COUPANG reported a better-than-expected 23 per cent rise in revenue, clocking its fastest growth since 2021 in the face of weak consumer sentiment.
Net revenue at South Korea’s largest online retailer came to US$6.6 billion in the December quarter, beating an average analyst estimate of US$6.4 billion. It reported a net income of US$1.03 billion, although more than 80 per cent of that stemmed from a one-time tax accounting gain.
For the full calendar year, the company posted its first net income since it was founded in 2010. Backed by SoftBank Group, the company popularised early and one-day delivery in South Korea, taking market share from traditional retail giants such as Emart and Lotte Mart. Its loyalty program akin to Amazon.com’s Prime also helped it win and retain customers, propelling active users to record highs in past quarters. That number rose to more than 21 million during the quarter, up 16 per cent from a year ago.
The US-traded shares rose 6.6 per cent in extended trading.
Coupang is seeking growth in markets such as Taiwan, at the same time that peers in China such as Alibaba Group Holding’s AliExpress and PDD Holdings’s Temu are also venturing abroad. In January, Coupang said it has completed the acquisition of UK-based Farfetch Holdings. BLOOMBERG
