📈 Revenue Growth
Coupang Inc., the South Korean e-commerce giant, saw its revenue rise 27% to $7.9B for Q3 2023, exceeding analysts’ forecast of $7.8B. This marks the seventh quarter of double-digit growth, fueled by the expansion of new business areas like food delivery and streaming. The company’s core e-commerce platform continued to deliver strong sales, while newer offerings significantly lifted overall revenue, Coupang reported Tuesday.
💼 Impact of Farfetch Acquisition
In January, Coupang acquired luxury retailer Farfetch, whose operating costs contributed to a 23% drop in net income, which reached $70M. However, excluding Farfetch, Coupang’s net income stood at $108M, revealing solid performance in its core operations. CEO Bom Kim aims for Farfetch to reach near breakeven adjusted EBITDA by late 2024, hoping this acquisition will add profitable growth in the high-end segment.
📉 Stock Movement
Despite the positive revenue news, Coupang’s stock fell 7% in after-hours trading following the Q3 report. Still, shares are up 66% for the year, buoyed by Coupang’s first profitable year in 2023. The company’s focus on fast delivery has been instrumental in securing market share, and investors have responded positively to its steady growth in South Korea and beyond.
🌏 Regional Expansion Plans
Coupang is also focusing on international expansion, particularly in Taiwan, where it competes with AliExpress and Temu, two major Chinese e-commerce platforms. By broadening its offerings to include luxury goods, Coupang seeks to capture new customer segments and strengthen its position amid growing regional competition. CEO Bom Kim’s strategy underscores his confidence in expanding Coupang’s global footprint.
What’s driving Coupang’s global growth ambitions?
