Coupang, Inc. Reports Third Quarter 2024 Financial Results
Coupang, Inc. (NYSE: CPNG), a global technology company, today announced its financial results for the third quarter ending September 30, 2024. The company's performance highlights significant growth in revenues and profits compared to the previous year, demonstrating sustained momentum amidst a challenging economic environment.
Key Financial Metrics
The table below provides an overview of Coupang's financial metrics for Q3 2024, including comparisons to previous year figures and market estimates.
| Metrics | Q3 2024 | YoY Change | Consensus Estimate |
|---|---|---|---|
| Net Revenues | $7.9 billion | +27% | $7.76 billion |
| Gross Profit | $2.3 billion | +45% | Not provided |
| Net Income | $64 million | Not provided | Not provided |
| EPS (Diluted) | $0.04 | -$0.01 | $0.01 |
| Adjusted EBITDA | $343 million | Not provided | Not provided |
Coupang showcased a robust financial performance this quarter, with net revenues surpassing market expectations at $7.9 billion. The company's gross profit saw a significant uplift of 45% year-over-year, marking an improvement in profit margins. However, net income and EPS showed a slight decline, attributed to losses incurred by the acquisition of Farfetch.
Segment Revenue Performance
The following table breaks down revenue performance across Coupang’s major business segments for Q3 2024:
| Segment | Net Revenues | YoY Change |
|---|---|---|
| Product Commerce | $6.9 billion | +16% |
| Developing Offerings (incl. Farfetch) | $975 million | +347% |
The Product Commerce segment continues to be a strong driver with $6.9 billion in net revenues, marking a notable year-over-year increase. The Developing Offerings segment reported substantial growth, driven by collaborations such as Farfetch, even as its adjusted EBITDA remained negative.
Key Developments and Operational Highlights
- Gross profit margin improved by 350 basis points year-over-year.
- Achieved near break-even profitability in Farfetch earlier than anticipated.
- Growth in newer offerings such as Fulfillment and Logistics by Coupang and R.Lux.
Executive Commentary
Gaurav Anand, CFO of Coupang, stated, 'This quarter, we continued the strong momentum we've seen throughout this year, delivering robust growth in revenues and margins. Our newer offerings and categories, like Fulfillment and Logistics by Coupang (FLC) and R.Lux, a new luxury offering, are examples of the massive growth opportunity from selection expansion on Rocket Delivery. We also achieved an important milestone in Developing Offerings this quarter, reaching near break-even profitability in Farfetch, earlier than planned.'
Dividends and Share Repurchase Program
The earnings release did not specify any announcements regarding dividends or share repurchase programs for this quarter.
Forward Guidance
Coupang has not provided specific forward-looking financial guidance at this time, reflecting on potential uncertainties in the global market environment.
Stock Price Movement
Following the earnings announcement, Coupang’s stock experienced a positive movement of approximately 3.19%.
Overall, Coupang's latest earnings report points to robust growth and strategic advancements, positioning the company for future expansion.
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