Korean e-commerce giant Coupang reported record quarterly revenue of over $8 billion in the second quarter, swinging to a profit on solid core commerce and growing new businesses.
According to the NYSE-listed firm on Wednesday, sales in the April–June period rose 19 percent on-year on an FX-neutral basis to $8.52 billion, marking its first quarter to surpass the $8 billion mark.
Its profit swung into the black, with operating income reaching $149 million, up $53 million when excluding the impact of a Fair Trade Commission fine last year related to alleged search algorithm manipulation. Net profit came in at $31 million, reversing a $105 million loss from the same period a year earlier.
Coupang founder and CEO Kim Bom highlighted the company’s Product Commerce segment, comprising Rocket Delivery, Rocket Fresh, Rocket Growth and Marketplace, as the main driver of revenue.
“The majority of revenue growth (of Product Commerce) this quarter was driven by our existing customers, with all customer cohorts, even the most mature, demonstrating robust double-digit spending increases,” he said during the second-quarter earnings call.
Coupang’s Product Commerce segment saw revenue rise 17 percent to $7.33 billion, while the number of active customers climbed 10 percent to 23.9 million.
According to Kim, Coupang added 500,000 new items to Rocket Delivery during the quarter, which helped boost same-day and overnight delivery volumes by more than 40 percent year-over-year.
“The Product Commerce segment (is) where we’re rapidly expanding Rocket selection while continuing to redefine customer expectations around delivery speed," he added.
The company’s Developing Offerings segment, which includes Taiwan Rocket Delivery, Farfetch, Coupang Eats and Coupang Play, delivered $1.19 billion in revenue, a 33 percent increase from a year earlier.
Among the engines of growth was Taiwan, where Coupang launched operations in 2021, bringing its hallmark Rocket Delivery and WOW membership services to market.
Kim said the Taiwan delivery business is growing “faster and stronger” than the company’s optimistic forecasts, adding that second-quarter revenue rose 54 percent quarter-over-quarter. “Year-over-year revenue growth was triple digits in the second quarter, and we expect that to be even higher in the third quarter.”
The company also shared a positive outlook for continued growth in Coupang Play and Coupang Eats.
For Coupang Play, it launched Sports Pass during the quarter, a new offering that provides access to a wider range of popular live sports content.
Coupang Eats, the company’s food delivery platform, maintained what Kim described as “strong momentum,” thanks to curated product selection and reliable delivery speed.
Still, losses widened in the growth segment. Adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, showed a loss of $235 million, an increase of $35 million from the previous year.
Coupang CFO Gaurav Anand said the losses reflect increased investment tied to accelerated growth in Taiwan.
“This investment is a reflection of the increasing level of confidence we have in the near- and long-term potential for these offerings,” he said, expressing optimism about the rising pace of customer spending that is fueling further investment in Taiwan.
minmin@heraldcorp.com
