- Coupang has announced its Q2 2022 earnings results. These are the details.
Coupang has announced its Q2 2022 earnings results. Below are the highlights.
Key Financial and Operational Highlights
— Total net revenues were $5 billion, up 12% year over year (YoY), and up 27% YoY and 3% quarter over quarter (QoQ) on a constant currency basis.
— Total gross profit was $1.2 billion, an increase of 75% YoY or 41% excluding the impact of the FC fire in 2021, and gross profit margin improved over 250 bps QoQ.
— Net loss improved $134 million QoQ to $75 million in Q2.
— The company achieved a major milestone of a positive adjusted EBITDA of $66 million in Q2, representing an over $350 million improvement over the last two quarters.
— Product Commerce net revenues were $4.9 billion, up 13% YoY and 27% on a constant currency basis, over four times the growth rate of the Korean product e-commerce segment.
— Product Commerce adjusted EBITDA margin marked a record 2%, an improvement of 450 bps over the last two quarters.
— Developing Offerings recorded an adjusted EBITDA loss of $32 million, an improvement of $128 million over the last two quarters.
Full Year 2022 Financial Guidance Update
— The company now expects to achieve positive total company adjusted EBITDA for FY 2022. This updates our previous guidance of $(400) million in adjusted EBITDA for the full year.
“Customers turn to us for amazing experiences, faster delivery and lower prices, and we’re determined to wow them every day. We increased our investment—to a record $500 million in Q2 alone—in exclusive discounts, free Rocket deliveries, and free Coupang Play video content for our WOW members. We exist to transform the lives of our customers, and WOW membership is the embodiment of that relentless customer focus.”
— Bom Kim, founder and CEO of Coupang
“We’re pleased to report that we achieved positive adjusted EBITDA on a consolidated basis, generating $66 million across the entire business, improving $157 million from the prior quarter. Over the past two quarters, we’ve driven a total improvement of over $350 million, a reflection of our continued execution across the company. At the beginning of the year, we provided guidance of total company adjusted EBITDA losses below $400 million for 2022. We are now raising that guidance to achieve positive adjusted EBITDA for the full year.”
— Coupang’s CFO Gaurav Anand