Coupang, Inc. · NYSE:CPNG
Coupang — Q3 2024 Earnings Presentation
25 slides from Coupang's earnings presentation, Nov 5, 2024
Slide 1: Q3 2024 Financial Results
Q3 2024 Financial Results November 5, 2024
Slide 2: 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: 1.4% YoY Dilution
Common Stock 1.4% YoY Dilution 1,850M 1,875M 64M 80M 1,786M 1,795M Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Outstanding Common Stock Outstanding Equity-based Awards Note: Dilution represents the change in the total of outstanding common stock and outstanding equity-based awards. | 2
Slide 4: Total Net Revenues
Total Net Revenues Up 27% YoY, 20% excl. Farfetch Up 32% YoY FX-neutral, 25% excl. Farfetch $7.9B $6.2B Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Note: At the end of January 2024, we completed the acquisition of the assets of Farfetch. As a result, Farfetch is now included in our consolidated results and in our
Slide 5: Total Net Revenues – TTM
Total Net Revenues – TTM Up 25% YoY, 20% excl. Farfetch Up 28% YoY FX-neutral, 22% excl. Farfetch Would have been ~380 bps higher without FLC accounting change $28.9B $27.7B, excluding Farfetch $23.1B Q3 23 Q3 24 Note: TTM represents trailing twelve months. Note: Starting in Q2 2023, we implemented
Slide 6: Gross Profit
Gross Profit Up 45% YoY GPM up 350 bps YoY, 280 bps excl. Farfetch $2.3B $2.1B, excluding Farfetch $1.6B 28.1%, excluding 28.8% Farfetch 25.3% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 margin | 5
Slide 7: Net (Loss) Income Attributable to Coupang Stockholders
Net (Loss) Income Attributable to Coupang Stockholders Down $21M YoY $91M $70M $108M, excluding losses of Farfetch Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Note: During Q4 2023 we recorded a non-recurring adjustment of $895 million from changes in tax-related reserves, including the release of valuation allowa
Slide 8: Gross Profit and Net Income Attributable – TTM
Gross Profit - TTM Net Income Attributable to Coupang Stockholders - TTM Up 39% YoY GPM up 280 bps YoY Up $601M YoY $7.5B, excluding $8.0B Farfetch $1.0B Includes Farfetch losses, the KFTC $5.8B 27.8% 27.1%, excluding administrative Farfetch fine and the tax reserve adjustment 25.0% in Q4 2023 $429M
Slide 9: Adjusted EBITDA
Adjusted EBITDA Up $104M YoY 4.4% margin, up 50 bps YoY $343M $345M, excluding Farfetch $239M 4.4% 4.6%, excluding Farfetch 3.9% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 margin Note: Adjusted EBITDA defined as net income (loss) excluding the effects of: depreciation and amortization, interest expense and incom
Slide 10: Adjusted EBITDA - TTM
Adjusted EBITDA - TTM Up $257M YoY Would have been ~20 bps lower 4.3% margin, flat YoY without FLC accounting change $1.2B $1.3B, excluding Farfetch $991M 4.3% 4.3% 4.7%, excluding Farfetch Q3 23 Q3 24 Note: We estimate that the Q3 2024 TTM adjusted EBITDA margin would have been approximately 20 bps
Slide 11: Operating Cash Flow and Free Cash Flow - TTM
Operating Cash Flow - TTM Free Cash Flow - TTM Down $805M YoY Down $920M YoY $2.6B $1.9B $1.8B $0.9B Q3 23 Q3 24 Q3 23 Q3 24 Note: The decline in Q3 2024 TTM operating and free cash flow is primarily due to certain non-recuring working capital benefits in the prior trailing twelve-month period, as w
Slide 12: Segment Results: Product Commerce – Net Revenue
Segment Results: Product Commerce – Net Revenue Net Revenue Net Revenue - TTM Up 16% YoY Up 16% YoY Would have been UP 20% YoY F/X neutral UP 19% YoY F/X neutral ~400 bps higher without FLC accounting change $6.9B $6.0B $26.1B $22.5B Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q3 24 Note: We estimate that t
Slide 13: Segment Results: Product Commerce – Adj. EBITDA
Segment Results: Product Commerce – Adj. EBITDA Adj. EBITDA Adj. EBITDA - TTM Up $71M YoY Up $550M YoY Would have been 6.8% margin, up 10 bps YoY 7.3% margin, up 130 bps YoY ~40 bps lower without FLC accounting change $470M $1.9B $399M $1.4B 7.3% 6.8% 6.7% 6.1% Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q3
Slide 14: Product Commerce Active Customers
Product Commerce Active Customers Up 11% YoY 22.5M 20.2M Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Note: Product Commerce Active Customers are the total of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the quarter. | 13
Slide 15: Segment Results: Developing Offerings – Net Revenue
Segment Results: Developing Offerings – Net Revenue Net Revenue Net Revenue - TTM Up 347% YoY Up 325% YoY Up 356% YoY F/X neutral Up 333% YoY F/X neutral $975M $2.8B $218M $649M Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q3 24 Note: Q3 24 net revenue includes $439 million, and TTM net revenue includes $1.2
Slide 16: Segment Results: Developing Offerings – Adj. EBITDA
Segment Results: Developing Offerings – Adj. EBITDA Adj. EBITDA Adj. EBITDA - TTM Improved $34M YoY Down $293M YoY (13.0)% (24.0)% (57.2)% (73.9)% $(371M) $(127M) $(161M) $(664M) Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q3 24 margin Note: Q3 24 adj. EBITDA includes $(2) million, and TTM adj. EBITDA inclu
Slide 17: 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 18: Appendix
Create a world where customers wonder “How did I ever live without Coupang?” Appendix | 17
Slide 19: Non-GAAP Measure: Total Net Revenues, Excluding Farfetch
Non-GAAP Measure: Total Net Revenues, Excluding Farfetch Note: Certain amounts may not foot due to rounding. | 18
Slide 20: Non-GAAP Measure: Total Net Revenues (FX-Neutral), Excluding Farfetch
Non-GAAP Measure: Total Net Revenues (FX-Neutral), Excluding Farfetch Note: Certain amounts may not foot due to rounding. | 19
Slide 21: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Note: Certain amounts may not foot due to rounding. | 20
Slide 22: Non-GAAP Measure: Adjusted EBITDA – TTM
Non-GAAP Measure: Adjusted EBITDA – TTM Trailing Twelve Months Ended September 30, September 30, (in millions) 2023 2024 Total net revenues $ 23,149 $ 28,864 Net income attributable to Coupang shareholders 429 1,030 Net loss attributable to noncontrolling interests — (63) Net income 429 967 Net inco
Slide 23: Non-GAAP Measure: Free Cash Flow – TTM
Non-GAAP Measure: Free Cash Flow – TTM Note: Certain amounts may not foot due to rounding. | 22
Slide 24: Non-GAAP Measure: Adjusted Net Income Attributable to Coupang Stockholders
Non-GAAP Measure: Adjusted Net Income Attributable to Coupang Stockholders Three Months Ended September 30, (in millions) 2023 2024 Net income attributable to Coupang stockholders $ 91 $ 70 Adjustments: Farfetch losses attributable to Coupang stockholders — 38 Adjusted net income attributable to Cou
Slide 25: Non-GAAP Measure: Gross Profit and Adjusted EBITDA, Excluding Farfetch
Non-GAAP Measure: Gross Profit and Adjusted EBITDA, Excluding Farfetch Note: Certain amounts may not foot due to rounding. | 24