Coupang, Inc. · NYSE:CPNG
Coupang — Q1 2024 Earnings Presentation
27 slides from Coupang's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Financial Results
coupang Q1 2024 Financial Results May 7, 2024
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: Common Stock
Common Stock 1.5% YoY Dilution 1,833M 1,861M ; ; ; - Q123 Q2 23 Q3 23 Q4 23 Q124 = 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 23% YoY, 18% excl. Farfetch Would have b ~10 ti int: Up 28% YoY FxX-neutral, 23% excl. Farfetch — sions vhourticaccounting change $7.1B : - ' ' Q123 Q2 23 Q3 23 Q4 23 Qi24 Note: At the end of January in 2024, we completed the acquisition of the assets of Farfetch. As a result,
Slide 5: Total Net Revenues Accelerating Growth Rate
Total Net Revenues Accelerating Growth Rate Impact from FLC accounting change FxX-neutral growth rate, excluding Farfetch 18% Q123 Q2 23 Q3 23 Q4 23 Q124 Note: We estimate that the growth rates for each quarter would have been higher on a comparative basis without the FLC revenue accounting change i
Slide 6: Total Net Revenues - TTM
Total Net Revenues - TTM Up 21% YoY, 19% excl. Farfetch Up 22% YoY FX-neutral, 20% excl. Farfetch — Would have been ~750 bps higher without FLC accounting change $25.7B —— $25.48, excluding Farfetch $21.3B Q123 Qi24 Note: We estimate that the Q1 2024 TTM growth rate would have been approximately 750
Slide 7: Net Income Attributable to Coupang Stockholders
Net Income Attributable to Coupang Stockholders Down $86M YoY | $91M $98M, excluding a | $5M losses of Farfetch Q123 Q2 23 Q3 23 Q423 Q124 Note: During Q4 2023 we recorded a non-recurring adjustment of $895 million from changes in tax-related reserves, including the release of valuation allowances r
Slide 8: Net Income Attributable to Coupang Stockholders - TTM
Net Income Attributable to Coupang Stockholders - TTM Up $1.1B YoY $1 3B Includes Farfetch losses and * tax reserve adjustment in Q4 23 $208M Q123 Q124 Note: During @4 2023 we recorded a non-recurring adjustment of $895 million from changes in tax-elated reserves, including the release of valuation
Slide 9: Gross Profit
Gross Profit Up 36% YoY GPM up 260 bps YoY, 200 bps excl. Farfetch $1.9B —— $1.8B, excluding Farfetch $1.4B 27.1% 26.5%, excluding Farfetch 24.5% Q123 Q2 23 Q3 23 Q4 23 Q124 @ margin coupang | 8
Slide 10: Adjusted EBITDA
Adjusted EBITDA Up $40M YoY sob . Would have been ~ ps lower 3.9% margin, down 20 bps YoY — without FLC accounting change $281M — $312M, excluding $241M Farfetch 4.2% 30, == 4.6%, excluding Farfetch Q123 Q2 23 Q3 23 Q4 23 Q124 @ margin Note: Adjusted EBITDA defined as net income (loss) excluding the
Slide 11: Gross Profit - TTM, Adjusted EBITDA - TTM
Gross Profit - TTM Adjusted EBITDA - TTM Up 32% YoY Up $400M YoY Would have been GPM up 220 bps YoY 4.3% margin, up 100 bps YoY — -40°°s ower accounting change _ $6.68, excluding __ $1.1B, excluding $6.7B Farfetch $1 1B Farfetch $5.1B : au _ 25.9%, excluding $713M Farfetch a5 luc — 4.5%, excluding 2
Slide 12: Operating Cash Flow and Free Cash Flow - TTM
Operating Cash Flow - TTM Free Cash Flow - TTM Up $1.2B YoY Up $1.0B YoY $1.5B $2.4B . $451M Q123 Q124 Q123 Q124 coupang | 1
Slide 13: Segment Results: Product Commerce - Net Revenue
Segment Results: Product Commerce - Net Revenue Net Revenue Net Revenue - TTM 0, 0, Up 1 % YoY Would have been Up 18 % YoY Would have been UP 20% YoY F/X neutral — ~'° percentage UP 19% YoY F/X neutral — ~770 pshigher points higher without without FLC FLC accounting change accounting change $6.5B $2
Slide 14: Segment Results: Product Commerce - Adj. EBITDA
Segment Results: Product Commerce - Adj. EBITDA Adj. EBITDA Up $179M YoY Would have been 7.2% margin, up 210 bps YoY — <302psiower Adj. EBITDA - TTM Would have been Up $0.8B YoY 7.0% margin, up 270 bps YoY — wiratnc”” accounting change accounting change $467M $1.7B $288M 7.0% oo $891M 5.1% 4.3% Q1 2
