NYSE$CPNG

Coupang Inc. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Coupang's Q4 2022 results were announced, featuring record profit and significant improvements in key financial metrics.

Coupang reported a strong Q4 2022 with total net revenues of $5.3 billion, a net income of $102 million, and an adjusted EBITDA of $211 million. The company saw significant year-over-year improvements in gross profit and adjusted EBITDA, demonstrating progress towards profitability. They are updating their long-term adjusted EBITDA guidance to 10% or higher.

  • Total net revenues increased by 5% year-over-year to $5.3 billion.
  • Net income reached $102 million, a $507 million improvement year-over-year.
  • Gross profit surged by 59% year-over-year to $1.3 billion, with a gross profit margin of 24.0%.
  • Adjusted EBITDA was $211 million, reflecting a $496 million improvement year-over-year.

Headline financials

Total Revenue

$5.33B

Previous: $5.08B+4.9%
EPS (adj)

$0.06

Previous: -$0.23+126.1%
Active Customers

18.1K

Previous: 17.9K+1.0%
Net Revenue per Active Customer

$294.00

Previous: $283.00+3.9%
Capital Expenditures

$121M

Previous: $168M-27.9%
Free Cash Flow

$459M

Previous: -$371M+223.8%
Net Income

$102M

Previous: -$405M+125.2%
Operating Income

$83.4M

Previous: -$397M+121.0%
Gross Profit

$1.28B

Previous: $806M+58.7%
Cash & Equivalents

$3.51B

Previous: $3.49B+0.6%
Total Assets

$9.51B

Previous: $8.64B+10.1%
Stock-Based Comp

$70.7M

Previous: $55.9M+26.5%

Revenue & EPS history

Coupang · Revenue · Quarterly

$5.33B

Q4 2022+4.9%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Coupang · $5.33B total across 2 segments · Q4 2022

  • Product Commerce
    $5.19B+5.4%
  • Developing Offerings
    $133M-11.9%

Forward guidance

Coupang expects to see margin expansion in 2023 and anticipates further penetration in the retail market.

Tailwinds

  • Company expects to see margin expansion in 2023.
  • Company anticipates further penetration in the vast retail market.
  • Strong foundation and momentum give them confidence in their ability to drive growth.
  • Investments in new initiatives like food delivery, video streaming, fintech and international have the potential to unlock outsized value for customers and shareholders
  • The overwhelming majority of the retail market is still offline with high prices and limited selection

Headwinds

  • Margin expansion may not be meaningful or consistent each quarter.
  • Continued growth of the retail market and the increased acceptance of online transactions by potential customers
  • Competition in the industry
  • Managing growth and expansion into new markets and offerings
  • Impact of the global economy including inflation and foreign currency exchange rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-0.5%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-4.0%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+14.0%

Q3 2022

Best reaction

-17.0%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.5%-16.2%-18.4%
Q4 2025+2.1%+2.1%-3.3%
Q3 2025-5.9%-10.0%-15.6%
Q1 2025+10.8%+8.9%+18.5%
Q4 2024+3.5%-1.5%-7.5%
Q3 2024-6.6%-6.0%-6.5%
Q2 2024+4.2%+11.0%+14.6%
Q1 2024-8.1%-3.6%-6.2%
Q4 2023+11.3%+15.6%+8.5%
Q3 2023-7.9%-8.3%-8.0%
Q2 2023+7.2%+7.3%+2.9%
Q1 2023-6.6%-9.7%-9.9%
Q4 2022-3.6%-4.2%+3.2%
Q3 2022+14.0%+3.3%+3.5%
Q2 2022-1.5%-4.6%-4.5%
Q1 2022+8.3%+19.4%+8.7%
Q4 2019-17.0%-19.2%-27.7%
Q4 2021+0.0%-22.5%-27.8%
Q3 2020-3.6%-2.9%-8.3%
Q3 2021-3.6%-2.9%-8.3%
Q2 2020-0.7%-7.6%-13.2%
Q2 2021-7.0%-9.5%-18.3%
Q1 2020+3.1%+5.4%+9.3%
Q4 2020+3.1%+5.4%+9.3%
Q1 2021-11.6%-3.0%+6.5%

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