CPNG Q4 2021 Earnings

Call Details

• Call Title: Coupang Q4 2021 Earnings Call
• Date: March 2, 2022 at 10:30 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

• Reported revenue grew 34% year-over-year in Q4 and 39% in constant currency, with a two-year constant currency CAGR of 64%.
• Gross profit increased 24% year-over-year to $806 million in Q4 while gross margin declined due to higher investments and COVID-related costs.
• Adjusted EBITDA losses widened to $285 million in Q4, primarily driven by incremental COVID costs, underutilized Fresh capacity, and higher investment in growth initiatives.
• Quarterly active customers reached nearly 18 million, increasing 21% year-over-year, and net revenues per customer increased about 11% reported and 15% in constant currency.
• Company exceeded an annualized run-rate revenue of $20 billion for the first time in the period reported.
• Net other revenue, including advertising and Eats, increased 68% year-over-year in Q4 and contributed to outsized growth.

Guidance

• The company expects an adjusted EBITDA loss below $400 million for full-year 2022.
• Product commerce segment is expected to be profitable by Q4 2022, improving from a negative 2.6% margin in Q4 2021.
• Investments across video, international expansion and fintech are expected to increase from about $85 million in 2021 to approximately $200 million in 2022.
• Q1 2022 constant currency revenue growth was running about 30% through February and the company expects low 30% growth in Q1 2022.
• The company is not providing formal revenue guidance beyond Q1 due to COVID-related uncertainty and variability in consumer behavior.
• COVID-related incremental costs of approximately $130 million in Q4 are expected to decline to about $60 to $70 million in Q1 and then further in Q2.