Thanks to Farfetch and Taiwan... Coupang Achieves 11.488 Trillion Won in Q1 Revenue (Update)

Sales in Growth Business Segment Including Farfetch Up 78%
Operating Profit Reaches 233.7 Billion Won, Net Income Turns Positive

Coupang Inc., the parent company of Coupang, achieved its highest-ever quarterly revenue in the first quarter of this year, recording 11.488 trillion won. The company’s performance was driven by significant growth in the luxury e-commerce platform Farfetch, which it acquired early last year, and its Rocket Delivery service in Taiwan.

Yonhap News

According to Coupang Inc. on May 7, revenue for the first quarter of this year reached 11.4876 trillion won (7.908 billion dollars, based on an average quarterly exchange rate of 1,452.66), representing a 21% increase compared to the first quarter of last year (9.4505 trillion won). This figure surpasses the previous record for highest quarterly revenue, which was 11.1139 trillion won in the fourth quarter of last year.

Both operating profit and net income improved significantly, further strengthening profitability. Operating profit reached 233.7 billion won (154 million dollars), a 340% surge compared to the same period last year (53.1 billion won). The operating margin was 2%, an improvement from last year’s 0.6%. Net income turned positive, reaching 165.6 billion won (114 million dollars).

The growth business segment, which includes Farfetch, Taiwan, and Coupang Eats, was the main driver of increased revenue. Sales in the growth business segment reached 1.5078 trillion won (1.038 billion dollars), a 78% increase year-on-year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was negative 244 billion won, a slight improvement from the loss of 274 billion won recorded in the first quarter of last year.

The Product Commerce segment (Rocket Delivery, Rocket Fresh, Rocket Growth, Marketplace) recorded sales of 9.9797 trillion won (6.87 billion dollars), a 16% increase compared to the same period last year. The number of active customers was 23.4 million, up 9% from 21.5 million a year earlier. The number of active customers refers to those who made at least one purchase of Coupang products in the first quarter of this year. Revenue per customer, based on Korean won, was 427,080 won (294 dollars), up 6% over the same period.

Meanwhile, on the same day, Coupang Inc. announced plans to launch a share repurchase program of up to 1 billion dollars (approximately 1.4 trillion won). The company plans to buy back up to 1 billion dollars’ worth of its Class A common stock. Coupang stated, “As part of a broad capital allocation strategy, we are now able to deliver meaningful returns to our shareholders.”