(Bloomberg) -- Coupang Inc., the online retailer popular in South Korea for dawn and one-day delivery, posted its fourth straight quarterly profit after investments in logistics and membership programs helped shore up margins.
Net income was $145.2 million for the second quarter, compared with a loss of $75.5 million a year earlier, the US-listed company said Tuesday in a statement. Net revenue climbed 16% to $5.84 billion, compared with analysts’ estimates for $5.7 billion.
The company’s US shares rose 3.6% in extended trading following the report. Coupang, which went public in New York in 2021, is one of the few major e-commerce platforms in Asia that have managed to turn profitable. The firm, backed by SoftBank Group Corp., has posted a net profit since the third quarter of last year, aided by improved operational efficiency and a growing membership service called “Wow” that’s akin to Amazon.com Inc.’s Prime.
The company has been trying to increase benefits for members after raising monthly fees last year to 4,990 won ($3.80) from 2,900 won. It rolled out new enticements for Coupang Eats, such as a 10% discount on meals.
Like many e-commerce businesses, Coupang’s core online retail business grew exponentially during the pandemic after people turned to apps for necessities from fresh vegetables to home appliances. While e-commerce in general has since decelerated, Coupang sustained growth thanks in part to a fast delivery service supported by a network of automated fulfillment centers, which helps retain customers and merchants.
--With assistance from Sohee Kim.
©2023 Bloomberg L.P.
