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• Net Revenue Growth: 21% year over year; 14% excluding Farfetch; 28% in constant currency; 21% excluding Farfetch in constant currency.

• Gross Profit Growth: 48% year over year; 29% excluding Farfetch and fire insurance gain.

• Adjusted EBITDA: $1.4 billion for the year; 4.5% margin.

• Free Cash Flow: Over $1 billion generated.

• Product Commerce Revenue Growth: 9% year over year; 16% in constant currency.

• Developing Offerings Revenue Growth: 300% year over year; 124% excluding Farfetch; 136% in constant currency excluding Farfetch.

• Gross Profit Margin: 31.3% for the quarter; 29% excluding Farfetch and insurance gain.

• Net Income: $156 million attributable to Coupang stockholders; $24 million excluding fire insurance gain.

• Adjusted EBITDA Margin: 5.3% for the quarter; 7.8% for Product Commerce segment.

• Operating Cash Flow: $1.9 billion for the year.

• Effective Income Tax Rate: 53% for the quarter; cash tax obligation closer to 20% excluding Farfetch losses.

• Warning! GuruFocus has detected 9 Warning Signs with CPNG.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Coupang Inc (NYSE:CPNG) achieved a 23% increase in net revenues, excluding Farfetch, with a strong 29% growth in gross profit.

• The company generated $1.4 billion in adjusted EBITDA, expanding margins to 4.5%, and delivered over $1 billion in free cash flow.

• Coupang Inc (NYSE:CPNG) made significant improvements in fulfillment and logistics, increasing same-day or early morning deliveries by 45%.

• The company expanded its Rocket Delivery service to include next-day installation services for large items, enhancing customer convenience.

• Coupang Inc (NYSE:CPNG) successfully launched its WOW membership program in Taiwan, showing strong international growth potential.

Negative Points

• The weakening of the Korean won against the US dollar impacted revenue growth, necessitating constant currency adjustments.

• OG&A expenses increased due to the inclusion of Farfetch and related acquisition and restructuring costs.

• The effective income tax rate was high at 53%, driven by consolidation of pre-tax losses in Farfetch and non-deductible expenses.

• Developing offerings segment incurred adjusted EBITDA losses, with expectations of $650 million to $750 million losses in 2025.

• Investment intensity in technology and infrastructure is expected to continue, impacting short-term profitability.

Q & A Highlights

Q: Over the past several months, data has indicated a slowdown in the domestic e-commerce market. Have you seen a similar trend in your GMV growth, and can you provide more color on your top-line growth outlook for 2025? Also, can you elaborate on the FLC business and its margin profile for 2025? A: Bom Kim, CEO: Despite macroeconomic uncertainties, our growth remains strong due to deep customer engagement and continuous improvement in selection, service, and price. We expect our Q1 growth to align with Q4, excluding Farfetch. Our strategy focuses on providing the best experience at the lowest price, which we believe will allow us to outpace market growth. Regarding FLC, we are optimizing service levels for customers and merchants, with FLC growing at a high multiple of our overall business.