Coupang surprises with a $92 million net loss in 2022

Industry

Published: 01 Mar. 2023, 07:30 Updated: 01 Mar. 2023, 11:20

Coupang surprises with a $92 million net loss in 2022

Coupang trucks are parked in a parking lot in Seoul. [NEWS1]

Coupang reported a net loss of $92 million in 2022, compared with a net loss of $1.5 billion in 2021.

The negative figure for last year was a big surprise, as a full-year profit — the first ever in the company's decade-plus history — had been expected.

Analysts had forecast $0.08 per share earnings in 2022. Coupang reported a $0.05 per share loss. Revenue in 2022 was $20.5 billion, compared with $18.4 billion in 2021 and a market consensus of $20.72 billion.

"Twenty twenty-two was a year of many milestones," said Coupang's Chief Financial Officer Gaurav Anand.

He noted a number of achievements during the year: adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) for product commerce in the first quarter; positive adjusted Ebitda for the consolidated business in the second quarter; positive net income for the consolidated business in the third quarter; and record gross profit, adjusted Ebitda and net income in the fourth quarter.

Adjusted Ebitda was $381.2 million for 2022, compared with a negative $747.6 million in 2021.

In the fourth quarter, the company beat the consensus, earning $0.06 per share. The analyst expectation was $0.05 per share.

The company reported a net profit of $102.1 million for the fourth quarter, compared with a net loss of $405 million in the same period a year earlier.

Coupang's Wow membership program had 11 million paid members at the end of 2022, an increase of 20 percent on year.

The membership is a subscription-based program that offers a variety of benefits, such as free and fast shipping, discounts, access to exclusive promotions and content from the Coupang Play streaming service.

CEO Bom Kim emphasized the potential of its deliveries, especially its super-fast Rocket delivery service.

"The overwhelming majority of the retail market is still offline with high prices and limited selection,"Kim said. "We have an opportunity to provide customers with a better alternative: one with wider selection, lower prices and exceptional service, which in turn should lead us to significant growth in overall retail market for years to come."

The CEO suggested that the first quarter of 2023 is looking promising.

"It's growing at a similar rate as the fourth quarter of 2022," Kim said.

The e-commerce company had 18,115 active customers in 2022, up 1 percent on year. Net revenue per active customer was $294 in 2022, compared with $283 in 2021.

Coupang, which went public in 2021, is the first and only e-commerce company in Korea to list. It sold shares at $35, and trading started on March 11, 2021 at $63.50. They are trading now at about $15.

The e-commerce company was started in 2010. It reported its first profit in the third quarter of 2022.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]