Slide 1: Q2 2023 Financial Results
Q2 2023 Financial Results August 8, 2023
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: Total Net Revenues
Total Net Revenues Up 16% YoY Would have been ~300 bps higher Up 21% YoY FX-neutral without FLC accounting change $5.8B $5.0B Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Starting in Q2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC revenue (prev
Slide 4: Total Net Revenues – TTM
Total Net Revenues – TTM Up 11% YoY Would have been ~80 bps higher without FLC accounting Up 22% YoY FX-neutral change $22.1B $19.9B Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Starting in Q2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC revenu
Slide 5: Gross Profit
Gross Profit Up 32% YoY Would have been ~100 bps GPM up 320 bps YoY lower without FLC accounting change $1.5B $1.2B 26.1% 22.9% margin Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Starting in Q2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC reve
Slide 6: Gross Profit - TTM
Gross Profit - TTM Up 45% YoY Would have been ~30 bps lower GPM up 580 bps YoY without FLC accounting change $5.5B $3.8B 24.7% 18.9% margin Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Starting in Q2 2023, we implemented certain contract changes that resulted in a change to the prospective accounting for FLC
Slide 7: Operating Income (Loss)
Operating Income (Loss) Up $215M YoY $148M $(67M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 | 6
Slide 8: Operating Income (Loss) - TTM
Operating Income (Loss) - TTM Up $1.4B YoY $415M $(985M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 | 7
Slide 9: Net Income (Loss)
Net Income (Loss) Up $221M YoY $145M $(76M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 | 8
Slide 10: Net Income (Loss) - TTM
Net Income (Loss) - TTM Up $1.4B YoY $429M $(1.0B) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 | 9
Slide 11: Adjusted EBITDA
Adjusted EBITDA Up $234M YoY $300M 5.1% $66M 1.3% Q2 22 Q3 22 Q4 22 Q1 23 Q2 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 compensat
Slide 12: Adjusted EBITDA - TTM
Adjusted EBITDA - TTM Up $1.5B YoY $947M 4.3% (2.6)% $(517M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 margin | 11
Slide 13: Operating Cash Flow - TTM
Operating Cash Flow - TTM Up $2.3B YoY $2.0B $(331M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 | 12
Slide 14: Free Cash Flow - TTM
Free Cash Flow - TTM Up $2.2B YoY $1.1B $(1.1B) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Free cash flow defined as cash flow from operations, less capital expenditures, plus proceeds from sale of property and equipment. See Appendix for a reconciliation of operating cash flow to free cash flow. | 13
Slide 15: Common Stock
Common Stock 1.0% YoY Dilution 1,828M 1,847M 63M 66M 1,765M 1,781M Q2 22 Q3 22 Q4 22 Q1 23 Q2 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. | 14
Slide 16: Active Customers
Active Customers Up 10% YoY 20M 18M Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 | 15
Slide 17: Segment Results: Product Commerce
Segment Results: Product Commerce Net Revenue Adj. EBITDA Up 16% YoY Would have been ~300 bps higher Up $310M YoY without FLC accounting change UP 21% YoY F/X neutral $408M $5.7B $4.9B 7.2% $98M 2.0% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Starting in Q2 2023, we implemente
Slide 18: Segment Results: Product Commerce - TTM
Segment Results: Product Commerce - TTM Net Revenue - TTM Adj. EBITDA - TTM Up 12% YoY Would have been ~80 bps higher Up $1.3B YoY without FLC accounting change UP 23% YoY F/X neutral $21.5B $1.2B $19.2B 5.6% (0.7)% $(143M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Note: Starting i
Slide 19: Segment Results: Developing Offerings
Segment Results: Developing Offerings Net Revenue Adj. EBITDA Down 2% YoY Down 76M YoY Up 2% YoY F/X neutral $160M $156M (19.8)% $(32M) (68.7)% $(107M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 margin | 18
Slide 20: Segment Results: Developing Offerings - TTM
Segment Results: Developing Offerings - TTM Net Revenue - TTM Adj. EBITDA - TTM Down 11% YoY Improved 32% YoY Down 2% YoY F/X neutral $655M $586M (43.4)% (57.1)% $(254M) $(374M) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 margin | 19
Slide 21: 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 22: Appendix
Create a world where customers wonder “How did I ever live without Coupang?” Appendix | 21
Slide 23: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Three Months Ended September 30, December 31, (in thousands) June 30, 2022 March 31, 2023 June 30, 2023 2022 2022 Total net revenues $ 5,037,821 $ 5,101,334 $ 5,326,774 $ 5,800,530 $ 5,837,889 Net income (loss) (75,491) 90,679 102,064 90,855 145,192 Net income (loss
Slide 24: Non-GAAP Measure: Adjusted EBITDA - TTM
Non-GAAP Measure: Adjusted EBITDA - TTM Trailing Twelve Months Ended September 30, December 31, (in thousands) June 30, 2022 March 31, 2023 June 30, 2023 2022 2022 Total net revenues $ 19,875,905 $ 20,332,534 $ 20,582,615 $ 21,266,459 $ 22,066,527 Net income (loss) (1,013,741) (599,085) (92,042) 208
Slide 25: Non-GAAP Measure: Free Cash Flow - TTM
Non-GAAP Measure: Free Cash Flow - TTM Trailing Twelve Months Ended September 30, December 31, (in thousands) June 30, 2022 March 31, 2023 June 30, 2023 2022 2022 Net cash provided by (used in) operating activities $ (331,313) $ (217,783) $ 565,439 $ 1,121,681 $ 1,959,694 Adjustments: Purchases of l