CPNG Q1 2025 Earnings

Call Details

• Call Title: Coupang Q1 2025 Earnings Call
• Date: May 6, 2025 at 9:30 PM UTC
• Management Team:
  • Mike Parker (Vice President of Investor Relations)
  • Bom Kim (Chief Executive Officer)
  • Gaurav Anand (Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated revenue grew 11% year-over-year and 21% on a constant currency basis.
• Consolidated gross profit was $2.3B, up 20% year-over-year and 31% on a constant currency basis, with a gross profit margin of 29.3%, an improvement of 217 basis points year-over-year.
• Consolidated adjusted EBITDA was $382M, up 36% year-over-year, with an adjusted EBITDA margin of 4.8%, an improvement of nearly 90 basis points year-over-year.
• Trailing 12-month adjusted EBITDA was $1.5B and trailing 12-month free cash flow was $1.0B.
• Operating income was $154M, up $114M year-over-year, which management characterized as nearly a 300% increase year-over-year.
• Reported net income attributable to common stockholders was $107M, resulting in diluted EPS of $0.06.
• Product commerce revenue grew 6% year-over-year and 16% on a constant currency basis, with product commerce gross profit of $2.2B and a gross profit margin of 31.3%, representing over 300 basis points of expansion year-over-year.

Guidance

• The company reiterated a full-year consolidated constant currency growth target of approximately 20%.
• The company expects adjusted EBITDA losses for developing offerings for the full year to be between $650M and $750M.
• The company anticipates a temporarily high effective tax rate between 50% and 55% for the full year, while expecting cash tax closer to 40%.
• The company expects OG&A expenses will decline as a percentage of revenue in the near to medium term.