Segment Reporting

12 Months Ended

Dec. 31, 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 our core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, our fresh grocery category 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 our more nascent offerings and services, including Coupang Eats, our restaurant ordering and delivery service in Korea, Coupang Play, our online content streaming service in Korea, 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 in Korea and retail operations in Taiwan.

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 loss before income taxes is as follows:

(in millions)	2023		2022		2021
Net revenues
Product Commerce	$	23,594	$	19,955	$	17,838
Developing Offerings	789		628		568
Total net revenues	$	24,383	$	20,583	$	18,406
Segment adjusted EBITDA
Product Commerce	$	1,540	$	606	$	(361)
Developing Offerings	(466)		(225)		(387)
Total segment adjusted EBITDA	$	1,074	$	381	$	(748)
Reconciling items:
Depreciation and amortization	(275)		(231)		(201)
Equity-based compensation	(326)		(262)		(249)
Interest expense	(48)		(27)		(45)
Interest income	178		53		9
Other expense, net	(19)		(7)		(12)
Fulfillment center fire losses	—		—		(296)
Income (loss) before income taxes	$	584	$	(93)	$	(1,542)