Coupang (CPNG) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 03, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-40115
Entity Registrant Name	COUPANG, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-2810505
Entity Address, Address Line One	720 Olive Way
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	333-3839
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	CPNG
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001834584
Common class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,604,064,477
Common class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		174,802,990

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Total net revenues	$ 5,800,530	$ 5,116,686
Cost of sales	4,380,603	4,073,280
Operating, general and administrative	1,313,152	1,249,111
Total operating cost and expenses	5,693,755	5,322,391
Operating income (loss)	106,775	(205,705)
Interest income	31,861	3,534
Interest expense	(8,278)	(7,368)
Other (expense) income, net	(6,539)	490
Income (loss) before income taxes	123,819	(209,049)
Income tax expense	32,964	245
Net income (loss)	$ 90,855	$ (209,294)
Net income (loss) attributable to Class A and Class B common stockholders per share:
Net income (loss) attributable to Class A and Class B common stockholders per share, basic (in dollars per share)	$ 0.05	$ (0.12)
Net income (loss) attributable to Class A and Class B common stockholders per share, diluted (in dollars per share)	$ 0.05	$ (0.12)
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders:
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders, basic (in shares)	1,774,843	1,756,739
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders, diluted (in shares)	1,794,453	1,756,739
Net retail sales
Total net revenues	$ 5,204,800	$ 4,556,107
Net other revenue
Total net revenues	$ 595,730	$ 560,579

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 90,855	$ (209,294)
Other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(18,988)	3,011
Actuarial gain on defined severance benefits, net of tax	856	3,811
Total other comprehensive (loss) income	(18,132)	6,822
Comprehensive income (loss)	$ 72,723	$ (202,472)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and cash equivalents	$ 3,792,211	$ 3,509,334
Restricted cash	330,188	176,316
Accounts receivable, net	126,892	184,463
Inventories	1,667,156	1,656,851
Prepaids and other current assets	198,235	303,166
Total current assets	6,114,682	5,830,130
Long-term restricted cash	1,536	1,624
Property and equipment, net	1,811,174	1,819,945
Operating lease right-of-use assets	1,341,091	1,405,248
Long-term lease deposits and other	441,822	455,956
Total assets	9,710,305	9,512,903
Liabilities and stockholders' equity
Accounts payable	3,684,956	3,622,332
Accrued expenses	247,098	298,869
Deferred revenue	93,263	92,361
Short-term borrowings	223,446	175,403
Current portion of long-term debt	149,034	128,936
Current portion of long-term operating lease obligations	319,426	325,924
Other current liabilities	456,907	418,681
Total current liabilities	5,174,130	5,062,506
Long-term debt	522,817	537,880
Long-term operating lease obligations	1,178,124	1,233,680
Defined severance benefits and other	275,204	264,924
Total liabilities	7,150,275	7,098,990
Contingencies (Note 11)
Stockholders' equity
Class A common stock, $0.0001 par value, 10,000,000 shares authorized, 1,602,488 and 1,597,804 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively; Class B common stock, $0.0001 par value, 250,000 shares authorized, 174,803 shares issued and outstanding as of March 31, 2023 and December 31, 2022	178	177
Additional paid-in capital	8,227,469	8,154,076
Accumulated other comprehensive (loss) income	(15,913)	2,219
Accumulated deficit	(5,651,704)	(5,742,559)
Total stockholders' equity	2,560,030	2,413,913
Total liabilities and stockholders' equity	$ 9,710,305	$ 9,512,903

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2023	Dec. 31, 2022
Common class A
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	1,602,488	1,597,804
Common stock, shares outstanding (in shares)	1,602,488	1,597,804
Common class B
Common stock, par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	250,000	250,000
Common stock, shares issued (in shares)	174,803	174,803
Common stock, shares outstanding (in shares)	174,803	174,803

