Coupang, Inc. (CPNG) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

August 10, 2022 5:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coupang Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

And now I'd like to turn the call over to Mike Parker, Vice President of Investor Relations. You may begin your conference.

Mike Parker

Thanks operator. Welcome everyone to Coupang, Inc.’s quarterly earnings conference call, for the second quarter ended June 30, 2022. I'm pleased to be joined on the call today by our Founder and CEO, Bom Kim; and our CFO, Gaurav Anand.

The following discussion, including responses to your questions, reflects management's views as of today’s date only. We do not undertake any obligation to update or revise this information, except as required by law. Certain statements made on today's call include forward-looking statements. You should not place undue reliance on forward-looking statements. Actual results may differ materially. Please refer to today's earnings release, as well as the risks and uncertainties described in our most recent quarterly report on Form 10-Q filed with the SEC on May 12, 2022, and in other filings made with the SEC, for information about factors which could cause our actual results to differ materially from these forward-looking statements.

During today's call, we will present both GAAP and non-GAAP financial measures. As a reminder, these numbers are unaudited and may be subject to change. Additional disclosures regarding these non-GAAP measures, including reconciliations of non-GAAP measures to the most comparable GAAP measures, are included in our earnings release and our SEC filings, which are posted on the company's Investor Relations website at ir.aboutcoupang.com.

And now, I’ll turn the call over to Bom.

Bom Kim

Thanks, everyone, for joining us today. Let me begin with some highlights from our second quarter operating results. First, we achieved an adjusted EBITDA of $66 million for the entire business, an improvement of $157 million quarter-over-quarter and $188 million year-over-year. Second, we recorded $1.2 billion in gross profit and 22.9% gross margin, representing a 250 basis point improvement quarter-over-quarter and 470 basis-point improvement net of the fire year-over-year. Third, constant currency revenues grew 27% year-over-year and 3% quarter-over-quarter, and revenue per active customer for the overall business grew 20% year-over-year and 4% quarter-over-quarter on a constant currency basis.