Core Viewpoint - Coupang's stock has experienced significant volatility since its IPO, losing over 50% of its value but recovering 130% from its May 2022 low, raising questions about the timing for potential investors [1][10]. Group 1: Growth Prospects - Coupang operates in a relatively small market with an addressable population of less than 100 million, compared to competitors like MercadoLibre, which serves over 650 million [2]. - The company has a strong logistics network with over 100 fulfillment centers in South Korea, enabling same-day or next-day delivery for 70% of the population [3]. - The South Korean e-commerce market is projected to grow at a compound annual growth rate (CAGR) of 22%, suggesting ongoing growth potential for Coupang [4]. Group 2: Financial Performance - Coupang's revenue for 2024 is projected to exceed $30 billion, reflecting a 24% increase year-over-year [5]. - The company reported a net income of $66 million in 2024, impacted by a one-time income tax benefit of $776 million in 2023, but generated over $1 billion in free cash flow [5]. - Revenue growth is expected to slow to 14% in 2025, with a slight recovery to 15% in 2026, which may concern investors [6]. Group 3: Valuation Metrics - Coupang's price-to-free cash flow ratio is around 39, above the historical average of 34, indicating a potentially expensive valuation [7]. - The price-to-sales (P/S) ratio has remained stable at 1.3, showing little variance in recent years [7]. - Despite the mixed valuation metrics, the perception of Coupang as a lucrative opportunity may still attract buyers [8]. Group 4: Investment Timing - Current conditions suggest it may not be too late to buy Coupang stock, but the timing may not present a lucrative opportunity given the slowing revenue growth [9][11]. - The stock has significantly declined since its IPO, losing over 80% of its value by May 2022, and even with a recovery, it remains below its all-time high [10].

Core Viewpoint - Growth stocks are experiencing significant volatility in the current bear market, with many down 20% to 30% in a short period, presenting potential buying opportunities for long-term investors [1][2] Group 1: Coupang - Coupang is a South Korean online marketplace similar to Amazon, insulated from U.S. tariff impacts as it does not sell into the U.S. market [4] - The company reported a 24% year-over-year revenue growth to $30.3 billion in 2024, with potential for further growth as the U.S. dollar depreciates against foreign currencies [5] - Coupang offers a wide range of services, including ultra-fast delivery, video streaming, and grocery delivery, which enhances its competitive edge [6] - With a small share of the South Korean retail market, Coupang has significant growth potential, projecting revenues to reach $50 billion and earnings of $5 billion in the coming years [7] - The current market cap is under $40 billion, with a forward P/E ratio below 8, indicating it is undervalued for a fast-growing company [8] Group 2: Alphabet - Alphabet, the parent company of Google, is facing challenges due to concerns over AI competition, with a trailing P/E ratio of 18, below the S&P 500 average of 27 [9] - Despite criticisms, Alphabet is a leading developer of AI technology, with advantages from its proprietary AI-focused computer chips [10] - The company views AI as an opportunity for growth in Google Search, YouTube, and Google Cloud, rather than a competitive threat [11] - Alphabet's financials reflect growth, with Google Cloud revenue increasing by 30%, YouTube advertising by 14%, and Google Search revenue reaching $54 billion in Q4 2024 [12] - The company is also repurchasing stock and has initiated dividend payments, making it an attractive long-term investment [13]

Group 1 - Coupang's shares experienced a 7% decline due to external market concerns, despite no direct impact on the company's operations [1][2] - The current share price is 25% below its one-year highs, presenting a potential investment opportunity [2] - Coupang's revenue and gross profit are projected to grow by 24% and 29% respectively in 2024, indicating strong business performance [3] Group 2 - Although net income and free cash flow (FCF) decreased in 2024, these declines are attributed to strategic investments in future growth, including automation and new infrastructure [4] - Coupang's sales in Taiwan increased by 23% quarter over quarter, highlighting the potential of this new growth market [5] - The acquisition of Farfetch has transformed it into a breakeven business, showcasing the effectiveness of Coupang's integration strategies [5] Group 3 - Coupang is currently trading at 20 times cash from operations, suggesting it could generate significant free cash flow if not for its heavy capital expenditures [6]