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Class A and Class B common stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Beginning balance at Dec. 31, 2021	$ 2,175,957	$ 175	$ 7,874,038	$ (47,739)	$ (5,650,517)
Issuance of common stock upon exercise of stock options		1	8,182
Equity-based compensation			55,593
Foreign currency translation adjustments, net of tax	3,011			3,011
Actuarial gain on defined severance benefits, net of tax	3,811			3,811
Net income (loss)	(209,294)				(209,294)
Ending balance at Mar. 31, 2022	2,037,261	$ 176	7,937,813	(40,917)	(5,859,811)
Beginning balance (in shares) at Dec. 31, 2021		1,754,203
Issuance of common units, equity-based compensation plan (in shares)		4,147
Issuance of common stock upon settlement of restricted stock units (in shares)		2,708
Ending balance (in shares) at Mar. 31, 2022		1,761,058
Beginning balance at Dec. 31, 2022	2,413,913	$ 177	8,154,076	2,219	(5,742,559)
Issuance of common stock upon exercise of stock options			3,494
Issuance of common stock upon settlement of restricted stock units		1
Equity-based compensation			69,899
Foreign currency translation adjustments, net of tax	(18,988)			(18,988)
Actuarial gain on defined severance benefits, net of tax	856			856
Net income (loss)	90,855				90,855
Ending balance at Mar. 31, 2023	$ 2,560,030	$ 178	$ 8,227,469	$ (15,913)	$ (5,651,704)
Beginning balance (in shares) at Dec. 31, 2022		1,772,607
Issuance of common units, equity-based compensation plan (in shares)		1,588
Issuance of common stock upon settlement of restricted stock units (in shares)		3,096
Ending balance (in shares) at Mar. 31, 2023		1,777,291

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating activities
Net income (loss)	$ 90,855	$ (209,294)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	64,245	59,240
Provision for severance benefits	38,691	44,482
Equity-based compensation	69,899	55,593
Non-cash operating lease expense	83,514	77,223
Other	28,716	16,514
Change in operating assets and liabilities:
Accounts receivable, net	55,691	266
Inventories	(60,966)	6,863
Other assets	59,658	(66,512)
Accounts payable	162,166	28,044
Accrued expenses	(46,905)	(49,981)
Other liabilities	(44,261)	(17,377)
Net cash provided by (used in) operating activities	501,303	(54,939)
Investing activities
Purchases of property and equipment	(95,221)	(238,906)
Proceeds from sale of property and equipment	664	4,245
Other investing activities	11,825	(14,367)
Net cash used in investing activities	(82,732)	(249,028)
Financing activities
Proceeds from issuance of common stock, equity-based compensation plan	3,495	8,183
Proceeds from short-term borrowings and long-term debt	31,952	343,975
Repayment of short-term borrowings and long-term debt	(842)	(152,029)
Net short-term borrowings and other financing activities	43,514	(1,547)
Net cash provided by financing activities	78,119	198,582
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	(60,029)	(27,404)
Net increase (decrease) in cash and cash equivalents, and restricted cash	436,661	(132,789)
Cash and cash equivalents, and restricted cash, as of beginning of period	3,687,274	3,810,347
Cash and cash equivalents, and restricted cash, as of end of period	$ 4,123,935	$ 3,677,558

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies The accompanying unaudited condensed consolidated financial statements of Coupang, Inc. (“Coupang”) together with its wholly-owned subsidiaries (collectively, “we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. We based our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates. The unaudited interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2022 Form 10-K. Recent Accounting Pronouncements Adopted

Net Revenues

Net Revenues	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Net Revenues	Net Revenues Details of total net revenues were as follows: Three Months Ended March 31, (in thousands) 2023 2022 Net retail sales $ 5,204,800 $ 4,556,107 Third-party merchant services 460,975 491,347 Other revenue 134,755 69,232 Total net revenues $ 5,800,530 $ 5,116,686 This level of revenue disaggregation takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Net retail sales are recognized from online product sales to consumers. Third-party merchant services represent commissions, advertising, and delivery fees earned from merchants and restaurants that sell their products through our online business. Other revenue includes revenue earned from our Rocket WOW membership program and various other offerings. Contract liabilities consist of payments in advance of delivery and customer loyalty credits, which are included in deferred revenue on the condensed consolidated balance sheets. We recognized revenue of $89 million and $74 million for the three months ended March 31, 2023 and 2022, respectively, primarily related to payments in advance of delivery which were included in deferred revenue on the consolidated balance sheets as of the beginning of the respective years.

