4. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders as of Q4: 87
Durable Capital Partners’ Equity Stake: $629.42 Million
Based in Seattle, Washington, Coupang, Inc. (NYSE:CPNG) generates revenue primarily through its Product Commerce segment, which includes direct retail sales and marketplace fees, and its Developing Offerings, which encompass Coupang Eats, Coupang Play, Fintech, and Farfetch.
For the fourth quarter of 2024, Coupang, Inc. (NYSE:CPNG) reported total net revenues of $8 billion, marking a 21% year-over-year increase. Excluding Farfetch, revenue growth stood at 14% while gross profit surged by 48% year-over-year to $2.5 billion, with a gross profit margin of 31.3%, reflecting a 570-basis-point improvement. The company reported a net income of $131 million, while net income attributable to Coupang stockholders stood at $156 million. Diluted earnings per share (EPS) was $0.08, but it was adjusted to $0.04. The company’s adjusted EBITDA for the quarter was $421 million, with a 5.3% margin, increasing by 80 basis points year-over-year.
Segment-wise, the Product Commerce segment generated $6.9 billion in net revenue, reflecting a 9% year-over-year increase. Active customers in this segment grew 10% year-over-year, reaching 22.8 million. Gross profit from Product Commerce rose 31% year-over-year to $2.3 billion, with a gross profit margin of 32.7%. Product Commerce adjusted EBITDA stood at $539 million, improving by $95 million year-over-year, with a margin of 7.8%. Meanwhile, the Developing Offerings segment, which includes international operations, Coupang Eats, Play, Fintech, and Farfetch, saw net revenues of $1.1 billion, reflecting a 296% year-over-year increase. The Developing Offerings segment’s adjusted EBITDA remained negative at $118 million; however, this represented a $32 million year-over-year improvement, aided by a $30 million benefit from Farfetch’s consolidation.
Coupang, Inc. (NYSE:CPNG)’s continued revenue growth, margin expansion, and increasing customer base highlight its strong market position and potential for long-term profitability, making it fourth in the list of top stocks to buy according to Durable Capital Partners. Additionally, hedge fund participation increased, as 87 of the 1,009 hedge funds tracked by Insider Monkey had stakes in Coupang, Inc. (NYSE:CPNG) by the end of Q4 2024, collectively valued at nearly $4.75 billion, up from 56 funds in the previous quarter.
Baron Fifth Avenue Growth Fund stated the following regarding Coupang, Inc. (NYSE:CPNG) in its Q4 2024 investor letter:
“Shares of Coupang, Inc. (NYSE:CPNG), Korea’s largest e-commerce platform, corrected 10.5% in the fourth quarter (even though they finished 2024 up 33.9%). While the company delivered solid quarterly results with 27% year-on-year revenue growth with Farfetch and other initiative losses narrowing significantly, its product commerce EBITDA margin missed expectations due to a temporarily elevated spending on technology and automation. Sluggish domestic consumption in Korea, with the e-commerce market experiencing flattish to negative growth, and political uncertainty stemming from President Yoon’s declaration of martial law and subsequent impeachment, further weighed on the stock. Despite these short-term challenges, we maintain a positive outlook on Coupang’s long-term market share expansion and margin growth trajectory, and view Coupang as one of the most competitively advantaged e-commerce businesses globally, with significant runway for both revenue and earnings growth.”
