Coupang announced its Q4 2024 results on the 26th (Korean time). In this fourth quarter, Coupang maintained double-digit revenue growth despite consumer spending slowdown, while also significantly improving profitability metrics.
Coupang's Q4 2024 revenue was $7.965 billion (approximately 11.4 trillion won), up 21% year-over-year. Excluding Farfetch's contribution, this represents a 14% increase year-over-year. Notably, Coupang emphasized that revenue growth was significantly reduced due to the weak dollar-won exchange rate this quarter. On a constant currency basis, Coupang's Q4 2024 revenue grew 28% (21% excluding Farfetch's contribution).
Coupang also recorded impressive results in terms of profitability. Q4 2024 operating profit was $312 million, up 140% year-over-year. Gross profit increased 48% year-over-year to $2.5 billion, and gross profit margin reached 31.3%, up 5.7% year-over-year, setting a quarterly record. Excluding Farfetch's results and insurance payments from the 2021 Deokpyeong logistics center fire, gross profit was $2.2 billion (29% growth year-over-year), with a gross profit margin of 29% (improved 3.3% year-over-year).
Revenue for Coupang's Product Commerce segment, which includes its core commerce business, reached $6.883 billion in Q4 2024, up 9% year-over-year, or 16% on a constant currency basis. The Product Commerce segment's adjusted EBITDA profit was $539 million, up 21% year-over-year, with a gross profit margin of 32.7% (31% excluding insurance benefits).
Coupang did not specifically disclose its "GMV" (Gross Merchandise Value) performance this quarter. However, based on external data, we can estimate Coupang's GMV growth rate. According to WiseApp, Coupang's estimated payment amount for 2024 was 55.0861 trillion won, up 24% year-over-year.
For reference, according to Statistics Korea, domestic online shopping transactions in 2024 totaled 242.0897 trillion won, up 5.8% compared to 2023 (22.8861 trillion won). Based on this, Coupang's e-commerce market share in 2024 is estimated at 22.8%, with a growth rate more than four times the market average.
Meanwhile, Naver, Korea's second-largest e-commerce platform, recorded an estimated GMV of approximately 50.3 trillion won in 2024 (sum of Naver's official quarterly GMV results). Considering that Naver's Q4 2024 GMV growth rate was 6.5% year-over-year, the gap between Coupang and Naver continues to widen.
A notable aspect of Coupang's Q4 results is the explosive growth of its Developing Offerings segment, which includes Coupang Eats, Play, Pay, Taiwan business, and Farfetch.
In Q4 2024, revenue from Coupang's Developing Offerings segment was $1.082 billion, up 296% year-over-year, or 308% on a constant currency basis. Excluding Farfetch, the Developing Offerings segment revenue increased 124% year-over-year, or 136% on a constant currency basis. According to Coupang, it was particularly encouraged by growth seen in "Coupang Eats" and its "Taiwan business" this quarter.
Coupang's Developing Offerings segment recorded an adjusted EBITDA loss of $118 million in Q4 2024, reducing its deficit by approximately 21% year-over-year. According to Coupang, this resulted from improved profitability in both Coupang Eats and Farfetch. In particular, Farfetch, the luxury vertical commerce platform, benefited from the Q4 high season, which includes year-end and Black Friday shopping events.