Coupang set a record for quarterly revenue in the first quarter of this year. The businesses in Taiwan and Farfetch have emerged as key growth drivers.
On the 7th (Korea time), Coupang reported in its earnings report submitted to the U.S. Securities and Exchange Commission (SEC) that its first-quarter revenue reached 11.4876 trillion won ($790 million), reflecting a 21% increase compared to the same period last year. Operating profit for the same period was 233.7 billion won ($154 million), which is an increase of about 340% compared to the previous year.
Growth businesses such as Taiwan's Rocket Delivery and Farfetch saw revenue in won terms (1.5078 trillion won) increase by 78% year over year, driving overall performance growth. The Product Commerce business, including Rocket Delivery and Rocket Fresh, also grew by 16%. The number of active customers in Product Commerce increased by 9% compared to the same period last year, reaching 23.4 million.
In the earnings call that day, Chairman Bom Kim noted, "Providing the 'WOW' experience that resonated with Korean consumers in Taiwan has driven our performance," and stated, "In just this quarter, the product categories in Taiwan expanded by nearly 500%."
Regarding this performance, Kim stated, "The consistent trend of achieving robust growth while expanding margins is the fruition of years of investment and effort to provide the best customer experience through cost minimization," and added, "By expanding product categories, prices are lowered, and we're focusing on raising the standard of the delivery experience, leading to growth that is several times that of the Korean retail market."
◇ "Rocket Delivery of Coca-Cola, Pepsi, P&G in Taiwan… Product categories expanded by 500%"
Chairman Kim mentioned, "We are building a foundation for greater growth and profitability through investments in growth businesses" and explained that Coupang is establishing supply chains with global brands like Coca-Cola, Pepsi, P&G, and Unicharm for Rocket Delivery to increase local customer touchpoints. This explains that the product categories in Taiwan expanded nearly 500% in this quarter.
Coupang's paid membership 'Wow Membership', which started in Taiwan this first quarter, has also increased customer revisit frequency and expenditure. Kim stated, "Just like the Wow Membership in Korea, it provides tremendous value and discount benefits to Wow members, stimulating member spending," remarking that continued investment in the Taiwanese market reflects confidence in the local market.
He continued, "If we maintain the capital allocation principles that drove our early success at the same level, I am confident that we will create significant shareholder value by following a growth trajectory similar to that of Product Commerce in the medium to long term."
Regarding the luxury e-commerce Farfetch, Kim stated, "We are reorganizing the business for expansion into the next phase" and added, "To provide the world's best luxury products and experiences to customers anywhere in the world, we have made significant progress by streamlining operations and customer service over the past few quarters."
After undergoing management difficulties and a bankruptcy crisis, luxury e-commerce 'Farfetch' achieved an adjusted EBITDA profit of 41.8 billion won in the fourth quarter last year, just one year after its acquisition. Coupang Eats also maintained stable growth in this quarter.
◇ Beauty vertical 'R.LUX', expanding product offerings... Rocket Growth lowers success barriers for small businesses
New Rocket Delivery content, including the beauty vertical service R.LUX, received positive responses from customers. R.LUX is servicing famous brands like Estée Lauder, Lancôme, Kiehl's, Dolce & Gabbana, and Jo Malone, in addition to existing brands. Additionally, the range of Rocket Delivery has expanded to include same-day, early morning, and next-day delivery options.
Chairman Kim noted, "With the expansion of product categories, the number of purchasing customers increased by over 25% in more than 9 categories this quarter," and stated, "Investing in faster and more stable delivery of product categories increases customers' retail expenditure, creating a virtuous cycle that leads to further expansion of products."
The 'Rocket Growth' (FLC) business, which supports Rocket Delivery for marketplace sellers, also showed high growth rates. By handling everything from handling, storage, packaging, shipping, to returns, it has lowered the success barriers for tens of thousands of small businesses.
Investments in automation and robotics were also effective. Chairman Kim emphasized, "This quarter, the automated picking, packaging, and sorting systems have advanced, and we have gained insights into accurately predicting demand and managing inventory using machine learning," adding, "Along with a focus on operational excellence, we continuously improved customer experience while reducing service expenses."
◇ Launching a $1 billion share buyback program... Strengthening 'shareholder return' policy
In the first quarter, Coupang's operating management expense (OG&A) was $2.162 billion. The ratio to revenue was 27.3%, up 0.8 percentage points year over year. Gross profit increased by 28% in won terms. Coupang explained that improvements in processes, automation, innovation investments, and supply chain enhancements would contribute to annual margin expansion in the coming quarters and years.
The adjusted EBITDA loss for the first quarter from growth businesses like Farfetch and Taiwan was recorded at $168 million. This reflects increased investments aligned with the 2025 guidance. Coupang stated that the forecast for the adjusted EBITDA loss this year would remain valid, estimating between $650 million and $750 million.
Coupang also announced a new share buyback policy on the same day. Chief Financial Officer (CFO) Gaurav Anand reported that the board approved a $1 billion (about 1.4 trillion won) share buyback program. Coupang previously bought back $177.9 million worth of shares from its early investor, Maverick Holdings, in April last year.
CFO Gaurav Anand stated, "This level of large-scale share buyback is unprecedented, and it is important to secure flexibility to utilize it whenever opportunities arise," and added, "Considering capital allocation priorities, we will carefully and rigorously decide the pace of the share buyback. We will do our best to generate the highest level of long-term shareholder value."