Coupang’s revenue up in Q4, developing offerings unit losses widen

Here are three key takeaways from the fourth quarter results of the South Korean ecommerce platform Coupang:

1. Strong revenue growth

Net revenue of US$6.6 billion for Q4 2023 was a 23% year-on-year increase.

For 2023 as a whole, net revenue stood at US$24.4 billion, up 18% from the previous year.

2. Improving profitability

Gross profit for the quarter grew 32% year on year to US$1.7 billion with a gross profit margin of 25.6%, showing an improvement of 160 basis points. Additionally, adjusted EBITDA stood at US$294 million with a margin of 4.5%, a 50 basis point improvement compared to the previous year.

Coupang’s product commerce segment showed strong growth and improved profitability, recording adjusted EBITDA of US$444 million for Q4. However, its developing offerings segment reported a negative adjusted EBITDA of US$150 million, swelling from negative US$55 million in the same period a year ago.

This latter segment includes the company’s international offerings and fintech businesses as well as Coupang Eats and Coupang Play.

3. Growing customer base

Active customers stood at over 21 million in Q4, 16% more compared to a year ago. This indicates that the company is successfully attracting and retaining customers – crucial for long-term growth and sustainability.

There is more opportunity for the company to grow as well, with Coupang representing just a single-digit share of total retail spend in Korea and an even smaller share in Taiwan.

Following the announcement of these results, Coupang’s shares rose by over 12% in after-hours trading.

This article was written with the help of AI.