Online platform company Coupang (NYSE:CPNG) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 11.2% year on year to $7.91 billion. Its GAAP profit of $0.06 per share was in line with analysts’ consensus estimates.
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Coupang (CPNG) Q1 CY2025 Highlights:
- Revenue: $7.91 billion vs analyst estimates of $8.06 billion (11.2% year-on-year growth, 1.9% miss)
- EPS (GAAP): $0.06 vs analyst estimates of $0.05 (in line)
- Adjusted EBITDA: $382 million vs analyst estimates of $298.7 million (4.8% margin, 27.9% beat)
- Operating Margin: 1.9%, up from 0.6% in the same quarter last year
- Free Cash Flow Margin: 1.5%, down from 5.8% in the previous quarter
- Active Customers: 23.4 million, up 1.7 million year on year
- Market Capitalization: $43.55 billion
Company Overview
Founded in 2010 by Harvard Business School student Bom Kim, Coupang (NYSE:CPNG) is an e-commerce giant often referred to as the "Amazon of South Korea".
Sales Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Coupang’s sales grew at a solid 17.2% compounded annual growth rate over the last three years. Its growth beat the average consumer internet company and shows its offerings resonate with customers.
This quarter, Coupang’s revenue grew by 11.2% year on year to $7.91 billion but fell short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 13.8% over the next 12 months, a deceleration versus the last three years. We still think its growth trajectory is attractive given its scale and implies the market is forecasting success for its products and services.
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Active Customers
Buyer Growth
As an online retailer, Coupang generates revenue growth by expanding its number of users and the average order size in dollars.
Over the last two years, Coupang’s active customers, a key performance metric for the company, increased by 11.8% annually to 23.4 million in the latest quarter. This growth rate is strong for a consumer internet business and indicates people love using its offerings. 
In Q1, Coupang added 1.7 million active customers, leading to 7.8% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating buyer growth just yet.
Revenue Per Buyer
Average revenue per buyer (ARPB) is a critical metric to track because it measures how much customers spend per order.
Coupang’s ARPB growth has been impressive over the last two years, averaging 8.2%. Its ability to increase monetization while quickly growing its active customers reflects the strength of its platform, as its buyers continue to spend more each year. 
This quarter, Coupang’s ARPB clocked in at $337.95. It grew by 3.1% year on year, slower than its buyer growth.
Key Takeaways from Coupang’s Q1 Results
We were impressed by how significantly Coupang blew past analysts’ EBITDA estimates this quarter. We were also happy it added more active customers than anticipated. On the other hand, its revenue missed, signaling lower spending per customer than expected. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes. The market seemed to be hoping for more, and the stock traded down 3.4% to $23.17 immediately after reporting.
So should you invest in Coupang right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.