Coupang posts record Q3 revenue on strong business growth

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Coupang posts record Q3 revenue on strong business growth

Published: 08 Nov. 2023, 09:26 Updated: 08 Nov. 2023, 09:41

SEO JI-EUN
seo.jieun1@joongang.co.kr

Coupang, the U.S.-listed Korean e-commerce giant, reported revenue reaching $6.18 billion, up 21 percent compared to the same period last year, marking the largest quarterly revenue.

It was above the market consensus of $5.93 billion.

Coupang's operating profit for the third quarter stood at $87.48 million, a 13 percent increase compared to the same quarter the previous year. The company extended its streak of consecutive profitable quarters to five since the third quarter last year.

"Our unrelenting focus on the customer experience and operational excellence drove record results again this quarter," Coupang founder and CEO Bom Kim said, attributing its surging revenue growth to the rapid expansion of its core businesses, including Rocket Delivery and Rocket Fresh.

The company also emphasized the increased number of customers in its WOW membership program.

The third quarter's net profit was $91.3 million, on par with the previous year's figure of $90.67 million.

Analysts had forecast earnings per share of $0.07 for the quarter, while Coupang missed the market expectations with $0.05.

The e-commerce company saw more consumers looking for cheaper products on Coupang amid rising food and essential commodities prices.

According to Coupang, it had 20.42 million active users, which comprises individuals who made at least one purchase during the quarter, a 13.5 percent increase when compared to the same period last year. This surge represents the fastest quarterly growth rate since the pandemic levels of 2021 for the company.

Additionally, the net revenue per active customer reached $303 per customer, a 6.7 percent year-over-year increase.

However, Coupang's Developing Offerings segment adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) surged to $160.82 million, representing an increase of nearly four times the size of the adjusted Ebitda loss in the same quarter last year. This was driven by "increased levels of investment," Coupang said.

Meanwhile, regarding Coupang's Rocket Delivery and Rocket Jikgu services that recently marked their first anniversary in Taiwan, Kim showed unwavering confidence in their long-term potential.

Jikgu is a Korean word that stands for direct overseas purchase.

"We launched Rocket Delivery in Taiwan in October of 2022, and the offering in Taiwan has scaled much faster in its first year of operation than it did in its first year in Korea," Kim said during a conference call on Wednesday. "Our growth in Taiwan is also opening doors of opportunity for our merchants and suppliers in Korea."

Coupang's mobile application has been the most downloaded shopping app in Taiwan since the second quarter, and it helped over 12,000 Korean small and medium-sized enterprises export their products to Taiwan, Coupang said.

The company recently opened its second logistics center in Taiwan, with plans to launch a third one during the first half of the coming year.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]