Coupang, Inc. · NYSE:CPNG
Coupang — Q4 2022 Earnings Presentation
16 slides from Coupang's earnings presentation, Feb 28, 2023
Slide 1: Investor Presentation February 2023
coupang Investor Presentation February 2023
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation 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 forw
Slide 3: Investment Highlights
Investment Highlights Large and . Il sh f vast retai i Growing TAM Small share of vast retail opportunity Strong Integrated technology and infrastructure scale enabling innovative, Competitive Moat unmatched customer experience that underpins growing leadership position Attractive 10+% long-term tar
Slide 4: Korea is a Large and Fast-Growing Commerce Market
Korea is a Large and Fast-Growing Commerce Market CAGR 2022 - 2026E Total Commerce CAGR: 4% Note: All figures exclude automobiles and fuel. Source: Euromonitor International Ltd, Coupang estimates based on Euromonitor's Retailing 2023, Consumer Foodservice 2023, and Travel 2023 editions; coupan: 13
Slide 5: Compounding Customer Cohort Spend
Compounding Customer Cohort Spend Spend by cohort, indexed to year 1 through 2022 Year 1 Year 2 Year 3 Year 4 Year 5 2018 Cohort 1.00x 1.98x 3.06x 4.17x 2019 Cohort 1.00x 2.19x 3.11x 2020 Cohort 1.00x 1.94x 2021 Cohort 1.00x coupang | 4
Slide 6: Newer Cohorts Spend Starting Higher, Growing Faster
Newer Cohorts Spend Starting Higher, Growing Faster Spend per Customer by Cohort Each cohort starting at higher spend/customer Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 —2017 —2018 —2019 —2020 —2021 2022 5 Note Spend per cstomer equates to oa goss pending per customer Amounts above local ureny an at
Slide 7: WOW Membership Growth
WOW Membership Growth = Paid WOW Members (millions) 4Q20 4Q21 4Q22 Note: Paid WOW Members are as of the end of each quarter. coupang | 6
Slide 8: Widening Competitive Moat
Widening Competitive Moat Total Size of Infrastructure Footprint (Unit: sq ft millions) : 2018 2019 2020 2021 2022 Note: Infrastructure includes fulfillment and logistics centers in Korea. coupang | 7
Slide 9: Improving Gross Profit and Margin
Improving Gross Profit and Margin (Unit: USD B) 23% 47 16% 7% 16% 3.0 2.0 5% 1.0 a 2018 2019 2020 2021 2022 mm Gross Profit -o-GP Margin Covid Years coupang | s
Slide 10: 300,000 6.0% 250,000 5.0% 200,000 4.0% 150,000 3.0% 100,000 2.0% 50,000 1.0% 0 0.0%
300,000 6.0% 250,000 5.0% 200,000 4.0% 150,000 3.0% 100,000 2.0% 50,000 1.0% 0 0.0% (50,000) -1.0% (100,000) -2.0% (150,000) -3.0%
Slide 11: Progression Towards Free Cash Flow Positive
Progression Towards Free Cash Flow Positive (in millions) 2020 2021 2022 Adj. EBITDA - consolidated $ (357) $ (748) $ 381 Cash flow from operations 302 (411) 565 Free cash flow! (183) (1,082) (246) Drivers of path towards free cash flow positive: Scaling Optimization of Balanced capex profitability
Slide 12: Long-Term Margin Opportunity
Long-Term Margin Opportunity Year Ended December 31, 2020 2021 2022 2022 Q4 Long-Term Target oer) (3.0) % (4.1) % 19% 40% 10+ % Key long-term margin drivers: Efficiency and 1 supply chain 2 Operating leverage optimization 3 Scaling accretive offerings coupang | 1
Slide 13: Create a world where customers wonder
nt S f | i ! Create a world where custor rs wonder “How. did | ever live without Cc M ng?”
Slide 14: Non-GAAP Measures
Non-GAAP Measures Non-GAAP Measure Definition How We Use The Measure Provides information to management and investors about the amount of cash generated from our ongoing Cash flow from operations operations that, after purchases and sales of property and Free cash flow Less: purchases of property an
Slide 15: Non-GAAP Measures - Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Measures - Adjusted EBITDA and Adjusted EBITDA Margin Year Ended December 31, (in thousands) 2020 2021 2022 2022 Q4 Total net revenues $ 11,967,339 $ 18,406,372 $ 20,582,615 $ 5,326,774 Net income (loss) (463,157) (1,542,590) (92,042) 102,064 Net income (loss) margin (3.9) % (8.4) % (0.4) %
Slide 16: Non-GAAP Measure - Free Cash Flow
Non-GAAP Measure - Free Cash Flow Year Ended December 31, (in thousands) 2020 2021 2022 Net cash provided by (used in) operating activities $ 301,554 $ (410,578) $ 565,439 Adjustments: Purchases of land and buildings (101,820) (215,062) (226,587) Purchases of equipment (382,810) (458,601) (597,675)