Coupang 4Q24 Business Update
The "Amazon" of South Korea will now Change your Tires
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4Q24 Business Commentary.
Coupang reported 4Q24, closing another year of strong growth and further entrenching their dominance as an ecommerce leader in South Korea.
For 4Q24 CPNG grew revenues +21% y/y versus +25% y/y last Q (FXN). For the full year, revenues reached $30.3bn, increasing +24% y/y or +29% y/y FXN adjusted.
Product Commerce revenues were $6.9bn, a slight deceleration to +16% y/y versus +20% y/y last Q (FXN)
Driving their strong revenue growth is a mix of continued growth in spend per customer, an increase in active customers, and their Developing Offerings finding success.
The most important factor though for their core ecommerce business is the fact that Coupang customer spend is still growing, even amongst their oldest cohort of customers.
As we noted in our prior update, Coupang only has to “execute on priorities very much within their competency—namely expanding selection and FLC—in order to continue to grow.” Coupang simply adding more selection and increasing the adoption of their fulfillment service has helped drive higher customer spend.
CFO Gaurav Anand noted on the call that the oldest cohort of customers grew more than +20%, with their newest customers at a fraction of the spend of their oldest customers. This means that as customers simply shop more on Coupang, they will end up buying more on the site overtime. This sort of growth is much less risky than growth that assumes success with a new offering or opening up a new market.
Incredibly, they also have started adding...
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*At the time of this writing, one or more contributors to this report has a position in CPNG. Furthermore, accounts one or more contributors advise on may also have a position in CPNG. This may change without notice.