CPNG Q3 2022 Earnings

Call Details

• Call Title: Coupang Q3 2022 Earnings Call
• Date: November 9, 2022 at 10:30 PM UTC
• Management Team:
  • Bom Kim (Chief Executive Officer)
  • Gaurav Anand (Chief Financial Officer)
  • Mike Parker (Vice President of Investor Relations)

Call Summary

Financial Performance

• Total revenue was $5.1B for Q3 2022, growing 27% year over year on an FX-neutral basis and over 10% year over year on a US dollar basis.
• Gross profit was over $1.2B for the quarter, and gross profit margin was a record 24.2%.
• Gross profit for the quarter represented a 64% year-over-year improvement versus the prior year period.
• Adjusted EBITDA was $195M for the quarter, representing a 3.8% adjusted EBITDA margin.
• Cumulative adjusted EBITDA year-to-date was positive $170M for the consolidated business.
• Net income was positive $91M in Q3, an improvement of $415M year over year.
• Product commerce generated adjusted EBITDA of $239M, or 4.8% of product commerce revenue.

Guidance

• The company did not provide updated quarterly or full-year guidance on the call and stated it intends to provide annual guidance at the beginning of the new year.
• At the start of 2022 the company expected adjusted EBITDA of minus $400M for the full year based on prior guidance.
• The company reiterated prior commentary that the product commerce segment was expected to be profitable by Q4 of 2022 per earlier disclosure.
• The company cautioned that revenue remains hard to predict in the near term and that profitability improvement will not necessarily occur every quarter.
• The company expects to continue growing at multiples of the Korean e-commerce segment but did not provide numeric forward targets on the call.
• The company reiterated that investments in nascent offerings were expected not to exceed $200M in 2022 and that year-to-date results are consistent with that expectation.