Coupang(CPNG) - 2023 Q2 - Quarterly Report

Financial Performance - Total net revenues for Q2 2023 reached $11,638,419, representing a 15$11,339,939 in net revenues, a 16% increase compared to the previous year[144] - Developing Offerings segment reported net revenues of $298,480, reflecting a 12$300,224, compared to $66,172 in Q2 2022, showing significant improvement[146] - Net income for Q2 2023 was$145,192, a recovery from a net loss of $75,491 in Q2 2022[145] - Operating income for Q2 2023 was$147,642, compared to an operating loss of $67,143 in Q2 2022[145] - Free cash flow for Q2 2023 was$449,898 thousand, a significant improvement from a negative $195,465 thousand in Q2 2022[195] - The company reported a total net revenue of$11,638,419 thousand for the six months ended June 30, 2023, a 15% increase from $10,154,507 thousand in the same period of 2022[171] Customer Metrics - Active Customers increased, indicating growth potential for total net revenues and customer engagement[140] - Active Customers increased to 19,713 thousand as of June 30, 2023, up from 19,010 thousand as of March 31, 2023[163] - Net revenues per Active Customer decreased slightly to$296 in Q2 2023 from $305 in Q1 2023, indicating a focus on customer engagement and retention[163][164] Revenue Segments - Product Commerce revenues were$5,681,590 thousand for Q2 2023, a 16% increase from $4,877,531 thousand in Q2 2022[173] - Total net revenues for Q2 2023 from Product Commerce segment reached$407,597 thousand, up from $97,840 thousand in Q2 2022, indicating a substantial increase[208] - Net other revenue increased by 25$697,543 thousand in Q2 2023, compared to $556,656 thousand in Q2 2022[171] Cost and Expenses - Cost of sales increased to$4,314,101, an 11% rise compared to the same quarter last year[145] - Cost of sales as a percentage of revenue decreased from 77.1% in Q2 2022 to 73.9% in Q2 2023, driven by operational efficiencies and higher margin revenue categories[203] Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2023, was $1,321,054 thousand, compared to a negative$73,201 thousand for the same period in 2022, reflecting a year-over-year increase of $1,394,255 thousand[211] - Net cash used in investing activities for the six months ended June 30, 2023, was$512,120 thousand, compared to $429,698 thousand in the same period of 2022[211] - The company has seen a$296 million decrease in repayments of debt and short-term borrowings, indicating improved cash flow management[182] - The company plans to seek additional cash resources for future investments, acquisitions, or strategic cooperation, which may include technology and logistics infrastructure[213] Tax and Interest - Cash paid for income taxes in the first half of 2023 was $39,329, compared to$1,341 in the same period of 2022[152] - The effective income tax rate for the six months ended June 30, 2023, was 20.0%, a significant increase from (0.2%) in the prior year, reflecting strong operating results[207] - Interest income increased significantly to $41,630 from$7,364 in the previous year[146] - Interest income for Q2 2023 increased by $34 million compared to the prior year, primarily due to higher interest rates and increased average cash balances[205] Strategic Focus and Challenges - The company is focused on expanding its logistics and technology network, which supports free, next-day delivery across millions of products[159] - The company is currently involved in investigations by the Korean Fair Trade Commission, which may result in fines or changes to business practices, but the financial impact remains uncertain[157] - The company emphasizes the importance of constant currency revenue growth for understanding performance, particularly given fluctuations in foreign exchange rates[194] Cash Position - The company had total cash, cash equivalents, and restricted cash of$4.7 billion as of June 30, 2023, with $3.0 billion held by foreign subsidiaries[209]