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting We own and operate an e-commerce business that primarily serves the Korean retail market. The Chief Operating Decision Maker (“CODM”) is our Chief Executive Officer. We have two operating and reportable segments: Product Commerce and Developing Offerings. These segments are based on how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance. Product Commerce primarily includes core retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, our fresh grocery offering, as well as advertising products associated with these offerings. Revenues from Product Commerce are derived primarily from online product sales of owned inventory to customers in Korea and from commissions earned from merchants that sell products through our mobile application and website. Developing Offerings primarily includes more nascent offerings and services, including Coupang Eats, our restaurant ordering and delivery service, Coupang Play, our online content streaming service, fintech, certain international initiatives, as well as advertising products associated with these offerings. Revenues from Developing Offerings are primarily generated from online restaurant ordering and delivery services provided on our mobile applications and websites. Our segment operating performance measure is segment adjusted EBITDA. Segment adjusted EBITDA is defined as income (loss) before income taxes for a period before depreciation and amortization, equity-based compensation expense, interest expense, interest income, and other income (expense), net. Segment adjusted EBITDA also excludes impairments and other items that we do not believe are reflective of our ongoing operations. We generally allocate operating expenses to the respective segments based on usage. The CODM does not evaluate segments using asset information and, accordingly, we do not report asset information by segment. Results of operations for the reportable segments and reconciliation to income (loss) before income taxes is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Net revenues Product Commerce $ 5,658,349 $ 4,936,053 Developing Offerings 142,181 180,633 Total net revenues $ 5,800,530 $ 5,116,686 Segment adjusted EBITDA Product Commerce $ 288,370 $ 2,877 Developing Offerings (47,451) (93,749) Total segment adjusted EBITDA $ 240,919 $ (90,872) Reconciling items: Depreciation and amortization $ (64,245) $ (59,240) Equity-based compensation (69,899) (55,593) Interest expense (8,278) (7,368) Interest income 31,861 3,534 Other (expense) income, net (6,539) 490 Income (loss) before income taxes $ 123,819 $ (209,049)

Equity-based Compensation Plans

Equity-based Compensation Plans	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Equity-based Compensation Plans	Equity-based Compensation Plans Restricted Stock Units (“RSU”s) RSU activity for the three months ended March 31, 2023 is as follows: Outstanding RSUs (in thousands, except unit price) Number of RSUs Weighted Average Grant- December 31, 2022 35,178 $ 19.29 Granted 4,205 $ 15.29 Vested (3,096) $ 22.35 Forfeited / cancelled (936) $ 21.23 March 31, 2023 35,351 $ 18.49 Equity-based Compensation Expense The following table presents the effects of equity-based compensation in the condensed consolidated statements of operations: Three Months Ended March 31, (in thousands) 2023 2022 Cost of sales $ 3,558 $ 3,985 Operating, general and administrative 66,341 51,608 Total $ 69,899 $ 55,593

Defined Severance Benefits

Defined Severance Benefits	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Defined Severance Benefits	Defined Severance Benefits The following table provides the components of net periodic benefit costs and the portion of these costs charged to expense: Three Months Ended March 31, (in thousands) 2023 2022 Current service costs $ 34,448 $ 38,967 Interest cost 3,387 1,704 Amortization of: Prior service credit 840 906 Net actuarial loss 16 2,905 Net periodic benefit cost $ 38,691 $ 44,482

