Coupang, Inc. (NYSE:CPNG) Q4 2023 Earnings Conference Call February 27, 2024 5:30 PM ET

Company Participants

Mike Parker - VP of IR

Bom Kim - Founder and CEO

Gaurav Anand - CFO

Conference Call Participants

Stanley Yang - JP Morgan

Eric Cha - Goldman Sachs

Seyon Park - Morgan Stanley

James Lee - Mizuho

Jiong Shao - Barclays

Operator

Hello, everyone. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coupang 2023 Fourth Quarter 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.

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's fourth quarter 2023 earnings conference call. 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. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and in our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings.

During today's call, we may present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable GAAP measures, are included in our earnings release, our slides accompanying this webcast, and our SEC filings, which are posted on the Company's Investor Relations website.

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

Bom Kim

Thanks, everyone, for joining us today. The fourth quarter of 2023 caps a year of accelerating growth, record profits, and expanding free cash flows for our business. We believe that creating moments of WOW for customers across selection, price, and service formed the foundation for long-term growth, profitability, and ultimately free cash flow, which serves as the basis of long-term shareholder value.

In 2023, our growth in both active customers and revenues accelerated every quarter. In Q1, we began the year with 5% year-over-year growth in active customers. In Q4, our active customers grew 16% year-over-year. And the spend of every annual customer cohort is growing over 15%, even our oldest cohorts. In Q1, our revenues grew at 20% year-over-year on a constant currency basis. Apples to apples, without the FLC accounting change we made in Q2, our Q4 revenue growth rate would have been over 900 basis points higher than our Q1 growth rate of 20%.