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CI

Coupang, Inc. (CPNG)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered double‑digit top-line growth and margin expansion: net revenues $7.91B (+11% YoY; +21% FX‑neutral), gross margin 29.3% (+217 bps YoY), adjusted EBITDA $382M (+36% YoY) . EPS was $0.06 and net income attributable to Coupang was $107M .
  • Against Street: EPS beat S&P Global consensus, while revenue missed. Actual EPS $0.054 vs $0.049 estimate; actual revenue $7.91B vs $8.02B estimate. Bold beat on EPS; modest revenue miss (values from S&P Global)*.
  • Management reaffirmed full‑year ~20% FX‑neutral consolidated growth, annual margin expansion, and Developing Offerings adjusted EBITDA losses of $650–$750M for 2025; effective tax rate expected 50–55% with cash tax ~40% .
  • Board authorized a $1B share repurchase program, adding an incremental capital‑return catalyst and potential stock support in volatile tapes .

What Went Well and What Went Wrong

What Went Well

  • Gross margin expanded to 29.3% (+217 bps YoY) on process improvements, automation, supply chain efficiencies, and mix shift to margin‑accretive categories .
  • Product Commerce segment continued to scale profitably: gross profit $2.15B (+17% YoY), gross margin 31.3% (+300+ bps YoY), segment adjusted EBITDA $550M (8.0% margin) .
  • Marketplace and FLC momentum: sellers, selection, and volumes growing at multiples of overall business; marketplace growth outpacing 1P, supporting long‑term margin trajectory .
  • Taiwan ramp: selection expanded ~500% QoQ; WOW membership launched, driving engagement and spend, underpinning confidence in international investment trajectory .

Management quotes:

  • “We began the year with a strong start… gross profit margin… 29.3%, and adjusted EBITDA margins… 4.8%” .
  • “FLC… growing at multiples of our overall business” .
  • “Our selection grew by nearly 500% this past quarter [in Taiwan]… WOW membership program launched” .

What Went Wrong

  • Revenue missed consensus ($7.91B vs $8.02B)*; management emphasized FX headwinds (KRW weakness) and urged constant‑currency evaluation (+21% YoY) .
  • OG&A rose to 27.3% of revenue (+~80 bps YoY) amid elevated technology and infrastructure investments; management expects ratio to decline near/medium term .
  • Developing Offerings loss widened QoQ to -$168M adjusted EBITDA as investments stepped up, consistent with FY guidance .
  • Effective tax rate was 47% in Q1, with full‑year 50–55% expected due to early‑stage international losses and nondeductibles; cash tax ~40% .
  • Net revenues per Product Commerce Active Customer declined to $294 (vs $302 YoY) on reported basis, reflecting cohort mix; constant‑currency spend per active grew +6% .

Financial Results

Quarterly performance vs prior periods

MetricQ3 2024Q4 2024Q1 2025
Total net revenues ($USD Billions)$7.87 $7.97 $7.91
Diluted EPS ($USD)$0.04 $0.08 $0.06
Gross profit ($USD Billions)$2.27 $2.49 $2.32
Gross margin (%)28.8% 31.3% 29.3%
Operating income ($USD Millions)$109 $312 $154
Adjusted EBITDA ($USD Millions)$343 $421 $382
Adjusted EBITDA margin (%)4.4% 5.3% 4.8%

Q1 2025 actual vs S&P Global consensus

MetricConsensusActualBeat/Miss
Revenue ($USD Billions)$8.02*$7.91 Miss*
EPS ($USD)$0.049*$0.054*Beat*

Values retrieved from S&P Global.*

Segment breakdown

Segment MetricQ3 2024Q4 2024Q1 2025
Product Commerce net revenues ($USD Billions)$6.89 $6.88 $6.87
Product Commerce gross profit ($USD Billions)$2.07 $2.25 $2.15
Product Commerce gross margin (%)30.0% 32.7% 31.3%
Product Commerce segment adjusted EBITDA ($USD Millions)$470 $539 $550
Developing Offerings net revenues ($USD Billions)$0.98 $1.08 $1.04
Developing Offerings gross profit ($USD Millions)$201 $240 $165
Developing Offerings segment adjusted EBITDA ($USD Millions)$(127) $(118) $(168)

KPIs

KPIQ3 2024Q4 2024Q1 2025
Product Commerce Active Customers (Millions)22.5 22.8 23.4
Net revenues per Product Commerce Active Customer ($USD)$307 $302 $294

