Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

We own and operate a retail business that primarily serves the Korean retail market along with other international markets. Based on the location of the legal entity that earned the revenue, over 90% of our total net revenues are from Korea. The remaining revenue is primarily from entities located in the United States, United Kingdom, and other countries in Europe and the Asia-Pacific region with none having over 5% of total net revenues.

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 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, and also includes Farfetch, our newly acquired global luxury fashion marketplace. Revenues from Developing Offerings are primarily generated from our luxury fashion marketplace through Farfetch, our online restaurant ordering and delivery services in Korea and retail operations in Taiwan.

The CODM uses two profitability measures, Segment Adjusted EBITDA and Segment Gross Profit, in assessing segment performance and allocating resources to each segment.

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. Other segment items in reconciling from net revenues by segment to Segment Adjusted EBITDA include cost of sales, operating, general and administrative expense, and the adjustments described below.

Gross Profit is defined as total net revenues less cost of sales attributable to each reportable segment.

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.

Reportable segment financial information is as follows:

(in millions)	2024		2023		2022
Net revenues
Product Commerce	$	26,699	$	23,594	$	19,955
Developing Offerings	3,569		789		628
Total net revenues	$	30,268	$	24,383	$	20,583
Cost of sales
Product Commerce	$	18,594	$	17,313	$	15,280
Developing Offerings	2,843		880		593
Total cost of sales	$	21,437	$	18,193	$	15,873
Gross profit
Product Commerce	$	8,105	$	6,282	$	4,675
Developing Offerings	726		(91)		35
Total gross profit	$	8,831	$	6,190	$	4,710
Operating, general and administrative	(8,395)		(5,717)		(4,822)
Interest expense	(140)		(48)		(27)
Interest income	216		178		53
Other expense, net	(39)		(19)		(7)
Income (loss) before income taxes	$	473	$	584	$	(93)
Segment adjusted EBITDA
Product Commerce	$	2,006	$	1,540	$	606
Developing Offerings	(631)		(466)		(225)
Total segment adjusted EBITDA	$	1,375	$	1,074	$	381
Reconciling items:
Depreciation and amortization	(433)		(275)		(231)
Equity-based compensation	(433)		(326)		(262)
Acquisition and restructuring related costs	(127)		—		—
KFTC administrative fine (see Note 14)	(121)		—		—
FC Fire insurance gain	175		—		—
Interest expense	(140)		(48)		(27)
Interest income	216		178		53
Other expense, net	(39)		(19)		(7)
Income (loss) before income taxes	$	473	$	584	$	(93)

Note: Amounts may not foot due to rounding.