CPNG Q4 2024 Earnings

Call Details

• Call Title: Coupang Q4 2024 Earnings Call
• Date: February 25, 2025 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 this quarter grew 21% year-over-year on a reported basis and 14% year-over-year excluding Farfetch.
• On a constant currency basis, consolidated net revenues grew 28% year-over-year and 21% year-over-year excluding Farfetch.
• Consolidated gross profit in Q4 was $2.5B, representing 48% year-over-year growth, and adjusted gross profit excluding Farfetch and the $116M insurance gain was $2.2B growing 29% year-over-year.
• Product commerce revenue grew 9% year-over-year on a reported basis and 16% in constant currency, with product commerce active customers growing 10% year-over-year.
• Product commerce gross profit in Q4 was $2.3B with a gross profit margin of 32.7%, and adjusted product commerce gross profit was $2.1B with a margin of 31% excluding the insurance gain.
• Q4 consolidated adjusted EBITDA was $421M with a margin of 5.3% and full-year adjusted EBITDA was $1.4B with a 4.5% margin; excluding Farfetch, full-year adjusted EBITDA margin was 4.9%.
• GAAP net income attributable to Coupang stockholders was $156M in Q4 with diluted EPS of $0.08, and excluding the fire insurance gain net income was approximately $24M with diluted EPS of $0.01.

Guidance

• The company expects consolidated constant currency growth of about 20% year-over-year for full-year 2025 and expects Q1 2025 constant currency growth to be about 20%.
• The company expects product commerce gross profit to grow faster than product commerce constant currency revenues due to faster growth in FLC net-reported revenue.
• The company expects adjusted EBITDA margin expansion on an annual basis in 2025 despite potential quarter-to-quarter unevenness.
• Developing offerings are expected to incur adjusted EBITDA losses between $650M to $750M in 2025.
• The company anticipates a temporarily high accounting effective tax rate of 50% to 55% in 2025 and expects cash tax closer to 40% in 2025.
• OG&A expenses are expected to decline over time as a percentage of revenue in the near to medium term.