Coupang, Inc. · NYSE:CPNG
Coupang — Q2 2024 Earnings Presentation
27 slides from Coupang's earnings presentation, Aug 6, 2024
Slide 1: Q2 2024 Financial Results
Q2 2024 Financial Results August 6, 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: 1.3% YoY Dilution
Common Stock 1.3% YoY Dilution 1,847M 1,871M 66M 81M 1,781M 1,790M Q2 23 Q3 23 Q4 23 Q1 24 Q2 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 25% YoY, 18% excl. Farfetch Would have been ~660 bps higher without Up 30% YoY FX-neutral, 23% excl. Farfetch FLC accounting change $7.3B $5.8B Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Note: At the end of January 2024, we completed the acquisition of the assets of Farfetch. As a result, F
Slide 5: Total Net Revenues Growth Rate
Total Net Revenues Growth Rate 10% Impact from FLC 7% accounting change 9% 3% 6% FX-neutral growth rate, 23% 23% excluding Farfetch 21% 20% 20% 18% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Note: We estimate that the growth rates for each quarter would have been higher on a comparative basis without the F
Slide 6: Total Net Revenues – TTM
Total Net Revenues – TTM Up 23% YoY, 20% excl. Farfetch Would have been ~740 bps higher Up 24% YoY FX-neutral, 21% excl. Farfetch without FLC accounting change $27.2B $26.4B, excluding Farfetch $22.1B Q2 23 Q2 24 Note: TTM represents trailing twelve months. Note: We estimate that the Q2 2024 TTM FX-
Slide 7: Gross Profit
Gross Profit Up 41% YoY GPM up 310 bps YoY, 220 bps excl. Farfetch $2.1B $1.9B, excluding Farfetch $1.5B 29.3% 28.3%, excluding Farfetch 26.1% Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 margin | 6
Slide 8: Net (Loss) Income Attributable to Coupang Stockholders
Net (Loss) Income Attributable to Coupang Stockholders Down $222M YoY $145M Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 $124M, excluding losses of Farfetch and the estimated KFTC administrative $(77M) fine Note: During Q4 2023 we recorded a non-recurring adjustment of $895 million from changes in tax-related rese
Slide 9: Gross Profit and Net Income – TTM
Gross Profit - TTM Net (Loss) Income Attributable to Coupang Stockholders - TTM Up 34% YoY GPM up 220 bps YoY Up $622M YoY $7.3B $7.0B, excluding $1.1B Farfetch Includes Farfetch losses, the estimated KFTC administrative $5.5B 26.5%, excluding fine and the tax 26.9% Farfetch reserve adjustment in Q4
Slide 10: Adjusted EBITDA
Adjusted EBITDA Up $30M YoY Would have been ~20 bps lower 4.5% margin, down 60 bps YoY without FLC accounting change $330M $361M, excluding $300M Farfetch 5.1% 4.5% 5.3%, excluding Farfetch Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 margin Note: Adjusted EBITDA defined as net income (loss) excluding the effects
Slide 11: Adjusted EBITDA – TTM
Adjusted EBITDA - TTM Up $196M YoY Would have been ~30 bps lower 4.2% margin, down 10 bps YoY without FLC accounting change $1.1B $1.2B, excluding Farfetch $947M 4.3% 4.2% 4.6%, excluding Farfetch Q2 23 Q2 24 Note: We estimate that the Q2 2024 TTM adjusted EBITDA margin would have been approximately
Slide 12: Operating Cash Flow and Free Cash Flow – TTM
Operating Cash Flow - TTM Free Cash Flow - TTM Up $250M YoY Up $420M YoY $2.2B $2.0B $1.5B $1.1B Q2 23 Q2 24 Q2 23 Q2 24 | 11
Slide 13: Segment Results: Product Commerce – Net Revenue
Segment Results: Product Commerce – Net Revenue Net Revenue Net Revenue - TTM Up 13% YoY Up 17% YoY Would have been Would have been ~760 bps higher UP 18% YoY F/X neutral ~680 bps higher without FLC accounting UP 18% YoY F/X neutral without FLC change accounting change $6.4B $25.2B $5.7B $21.5B Q2 2
Slide 14: Segment Results: Product Commerce – Adj. EBITDA
Segment Results: Product Commerce – Adj. EBITDA Adj. EBITDA Adj. EBITDA - TTM Up $122M YoY Would have been Up $639M YoY Would have been ~40 bps lower ~50 bps lower 8.2% margin, up 110 bps YoY without FLC 7.3% margin, up 170 bps YoY without FLC accounting change accounting change $530M $1.8B $408M $1
Slide 15: Product Commerce Active Customers
Product Commerce Active Customers Up 12% YoY 21.7M 19.4M Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 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. | 14
Slide 16: Segment Results: Developing Offerings – Net Revenue
Segment Results: Developing Offerings – Net Revenue Net Revenue Net Revenue - TTM Up 472% YoY Up 242% YoY Up 483% YoY F/X neutral Up 247% YoY F/X neutral $892M $2.0B $586M $156M Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q2 24 Note: Q2 24 net revenue includes $460 million, and TTM net revenue includes $748
Slide 17: Segment Results: Developing Offerings – Adj. EBITDA
Segment Results: Developing Offerings – Adj. EBITDA Adj. EBITDA Adj. EBITDA - TTM Down $93M YoY Down $443M YoY (22.4)% (34.8)% (43.4)% (68.7)% $(254M) $(107M) $(200M) $(697M) Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q2 23 Q2 24 margin Note: Q2 24 adj. EBITDA includes $(31) million, and TTM adj. EBITDA includes
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
Create a world where customers wonder “How did I ever live without Coupang?” Appendix | 18
Slide 20: Growth Rates
Growth Rates Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total net revenues 13 % 16 % 21 % 23 % 23 % 25 % Total net revenues (FX-neutral) 20 % 21 % 18 % 20 % 28 % 30 % Total net revenues (FX-neutral), excluding Farfetch — — — — 23 % 23 % Impact from the FLC accounting change in Q2 2023 — +3 % +6
Slide 21: 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. | 20
Slide 22: 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. | 21
Slide 23: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Note: Certain amounts may not foot due to rounding. | 22
Slide 24: Non-GAAP Measure: Adjusted EBITDA – TTM
Non-GAAP Measure: Adjusted EBITDA – TTM Note: Certain amounts may not foot due to rounding. | 23
Slide 25: Non-GAAP Measure: Free Cash Flow – TTM
Non-GAAP Measure: Free Cash Flow – TTM Note: Certain amounts may not foot due to rounding. | 24
Slide 26: Non-GAAP Measure: Adjusted Net Income Attributable to Coupang Stockholders
Non-GAAP Measure: Adjusted Net Income Attributable to Coupang Stockholders Note: Certain amounts may not foot due to rounding. | 25
Slide 27: 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. | 26