Coupang profit soars 42% YoY in Q1 2022

Its revenue rose 22% YoY, whilst its losses improved by 29% YoY.

Ecommerce platform Coupang posted a 42% year-on-year (YoY) increase in gross profit in the first quarter, reaching $1.04b, as it saw improvements both in revenue and losses.

In a statement, Coupang said its net revenue was at $5.1b, a 22% YoY increase and 32% YoY higher based on a constant currency. It is also up by 3% compared to the previous quarter.

Its net loss narrowed by 29% YoY to around $209.3m from $295m, whilst adjusted earnings before interest, tax and depreciation and amortisation (EBITDA) loss improved by 32% YoY to $90.9m.

“Powered by our unmatched customer experience and services, we continued to grow at multiples of the overall e-commerce segment with 32% year over year constant currency revenue growth,” Coupang CFO Gaurav Anand said.

“We also recorded the highest gross profit and gross profit margin in the Company’s history, which in turn helped our Product Commerce segment to achieve profitability in Q1. We expect our focus on customer-driven innovations as well as operational excellence to continue to bear fruit in the quarters and years ahead,” Anand added.

For its Product Commerce segment, net revenue was by 20% YoY and 30% on a constant currency basis to $4.9b, which is over three times the growth rate of the Korean product e-commerce segment.

The Product Commerce segment also achieved a major milestone of positive adjusted EBITDA during the quarter, representing a $128m improvement compared to the previous quarter. 

Coupang’s Development Offerings segment also saw a 65% YoY increase in revenue and 79% on a constant currency basis to $180.6m, while its adjusted EBITDA  increased 47% YoY to $93.7m, but posted an improvement of $66m quarter-on-quarter.