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Our tax provision, or benefit, from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. No income tax benefit was accrued for jurisdictions where we anticipate incurring a loss during the full fiscal year as the related deferred tax assets were fully offset by a valuation allowance. Our resulting effective tax rate differs from the applicable statutory rate, primarily due to the valuation allowance against its deferred tax assets, tax credits, the inclusion of the global intangible low-taxed income (GILTI) provisions and other permanent differences. Given our current income and anticipated future income, we believe that there is a reasonable possibility that sufficient positive evidence may become available in future periods to allow us to reach a conclusion that the valuation allowances will no longer be needed, which would result in the recognition of material deferred tax assets and a corresponding decrease to income tax expense. The exact timing and amount of any valuation allowances being released are subject to change on the basis of the level of sustained income that we are able to achieve, foreign currency fluctuations, and macroeconomic conditions, among various other factors.

Net Income (Loss) per Share

Net Income (Loss) per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net Income (Loss) per ShareWe compute net income (loss) per share using the two-class method required for multiple classes of common stock and participating securities. As the liquidation and dividend rights are identical, the undistributed earnings or loss are allocated on a proportionate basis to each class of common stock, and the resulting basic and diluted net income (loss) per share attributable to common stockholders are therefore the same for Class A and Class B common stock on both an individual and a combined basis. Basic net income (loss) per share is computed using the weighted-average number of shares of Class A and Class B common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted-average number of shares of Class A and Class B common stock and potentially dilutive Class A and Class B potential common shares outstanding during the period. The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended March 31, (in thousands, except per share amounts) 2023 2022 Numerator: Net income (loss) $ 90,855 $ (209,294) Denominator: Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders: Basic 1,774,843 1,756,739 Dilutive effect of equity compensation awards 19,610 — Diluted 1,794,453 1,756,739 Net income (loss) attributable to Class A and Class B common stockholders per share: Basic $ 0.05 $ (0.12) Diluted $ 0.05 $ (0.12) Anti-dilutive shares (rounded) 6,000 29,000

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP established a hierarchy framework to classify the fair value measurement into one of the three levels based on the observability of significant inputs to the measurement. The following table summarizes our financial assets and financial liabilities that are measured at fair value on a recurring basis: (in thousands) Classification Measurement Level March 31, 2023 December 31, 2022 Financial assets Cash deposit (1) Cash and cash equivalents Level 1 $ 3,792,211 $ 3,509,334 Time deposit Restricted cash Level 1 $ 254,945 $ 99,730 Money market trust Restricted cash Level 1 $ 75,243 $ 76,586 Time deposit Other current assets Level 1 $ 17,257 $ 17,754 Time deposit Long-term restricted cash Level 1 $ 1,536 $ 1,624 (1) Cash deposits includes bank deposits, money market trusts and time deposits. The carrying value approximates fair value because maturities are less than three months.

Supplemental Financial Informat

Supplemental Financial Information	3 Months Ended
	Mar. 31, 2023
Quarterly Financial Information Disclosure [Abstract]
Supplemental Financial Information	Supplemental Financial Information Supplemental Disclosure of Cash-flow Information Three Months Ended March 31, (in thousands) 2023 2022 Supplemental disclosure of cash-flow information Cash paid for income taxes, net of refunds $ 5,224 $ 2,232 Cash paid for interest $ 4,969 $ 6,249 Cash paid for the amount used to measure the operating lease liabilities $ 105,059 $ 83,063 Operating lease assets obtained in exchange for lease obligations $ 27,924 $ 174,824 Net increase to operating lease right-of-use assets resulting from remeasurements of lease obligations $ 26,803 $ 21,761 Non-cash investing and financing activities Increase (decrease) in property and equipment-related accounts payable $ 11,111 $ (74,563) Supplier Financing Arrangements We have agreements with third-party financial institutions to facilitate participating vendors’ and suppliers’ ability to settle payment obligations from us to designated third-party financial institutions. Participating vendors and suppliers may, at their sole discretion, settle obligations prior to their scheduled due dates at a discounted price to the participating financial institutions. The invoices that have been confirmed as valid under the program require payment, in full, based on the original standard invoice terms. Confirmed invoices owed to financial institutions under these programs are included within accounts payable and were $334 million and $337 million as of March 31, 2023 and December 31, 2022, respectively. Coupang or the financial institutions may terminate the agreement upon given notice. Accumulated Other Comprehensive (Loss) Income

