Coupang, Inc. · NYSE:CPNG
Coupang — Q4 2021 Earnings Presentation
20 slides from Coupang's earnings presentation, Mar 2, 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. F
Slide 3: Investment Highlights
Investment Highlights Large and Underpinned by a robust e-commerce segment on track be the 3rd largest globally Growing TAM Strong Integrated technology and infrastructure scale enabling an innovative, Competitive Moat unmatched customer experience that underpins a growing leadership position Attrac
Slide 4: Korea is a massive and fast-growing commerce market
Korea is a massive and fast-growing commerce market CAGR 2021 – 2025E Total Commerce CAGR: 6% $616B $483B $196B $291B 2021 2025E Total Commerce E-commerce Note: All figures exclude automobiles and fuel Source: Euromonitor International Ltd, Coupang estimates based on Euromonitor’s Retailing 2022, Co
Slide 5: 3rd Largest E-commerce Opportunity Globally
3rd Largest E-commerce Opportunity Globally Country CAGR 2021 – 2025E 1 China 13% 2 USA 7% 3 Korea 11% 4 UK 6% 5 Japan 6% Source: Euromonitor International Ltd, Euromonitor’s Retailing 2022 edition; E-commerce is same as the goods e-commerce definition in Euromonitor Passport Retailing 2022ed.; Reta
Slide 6: Widening Competitive Moat
Widening Competitive Moat Total Size of Infrastructure Footprint (sq ft millions) 42 2.4 x 17 2013 2014 2015 2016 2017 2018 2019 2020 2021 Note: Infrastructure includes fulfillment and logistics centers in Korea. 5
Slide 7: Increasing Share of E-commerce Growth
Increasing Share of E-commerce Growth Coupang Share of Incremental Korean Product E-commerce Growth 2018 2019 2020 2021 Source: Korean government (KOSIS) Note: Represents KOSIS Product eCommerce and Coupang total spend excluding Eats. 6
Slide 8: 3P Merchant Spend Also Growing 2x+ Faster
3P Merchant Spend Also Growing 2x+ Faster 3P Merchant Spend Growing ~2.5x Faster than e-commerce Segment 4Q20 1Q21 2Q21 3Q21 4Q21 Coupang Total 3P Merchant Spend KOSIS Product E-commerce Source: Korean government (KOSIS) Note: Total 3P Merchant Spend includes sales from 3P marketplace and Fulfillmen
Slide 9: Gaining Share Across All Categories
Gaining Share Across All Categories Coupang Share of Korean E-commerce Segment Categories, indexed to 2017 2017 2018 2019 2020 2021 Categories Included: Consumer Electronics (CE), Consumables, Media, Hardlines (excl. CE), and Softlines Note: Coupang share includes retail sales and 3P merchant sales.
Slide 10: Compounding Customer Cohort Spend
Compounding Customer Cohort Spend Year 1 Spend Increasing with Each New Cohort Spend by cohort, indexed to year 1 through 2021 Year 1 Year 2 Year 3 Year 4 Year 5 2017 Cohort 1.00x 1.80x 2.35x 3.46x 4.55x 2018 Cohort 1.00x 1.98x 3.06x 4.17x 2019 Cohort 1.00x 2.19x 3.11x 2020 Cohort 1.00x 1.94x 2017 2
Slide 11: All Annual Customer Cohorts' Spend Growing ~30%+
All Annual Customer Cohorts’ Spend Growing ~30%+ 30% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Note: Total spend for all customers in each annual cohort. 10
Slide 12: Newer Cohorts Spend Starting Higher, Growing Faster
Newer Cohorts Spend Starting Higher, Growing Faster Spend per Customer by Cohort 2021 Avg. Spend/Customer Each cohort starting at higher spend/customer Year 1 Year 2 Year 3 Year 4 Year 5 2017 2018 2019 2020 2021 Average Note: Spend per customer equates to total gross spending per customer. The figur
Slide 13: Unmatched WOW Membership Value Proposition
Unmatched WOW Membership Value Proposition WOW Member Benefit Highlights • Free Shipping for Rocket delivery • Free 30-day returns 2019 + Free Shipping Rocket Fresh delivery + Free Dawn delivery + Free Same-Day delivery + WOW exclusive product discounts 2020 + Free Shipping Rocket Jikgu (imports) +
Slide 14: Opportunity to Double Active Customers
Opportunity to Double Active Customers 37M Total Korean Online Shoppers 18M Coupang Active Customers 9M Paid WOW Members (Unit: millions) Source: Nielsen, total online shoppers is as of September 2021 Note: Coupang Active Customers and Paid WOW Members are as of the end of Q4 2021 13
Slide 15: Long-term Margin Opportunity
Long-term Margin Opportunity Long-term 2020 2021 Target Key Long-term Margin Drivers Gross profit 16.6 % 16.0 % 27 – 32 % (% Margin) • Efficiency and Sourcing Optimization Other operating expenses 18.8 % 21.8 % • Advertising and Merchant Services 16 – 17 % (% of Revenue) • Operating Leverage Marketi
Slide 16: FY2022 Guidance
FY2022 Guidance Guidance FY 2022 Total Adjusted EBITDA 1 Less than ($400) million Product Commerce Adjusted EBITDA Profitable by Q4 2022 Updated Financial Reporting Structure Starting in Q1 2022, we will report two segments, Product Commerce and Growth Initiatives. • Product Commerce: Core and Fresh
Slide 17: Create a world where customers wonder 'How did I ever live without Coupang?'
Create a world where customers wonder “How did I ever live without Coupang?” 16
Slide 18: Non-GAAP Measures – Adjusted EBITDA and Adjusted EBITDA Margin
Non-GAAP Measures – Adjusted EBITDA and Adjusted EBITDA Margin During the first quarter of 2021, we began using adjusted EBITDA and adjusted EBITDA margin as non-GAAP financial measures. Adjusted EBITDA is defined as net income/(loss) for a period before depreciation and amortization, interest expen
Slide 19: Non-GAAP Measures – Adjusted EBITDA and Adjusted EBITDA Margin (cont.)
Non-GAAP Measures – Adjusted EBITDA and Adjusted EBITDA Margin (cont.) _____________ (1) Depreciation and amortization includes amounts in cost of sales of $12 million and $11 million for the three months ended December 31, 2021 and 2020, respectively, and amounts in operating, general and administr
Slide 20: Non-GAAP Measures – Constant Currency Revenue and Constant Currency Revenue Growth
Non-GAAP Measures – Constant Currency Revenue and Constant Currency Revenue Growth 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 r