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Online platform company Coupang (NYSE:CPNG) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 11.2% year on year to $7.91 billion. Its non-GAAP profit of $0.05 per share was in line with analysts’ consensus estimates.
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Coupang (CPNG) Q1 CY2025 Highlights:
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Revenue: $7.91 billion vs analyst estimates of $8.06 billion (11.2% year-on-year growth, 1.9% miss)
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Adjusted EPS: $0.05 vs analyst estimates of $0.05 (in line)
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Adjusted EBITDA: $382 million vs analyst estimates of $298.7 million (4.8% margin, 27.9% beat)
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Operating Margin: 1.9%, up from 0.6% in the same quarter last year
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Free Cash Flow Margin: 1.5%, down from 5.8% in the previous quarter
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Active Customers: 23.6 million, up 1.9 million year on year
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Market Capitalization: $43.57 billion
StockStory’s Take
Coupang’s first quarter results reflected continued investment in marketplace expansion, operational automation, and customer experience, leading to year-on-year revenue growth despite falling short of Wall Street’s expectations. Management attributed these trends primarily to the rapid scaling of its Fulfillment and Logistics by Coupang (FLC) marketplace service, selection expansion in core categories, and technology-driven efficiency gains. CEO Bom Kim emphasized that product selection and delivery improvements are driving higher multi-category engagement and that investments in automation and machine learning are lowering service costs.
Looking forward, Coupang’s leadership pointed to ongoing investments in Taiwan and business line development as key drivers for the remainder of the year. CFO Gaurav Anand reiterated that macro pressures, including recent global tariffs, have had minimal direct effect, but noted the company will continue monitoring changing economic conditions. The introduction of a $1 billion share repurchase program was described as part of a broader capital allocation strategy, with management signaling a disciplined approach to balancing buybacks and long-term business investments.
Key Insights from Management’s Remarks
Coupang’s management emphasized marketplace momentum, technology investments, and international growth as the main drivers of Q1 performance and forward strategy. The shortfall versus revenue expectations was attributed to currency impacts and ongoing investment in newer markets.
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Marketplace expansion momentum: The FLC program, which fulfills logistics for third-party sellers, grew at multiples of the overall business, accelerating merchant adoption and selection. Management believes FLC will be a major growth engine for both top-line revenue and seller engagement in coming quarters.
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Selection and category growth: Coupang onboarded high-profile global brands in Beauty and other segments, driving a 25% increase in customers purchasing across multiple categories. This expansion is resulting in higher customer engagement and deeper spending per cohort.
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Automation and operational efficiency: Investments in automated picking, packing, and machine learning for inventory management delivered measurable benefits to gross profit margin and fulfillment reliability. These advancements are expected to drive further annual margin expansion.
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International market progress: Coupang’s Taiwan business expanded product selection by nearly 500% in the quarter and launched a localized WOW membership program, which management stated is driving higher customer frequency and spend. Early results are encouraging, though the business remains in an investment phase.
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First-time share buyback program: The $1 billion share repurchase authorization represents Coupang’s first large-scale buyback, intended to provide flexibility in capital allocation. Management described the program as opportunistic, with no fixed timeline or commitment to fully utilize the authorization.