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	Short-term Borrowings and Long-term Debt Our short-term borrowings generally include lines of credit and term loan facilities with financial institutions to be utilized for general operating purposes. In April 2023, we entered into a new one-year credit loan facility to borrow $61 million for general operating purposes. The loan bears interest at the average of 91-day CD interest rate plus 4.40%. Our long-term debt generally includes revolving credit facilities and various loan agreements for general operating purposes, and term loan facilities. As of March 31, 2023 and December 31, 2022, there were $672 million and $667 million, respectively, of loans outstanding under these agreements, net of unamortized discounts. Our debt is recorded at amortized cost. The fair value is estimated using Level 2 inputs based on our current interest rate for similar types of borrowing arrangements. The carrying amount of debt approximates its fair value as of March 31, 2023 and December 31, 2022 due primarily to the interest rates approximating market interest rates. We were in compliance with the covenants for each of our borrowings and debt agreements as of March 31, 2023. In April 2023, we entered into a new three-year term loan facility agreement to borrow $176 million to finance the purchase of a fulfillment center and land. We pledged up to $212 million of certain land and buildings as collateral. The loan bears interest at a fixed rate of 6.76%.

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2023
Loss Contingency [Abstract]
Contingencies	Contingencies Legal Matters From time to time, we may become party to claims, investigations, proceedings, and other litigation, in the ordinary course of business. We assess the likelihood of any adverse judgments or outcomes with respect to these matters and determines loss contingency assessments on a gross basis after assessing the probability of incurrence of a loss and whether a loss is reasonably estimable. In addition, we consider other relevant factors that could impact our ability to reasonably estimate a loss. A determination of the amount of reserves required, if any, for these contingencies is made after analyzing each matter. Our reserves may change in the future due to new developments or changes in strategy in handling these matters. Although the results of these matters cannot be predicted with certainty, we currently believe that the final outcome of currently pending legal matters will not have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Choi v. Coupang, Inc. et al On August 26, 2022, a putative class action was filed on behalf of all purchasers of Coupang Class A common stock pursuant and/or traceable to Coupang’s registration statement issued in connection with our initial public offering. The action was brought against Coupang, Inc., and certain of its former and current directors, current officers, and certain underwriters of the offering. The action was filed in the United States District Court for the Southern District of New York alleging inaccurate and misleading or omitted statements of material fact in Coupang's Registration Statement in violation of Sections 11 and 15 of the Securities Act of 1933. To date, the Court has not named a lead plaintiff and the specific claims may be amended. The action seeks unspecified compensatory damages, attorneys’ fees, and reasonable costs and expenses. We believe that the action is without merit and intend to vigorously defend against it. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. Accordingly, we can provide no assurance as to the scope and outcome of this matter and no assurance as to whether our business, financial position, results of operations or cash flows will not be materially adversely affected. Korean Fair Trade Commission Investigations On June 28, 2021, the Korean Fair Trade Commission (“KFTC”) initiated an investigation into a potential violation of the Monopoly Regulation and Fair Trade Act (the “Fair Trade Act”), including alleged preferential treatments of private labelled products provided by our subsidiary, Coupang Private Label Business (“CPLB”). The KFTC is also investigating us on other matters related to the alleged violations of the KFTC regulations. We are diligently cooperating with these investigations, and actively defending our practices as appropriate. Under Korean law, the issues addressed in the investigations can be resolved through civil, administrative, or criminal proceedings. The ultimate case resolution could include fines, orders to alter our processes or procedures, and criminal investigations or charges against individuals or us. We cannot reasonably estimate any penalties, loss or range of loss that may arise from the various KFTC Investigations. Accordingly, we can provide no assurance as to the scope and outcome of these matters and no assurance as to whether our business, financial position, results of operations or cash flows will not be materially adversely affected.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements of Coupang, Inc. (“Coupang”) together with its wholly-owned subsidiaries (collectively, “we,” “us,” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting.
Use of Estimates	The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. We based our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ materially from these estimates.
Principles of Consolidation	The unaudited interim financial information reflects all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period. Certain information and note disclosures normally included in the annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our 2022 Form 10-K.
Recent Accounting Pronouncements Adopted	Recent Accounting Pronouncements AdoptedIn September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2022-04, “Supplier Finance Programs (Subtopic 405-50) - Disclosure of Supplier Finance Program Obligations.” The standard requires entities that use supplier finance programs to make disclosures about the key terms of the program, the balance sheet presentation of the related amounts and disclose the amounts outstanding, including providing a rollforward of such amounts. The ASU is effective on a retrospective basis for fiscal years beginning after December 15, 2022, with the exception of the rollforward disclosure which will be effective prospectively for fiscal years beginning after December 15, 2023. The adoption of the ASU resulted in incremental disclosures in our condensed consolidated financial statements.

