Coupang Submits Q3 Earnings to US SEC
First Quarterly Profit Since Rocket Delivery Launch
Record High Revenue in KRW Terms
[Asia Economy Reporter Kim Bo-kyung] Coupang has improved its profitability by achieving a quarterly profit for the first time in 10 years. This is the first time since the introduction of the 'Rocket Delivery' service, known for its fast delivery. Kim Beom-seok, Chairman of Coupang, described this achievement as "the fruit of investing billions of dollars in the logistics network."
According to the data disclosed by Coupang to the U.S. Securities and Exchange Commission (SEC) on the 10th (Korean time), Coupang recorded sales of $5.10133 billion in the third quarter of this year, a 10% increase compared to the same period last year ($4.6447 billion).
Based on the average KRW-USD exchange rate of 1,340.5 won in the third quarter, sales reached 6.8383 trillion won, a 27% increase compared to the same period last year (5.385 trillion won). This is the highest sales figure ever recorded in Korean won terms.
The significant improvement in profitability is notable. Coupang posted an operating profit of 103.7 billion won ($77.42 million) and a net profit of 121.5 billion won ($90.67 million) in the third quarter. This marks the first quarterly profit since the launch of Rocket Delivery in 2014, when the company transitioned from social commerce to e-commerce. It is also the first profit announcement since Coupang reported a business profit of 1.6 billion won in 2012.
Since its listing in March last year, Coupang had incurred losses ranging from 250 billion to 500 billion won each quarter until the first quarter of this year. Even in the third quarter of last year, Coupang recorded an operating loss of $315.11 million (365.3 billion won) and a net loss of $323.97 million (375.6 billion won).
In the third quarter of this year, Coupang's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $194.91 million (3.8% of sales, approximately 261.3 billion won), turning profitable within a year compared to a loss of $207.43 million in the same period last year.
Beom-seok Kim, Founder of Coupang
Regarding this performance, Kim Beom-seok, founder of Coupang Inc., stated, "This is the result of investing billions of dollars over the past seven years in a unique logistics network that integrates technology, fulfillment, and last-mile delivery."
He added, "We will continue to invest in process optimization and automation technologies, including machine learning and robotics, to enrich customer experience while offering products at reasonable prices."
Coupang CFO Garav Anand said, "We achieved a record net profit of $91 million across all businesses," and added, "The recent profitability improvements are the result of investments in technology, infrastructure, supply chain optimization, and innovation."
Coupang's active customers (those who have purchased at least once) increased by 7% compared to last year, reaching 17.992 million, and the revenue per customer rose by 3% to $284 (380,000 won).
Sales in Coupang's core business sectors?Product Commerce (Rocket Delivery, Fresh, Marketplace)?amounted to $4.9 billion (6.5684 trillion won), a 10% increase compared to last year (28% increase in KRW terms).
The adjusted EBITDA of new business sectors such as Coupang Play, Coupang Eats, overseas business, and fintech recorded a loss of $44.3 million (59.3 billion won), a 50% reduction compared to the same period last year.
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