XML 24 R10.htm IDEA: XBRL DOCUMENT v3.23.2
Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
We own and operate a retail 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, commissions, and logistics and fulfillment fees earned from merchants that sell products through our mobile application and website, and from Rocket WOW membership.
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, our retail operations in Taiwan, 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 June 30,Six Months Ended June 30,
(in thousands)2023202220232022
Net revenues
Product Commerce$5,681,590 $4,877,531 $11,339,939 $9,813,584 
Developing Offerings156,299 160,290 298,480 340,923 
Total net revenues$5,837,889 $5,037,821 $11,638,419 $10,154,507 
Segment adjusted EBITDA
Product Commerce$407,597 $97,840 $695,967 $100,717 
Developing Offerings(107,373)(31,668)(154,824)(125,417)
Total segment adjusted EBITDA$300,224 $66,172 $541,143 $(24,700)
Reconciling items:
Depreciation and amortization$(66,178)$(60,399)$(130,423)$(119,639)
Equity-based compensation(86,404)(72,916)(156,303)(128,509)
Interest expense(12,813)(6,143)(21,091)(13,511)
Interest income41,630 7,364 73,491 10,898 
Other expense, net(5,241)(9,229)(11,780)(8,739)
Income (loss) before income taxes$171,218 $(75,151)$295,037 $(284,200)