Coupang Reports 24% Revenue Growth to $30.3 Billion, Net Income Declines 95%

Coupang, Inc. reported significant financial results for the fiscal year ending December 31, 2024, with total net revenues reaching $30.3 billion, a 24% increase from $24.4 billion in 2023. The company attributed this growth to a 12% rise in net retail sales, which amounted to $23.9 billion, and a substantial 103% increase in net other revenue, which totaled $6.4 billion. However, despite the revenue growth, Coupang's net income sharply declined to $66 million, down 95% from $1.36 billion in the previous year, primarily due to a $121 million administrative fine imposed by the Korea Fair Trade Commission and increased operational costs associated with the acquisition of Farfetch.

The company's operational metrics showed a mixed performance. Coupang's Product Commerce segment, which includes its core retail and marketplace offerings, generated an adjusted EBITDA of $2 billion, a 30% increase from the previous year. In contrast, the Developing Offerings segment, which includes services like Coupang Eats and the newly acquired Farfetch, reported an adjusted EBITDA loss of $631 million, reflecting the costs associated with expanding these services. The total number of Product Commerce Active Customers increased by 10% year-over-year, reaching 22.8 million by the end of 2024, indicating strong customer engagement.

Coupang's strategic developments included the acquisition of Farfetch in January 2024, which is expected to enhance its position in the luxury retail market. The integration of Farfetch is ongoing, and the company has acknowledged the challenges associated with this acquisition, including the need for restructuring and potential impacts on financial performance. Additionally, Coupang has been expanding its fulfillment and logistics infrastructure, with over 67 million square feet of space leased or owned across various regions, including South Korea and the United States.

The company reported a total employee headcount of approximately 95,000 as of December 31, 2024, making it one of the largest private sector employers in South Korea. Coupang's commitment to employee welfare is evident through its investments in health and safety initiatives, which have contributed to a strong safety record in the logistics industry. Looking ahead, Coupang anticipates continued investments in technology and infrastructure to support its growth strategy, although it acknowledges the potential for fluctuations in revenue and profitability due to market conditions and operational challenges.