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Dec 31, 2022
Coupang Q4 2022 Earnings Report
Coupang's Q4 2022 results were announced, featuring record profit and significant improvements in key financial metrics.
Key Takeaways
Coupang reported a strong Q4 2022 with total net revenues of $5.3 billion, a net income of $102 million, and an adjusted EBITDA of $211 million. The company saw significant year-over-year improvements in gross profit and adjusted EBITDA, demonstrating progress towards profitability. They are updating their long-term adjusted EBITDA guidance to 10% or higher.
Total net revenues increased by 5% year-over-year to $5.3 billion.
Net income reached $102 million, a $507 million improvement year-over-year.
Gross profit surged by 59% year-over-year to $1.3 billion, with a gross profit margin of 24.0%.
Adjusted EBITDA was $211 million, reflecting a $496 million improvement year-over-year.
Coupang
Coupang
Coupang Revenue by Segment
Revenue by Segment
Product Commerce Revenue
CapyFin.comDeveloping Offerings Revenue
CapyFin.com Forward Guidance
Coupang expects to see margin expansion in 2023 and anticipates further penetration in the retail market.
Positive Outlook
- Company expects to see margin expansion in 2023.
- Company anticipates further penetration in the vast retail market.
- Strong foundation and momentum give them confidence in their ability to drive growth.
- Investments in new initiatives like food delivery, video streaming, fintech and international have the potential to unlock outsized value for customers and shareholders
- The overwhelming majority of the retail market is still offline with high prices and limited selection
Challenges Ahead
- Margin expansion may not be meaningful or consistent each quarter.
- Continued growth of the retail market and the increased acceptance of online transactions by potential customers
- Competition in the industry
- Managing growth and expansion into new markets and offerings
- Impact of the global economy including inflation and foreign currency exchange rates
Revenue & Expenses
Visualization of income flow from segment revenue to net income