252 annotations
Operating, general and administrative expenses as a percentage of revenue decreased from 24.1% for 2021 to 23.4% for 2022
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10-K
2022 FY
10 Dec 23
The increase in cost of sales was primarily attributable to increased volume resulting from increased sales and customer demand. Cost of sales as a percentage of revenue decreased from 84.0% for 2021 to 77.1% for 2022 primarily due to our efforts around supply chain optimization and increased volume in higher margin offerings. Cost of sales as a percentage of revenue for 2021 was also negatively impacted by $158 million in non-recurring inventory losses related to the FC Fire.
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10-K
2022 FY
10 Dec 23
Cost of sales primarily consists of the purchase price of products sold directly to customers where we record revenue gross, and includes logistics costs. Inbound shipping and handling costs to receive products from suppliers are included in inventory and recognized in cost of sales as products are sold. Additionally, cost of sales includes outbound shipping and logistics related expenses, delivery service costs from our restaurant delivery business, and depreciation and amortization expense
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10-K
2022 FY
10 Dec 23
Developing Offerings primarily includes more nascent offerings and services, including Coupang Eats, our restaurant ordering and delivery service, Coupang Play, our online content streaming service, fintech, certain international initiatives, as well as advertising products associated with these offerings. Revenues from Developing Offerings are primarily generated from online restaurant ordering and delivery services provided on our mobile applications and websites.
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10-K
2022 FY
10 Dec 23
Product Commerce primarily includes core retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, our fresh grocery offering, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea and from commissions earned from merchants that sell products through our mobile application and website.
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10-K
2022 FY
10 Dec 23
As we've stated in the past, margins may be uneven quarter-to-quarter, but you will continue to see our profit margin continue its march upwards over time. There are some onetime expenses such as investment in new selection or merchant acquisition that might affect a quarterly snapshot of margins. But the underlying drivers of margin are strong. The underlying trends in margin are strong and have a lot of room for expansion. We remain very confident in our long-term guidance of over 10% adjusted EBITDA and corresponding free cash flows.
On Developing Offerings, we expect our investment in Developing Offerings to decline in Q4 versus Q3. And we project total investment for the year to be roughly in line, potentially a little more than the $400 million estimate we mentioned previously. We remain encouraged by the momentum we're seeing. We remain encouraged by the underlying economics that we're seeing, the potential economics that we continue to see in our Developing Offerings initiatives. And in the past, we've demonstrated that the only efforts that continue to confirm potential and meaningfully differentiated customer experience and significant future cash flows are underway to more significant investments. And we'll continue to apply that discipline as we make investments in promising initiatives.
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Transcript
2023 Q3
7 Dec 23
Just as a reminder, over the past 12 months, we've generated nearly $1 billion in adjusted EBITDA, increasing margins by nearly 500 basis points. Product Commerce trailing 12 months adjusted EBITDA went from just over $200 million to $1.4 billion last quarter. Margin in Product Commerce also went up 500 bps.
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Transcript
2023 Q3
7 Dec 23
And the second question is on Developing Offerings. The cumulative adjusted EBITDA loss is now, I think, $360 million. I know you mentioned the fourth quarter loss will come down. Are you still comfortable in meeting the guidance for the year, keeping it under $400 million?
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Transcript
2023 Q3
7 Dec 23
The overall retail market grew 10% year-over-year, and the latest forecast now project that Korea's total commerce market, excluding autos, will grow at a CAGR of 6% over the next four years to exceed $600 billion by 2025. And the e-commerce segment is expected to grow over that same period to $290 billion. We're less than 10% of that today, despite being the largest e-commerce player in the market, and our market share of total retail remains in the single-digits.
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Transcript
2021 Q4
7 Dec 23
600 bps improvement in profit margin this quarter came from operational improvements in Product Commerce, not benefits from advertising, Eats or WOW membership
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Transcript
2023 Q1
7 Dec 23
We're also confident that we can expand margins to our target of 10% or higher adjusted EBITDA, thanks to the long runway we see for operational improvements.
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Transcript
2023 Q1
7 Dec 23
Despite a rapid growth, our penetration in all categories, including consumables, remains low. We're still at a single-digit market share of a massive retail market projected to approach $550 billion in the next 3 years.
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Transcript
2023 Q1
7 Dec 23
That growth is a multiple of the overall retail market, which grew at 3.1% year-over-year.
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Transcript
2023 Q2
8 Nov 23
We compete in two-sided markets and must attract both customers as well as merchants to use our apps and websites.
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10-K
2022 FY
20 Oct 23
We expect to incur higher capital expenditures in the future for our fulfillment and logistics operations as our business continues to grow. We would incur such expenses and make such investments in advance of expected sales, and such expected sales may not occur.
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10-K
2022 FY
20 Oct 23
including the ability to control our last-mile delivery logistics, is a key competitive advantage.
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10-K
2022 FY
20 Oct 23
fulfillment and logistics infrastructure, including strategically located fulfillment centers, logistics centers, and delivery vehicles, coupled with our proprietary technology, is essential to our success.
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10-K
2022 FY
20 Oct 23
We operate our fulfillment and logistics infrastructure throughout Korea and maintain fulfillment centers in the United States and Taiwan.
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10-K
2022 FY
20 Oct 23
For example, in recent years, we have rapidly increased our employee headcount to support the growth in our business, and we expect to continue to increase our headcount in the foreseeable future. To support our continued growth, we must effectively integrate, develop, and motivate a large number of new employees, while maintaining our corporate culture. In particular, we intend to continue to make substantial investments to expand our sales and technology personnel, which is challenging due to competition for such personnel.
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10-K
2022 FY
19 Oct 23
focusing on customer satisfaction and our customers’ loyalty to our apps, websites, and programs, including our Rocket WOW membership program;•expanding our product offerings; and•enhancing our apps and websites and developing personalization tools to enhance our customers’ experience with our apps and websites.
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10-K
2022 FY
19 Oct 23