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated revenue growth (FX‑neutral)FY 2025~20% YoY ~20% YoY (reaffirmed) Maintained
Adjusted EBITDA margin trajectoryFY 2025+Annual expansion, non‑linear QoQ Annual expansion reiterated Maintained
Developing Offerings adjusted EBITDAFY 2025$(650)–$(750)M $(650)–$(750)M (reaffirmed) Maintained
Effective tax rate (accounting)FY 202550–55% 50–55% (Q1 effective 47%) Maintained
Cash tax rateFY 2025~40% ~40% (reminder) Maintained
OG&A as % of revenueNear/medium termDecline expected over time Decline expected near/medium term Maintained
Share repurchase authorizationN/ANone disclosedUp to $1B program authorized New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
AI/tech investment & OG&AElevated tech/infrastructure spend; OG&A % up; expect leverage and decline over time OG&A at 27.3% (+~80 bps YoY); investments in automated picking/packing/sorting; OG&A expected to decline near/medium term Ongoing investment; leverage expected
FLC marketplace growthUnits/sellers/volumes +130% YoY; FLC growing at high multiple; marketplace ramp FLC sellers/selection/volumes growing at multiples of overall business; marketplace outpacing 1P Acceleration
Product Commerce marginsMargin expansion driven by automation, supply chain optimization; PC adj. EBITDA margin 7.8% in Q4 PC gross margin 31.3%; PC adj. EBITDA margin 8.0% Continued expansion
Taiwan international expansionQ4: strong momentum; WOW launched; 23% QoQ revenue growth Selection +~500% QoQ; WOW launched; higher engagement and spend Strengthening
Eats2024 momentum; loss improvements in Q4; free delivery and low merchant fees Sustained momentum in growth and margin; room to grow outside Seoul Steady scaling
FarfetchReached near breakeven in Q3; Q4 seasonal profitability; continued streamlining Positioning for next expansion phase; encouraging operational results Stabilizing
Macro/tariffsGuidance ~20% CC growth; limited susceptibility to U.S. tariffs; monitor macro Limited impact observed on core consumer and model; continue monitoring Neutral
Capital allocationNo buyback disclosed in Q3/Q4$1B repurchase authorization; opportunistic disciplines New program

Management Commentary

  • Customer experience and margin expansion: “Our investments in technology, innovation, automation and robotics are generating substantial benefits… improving the customer experience while also lowering the cost of service” .
  • FLC as growth engine: “FLC… has quickly become a tremendous growth engine… lowering the barriers to success for tens of thousands of small businesses” .
  • International confidence: “Our selection grew by nearly 500% this past quarter [in Taiwan]… our continued investment reflects our rising confidence” .
  • Capital returns: “Our Board… approved a $1 billion share repurchase program… we will be thoughtful and disciplined… committed to generating the highest levels of long-term shareholder value” .

Q&A Highlights

  • Macro/tariffs and growth outlook: Management reiterated ~20% CC consolidated growth and limited impact from U.S. tariff developments; will update if outlook changes .
  • Share repurchase details: No fixed term; opportunistic and disciplined pace within broader capital allocation priorities .
  • Taiwan traction: Selection +~500% QoQ; WOW membership in its first full month; expecting more change in coming quarters as initiatives scale .
  • FLC/marketplace mix: FLC growing at high multiples; marketplace (3P) growing faster than 1P; penetration still early vs peers .
  • OG&A/tech cycle: Elevated tech/infrastructure spend timing‑driven; not structural; OG&A expected to decline as % of revenue near/medium term .

Estimates Context

  • Q1 2025: EPS beat and revenue miss vs S&P Global consensus (EPS $0.054 vs $0.049; Revenue $7.91B vs $8.02B)*.
  • Q4 2024: EPS beat vs S&P consensus (Primary EPS actual 0.04 vs 0.0085 estimate), revenue miss ($7.97B actual vs $8.14B estimate)*.
  • Q3 2024: EPS beat (0.06 actual vs 0.0095 estimate) and revenue beat ($7.87B actual vs $7.76B estimate)*.

Values retrieved from S&P Global.*

PeriodRevenue Consensus Mean ($USD Billions)Revenue Actual ($USD Billions)EPS Consensus Mean ($USD)EPS Actual ($USD)
Q3 20247.76*7.87 0.0095*0.06*
Q4 20248.14*7.97 0.0085*0.04*
Q1 20258.02*7.91 0.0494*0.0539*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Mix‑led margin trajectory intact: Gross margin expanded +217 bps YoY to 29.3% and Product Commerce margin reached 31.3%, supported by automation, supply chain optimization, and margin‑accretive categories .
  • Marketplace/FLC flywheel strengthening: FLC growth at multiples of overall business with marketplace outpacing 1P, a positive long‑term driver of margins and cash generation .
  • International optionality: Taiwan selection and WOW launch indicate accelerating engagement; management is confident in medium/long‑term value creation .
  • Near‑term print dynamics: Expect continued focus on FX‑neutral growth (~20% for FY25) and annual margin expansion; quarterly margins may be non‑linear .
  • Investment cadence and OG&A: Elevated OG&A from tech/infrastructure should dilute quarterly margins in the near term, but management guides for leverage over time .
  • Developing Offerings investment: FY25 adjusted EBITDA loss guide $(650)–$(750)M suggests continued investment in Eats, International, Farfetch; monitor quarterly loss cadence and scaling signals .
  • Capital return catalyst: New $1B buyback provides downside support and flexibility to absorb volatility; expect opportunistic execution .

Additional Q1 2025 Materials

  • Earnings press release and detailed financials were issued on May 6, 2025 .
  • Earnings call held May 6, 2025; transcript covers prepared remarks and Q&A – –.
  • Earnings announcement schedule press release (date/time) published April 22, 2025 .

Notes: For the partnership press release dated April 23, 2025, the document could not be retrieved due to a database inconsistency. The analysis above relies on available Q1 earnings materials and prior quarter filings.