Coupang(CPNG) - 2024 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 2024 were $7.3 billion, representing a 25% increase YoY and a 30% increase on an FX-neutral basis[2] - Gross profit increased by 41% YoY to $2.1 billion, with a gross profit margin of 29.3%, an improvement of 310 bps YoY[2] - Adjusted EBITDA for the quarter was $330 million, with a margin of 4.5%, down 60 bps from last year[2] - Coupang's total net revenues for Q2 2024 reached $7,323 million, a 25.4% increase from $5,838 million in Q2 2023[11] - Adjusted EBITDA for Q2 2024 was $330 million, with an adjusted EBITDA margin of 4.5%, compared to $300 million and 5.1% in Q2 2023[24] - Free cash flow for Q2 2024 was $488 million, up from $450 million in Q2 2023[22] - Gross profit for Q2 2024 was $2,142 million, an increase from $1,524 million in Q2 2023[25] - Total net revenues for Q2 2024 reached $7,323 million, a 25% increase compared to $5,838 million in Q2 2023[21] Customer Metrics - Active Customers in the Product Commerce segment grew to 21.7 million, a 12% increase YoY[5] - The number of Product Commerce Active Customers increased by 12% to 21.7 million in Q2 2024, up from 19.4 million in Q2 2023[19] - Net revenues per Product Commerce Active Customer rose to $296 in Q2 2024, a 1% increase from $293 in Q2 2023[19] Segment Performance - Product Commerce segment net revenues reached $6.4 billion, up 13% YoY on a reported basis and 18% on an FX-neutral basis[5] - Developing Offerings segment net revenues were $892 million, up 472% YoY on a reported basis and 483% on an FX-neutral basis[5] - Segment gross profit for Developing Offerings was $192 million in Q2 2024, compared to a loss of $(23) million in Q2 2023[25] - Developing Offerings net revenues excluding Farfetch reached $432 million in Q2 2024, a significant increase of 177% from $156 million in Q2 2023[33] Profitability and Loss - Net loss attributable to Coupang stockholders was $77 million, a decrease of $222 million from last year[2] - Coupang reported a net loss of $105 million in Q2 2024, compared to a net income of $145 million in Q2 2023[11] - Operating income for Q2 2024 was $(25) million, a decrease from $148 million in Q2 2023[11] - Adjusted net income attributable to Coupang stockholders for Q2 2024 was $124 million, compared to $145 million in Q2 2023[26] Cash Flow and Assets - Operating cash flow for the trailing twelve months was $2.2 billion, an increase of $250 million YoY[2] - Free cash flow for the trailing twelve months was $1.5 billion, an increase of $420 million YoY[2] - Cash and cash equivalents, along with restricted cash, totaled $5,794 million as of June 30, 2024, compared to $4,744 million at the end of Q2 2023[15] - Total assets increased to $15,195 million as of June 30, 2024, up from $13,346 million at the end of 2023[13] - Total liabilities rose to $11,248 million as of June 30, 2024, compared to $9,242 million at the end of 2023[13] Foreign Exchange and Acquisitions - The acquisition of Farfetch assets impacted net revenues by $460 million for the quarter[4] - The company experienced a foreign exchange rate effect of $294 million on reported revenues for Q2 2024[29] - The gross profit of Farfetch for Q2 2024 was $203 million, contributing to the overall gross profit[30] Other Financial Metrics - The estimated KFTC administrative fine for Q2 2024 was $121 million, impacting net income[26] - Diluted earnings per share for Q2 2024 was $(0.04), while adjusted diluted earnings per share was $0.07[28] - The trailing twelve months adjusted EBITDA as of June 2024 was $1,205 million, up from $947 million in the previous year[31] - Constant currency revenue growth for Q2 2024 was 30%, compared to 25% year-over-year[21] - Total net revenues excluding Farfetch for Q2 2024 were $6,863 million, an 18% increase from $5,838 million in Q2 2023[29] - Gross profit excluding Farfetch for Q2 2024 was $1,939 million, with a gross profit margin of 28.3%, up from 26.1% in Q2 2023[30] - Adjusted EBITDA excluding Farfetch for Q2 2024 was $361 million, representing a margin of 5.3%, compared to $300 million and a margin of 5.1% in Q2 2023[31] Strategic Focus - The company is focusing on expanding its Developing Offerings segment, which has shown substantial growth in recent quarters[33]