Coupang Q2: Revenue Soars 25%, Losses Widen

Seatle, WA / Seoul, South Korea—South Korean e-commerce giant Coupang Inc (NYSE: CPNG) reported a 25% year-over-year increase in second-quarter revenue driven by strong growth in its developing offerings segment. 

Still, losses widened due to its recent Farfetch acquisition.

The company, often dubbed the "Amazon of South Korea," posted total net revenue of $7.32 billion for the quarter that ended June 30, up from $5.84 billion a year earlier. 

Revenue grew 30% on a constant currency basis.

However, Coupang's net loss was $105 million, compared to a profit of $145 million in the same period last year. 

The company attributed this primarily to operating losses from its newly acquired Farfetch business and a $121 million charge related to an estimated administrative fine from Korea's Fair Trade Commission.

Excluding Farfetch and the regulatory fine, Coupang said it would have reported adjusted net income of $124 million.

The company's core Product Commerce segment saw revenues rise 13% to $6.43 billion, with adjusted EBITDA increasing to $530 million from $408 million last year. 

Coupang's Developing Offerings segment, which includes newer initiatives like food delivery and fintech services, saw revenues surge 472% to $892 million, boosted by the Farfetch acquisition. 

However, this segment reported an adjusted EBITDA loss of $200 million.

"This quarter, we continued to see deeper levels of engagement from our customers," said CFO Gaurav Anand, citing the company's focus on selection, service, and savings.

Coupang ended the quarter with $5.54 billion in cash and cash equivalents.

The company generated $664 million in operating cash flow and $488 million in free cash flow during the period.

Shares of Coupang closed up 1.57% at $20.67 on Tuesday ahead of the results.