A Coupang delivery vehicle spotted at an undisclosed location in Seoul. Yonhap News
Coupang Inc., the parent company of Coupang (CPNG), reported a first-quarter operating loss of 354.5 billion won ($242 million), its largest quarterly deficit in four years and three months. Analysts attribute the sharp deterioration in profitability to customer compensation voucher expenses stemming from a data breach, combined with rising logistics and operating costs.
According to a consolidated earnings report Coupang Inc. filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday, first-quarter revenue rose 8% year-on-year to 12.46 trillion won, based on an average quarterly exchange rate of 1,465.16 won per dollar. The company swung to an operating loss of 354.5 billion won, while net loss for the same period reached 389.7 billion won, also reversing from a profit.
Growth in its core business also slowed. Revenue from the Product Commerce segment, which includes Rocket Delivery and Rocket Fresh, rose just 4% year-on-year to 10.51 trillion won. Meanwhile, total operating expenses climbed to 12.81 trillion won, exceeding revenue.
The results reflect 1.685 trillion won in customer compensation voucher costs tied to last year’s data breach, as well as additional expenses for idle facility operations and inventory maintenance caused by slowing demand. “Even if customers return to normal, fundamental recovery will take time,” Coupang Inc. Board Chairman Bom Kim said during the first-quarter earnings conference call.