Stronger Coupang... Record High Sales and Four Consecutive Quarters of Profit (Comprehensive)

Coupang Q2 Operating Profit 194 Billion KRW
Active Customers Near 20 Million... 10% Increase YoY

Coupang achieved four consecutive quarters of profitability despite high inflation and economic downturn leading to reduced consumer spending. It showed improvements in both scale and profitability by setting a record high in sales.

According to the earnings report submitted by Coupang to the U.S. Securities and Exchange Commission (SEC) on the 9th (Korean time), the company recorded an operating profit of 194 billion KRW (147.64 million USD) in the second quarter of this year, marking four consecutive quarters of profitability. This represents a turnaround to profit compared to the same period last year and is the highest operating profit for a second quarter.

During the same period, sales reached 7.6749 trillion KRW (5.83788 billion USD), a 21% increase compared to 6.35 trillion KRW in the same period last year, setting a record for the highest quarterly sales ever. Net income was 190.8 billion KRW (145.19 million USD), turning profitable compared to the second quarter of last year.

By business segment, the core business of Product Commerce (Rocket Delivery, Rocket Fresh, Marketplace) recorded sales of 7.4694 trillion KRW (5.68159 billion USD), a 21% increase compared to one year ago. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached 302 million USD (396 billion KRW), surpassing the 300 million USD mark for the first time. This is a significant growth compared to 66.17 million USD recorded one year ago.

Coupang Daegu Fulfillment Center (FC) exterior view. [Photo by Coupang]

Notably, Coupang’s active customer base approached 20 million. Active customers, defined as those who purchased at least one product in the quarter, numbered 19.71 million, a 10% increase from 17.88 million in the same period last year. Customer sales per capita were 389,100 KRW (296 USD), an 8% increase over the same period.

The remarkable growth in the core business accelerated the pace of profitability improvement. Coupang’s operating cash flow on a trailing 12-month basis was 2 billion USD, and free cash flow was 1.1 billion USD. Considering that free cash flow on a trailing 12-month basis reached 451 million USD for the first time in the first quarter of this year, the profitability improvement trend became clearer in the second quarter.

Sales in new business sectors such as Coupang Play, Coupang Eats, overseas business, and fintech were 205.4 billion KRW (156.29 million USD) in the second quarter, a 2% decrease compared to the previous year. Adjusted EBITDA loss widened to (107.37 million USD) compared to (31.66 million USD) one year ago, reflecting increased investment in new businesses.

Garab Anand, Coupang’s CFO, explained, “While active customer growth is accelerating, we have consecutively achieved record profits. Through unparalleled investment and unwavering focus on customer satisfaction, we have recorded profitability expansion and high growth rates.”

This content was produced with the assistance of AI translation services.