Coupang (CPNG) Q4 2024 earnings summary

Executive summary

• Net revenues for Q4 2024 reached $8.0B, up 21% YoY (28% FX-neutral); FY2024 net revenues were $30.3B, up 24% YoY (29% FX-neutral), with gross profit up 48% YoY in Q4 and 43% YoY for the year.

• Adjusted EBITDA for Q4 was $421M (5.3% margin), and $1.4B (4.5% margin) for the year, with margin expansion and over $1B in free cash flow.

• Net income attributable to stockholders for Q4 was $156M, down $876M YoY due to a prior-year non-cash tax benefit; FY net income was $154M, down $1.2B YoY for the same reason.

• Operational improvements, automation, and international expansion, especially in Taiwan, contributed to growth, with a 45% increase in same-day or Dawn deliveries and a 16% reduction in linehaul costs.

• The Farfetch acquisition resulted in a turnaround from large losses to a break-even run rate, with results included from early 2024.

Financial highlights

• Q4 2024 FX-neutral net revenues up 28% YoY, or 21% YoY excluding Farfetch; full-year FX-neutral net revenues up 29% YoY, or 23% YoY excluding Farfetch.

• Q4 gross profit margin improved 570 bps YoY to 31.3%; FY gross profit margin expanded 380 bps YoY to 29.2%.

• Q4 adjusted EBITDA margin was 5.3%; FY adjusted EBITDA margin was 4.5%.

• Operating cash flow for 2024 was $1.9B; free cash flow was $1.0B, down $759M YoY due to prior-year non-recurring working capital benefits.

• Q4 diluted EPS was $0.08 (down $0.49 YoY); FY diluted EPS was $0.08. Excluding one-time items, Q4 diluted EPS was $0.04 and FY was $0.22.

Outlook and guidance

• 2025 constant currency consolidated growth rates expected at about 20% YoY, in line with Q4 2024 rates excluding Farfetch.

• Product commerce gross profit anticipated to outpace revenue growth, with annual Adjusted EBITDA margin expansion expected.

• Developing offerings segment projected to incur Adjusted EBITDA losses of $650–$750M in 2025.

• Effective income tax rate expected to remain temporarily high at 50–55% in 2025, with cash tax obligation closer to 40%.

• Long-term target for Product Commerce adjusted EBITDA margin is 10%+; consolidated adjusted EBITDA margin target is also higher, driven by scaling, efficiency, and supply chain optimization.