Coupang, Inc. · NYSE:CPNG
Coupang — Q3 2023 Earnings Presentation
22 slides from Coupang's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Financial Results
coupang Q3 2023 Financial Results November 7, 2023
Slide 2: Disclaimer: Forward-Looking Statements
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: Common Stock
Common Stock 1.2% YoY Dilution 1,827M 1,849M OnA CY 64M _ 1,769M 1,786M Q3 22 Q4 22 Q123 Q2 23 Q3 23 =Outstanding Common Stock = Outstanding Equity-based Awards Note: Dilution represents the change in the total of outstanding common stock and outstanding equity-based awards. coupang | 2
Slide 4: Total Net Revenues
Total Net Revenues Up 21% YoY Up 18% YoY FX-neutral — “ouldhave been ~635 bps higher without FLC accounting change $6.2B ; ; ; ' Q3 22 Q4 22 Q123 Q2 23 Q3 23 Note: Starting in @2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC revenue (pr
Slide 5: Active Customers
Active Customers Up 14% YoY 20M : | Q3 22 Q4 22 Q123 Q2 23 Q3 23 coupang | 4
Slide 6: Gross Profit
Gross Profit Up 27% YoY GPM up 110 bps YoY — Would have been ~140 bps lower without FLC accounting change $1.6B $1.2B 25.3% 24.2% Q3 22 Q4 22 Q123 Q2 23 Q3 23 @ margin Note: Starting in @2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC r
Slide 7: Operating Income
Operating Income Up 13% YoY ) ; ' | Q3 22 Q4 22 Q123 Q2 23 Q3 23 coupang | «6
Slide 8: Net Income
Net Income ~Flat YoY j - ' : Q3 22 Q4 22 Q123 Q2 23 Q3 23 coupang | 7
Slide 9: Adjusted EBITDA
Adjusted EBITDA Up $44M YoY $239M $195M Q3 22 Q4 22 Q123 Q2 23 Q3 23 @ margin Note: Adjusted EBITDA defined as net income (loss) excluding the effects of: depreciation and amortization, interest expense and income, other income (expense), income tax expense (benefit), equity-based compensation, impa
Slide 10: Segment Results: Product Commerce
Segment Results: Product Commerce Net Revenue Adj. EBITDA Up 21% YoY Up $160M YoY Would have been ~670 bps. UP 18% YoY F/X neutral — higher without FLC accounting change $6,0B $399M $4.9B $239M 6.7% 4.8% Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q3 22 Q4 22 Q123 Q2 23 Q3 23 Note: Starting in Q2 2023, we implemen
Slide 11: Segment Results: Developing Offerings
Segment Results: Developing Offerings Net Revenue Adj. EBITDA Up 41% YoY Down $117M YoY Up 40% YoY F/X neutral $218M 28.70% lL ; I ; $(44M) Q3 22 Q4 22 Q123 Q2 23 Q3 23 Q3 22 Q4 22 © margin Q123 Q2 23 (73.9)% $(161M) Q3 23 coupang | 10
Slide 12: Total Net Revenues - TTM
Total Net Revenues - TTM Up 14% YoY Up 20% YoY FX-neutral — "ud have been ~250 bps higher without FLC accounting change $23.1B ; ; - ; Q3 22 Q4 22 Q123 Q2 23 Q3 23 Note: Starting in @2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC reven
Slide 13: Operating Income (Loss) and Net Income (Loss) - TTM
Operating Income (Loss) - TTM Net Income (Loss) - TTM Up $1.0B YoY Up $1.0B YoY $425M $429M $(592M) $(599M) Q3 22 Q3 23 Q3 22 Q3 23 coupang | 12
Slide 14: Gross Profit and Adjusted EBITDA - TTM
Gross Profit - TTM Up 37% YoY Would have been ~6Obps GPM up 420 bps YoY — lower without FLC Adjusted EBITDA - TTM Up $1.1B YoY accounting change $5.88 $991M $4.28 oie 25.0% @322 0323 | (oes | © margin $(115M) Note: Starting in Q2 2023, we implemented certain contract changes that resulted in a chang
Slide 15: Operating Cash Flow and Free Cash Flow - TTM
Operating Cash Flow - TTM Up $2.8B YoY | | $(218M) Q3 22 $2.6B Q3 23 Free Cash Flow - TTM Up $2.9B YoY $1.9B $(1.1B) Q3 22 Q3 23 Note: @3 2023 TTM Free Cash Flowis significantly higher than the corresponding TTM adjusted EBITDA due to certain one-time and seasonal working capital benefits, among oth
Slide 16: Segment Results: Product Commerce - TTM
Segment Results: Product Commerce - TTM Net Revenue - TTM Adj. EBITDA - TTM Up 14% YoY Up $1.1B YoY Would have been ~260 bps UP 20% YoY F/X neutral— tigher without FLC accounting change $1.4B $22,.5B 6.1% $19.7B $214M Q3 22 Q3 23 Q3 22 Q3 23 Note: Starting in @2 2023, we implemented certain contract
Slide 17: Segment Results: Developing Offerings - TTM
Segment Results: Developing Offerings - TTM Net Revenue - TTM Adj. EBITDA - TTM Up 0% YoY Down $41M YoY Up 6% YoY F/X neutral $649M $646M (51.0)% $(329M) Q3 22 Q3 23 Q3 22 @ margin (57.2)% $(371M) Q3 23 coupang | 16
Slide 18: Our Operating Tenets
Our Operating Tenets One, we exist to deliver new moments of wow for customers. Two, we don't start with what looks easy. We work backwards from imagining jaw-dropping customer experiences and we embrace the hard work required to challenge trade-offs that customers take for granted. Three, we will e
Slide 19: Appendix
a =" Create a : world piss. cu » S wonder, “How did | everlive out Coupang?” Appendix
Slide 20: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Three Months Ended yipienausannels) September 30, December 31, MERRIE Jose September 30, 2022 2022 i ‘ 2023 Total net revenues $ 5,101,334 $ 5326774 $ 5800530 $ 5,837889 $ 6183555 Net income 90,679 102,064 90,855 145,192 91,300 Net income margin 18 % 19 % 16 % 25 %
Slide 21: Non-GAAP Measure: Adjusted EBITDA - TTM
Non-GAAP Measure: Adjusted EBITDA - TTM Trailing Twelve Months Ended Maapalsands) Septomuerso: Besemer eh i cacdiai i008 dimescaaos amet 2022 2022 . : 2023 Total net revenues $ 20,332,534 $ 20,582,615 $ 21,266,459 $ 22066527 $ 23148748 Net (loss) income (599,085) (92,042) 208,107 428,790 429,411 Net
Slide 22: Non-GAAP Measure: Free Cash Flow - TTM
Non-GAAP Measure: Free Cash Flow - TTM Trailing Twelve Months Ended (in thousands) September 30, December 31, March 31,2023 June 30,2023 September 30, 2022 2022 : ‘ 2023 Net cash (used in) provided by operating activities $ (217,783) $ 565,439 $ 1121,681 $ 1,959,694 $ 2,623,169 Adjustments: Purchase