CPNG Q1 2021 Earnings

Call Details

• Call Title: Coupang Q1 2021 Earnings Call
• Date: May 13, 2021 at 9:30 PM UTC
• Management Team:
  • Michael Senno (Vice President, Investor Relations & Treasurer)
  • Bom Kim (Chief Executive Officer)
  • Gaurav Anand (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue grew 74% year over year in Q1 2021 and grew 63% on a constant currency basis.
• Quarterly active customers increased 21% year over year to 16 million customers in Q1 2021.
• Revenue per active customer grew 44% year over year in Q1 2021.
• Gross profit increased 70% to $733M in Q1 2021 while gross margin was about 40 basis points lower than the prior year.
• Adjusted EBITDA loss was $133M in the first quarter of 2021 on a reported basis.
• Trailing 12-month operating cash flow was negative $197M in the first quarter due to timing of inventory investments and payable cycles.

Demand, GMV & Category Mix

• Fresh revenue in Q1 2021 was more than two and a half times the revenue in Q1 2020.
• Net other revenue, driven by Coupang Eats and advertising, increased 126% year over year in Q1 2021.
• Coupang stated that revenue growth in Q1 was approximately three times faster than the overall Korean e-commerce segment year over year.
• Coupang highlighted that Korean e-commerce grew at a 20% CAGR over the last five years and that Coupang was still less than 5% of Korea's total commerce market last year.
• February and March 2021 constant currency revenue growth remained in the high 50% range despite the difficult COVID-related comps.
• Coupang reported that RocketWOW customers saved over $200M in shipping fees in Q1 2021.