Coupang, Inc.(NYSE: CPNG), the South Korean e-commerce giant, announced robust financial results for the first quarter of 2023, showing strong growth and healthy cash flow.
The company reported net revenue of $5.8 billion, up 20% YoY on a constant currency basis and up 13% YoY on a reported basis.
Gross profit increased 36% YoY to $1.4 billion. The gross profit margin was 24.5%, improving over 400 basis points YoY.
Coupang's net income was $91 million, a remarkable increase of $300 million compared to last year's quarter.
The company also reported a positive free cash flow of $451 million and an operating cash flow of $1.1 billion for the trailing twelve months, representing significant year-over-year increases.
The company's first-quarter results highlighted that active customers exceeded 19 million, up 5% year-over-year and sequentially.
Regarding segment performance, the Product Commerce segment reported net revenue of $5.7 billion, up 15% on a reported basis and up 21% on a constant currency basis.
Adjusted EBITDA for the segment was positive $288 million, up $285 million from the prior year.
The Developing Offerings segment, which includes Coupang Eats, International, Play, and Fintech, reported an adjusted EBITDA of negative $47 million, an improvement of $46 million from the prior year.
"We have the opportunity to transform the lives of our customers in the coming years," said Bom Kim, founder and CEO of Coupang.
Kim noted that most of the retail market remains offline, with high prices and limited selection.
He cited a study showing Korean consumers have access to less than 10% of the retail space per capita available to their U.S. counterparts.
Kim also announced the launch of new Coupang Eats benefits for all WOW members and outlined plans to expand the Fulfillment and Logistics by Coupang and Rocket Growth programs.
Gaurav Anand, Coupang's CFO, noted that the company achieved a positive free cash flow of $451 million on a trailing twelve-month basis, underscoring the company's financial strength and positioning for the future.
Coupang's Q1 2023 results indicate healthy growth and positive cash flow, demonstrating the company's resilience and potential in the e-commerce sector.
The company's commitment to expanding its reach and increasing customer engagement offers exciting prospects for investors and strategists.
