Online Retailer Coupang Reports 10% Growth in Active Customers

Coupang Inc., the South Korean online retailer known for its early and one-day delivery, posted its fourth consecutive quarterly profit, driven by efficiencies in logistics and membership programs that bolstered margins.

The firm, backed by SoftBank Group Corp., reported a net income of $145 million for the second quarter — compared to a $75.5 million loss a year earlier in a statement released Wednesday (Aug. 8).

It also revealed net revenues of $5.8 billion, up 16% year over year on a reported basis and 21% year over year on an FX-neutral basis. This was in line with analysts’ estimates and attributed to active customer growth.

In the earnings call with analysts, Chief Financial Officer Gaurav Anand said, “active customer growth continues to accelerate, increasing 10% year over year to 19.7 million in Q2. We added 1.8 million active customers over the last year.”

The active customer base rose to a 10% year-on-year increase, with 80% of total WOW subscription members participating in the firm’s meal delivery service. Anand reported that Coupang is earmarking $400 million to expand in Taiwan and develop its streaming and meal delivery businesses. As such, the company is confident that its progress is sustainable and will continue to yield high growth and focus on delivering value for customers.

In the first quarter, Gross profit increased 32% year over year to $1.5 billion. Over the trailing 12 months, Coupang generated $2 billion of operating cash flow.

Anand said, “We are encouraged by the momentum we are seeing in these offerings and their ability to compound value across our ecosystem and to accelerate the entire flywheel. We believe the progress we have made thus far is sustainable and will continue. We are excited to continue working to break trade-offs for customers and creating a world where customers wonder, how did I ever live without Coupang?”

Last year, Coupang partnered with cloud-based eCommerce solution ShipStation to help merchants break into the South Korean market. Shares of the company stock were trading at $18.98 in after-hours trading.