Net Revenues (Tables)

Net Revenues (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of Revenue	Details of total net revenues were as follows: Three Months Ended March 31, (in thousands) 2023 2022 Net retail sales $ 5,204,800 $ 4,556,107 Third-party merchant services 460,975 491,347 Other revenue 134,755 69,232 Total net revenues $ 5,800,530 $ 5,116,686

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Results of operations for the reportable segments and reconciliation to income (loss) before income taxes is as follows: Three Months Ended March 31, (in thousands) 2023 2022 Net revenues Product Commerce $ 5,658,349 $ 4,936,053 Developing Offerings 142,181 180,633 Total net revenues $ 5,800,530 $ 5,116,686 Segment adjusted EBITDA Product Commerce $ 288,370 $ 2,877 Developing Offerings (47,451) (93,749) Total segment adjusted EBITDA $ 240,919 $ (90,872) Reconciling items: Depreciation and amortization $ (64,245) $ (59,240) Equity-based compensation (69,899) (55,593) Interest expense (8,278) (7,368) Interest income 31,861 3,534 Other (expense) income, net (6,539) 490 Income (loss) before income taxes $ 123,819 $ (209,049)

Equity-based Compensation Pla_2

Equity-based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of RSU Activity	RSU activity for the three months ended March 31, 2023 is as follows: Outstanding RSUs (in thousands, except unit price) Number of RSUs Weighted Average Grant- December 31, 2022 35,178 $ 19.29 Granted 4,205 $ 15.29 Vested (3,096) $ 22.35 Forfeited / cancelled (936) $ 21.23 March 31, 2023 35,351 $ 18.49
Schedule of Equity-Based Compensation	The following table presents the effects of equity-based compensation in the condensed consolidated statements of operations: Three Months Ended March 31, (in thousands) 2023 2022 Cost of sales $ 3,558 $ 3,985 Operating, general and administrative 66,341 51,608 Total $ 69,899 $ 55,593

Defined Severance Benefits (Tab

Defined Severance Benefits (Tables)	3 Months Ended
	Mar. 31, 2023
Retirement Benefits [Abstract]
Schedule of components of net periodic benefit costs	The following table provides the components of net periodic benefit costs and the portion of these costs charged to expense: Three Months Ended March 31, (in thousands) 2023 2022 Current service costs $ 34,448 $ 38,967 Interest cost 3,387 1,704 Amortization of: Prior service credit 840 906 Net actuarial loss 16 2,905 Net periodic benefit cost $ 38,691 $ 44,482

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Loss Per Share/Common Unit	The following table presents the calculation of basic and diluted net income (loss) per share: Three Months Ended March 31, (in thousands, except per share amounts) 2023 2022 Numerator: Net income (loss) $ 90,855 $ (209,294) Denominator: Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders: Basic 1,774,843 1,756,739 Dilutive effect of equity compensation awards 19,610 — Diluted 1,794,453 1,756,739 Net income (loss) attributable to Class A and Class B common stockholders per share: Basic $ 0.05 $ (0.12) Diluted $ 0.05 $ (0.12) Anti-dilutive shares (rounded) 6,000 29,000

