10-KPeriod: FY2022

Coupang, Inc. Annual Report, Year Ended Dec 31, 2022

Filed March 1, 2023For Securities:CPNG

Summary

Coupang, Inc. reported its 2022 annual results, highlighting a significant year-over-year improvement in its net loss, narrowing it to $92 million from $1.5 billion in 2021. This improvement was driven by a 12% increase in total net revenues to $20.6 billion, supported by growth in both its Product Commerce and Developing Offerings segments. The company also saw a substantial increase in gross profit, up 60%, and a positive Adjusted EBITDA of $381 million, a notable turnaround from a negative $748 million in the previous year. Free cash flow, however, remained negative at $246 million, indicating continued investment in growth. The company continues to focus on long-term growth by reinvesting in its integrated logistics and technology network to enhance customer experience. Despite challenges such as intense competition and inflationary pressures, Coupang's strategy of customer centricity and investment in new offerings like Coupang Eats and Coupang Play is designed to drive future value. Investors should note the significant risks outlined, including reliance on its Korean operations, intense competition, and the potential impact of regulatory changes.

Financial Highlights

50 data points
Beta

Revenue

$20.58B

22.9% Gross Margin

Net Income

-$92.00M

-0.4% Net Margin

EPS (Diluted)

$-0.05

Total Assets

$9.51B

Cash & Equivalents

$3.51B

Free Cash Flow

-$259.00M

Financial Statements
Beta
Revenue$20.58B
Cost of Revenue$15.87B
Gross Profit$4.71B
Operating Expenses$20.70B
Operating Income-$112.00M
Interest Expense$27.00M
Net Income-$92.00M
EPS (Basic)$-0.05
EPS (Diluted)$-0.05
Shares Outstanding (Basic)1.76B
Shares Outstanding (Diluted)1.76B

Key Highlights

  • 1Total net revenues increased by 12% year-over-year to $20.6 billion.
  • 2Net loss significantly reduced to $92 million in 2022, compared to a net loss of $1.5 billion in 2021.
  • 3Gross profit increased by 60% to $4.7 billion.
  • 4Adjusted EBITDA turned positive, reaching $381 million in 2022, a significant improvement from -$748 million in 2021.
  • 5Free cash flow was negative at $(246) million, indicating ongoing investment.
  • 6Active Customers remained stable, with a slight increase from 17.9 million to 18.1 million.
  • 7Product Commerce segment adjusted EBITDA improved significantly, turning positive to $606 million from a negative $361 million.

Frequently Asked Questions

In 2022, Coupang reported total net revenues of $20.6 billion, a 12% increase year-over-year. The company significantly reduced its net loss to $92 million, a substantial improvement from $1.5 billion in 2021. Gross profit rose by 60% to $4.7 billion, and Adjusted EBITDA became positive at $381 million, up from a negative $748 million in 2021. However, free cash flow was negative at $246 million.

Coupang organized its operations into two segments in 2022: Product Commerce, which includes its core retail and marketplace offerings, and Developing Offerings, which comprises newer services like Coupang Eats and Coupang Play. The Product Commerce segment saw a 12% increase in net revenues and a significant improvement in segment adjusted EBITDA, turning positive at $606 million. The Developing Offerings segment also grew, with a 10% increase in net revenues, though its segment adjusted EBITDA remained negative.

Coupang faces numerous risks, including intense competition in the e-commerce market, the potential for fluctuating operational results, reliance on its workforce and ability to manage growth effectively, and risks associated with its expansion into new markets and offerings. The company also highlights risks related to its dependence on its Korean operations, regulatory environments, cybersecurity threats, and potential disruptions to its logistics and fulfillment infrastructure. A dual-class stock structure is also noted as a factor influencing voting control and potentially stock price.