Coupang Announces Results for First Quarter 2025
CPNG
Published on 05/06/2025 at 16:09
Net Revenues of $7.9 billion, up 11% YoY and 21% on an FX-neutral basis Gross Profit of $2.3 billion, up 20% YoY and 31% on an FX-neutral basis Operating income of $154 million, up $114 million Operating Cash Flow of $2.0 billion and Free Cash Flow of $1.0 billion for the trailing twelve months
Coupang, Inc. (NYSE: CPNG) today announced financial results for its first quarter ended March 31, 2025.
Q1 2025 Consolidated Highlights:
Q1 2025 Segment Highlights:
Stock Repurchase Plan:
Today we are announcing that our Board of Directors has recently authorized a stock repurchase program for up to $1 billion of our outstanding shares of our Class A common stock, as part of our broader capital allocation strategy allowing us to generate meaningful returns for the shareholders.
First Quarter 2025 Results
Consolidated Financial Summary
(in millions, except net revenues per Product Commerce Active Customer and earnings per share)
Three Months Ended March 31,
2025
2024(3)
% Change
Total net revenues
$
7,908
$
7,114
11
%
Total net revenues growth, constant currency(1)
21
%
Net revenues per Product Commerce Active Customer
$
294
$
302
(3
)%
Net revenues per Product Commerce Active Customer, constant currency(1)
$
321
6
%
Product Commerce Active Customers
23.4
21.5
9
%
Gross profit(2)
$
2,316
$
1,929
20
%
Gross profit growth, constant currency(1)(2)
31
%
Net income (loss)
$
114
$
(24
)
NM(4)
Net income attributable to Coupang stockholders
$
107
$
5
NM(4)
Adjusted EBITDA(1)
$
382
$
281
36
%
Earnings per share, basic
$
0.06
$
—
100
%
Earnings per share, diluted
$
0.06
$
—
100
%
Net cash provided by operating activities
$
354
$
212
67
%
Free cash flow(1)
$
116
$
107
8
%
Segment Information
Three Months Ended March 31,
(in millions)
2025
2024(3)
% Change
Product Commerce
Net revenues
$
6,870
$
6,494
6
%
Net revenues growth, constant currency(1)
16
%
Gross profit
$
2,151
$
1,836
17
%
Gross profit growth, constant currency(1)
28
%
Segment adjusted EBITDA
$
550
$
467
18
%
Developing Offerings
Net revenues
$
1,038
$
620
67
%
Net revenues growth, constant currency(1)
78
%
Gross profit
$
165
$
93
77
%
Gross profit growth, constant currency(1)
87
%
Segment adjusted EBITDA
$
(168
)
$
(186
)
(10
)%
(1)
(2)
(3)
(4)
Webcast and Conference Call
Coupang, Inc. will host a conference call to discuss first quarter results on May 6, 2025 at 2:30 PM PT/ 5:30 PM ET. A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable U.S. GAAP measures, as well as our first quarter earnings presentation, are also available on that site.
About Coupang
Coupang is a technology and Fortune 200 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play and Farfetch.
FORWARD-LOOKING STATEMENTS
This earnings release or related management commentary 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 forward-looking statements provided by the Act as well as protections afforded by other federal securities laws.
All statements other than statements of historical facts contained in this earnings release and related management commentary, including statements about our business and growth strategies, anticipated or target margins, cash flows, and other operating or financial results, our planned investments in new products and offerings, and their anticipated outcomes, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "toward," "will," "shall," "goal," "objective," "seek," "strategy," "future," "continue," or "would," or the negative of these words or other similar terms or expressions. We have based the forward-looking statements contained in this earnings release and related management commentary on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. Actual results and outcomes could differ materially for a variety of reasons, including, among others, risks and uncertainties regarding the continued growth of the retail market and the increased acceptance of online transactions by potential customers, competition in our industry, managing our growth and expansion into new markets and offerings, risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments, our financial performance, the extent to which we owe income or other taxes, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, legal and regulatory developments, and the outcomes of any claims, litigation, audits, inspections and investigations, and the impact of global economic factors including inflation, foreign currency exchange rates, geopolitical events, and tariffs and other trade barriers. The forward-looking statements contained in this release are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent SEC filings. All forward-looking statements in this earnings release or related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.
Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.aboutcoupang.com), our filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with investors and the general public about our company, our offerings, and other issues. It is possible that the information that we make available on our website may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31,
(in millions, except per share amounts)
2025
2024
Net retail sales
$
6,088
$
5,895
Net other revenue
1,820
1,219
Total net revenues
7,908
7,114
Cost of sales
5,592
5,185
Operating, general and administrative
2,162
1,889
Total operating cost and expenses
7,754
7,074
Operating income
154
40
Interest income
49
55
Interest expense
(23
)
(27
)
Other income (expense), net
36
(9
)
Income before income taxes
216
59
Income tax expense
102
83
Net income (loss)
114
(24
)
Net income (loss) attributable to noncontrolling interests
7
(29
)
Net income attributable to Coupang stockholders
107
5
Earnings per share
Basic
$
0.06
$
—
Diluted
$
0.06
$
—
Weighted-average shares outstanding
Basic
1,806
1,794
Diluted
1,840
1,815
COUPANG, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions)
March 31, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
6,113
$
5,879
Restricted cash
86
151
Accounts receivable, net
484
407
Inventories
2,049
2,099
Prepaids and other current assets
474
458
Total current assets
9,206
8,994
Property and equipment, net
2,953
2,813
Operating lease right-of-use assets
2,317
2,016
Intangible assets, net
215
271
Deferred tax assets
612
622
Long-term lease deposits and other
683
628
Total assets
$
15,986
$
15,344
Liabilities, redeemable noncontrolling interests, and equity
Accounts payable
$
5,702
$
5,554
Accrued expenses
391
461
Deferred revenue
172
141
Short-term borrowings
556
479
Current portion of long-term debt
—
66
Current portion of long-term operating lease obligations
444
422
Other current liabilities
646
593
Total current liabilities
7,911
7,716
Long-term debt
1,002
988
Long-term operating lease obligations
2,078
1,770
Defined severance benefits and other
597
693
Total liabilities
11,588
11,167
Commitments and contingencies
Redeemable noncontrolling interests
24
75
Equity
Common stock
—
—
Class A — shares authorized 10,000, outstanding 1,649 and 1,643 Class B — shares authorized 250, outstanding 158 and 158
Additional paid-in capital
8,898
8,736
Accumulated other comprehensive loss
(404
)
(404
)
Accumulated deficit
(4,122
)
(4,229
)
Noncontrolling interests
2
(1
)
Total equity
4,374
4,102
Total liabilities, redeemable noncontrolling interests and equity
$
15,986
$
15,344
COUPANG, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended March 31,
(in millions)
2025
2024
Operating activities
Net income (loss)
$
114
$
(24
)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
122
95
Provision for severance benefits
56
45
Equity-based compensation
121
88
Non-cash operating lease expense
116
103
Deferred income taxes
11
47
Other
1
42
Change in operating assets and liabilities, net of acquisition:
Accounts receivable, net
(80
)
(14
)
Inventories
(18
)
(33
)
Other assets
(111
)
(55
)
Accounts payable
111
(31
)
Accrued expenses
(93
)
(30
)
Other liabilities
4
(21
)
Net cash provided by operating activities
354
212
Investing activities
Purchases of property and equipment
(239
)
(107
)
Proceeds from sale of property and equipment
1
2
Net cash acquired in acquisition
—
68
Other investing activities
25
(80
)
Net cash used in investing activities
(213
)
(117
)
Financing activities
Proceeds from issuance of common stock, equity-based compensation plan
—
1
Proceeds from short-term borrowings and long-term debt
295
14
Repayment of short-term borrowings and long-term debt
(267
)
(17
)
Other financing activities
(12
)
54
Net cash provided by financing activities
16
52
Effect of exchange rate changes on cash and cash equivalents, and restricted cash
12
(170
)
Net increase in cash and cash equivalents, and restricted cash
169
(23
)
Cash and cash equivalents, and restricted cash, as of beginning of period
6,031
5,597
Cash and cash equivalents, and restricted cash, as of end of period
$
6,200
$
5,574
Supplemental Financial Information
Share Information
As of March 31,
(in millions)
2025
2024
Outstanding common stock
1,807
1,795
Outstanding equity-based awards
76
66
Outstanding common stock and equity-based awards
1,883
1,861
Key Business Metrics and Non-GAAP Financial Measures
We review the key business and financial metrics discussed below. We use these measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.
Key Business Metrics
Net Revenues per Product Commerce Active Customer
Net revenues per Product Commerce Active Customer is the net revenues generated in a period divided by the total number of Product Commerce Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of customers who are shopping on our Product Commerce apps or websites. We therefore view net revenues per Product Commerce Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth, though there may be a short-term dilutive impact when a large number of new Product Commerce active customers are added in a recent period.
Product Commerce Active Customers
As of the last date of each reported period, we determine our number of Product Commerce Active Customers by counting the total number of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the relevant period. A customer is anyone who has created an account on our apps or websites, identified by a unique email address. The change in Product Commerce Active Customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the period. We view the number of Product Commerce Active Customers as an indicator of future growth in our net revenue, the reach of our network, the awareness of our brand, and the engagement of our customers.
