CPNG Q4 2022 Earnings

Call Details

• Call Title: Coupang Q4 2022 Earnings Call
• Date: February 28, 2023 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 dollar net revenue growth was 5% year-over-year and constant currency growth was 21% year-over-year.
• Q4 gross profit was $1.3B and gross profit margin was 24%, an improvement of over 800 basis points year-over-year.
• Q4 adjusted EBITDA was $211M, representing a 4% adjusted EBITDA margin for the quarter.
• Product commerce generated adjusted EBITDA of $266M, or 5.1% of revenue, while developing offerings recorded adjusted EBITDA of negative $55M.
• Net income for Q4 was $100M, an improvement of over $500M versus the prior year as stated on the call.
• Full-year free cash flow for 2022 was negative $246M, an improvement of over $830M versus the prior year and inclusive of $227M of land and building purchases.

Demand, GMV & Category Mix

• Active customers grew 1% year-over-year on a total company basis, while product commerce active customers grew 5% year-over-year.
• Net revenue per active customer increased 19% year-over-year and 5% quarter-over-quarter on a constant currency basis.
• Revenues grew by over 20% year-over-year on an FX neutral basis as noted on the call.
• Only 20% of active customers have purchased nine or more of Coupang's 20+ categories, and these customers spend more than 2.5x the average customer.
• One-third of active customers are Fresh customers in Q4, indicating category penetration headroom for Fresh.
• Combined FLC and Marketplace growth outpaced 1P growth in Q4 according to the prepared remarks.