Coupang Inc., a pivotal force in Asia's e-commerce landscape, unveiled impressive financial achievements for both the fourth quarter and the entirety of 2023 in its latest 8-K filing dated February 27, 2024. The company's fourth-quarter net revenues soared to $6.6 billion, marking a 23% increase year-over-year, while annual revenues climbed 18% to reach $24.4 billion. This growth was underscored by a significant gross profit of $1.7 billion for the quarter, a 32% rise from the previous year, culminating in a gross profit margin of 25.6%.
Net income for the quarter impressively hit $1.0 billion, with an adjusted net income of $137 million after non-cash tax benefits were considered. The annual net income was pegged at $1.4 billion, with an adjusted total of $465 million. Diluted earnings per share (EPS) for the quarter stood at $0.57, with an adjusted diluted EPS of $0.08. For the full year, the diluted EPS was $0.75, and the adjusted diluted EPS was $0.26.
Operational highlights included the expansion of Coupang's active customer base to over 21 million, a 16% increase from the previous year, alongside a 27% growth in its WOW membership program to 14 million paid members. These figures are testament to Coupang's prowess in customer engagement and retention, vital for sustained growth.
Conversely, Coupang's Developing Offerings segment, encompassing ventures like international expansion, Coupang Eats, and Fintech services, encountered hurdles, posting a negative adjusted EBITDA of $150 million for the quarter. This indicates the segment's rapid revenue growth amidst ongoing investment and a path yet to profitability.
Company leadership voiced optimism about Coupang's trajectory. Founder and CEO Bom Kim emphasized the commitment to enriching customer experiences, particularly through the WOW membership program, which delivered $3 billion in benefits amid rising inflation. CFO Gaurav Anand lauded the team's performance and the future potential, especially in gaining market share within Korea and Taiwan.
In summary, Coupang's commendable Q4 and full-year 2023 financial outcomes underscore the company's resilience and expanding influence in the e-commerce domain. Despite the Developing Offerings segment facing profitability challenges, the company's commitment to customer satisfaction and shareholder value shines through. With strategic focus areas like market expansion in Korea and Taiwan, Coupang is well-equipped to harness the extensive retail opportunities ahead.
CPNG shares powered higher in Tuesday after hours trade in response to the report, nearly testing 52-wk highs around $19. A follow-through breakout above $20 this week could be a significant technical event.