CPNG Q3 2024 Earnings

Call Details

• Call Title: Coupang Q3 2024 Earnings Call
• Date: November 5, 2024 at 10:30 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

• Total net revenues grew 27% year over year and 20% excluding Farfetch during Q3.
• Constant currency revenues grew 32% year over year and 25% excluding Farfetch during Q3.
• Gross profit was $2.3B, up 45% year over year, with a consolidated gross margin of 28.8% for the quarter.
• Excluding Farfetch, gross profit was $2.1B, up 33% year over year, with a margin of 28.1%.
• Product commerce gross profit was $2.1B, up 28% year over year, with a margin of 30.0% and a 30 basis point sequential margin decline versus Q2.
• Reported net income attributable to Coupang stockholders was $70M, and diluted EPS was $0.04 in Q3.
• Adjusted EBITDA was $343M for the quarter with a margin of 4.4%, and trailing 12-month adjusted EBITDA was $1.2B with a 4.3% margin.
• Product commerce adjusted EBITDA was $470M with a 6.8% margin, and developing offerings recorded a segment-adjusted EBITDA loss of $127M, improving $34M year over year and $73M quarter over quarter.

Guidance

• Long-term adjusted EBITDA target remains over 10% as a company-level objective.
• Company expects profit margins to continue expanding over time but warned that margins may be uneven quarter to quarter.
• Farfetch achieved near break-even adjusted EBITDA in Q3 and the company plans to finish stabilization through the remainder of the year.
• No explicit Q4 or 2025 numeric guidance was provided during the call, and updated 2025 commentary is expected in an upcoming quarter.
• Company reiterated that OG&A as a percentage of revenue should decline over time as investments scale and generate leverage.
• Cash tax obligations are expected to be approximately 20-25% this year excluding Farfetch losses.
• The company stated it is exploring strategies to reduce real estate capital intensity while maintaining operational control.