Slide 15: Product Commerce Active Customers
Product Commerce Active Customers Up 16% YoY 21.5M : ' ' ' / Q123 Q2 23 Q3 23 Q4 23 Q124 Note: Product Commerce Active Customers are the total number of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the quarter. coupang | 4
Slide 16: Segment Results: Developing Offerings - Net Revenue
Segment Results: Developing Offerings - Net Revenue Net Revenue Net Revenue - TTM Up 337% YoY Up 115% YoY Up 346% YoY F/X neutral Up 117% YoY F/X neutral $620M $1.3B $590M ] a o - 23 a 23 Q3 23 Q4 23 Q124 Q123 Q124 Note: @1 24 net revenue includes $288 millon from Farfetch coupang | is
Slide 17: Segment Results: Developing Offerings - Adj. EBITDA
Segment Results: Developing Offerings - Adj. EBITDA Adj. EBITDA Adj. EBITDA - TTM Down $139M YoY Down $426M YoY 30.0)% $(47M) $(178M) (47.2)% $(186M) $(604M) Q123. 223. 323. 423s N24 a123 Qi24 @ margin Note: Q1 24 adi, EBITDA includes $(31) million from Farfetch. 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
| “How did | ever live without Cc upang?” Appendix
Slide 20: Growth Rates
Growth Rates Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q12024 Product Commerce Active Customers 8% 12% 15 % 18% 16% Total net revenues 13 % 16% 21% 23% 23% Total net revenues (constant currency) 20% 21% 18% 20% 28% Total net revenues (constant currency) excluding Farfetch - - - - 23% Impact from the FLC accou
Slide 21: Net Income to Adjusted EBITDA Reconciliation - Quarterly
Three Months Ended September 30, December 31, (in millions) March 31, 2023 June 30, 2023 2023 2023 March 31, 2024 Total net revenues $ 5,801 $ 5,838 $ 6,184 $ 6,561 $ 7,114 Net income attributable to Coupang shareholders 91 145 91 1,032 5 Net loss attributable to noncontrolling interests — — — — (29
Slide 22: Net Income to Adjusted EBITDA Reconciliation - TTM
Trailing Twelve Months Ended September 30, December 31, (in millions) March 31, 2023 June 30, 2023 2023 2023 March 31, 2024 Total net revenues $ 21,266 $ 22,067 $ 23,149 $ 24,383 $ 25,697 Net income attributable to Coupang shareholders 208 429 429 1,360 1,273 Net loss attributable to noncontrolling
Slide 23: Free Cash Flow Reconciliation - TTM
Trailing Twelve Months Ended September 30, December 31, (in millions) March 31, 2023 June 30, 2023 2023 2023 March 31, 2024 Net cash provided by operating activities $ 1,122 $ 1,960 $ 2,623 $ 2,652 $ 2,363 Adjustments: Purchases of land and buildings (231) (477) (353) (374) (357) Purchases of equipm
Slide 24: Total Net Revenues Excluding Farfetch
Trailing Twelve Months Ended Three Months Ended March 31, March 31, (in millions) 2024 2023 2024 2023 Total net revenues $ 7,114 $ 5,801 $ 25,697 $ 21,266 Revenues of Farfetch (288) — (288) — Total net revenues excluding Farfetch $ 6,826 $ 5,801 $ 25,409 $ 21,266
Slide 25: Constant Currency Revenue Growth Reconciliation
Three Months Ended March 31, 2024 2023 Year over Year Growth Constant Constant Exchange As Currency Currency (in millions) As Reported Rate Effect As Reported Reported Basis Basis Consolidated Total net revenues $ 7,114 $ 283 $ 7,397 $ 5,801 23 % 28 % Revenues of Farfetch (288) — (288) — Total net r
Slide 26: Adjusted Net Income Attributable to Coupang Stockholders
Three Months Ended March 31, (in millions) 2024 2023 Net income attributable to Coupang stockholders $ 5 $ 91 Adjustments: Farfetch losses, excluding taxes 113 — Net losses attributable to noncontrolling interests (29) — Farfetch tax effect 9 — Adjusted net income attributable to Coupang stockholder
Slide 27: Gross Profit and Adjusted EBITDA Excluding Farfetch
Trailing Twelve Months Ended Three Months Ended March 31, March 31, (in millions) 2024 2023 2024 2023 Gross Profit $ 1,929 $ 1,420 $ 6,699 $ 5,086 Gross Profit of Farfetch (122) — (122) — Gross Profit excluding Farfetch $ 1,807 $ 1,420 $ 6,577 $ 5,086 Gross profit margin excluding Farfetch 26.5 % 24