Three Months Ended March 31,
(in millions, except net revenues per Product Commerce Active Customer)
2025
2024
% Change
Net revenues per Product Commerce Active Customer
$
294
$
302
(3
)%
Net revenues per Product Commerce Active Customer (Constant Currency)
$
321
6
%
Product Commerce Active Customers
23.4
21.5
9
%
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance. These non-GAAP financial measures may be different than similarly titled measures used by other companies.
Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with U.S. GAAP. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These measures should only be used to evaluate our results of operations in conjunction with the corresponding U.S. GAAP measures.
Non-GAAP Measure
Definition
How We Use The Measure
Adjusted EBITDA
- depreciation and amortization,
- interest expense,
- interest income,
- other income (expense), net,
- income tax expense (benefit),
- equity-based compensation,
- impairments, and
- other items not reflective of our ongoing operations.
Adjusted EBITDA Margin
Constant Currency Revenue and Constant Currency Gross Profit
Constant Currency Revenue Growth and Constant Currency Gross Profit Growth
Free Cash Flow
Less: purchases of property and equipment,
Plus: proceeds from sale of property and equipment.
Reconciliations of Non-GAAP Measures
A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Although, it is important to note that these factors could be material to Coupang’s results computed in accordance with GAAP. Certain amounts may not foot due to rounding.
The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted:
Constant Currency Revenue and Constant Currency Revenue Growth
Three Months Ended March 31,
Year over Year Growth
2025
2024
(in millions)
As Reported
Exchange Rate Effect
Constant Currency Basis
As Reported
As Reported
Constant Currency Basis
Consolidated
Net retail sales
$
6,088
$
545
$
6,633
$
5,895
3
%
13
%
Net other revenue
1,820
156
1,976
1,219
49
%
62
%
Total net revenues
$
7,908
$
701
$
8,609
$
7,114
11
%
21
%
Net Revenues by Segment
Product Commerce
$
6,870
$
635
$
7,505
$
6,494
6
%
16
%
Developing Offerings
1,038
66
1,104
620
67
%
78
%
Total net revenues
$
7,908
$
701
$
8,609
$
7,114
11
%
21
%
Constant Currency Gross Profit and Constant Currency Gross Profit Growth
Three Months Ended March 31,
Year over Year Growth
2025
2024
(in millions)
As Reported
Exchange Rate Effect
Constant Currency Basis
As Reported
As Reported
Constant Currency Basis
Gross Profit by Segment
Product Commerce
$
2,151
$
201
$
2,352
$
1,836
17
%
28
%
Developing Offerings
165
9
174
93
77
%
87
%
Gross profit
$
2,316
$
210
$
2,526
$
1,929
20
%
31
%
Free Cash Flow
Three Months Ended
March 31,
Trailing Twelve Months Ended March 31,
(in millions)
2025
2024
2025
2024
Net cash provided by operating activities
$
354
$
212
$
2,028
$
2,363
Adjustments:
Purchases of land and buildings
(49
)
(10
)
(284
)
(357
)
Purchases of equipment
(190
)
(97
)
(727
)
(551
)
Total purchases of property and equipment
(239
)
(107
)
(1,011
)
(908
)
Proceeds from sale of property and equipment
1
2
8
20
Total adjustments
$
(238
)
$
(105
)
$
(1,003
)
$
(888
)
Free cash flow
$
116
$
107
$
1,025
$
1,475
Net cash used in investing activities
$
(213
)
$
(117
)
$
(915
)
$
(961
)
Net cash provided by (used in) financing activities
$
16
$
52
$
(105
)
$
173
Adjusted EBITDA and Adjusted EBITDA Margin
Three Months Ended March 31,
Trailing Twelve Months Ended March 31,
(in millions)
2025
2024
2025
2024
Total net revenues
$
7,908
$
7,114
$
31,062
$
25,697
Net income attributable to Coupang shareholders
107
5
256
1,273
Net income (loss) attributable to noncontrolling interests
7
(29
)
(52
)
(29
)
Net income (loss)
114
(24
)
204
1,244
Net income (loss) margin
1.4
%
(0.3
)%
0.7
%
4.8
%
Adjustments:
Depreciation and amortization
122
95
460
305
Interest expense
23
27
136
66
Interest income
(49
)
(55
)
(210
)
(201
)
Income tax expense (income)
102
83
426
(727
)
Other (income) expense, net
(36
)
9
(6
)
24
Acquisition and restructuring related (gains) and losses, net
(15
)
58
54
58
KFTC administrative fine
—
—
121
—
Fulfillment Center Fire insurance gain
—
—
(175
)
—
Equity-based compensation
121
88
466
344
Adjusted EBITDA
$
382
$
281
$
1,476
$
1,113
Adjusted EBITDA margin
4.8
%
3.9
%
4.8
%
4.3
%
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