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of financial assets and financial liabilities measured at fair value on a recurring basis	The following table summarizes our financial assets and financial liabilities that are measured at fair value on a recurring basis: (in thousands) Classification Measurement Level March 31, 2023 December 31, 2022 Financial assets Cash deposit (1) Cash and cash equivalents Level 1 $ 3,792,211 $ 3,509,334 Time deposit Restricted cash Level 1 $ 254,945 $ 99,730 Money market trust Restricted cash Level 1 $ 75,243 $ 76,586 Time deposit Other current assets Level 1 $ 17,257 $ 17,754 Time deposit Long-term restricted cash Level 1 $ 1,536 $ 1,624 (1) Cash deposits includes bank deposits, money market trusts and time deposits. The carrying value approximates fair value because maturities are less than three months.

Supplemental Financial Inform_2

Supplemental Financial Information (Tables)	3 Months Ended
	Mar. 31, 2023
Quarterly Financial Information Disclosure [Abstract]
Supplemental Disclosure of Cash-flow Information	Supplemental Disclosure of Cash-flow Information Three Months Ended March 31, (in thousands) 2023 2022 Supplemental disclosure of cash-flow information Cash paid for income taxes, net of refunds $ 5,224 $ 2,232 Cash paid for interest $ 4,969 $ 6,249 Cash paid for the amount used to measure the operating lease liabilities $ 105,059 $ 83,063 Operating lease assets obtained in exchange for lease obligations $ 27,924 $ 174,824 Net increase to operating lease right-of-use assets resulting from remeasurements of lease obligations $ 26,803 $ 21,761 Non-cash investing and financing activities Increase (decrease) in property and equipment-related accounts payable $ 11,111 $ (74,563)

Net Revenues - Schedule of disa

Net Revenues - Schedule of disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total net revenues	$ 5,800,530	$ 5,116,686
Net retail sales
Disaggregation of Revenue [Line Items]
Total net revenues	5,204,800	4,556,107
Third-party merchant services
Disaggregation of Revenue [Line Items]
Total net revenues	460,975	491,347
Other revenue
Disaggregation of Revenue [Line Items]
Total net revenues	$ 134,755	$ 69,232

Net Revenues - Narrative (Detai

Net Revenues - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Deferred revenue recognized in period	$ 89	$ 74

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment
Segment Reporting [Abstract]
Number of operating segments	2
Number of reportable segments	2

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total net revenues	$ 5,800,530	$ 5,116,686
Total segment adjusted EBITDA	240,919	(90,872)
Reconciling items:
Equity-based compensation	(69,899)	(55,593)
Interest expense	(8,278)	(7,368)
Interest income	31,861	3,534
Other (expense) income, net	(6,539)	490
Income (loss) before income taxes	123,819	(209,049)
Operating segments | Product Commerce
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total net revenues	5,658,349	4,936,053
Total segment adjusted EBITDA	288,370	2,877
Operating segments | Developing Offerings
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total net revenues	142,181	180,633
Total segment adjusted EBITDA	(47,451)	(93,749)
Segment reconciling items
Reconciling items:
Depreciation and amortization	(64,245)	(59,240)
Equity-based compensation	(69,899)	(55,593)
Interest expense	(8,278)	(7,368)
Interest income	31,861	3,534
Other (expense) income, net	$ (6,539)	$ 490

Equity-based Compensation Pla_3

Equity-based Compensation Plans - RSU Activity (Details) - RSUs	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
RSU outstanding, beginning balance (in shares) | shares	35,178,000
Granted (in shares) | shares	4,205,000
Vested (in shares) | shares	(3,096,000)
Forfeited / cancelled (in shares) | shares	(936,000)
RSU outstanding, ending balance (in shares) | shares	35,351,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value of RSU at beginning period (in usd per share) | $ / shares	$ 19.29
Weighted-average grant date fair value, granted (in usd per share) | $ / shares	15.29
Weighted-average grant date fair value, vested (in usd per share) | $ / shares	22.35
Weighted-average grant date fair value, forfeited/cancelled (in usd per share) | $ / shares	21.23
Weighted average grant date fair value of RSU at ending period (in usd per share) | $ / shares	$ 18.49

