Coupang Revenue Growth Surges, Customer Base Expands

Seattle, WA - Coupang (NYSE: CPNG) reported robust financial results for the fourth quarter of fiscal year 2023. 

The company's revenue grew 23% yearly to $6.6 billion.

The number of active customers increased by 16%, demonstrating Coupang's ability to grow its market share.

Coupang's WOW membership program continues to be a key driver of the company's success. 

The program, which offers benefits such as free shipping and exclusive discounts, saw a 27% increase in paid members in 2023.

Significantly improved profit margins were another key highlight of the quarter. 

The gross profit margin increased to 25.6%, and the adjusted EBITDA margin increased to 4.5%. 

Coupang achieved this feat despite the headwind of an accounting change in its Fulfillment and Logistics (FLC) business, which will be recognized on a net revenue basis beginning in the second quarter of 2023.

Investors may be pleased to note that free cash flow generation improved to $382 million in Q4 and $1.8 billion for the entire year, a significant increase year-over-year.

Regarding the Farfetch acquisition, Bom Kim described it as a rare opportunity to buy an industry-leading service with $4 billion in GMV for an investment of $500 million.

The company will consolidate Farfetch into Coupang's finance for a few months.

On segment classification, it will take a one-time restructuring charge in Q1, and Coupang will split it out. 

Coupang's CFO will talk more about this on the next earnings call.