Coupang Inc. reported a record quarterly revenue of $5.12 billion in the first quarter of this year, with much smaller loss thanks to a strong growth in its following day and fresh food delivery services.

The biggest online retailer in South Korea reported a total net revenue of $5.12 billion for the January-March period, up 22 percent from the same period a year earlier and higher than its previous quarterly record of $5.08 billion in the fourth quarter last year, the company said in a filing to U.S. Securities and Exchange Commission (SEC) on Thursday (local time). Coupang’s shares are trading on the New York Stock Exchange.

Coupang’s net loss for the quarter came to $209.3 million, down by 29.1 percent from $295.03 million a year ago. Operating loss narrowed by 23 percent to $205.7 million.

Process improvement, automation, and supply chain optimization helped increase its profitability, Coupang founder and chairman Kim Bom-seok said in a conference call.

As a result of efforts to improve profitability, Coupang recorded a profit ($2.87 million) for the first time in adjusted EBITDA in product commerce sectors that include Rocket Delivery and Rocket Fresh, the company’s key growth engine.

Coupang added 15 million square meters of logistics infrastructure last year, and now has more than 100 fulfillment centers in 30 locations across Korea. A five-story giant fulfillment center built in Daegu last month has a total floor area of 330,000 square meters.

The continuous expansion of logistics scale helps increase its daily delivery capacity, which in turn leads to an increase in the number of customers.

Coupang’s number of active customers in the first quarter was 18.11 million, up 13 percent from 16.03 million a year earlier. Of these, 6.33 million, or 35 percent, use Rocket Fresh, an early morning delivery service. Revenue per customer reached $283, up 8 percent from $262 a year ago.

The company’s new business such as Coupang Eats and Coupang Play are also on track for growth. Sales in the first quarter from Coupang Eats, Coupang Play, Coupang Pay, and overseas business amounted to $181 million, up 65 percent from the previous year. As of January, Coupang Eats attracted 6.58 million monthly active users, up 80 percent from a year ago.

By Hong Sung-yong and Minu Kim

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