The following is a summary of the Coupang (CPNG) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Coupang reported a 27% year-over-year increase in total net revenues, or 20% excluding the impact of Farfetch, with net revenues reaching approx. $2.3 billion.

• Gross profit grew by 45% year-over-year reaching $2.3 billion, representing a gross profit margin of 28.8%. Excluding Farfetch, the gross profit was $2.1 billion, showing a 33% year-over-year growth with a margin of 28.1%.

• Adjusted EBITDA for the quarter was $343 million, marking a margin of 4.4%, with Product Commerce segment delivering $470 million of adjusted EBITDA at a margin of 6.8%.

• Diluted earnings per share stood at $0.04, while excluding Farfetch, the diluted earnings per share was $0.06.

Business Progress:

• Continued expansion of Product Commerce, driven by deeper customer engagement and selection expansions.

• Launched R.Lux, a new luxury offering, enhancing customer experience with exclusive brand interactions and premium delivery services.

• Achieved near break-even profitability with Farfetch this quarter, significantly improving operational efficiency.

• Developing offerings segment demonstrated dramatic growth, improving margins and reducing losses.

Opportunities:

• Coupang sees extensive growth opportunity ahead due to its relatively small share in the massive commerce market it serves.

• Plans for further expansion in selection and services across different categories, including luxury and fresh goods, aiming to enhance both customer loyalty and spend.

• Expansion of Farfetch and other developing offerings represent tremendous potential for future revenue and margin expansion.

Risks:

• Despite significant revenue and profit growth, the investment in technology and infrastructure led to a quarter-over-quarter increase in OG&A expenses by 355 basis points as a percentage of revenue versus last year.

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