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Core Insights - Coupang's stock is experiencing an after-hours rise following strong fourth-quarter earnings results, contrasting with the decline in technology and AI stocks in February [1] - The company has surpassed $30 billion in annual revenue, indicating significant growth potential ahead [2] Financial Performance - For Q4 2024, Coupang reported a 21% year-over-year revenue increase to $8 billion, with growth observed on both organic and foreign currency neutral bases [3] - Gross profit grew by 48% year over year, with an adjusted gross margin of 29%, up from 25% a year ago, indicating profitable growth [4] - Despite a net income drop to $131 million due to major investments, Coupang generated $1 billion in free cash flow for the full year, showcasing a healthy financial position [5] Growth Segments - The Developing Offerings segment, which includes international e-commerce, financial technology, and food delivery, saw revenue growth exceeding 300% year over year, reaching $1.1 billion in quarterly revenue [6] - The core e-commerce marketplace in South Korea remains robust, with active customer spending increasing by 6% year over year on a foreign currency neutral basis [8] Customer Dynamics - Total active customers grew by 10% year over year to 22.8 million in Q4 2024, with new customers starting at higher spending levels, indicating potential for continued growth [8] Valuation and Future Outlook - Coupang aims for an adjusted profit margin of 10%, supported by efficient operations and strong free cash flow generation [9] - With the potential to exceed $50 billion in revenue in the coming years, the company could achieve over $5 billion in annual free cash flow at a 10% margin [10] - The current market cap of under $43 billion suggests that Coupang's stock is undervalued, especially given its growth trajectory and profitability metrics [11]

Shares of Coupang (CPNG 6.62%) were moving higher today after the technology company reported better-than-expected results in its fourth-quarter earnings report. As of 11:44 a.m. ET, the stock was up 4.6%. Coupang keeps growingCoupang -- which is headquartered in Seattle, operates in several countries, and generates sales primarily in South Korea -- has embraced an Amazon-like business model, with e-commerce anchoring a number of satellite businesses. It said that revenue in the quarter rose 21%, or 28% on ...

The e-commerce platform operator came up a bit short on revenue in the fourth quarter, but beat expectations on earnings per share.Coupang (CPNG 4.43%), a U.S.-based e-commerce powerhouse that largely does business in South Korea, disclosed its fourth-quarter results on Feb. 25. The most noteworthy metric was its earnings per share (EPS) of $0.08, which significantly outperformed the expected $0.01 with some help from a one-time insurance gain. However, revenues of $7.965 billion fell short of projections o ...

Coupang (NYSE:CPNG) Q4 2024 Earnings Conference Call February 20, 2024 5:30 PM ET Company Participants Mike Parker - VP, IR Bom Kim - CEO and Chairman Gaurav Anand - CFO Conference Call Participants Stanley Yang - JPMorgan Eric Cha - Goldman Sachs Seyon Park - Morgan Stanley 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 2024 Fourth Quarter Earnings Conference Call. All lines have be ...

