Coupang Inc., the U.S.-based parent of Coupang, posted quarterly revenue topping 12 trillion won in the first quarter this year, but swung to a loss as operating losses widened to the mid-350 billion won range. Operating and net losses in the first quarter were the largest since the fourth quarter of 2021. It appears to have been affected by the large-scale personal data leak that occurred at the end of last year.
According to the first-quarter consolidation results report Coupang Inc. filed with the U.S. Securities and Exchange Commission (SEC) on the 6th (Korea time), first-quarter revenue came to $8.504 billion (about 12.4597 trillion won on a fixed exchange-rate basis). That was up 8% from $7.908 billion (about 11.4876 trillion won) a year earlier.
However, growth slowed. After Coupang's quarterly revenue hit 12.8103 trillion won in the fourth quarter of last year, it fell quarter over quarter for two straight quarters through the first quarter this year. This is the first time since its New York listing in 2021 that Coupang has posted single-digit revenue growth. The previous low for quarterly revenue growth was 14% in the fourth quarter of last year.
Profitability also deteriorated. Coupang Inc.'s first-quarter operating loss totaled $242 million, or about 354.5 billion won. A year earlier it had booked $154 million (about 233.7 billion won) in operating profit, but returned to the red in one year. The latest operating loss amounts to about 52% of last year's full-year operating profit (679 billion won).
Net results also swung to a loss. Net loss for the first quarter came to $266 million (about 389.7 billion won). In the first quarter last year, Coupang posted $114 million (about 165.6 billion won) in net profit.
The latest loss is the largest in about four years and three months. Since Coupang's listing, its biggest quarterly operating and net losses were $396.59 million (about 480 billion won) and $404.97 million (about 522 billion won), respectively, in the fourth quarter of 2021. After that, Coupang's quarterly operating loss narrowed from $205.7 million (about 247.8 billion won) in the first quarter of 2022 to $67.143 million (about 84.7 billion won) in the second quarter of that year. In the third quarter of 2022, it posted $77.42 million (about 103.7 billion won) in operating profit, achieving its first quarterly surplus.
The most recent quarter in which Coupang Inc. posted an operating loss was the second quarter of 2024, when the loss was 34.2 billion won.
The first-quarter results also badly missed Wall Street expectations. Forecasts compiled by Bloomberg called for $8.511 billion in revenue, a $39.27 million operating loss, and a $100 million net loss. Other foreign media also expected around $8.6 billion in revenue and a roughly $44.94 million (about 65 billion won) operating loss. Actual revenue came in slightly below forecasts, but the operating loss was five to six times larger than expected.
Shares fell after the earnings release. As of 5:30 a.m. that day, Coupang was down about 6% at $19.50 in after-hours trading following the New York market close.