billion and a free cash flow of $1.5 billion for the trailing twelve months, demonstrating strong operational efficiency and cash generation capabilities.
Segment-wise, Coupang’s Developing Offerings, which now includes international markets, Coupang Eats, Play, Fintech, and Farfetch, witnessed a meteoric rise in net revenues by 337% on a reported basis and 346% on an FX-neutral basis, totaling $620 million. Despite the growth, this segment’s adjusted EBITDA was negative $186 million, reflecting the costs associated with scaling and integrating new business verticals, including Farfetch.
Coupang’s CFO, Gaurav Anand, expressed optimism about the company’s trajectory, emphasizing the strategic integration of Farfetch and its potential to reach near positive adjusted EBITDA by year-end. As Coupang continues to expand its footprint in the massive $560 billion Asian commerce market, it remains committed to leveraging its technological edge to enhance customer experiences and operational excellence. The company’s progressive financial and operational strategies are set to further solidify its position as a leader in the e-commerce sector.