Financial Performance and Risks - The company reported a history of net losses, with losses of $(0.1) billion in 2022 and $(1.5) billion in 2021, and an accumulated deficit of $(4.2) billion as of December 31, 2024[58]. - The company has experienced fluctuations in revenue and results of operations, making future performance difficult to predict[53]. - The company acknowledges that its growth may not be sustainable and that future revenue growth rates could decline[53]. - Increased costs related to food, energy, labor, and other factors may materially impact the company's operating costs and financial performance[136]. - The company may require additional capital for growth, which might not be available on favorable terms, potentially impairing business development[158]. - The company is subject to various legal proceedings, including claims and investigations related to employment, labor, and intellectual property, which could result in significant liabilities and expenses[226]. Competition and Market Position - The company faces intense competition and must innovate to avoid losing market share, which could adversely affect its financial performance[51]. - The company faces intense competition from both online and offline retailers, which may impact its market position and operational results[88]. - Competitors may leverage greater resources for marketing and innovation, increasing competitive pressures on the company[90]. - The company faces competitive pressures from rivals with advantages such as longer operating histories and better brand recognition, which could adversely affect its business and financial condition[94]. Growth and Expansion Strategies - The company plans to continue investing significantly to increase its customer base and expand its offerings, which may lead to increased operating expenses[59]. - The company intends to expand its product offerings and enhance customer satisfaction through its Rocket WOW membership program[66]. - The company has expanded its offerings into new categories and geographies, including consumer electronics and luxury products, which may expose it to new risks and challenges[99]. - The company expects continued investment in Farfetch's operating expenses and headcount, which may not guarantee success[71]. - The company has experienced significant growth and plans to continue increasing its employee headcount to support this growth[74]. Operational Challenges and Risks - The acquisition of Farfetch introduces risks related to integration and operations in new geographic areas, which may impact the company's financial condition[51]. - The company may encounter challenges in securing suitable facilities for fulfillment operations, which could adversely affect its business[84]. - The company must effectively manage growth and operational challenges to avoid negatively impacting its financial condition and results of operations[79]. - The company may face challenges in integrating acquired businesses, which could disrupt operations and divert management attention[123]. - Service interruptions and delivery delays caused by external factors could negatively affect customer satisfaction and the company's financial condition[140]. Regulatory and Compliance Issues - The company is subject to regulatory risks associated with Coupang Pay, which could lead to fines, penalties, and operational restrictions if compliance is not maintained[135]. - The company is subject to heightened governmental scrutiny, which may increase the risk of litigation and adversely affect its business[170]. - The company is under scrutiny by the Korean Fair Trade Commission (KFTC) regarding transactions with subsidiaries, which could lead to fines or other actions[177]. - The company is subject to increased legal, accounting, and financial compliance costs as a public reporting company, which may strain resources and divert management's attention[166]. - The company may incur substantial costs to comply with privacy and cybersecurity laws, which could impact its growth strategy and customer retention[223]. Supply Chain and Inventory Management - The company faces significant inventory risks due to seasonality, new product launches, and changes in customer demand, which could materially impact operations[117]. - Seasonal fluctuations in sales are expected, particularly during holidays like Chuseok and Lunar New Year, leading to variable quarterly results and potential inventory markdowns[118]. - The company relies on various third-party providers for essential services, and any failure in these services could materially affect business operations[149]. - The company depends on its merchants to provide a high-quality experience, and any negative customer experiences could harm its reputation and ability to attract customers[137]. Technology and Innovation - The company is investing significantly in technology and research and development to enhance operations and explore new growth strategies, but these investments may not yield immediate financial returns[109]. - The company utilizes AI and machine learning technologies, which present risks such as operational disruptions and data security breaches that could adversely affect its business[246]. - The evolving regulatory landscape surrounding AI and machine learning may require significant compliance costs and changes to business practices[246]. Economic and Geopolitical Factors - The Korean economy's performance significantly impacts Coupang Corp.'s revenue, with a substantial majority generated from sales in Korea, making it vulnerable to economic downturns and uncertainties[184]. - Potential adverse developments in Korea's economy include declines in consumer disposable income, political instability, and increased household debt, which could negatively affect customer spending[185]. - Tensions with North Korea pose a risk to Coupang Corp.'s business, financial condition, and stock price due to potential military hostilities and geopolitical instability[189]. Legal and Taxation Issues - The company is subject to taxes in multiple jurisdictions including the United States, Korea, China, Taiwan, and the United Kingdom, complicating tax liabilities[249]. - The company may face challenges in enforcing judgments obtained in courts outside Korea, complicating legal proceedings for investors[198]. - The company faces risks related to compliance with anti-corruption and anti-money laundering laws, which could lead to substantial civil and criminal penalties[229].

