Turning around a multibillion-dollar business is no small feat! Huge thanks to our teams at Farfetch and Coupang for their hard work and dedication.
Excited to continue making structural and thoughtful changes to the business, and for what lies ahead as we continue to innovate and grow!
Coupang (NYSE: CPNG) Q3 2024 Results
- Net revenues: $7.9B, up 27% YoY (32% FX-neutral)
- Gross profit: $2.3B, up 45% YoY
- Gross profit margin: 28.8%, +350 bps YoY
- Operating cash flow: $1.8B for the trailing 12-months
- Free cash flow: $935M for the trailing 12-months
- Developing Offerings segment (including Farfetch) net revenues were $975 million, up 347% YoY on a reported basis; excluding Farfetch, the growth was 146% YoY
CFO Commentary
"This quarter we continued the strong momentum we've seen throughout this year, delivering robust growth in revenues and margins. Our newer offerings and categories, like Fulfillment and Logistics by Coupang (FLC) and R.Lux, a new luxury offering, are examples of the massive growth opportunity from selection expansion on Rocket Delivery. We also achieved an important milestone in Developing Offerings this quarter, reaching near break-even profitability in Farfetch, earlier than planned. We remain focused on our relentless pursuit of customer wow and operational excellence."
— Gaurav Anand, CFO, Coupang
CEO Commentary
"We're very happy that the Farfetch team has achieved the end of year goal of near breakeven adjusted EBITDA in Q3. We're proud of the speed and especially its scale and the discipline with which the team has executed so far this year. There's still work to do there. And our goal is to finish the job of stabilization through the remainder of the year. Next year, we'll begin to assess other opportunities including synergies with Coupang, and we look forward to sharing updates at the appropriate time."
— Bom Kim, Founder and CEO, Coupang
Context and Performance Evolution
We completed the Farfetch acquisition at the end of Jan 2024.
Commitment in Q1 2024 earnings: "With the addition of Farfetch results in our Developing Offerings segment, we now estimate that our 2024 adjusted EBITDA losses for Developing Offerings will be around $750 million, an increase of just $100 million. We also anticipate that Farfetch will achieve close to positive adjusted EBITDA on a run-rate basis by the end of 2024."
Farfetch Adjusted EBITDA — Actual Results
| Period | Adjusted EBITDA |
|---|---|
| Q1 2024 (Feb and March) | -$31M |
| Q2 2024 | -$31M |
| Q3 2024 | -$2M |
| Total YTD (9 months) | -$64M |
| Q4 2024 | Stay tuned 🏆 |