Equity-based Compensation Pla_4

Equity-based Compensation Plans - Schedule of Equity Based Compensation Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 69,899	$ 55,593
Cost of sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	3,558	3,985
Operating, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 66,341	$ 51,608

Defined Severance Benefits (Det

Defined Severance Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement Benefits [Abstract]
Current service costs	$ 34,448	$ 38,967
Interest cost	3,387	1,704
Amortization of:
Prior service credit	840	906
Net actuarial loss	16	2,905
Net periodic benefit cost	$ 38,691	$ 44,482

Net Income (Loss) per Share (De

Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net income (loss)	$ 90,855	$ (209,294)
Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders, basic (in shares)	1,774,843	1,756,739
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)	19,610	0
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, diluted (in shares)	1,794,453	1,756,739
Net income (loss) attributable to Class A and Class B common stockholders per share, basic (in dollars per share)	$ 0.05	$ (0.12)
Net income (loss) attributable to Class A and Class B common stockholders per share, diluted (in dollars per share)	$ 0.05	$ (0.12)
Share-based Payment Arrangement
Denominator:
Antidilutive securities excluded from computation of net loss per share (in shares)	6,000	29,000

Fair Value Measurement (Details

Fair Value Measurement (Details) - Level 1 - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deposits
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Cash and cash equivalents	$ 3,792,211	$ 3,509,334
Time deposit
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Restricted cash	254,945	99,730
Other current assets	17,257	17,754
Long-term restricted cash	1,536	1,624
Money market trust
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Restricted cash	$ 75,243	$ 76,586

Supplemental Financial Inform_3

Supplemental Financial Information - Supplemental Disclosure of Cash-flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Supplemental disclosure of cash-flow information
Cash paid for income taxes, net of refunds	$ 5,224	$ 2,232
Cash paid for interest	4,969	6,249
Cash paid for the amount used to measure the operating lease liabilities	105,059	83,063
Operating lease assets obtained in exchange for lease obligations	27,924	174,824
Net increase to operating lease right-of-use assets resulting from remeasurements of lease obligations	26,803	21,761
Non-cash investing and financing activities
Increase (decrease) in property and equipment-related accounts payable	$ 11,111	$ (74,563)

Supplemental Financial Inform_4

Supplemental Financial Information - Supplier Financing Arrangements (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]
Supplier finance program, obligation	$ 334	$ 337

Supplemental Financial Inform_5

Supplemental Financial Information - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity attributable to parent	$ 2,560,030	$ 2,413,913	$ 2,037,261	$ 2,175,957
Accumulated foreign currency adjustment attributable to parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity attributable to parent	26,000	45,000
Accumulated defined benefit plans adjustment attributable to parent
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stockholders' equity attributable to parent	$ (42,000)	$ (43,000)

Short-Term Borrowings and Lon_2

Short-Term Borrowings and Long-term Debt (Details) - USD ($) $ in Thousands	1 Months Ended
	Apr. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt		$ 672,000	$ 667,000
Property and equipment, net		$ 1,811,174	$ 1,819,945
Subsequent event | Line of credit
Debt Instrument [Line Items]
Debt instrument term	3 years
Borrowing limit, total initial borrowings	$ 176,000
Fixed interest rate (in percent)	6.76%
Subsequent event | Line of credit | Asset pledged as collateral | Land and building
Debt Instrument [Line Items]
Property and equipment, net	$ 212,000
Line of credit | Subsequent event
Debt Instrument [Line Items]
Debt instrument term	1 year
Borrowing limit, total initial borrowings	$ 61,000
Variable interest rate (in percent)	4.40%