Financial Performance - Total net revenues for Q4 2024 were $8.0 billion, up 21% YoY and 28% on an FX-neutral basis[5] - Total net revenues for FY2024 were $30.3 billion, increasing 24% YoY on a reported basis and 29% YoY on an FX-neutral basis[5] - Total net revenues for the year ended December 31, 2024, were $30,268 million, up 24.5% from $24,383 million in 2023[23] - Total net revenues for Q4 2024 reached $7,965 million, representing a year-over-year growth of 21%[45] - Total net revenues for Q4 2024 were $8,395 million, representing a year-over-year growth of 28%[38] - Total net revenues for the year ended December 31, 2024, were $31,552 million, a 29% increase compared to 2023[38] - Total net revenues excluding Farfetch for Q4 2024 were $7,494 million, compared to $6,561 million in Q4 2023, indicating a growth of 14.2%[44] - Total net revenues excluding Farfetch for the year ended December 31, 2024, were $28,610 million, a 17% increase compared to 2023[45] Segment Performance - Product Commerce segment net revenues reached $6.9 billion, up 9% YoY on a reported basis and 16% YoY on an FX-neutral basis[9] - Developing Offerings segment net revenues were $1.1 billion, up 296% YoY on a reported basis and 308% YoY on an FX-neutral basis[5] - Product Commerce net revenues reached $7,280 million in Q4 2024, with a year-over-year growth of 16%[38] - Developing Offerings net revenues for Q4 2024 were $1,115 million, showing a significant year-over-year growth of 308%[38] - Developing Offerings net revenues excluding Farfetch for the year ended December 31, 2024, were $1,911 million, a 142% increase from 2023[47] Profitability Metrics - Gross profit for Q4 2024 increased 48% YoY to $2.5 billion, with a gross profit margin of 31.3%, an improvement of 570 bps YoY[5] - Net income attributable to Coupang stockholders was $156 million, a decrease of $876 million from last year due to a non-cash tax benefit in Q4 2023[5] - Net income attributable to Coupang shareholders for Q4 2024 was $156 million, a decrease of 84.9% compared to $1,032 million in Q4 2023[43] - Basic earnings per share for Q4 2024 was $0.09, down from $0.58 in Q4 2023[23] - Adjusted EBITDA for Q4 2024 was $421 million, with a margin of 5.3%, up 80 bps YoY[5] - Adjusted EBITDA for the year ended December 31, 2024, was $1,375 million, up 28.1% from $1,074 million in 2023, with an adjusted EBITDA margin of 4.5%[1] - Adjusted net income attributable to Coupang stockholders excluding the impact from the FC Fire insurance gain was $24 million for Q4 2024, down from $1,032 million in Q4 2023[43] Cash Flow and Assets - Free cash flow for the full year was $1.0 billion, a decrease of 43% YoY[7] - Free cash flow for Q4 2024 was $463 million, an increase from $382 million in Q4 2023[39] - Cash and cash equivalents as of December 31, 2024, totaled $5,879 million, an increase from $5,243 million in 2023[25] - Total assets increased to $15,344 million as of December 31, 2024, compared to $13,346 million in 2023[25] - Net cash provided by operating activities for 2024 was $1,886 million, down from $2,652 million in 2023[27] - The company reported a net cash provided by operating activities of $676 million for Q4 2024, compared to $609 million in Q4 2023[39] Liabilities and Noncontrolling Interests - Coupang's total liabilities increased to $11,167 million as of December 31, 2024, from $9,242 million in 2023[25] - The company reported a net loss attributable to noncontrolling interests of $25 million in Q4 2024[23] - The company reported a net loss attributable to noncontrolling interests of $25 million for Q4 2024, compared to no loss in Q4 2023[1] Other Notable Points - The acquisition of Farfetch was completed at the end of January 2024, impacting the Developing Offerings segment results[12] - The company emphasizes the importance of constant currency revenue for understanding period-to-period comparisons, particularly due to foreign exchange rate effects[35] - Adjusted gross profit for Q4 2024 was $2,491 million, with an adjusted gross profit margin of 29.0%[45] - The gross profit margin excluding the impact from the FC Fire insurance gain was 29.8% for Q4 2024, up from 25.6% in Q4 2023[45] - Adjusted basic earnings per share for Q4 2024 was $0.01, compared to $0.58 in Q4 2023, reflecting the impact of the FC Fire insurance gain[42]