Financial Data and Key Metrics Changes - The company reported consolidated revenues of $9.3 billion for Q3 2025, reflecting an 18% year-over-year growth, or 20% in constant currency [4][16] - Gross profit margins expanded over 50 basis points to 29.4%, while adjusted EBITDA margins increased by 10 basis points to 4.5% [4][16] - Operating income rose to $162 million, a 50% increase year-over-year, with a margin of 1.7% [17] Business Line Data and Key Metrics Changes - Product commerce net revenues reached $8 billion, up 16% year-over-year, or 18% on a constant currency basis, driven by strong customer spending [11][16] - Gross profit in product commerce was $2.6 billion, a 24% increase year-over-year, with a gross profit margin of 32.1% [13] - Developing offerings generated net revenue of $1.3 billion, a 32% increase year-over-year, but reported a gross profit decrease of 22% [14][15] Market Data and Key Metrics Changes - The company noted significant growth in Taiwan, with accelerating revenue growth and strong customer adoption [8][9] - The share of volume delivered through the company's own last-mile logistics in Taiwan has increased, enhancing speed and reliability [10][30] Company Strategy and Development Direction - The company aims to broaden selection across first-party and marketplace offerings, focusing on deepening direct relationships with brand partners [6][7] - Investments in automation technologies are being accelerated to improve service levels and operational costs [7][19] - The company is committed to disciplined capital allocation while expanding its customer value proposition [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Korea's growth potential, citing a largely untapped market [4][5] - The company anticipates continued growth in Taiwan, driven by expanding selection and the rollout of its own last-mile logistics [9][30] - Management expects consolidated growth rates to align with previous guidance of approximately 20% year-over-year growth in constant currency [25] Other Important Information - The effective income tax rate for the quarter was 42%, expected to temporarily rise to 60%-65% for the full year due to early-stage operational losses [17] - The company is focused on practical applications of AI to enhance operations and customer satisfaction [35][36] Q&A Session Summary Question: Impact of Naver-Curly partnership on Fresh GMV - Management noted that Fresh continues to grow above the overall business, driven by investments in customer experience and competitive pricing [22] Question: Expected headwind in Q4 due to holiday timing - Management indicated that the timing of Chuseok impacted comparability, but underlying demand trends remain solid [25] Question: E-commerce share and operating loss trajectory in Taiwan - Management stated that Taiwan has exceeded expectations, with strong customer adoption and engagement, and emphasized the importance of building capabilities for long-term growth [29][30] Question: Differences in addressing Taiwan's market challenges - Management acknowledged market differences but emphasized similarities in customer needs, focusing on improving service levels [34] Question: Plans for AI investments - Management confirmed a focus on building internal AI infrastructure to enhance operations, with ongoing efforts to improve efficiency and customer satisfaction [35][36] Question: Percentage of GMV through 1P logistics in Taiwan - Management indicated that it is still early in the journey for 1P logistics in Taiwan, with progress being made [41] Question: Technology investment cycle and EBITDA margins - Management noted that product commerce margins are expanding, with expectations for continued growth through technology and automation [43][45] Question: WOW Membership retention and APEC sponsorship - Management reported encouraging early responses to the WOW Membership and clarified that the APEC sponsorship is not a significant business lever [48][50]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $9.3 billion for Q3 2025, reflecting an 18% year-over-year growth and 20% in constant currency [4][16] - Gross profit margins expanded over 50 basis points to 29.4%, while Adjusted EBITDA margins increased by 10 basis points to 4.5% [4][16] - Operating income rose to $162 million, a 50% increase year-over-year, with an operating income margin of 1.7% [17] Business Line Data and Key Metrics Changes - Product commerce net revenues reached $8 billion, up 16% year-over-year or 18% on a constant currency basis, driven by strong customer spending [11][16] - Developing offerings generated net revenue of $1.3 billion, increasing 32% year-over-year, primarily due to growth in Taiwan and Eats [14][15] - Gross profit for product commerce was $2.6 billion, up 24% year-over-year, with a gross profit margin of 32.1% [13] Market Data and Key Metrics Changes - The company experienced a 10% growth in active customers, with revenue growth primarily driven by increased spending from existing customers [11] - Taiwan's e-commerce market is showing strong growth, with customer adoption and retention levels similar to early stages in Korea [29][30] Company Strategy and Development Direction - The company aims to broaden selection across first-party and marketplace offerings, focusing on deepening direct relationships with brand partners [6][10] - Significant investments are being made in FLC to enhance convenience and savings for merchants, which will benefit customers [7] - The company is committed to operational excellence through automation technologies across logistics and fulfillment networks [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Korea's growth potential, highlighting the durability of customer spending and the opportunity for margin expansion [4][10] - The company anticipates continued growth in Taiwan, driven by expanding selection and the rollout of last-mile logistics [9][30] - Management expects to maintain disciplined capital allocation while investing in growth initiatives [10][19] Other Important Information - The effective income tax rate for the quarter was 42%, with expectations of a full-year rate of 60%-65% due to early-stage operational losses [17] - The company reported robust growth in operating cash flow of $2.4 billion, up 30% year-over-year, and free cash flow of $1.3 billion, growing 36% [19] Q&A Session Summary Question: Impact of Naver Curly partnership on fresh GMV - Management noted that fresh growth continues to exceed overall business growth, driven by investments in customer experience and competitive pricing [22] Question: Expected headwind in Q4 due to holiday timing - Management clarified that the timing of Chuseok impacted comparability, but underlying demand trends remain solid, expecting full-year growth to align with guidance [25] Question: E-commerce share and operating loss trajectory in Taiwan - Management indicated that Taiwan is exceeding expectations, with strong customer adoption and engagement, and emphasized the importance of building capabilities for long-term growth [29][30] Question: Differences in addressing Taiwan's market challenges - Management acknowledged market nuances but emphasized similarities in customer needs, focusing on improving service levels and operational excellence [34] Question: AI investment plans - Management confirmed a focus on building internal AI infrastructure to enhance operations and efficiency, with ongoing efforts to apply AI across various processes [35][36] Question: WOW membership retention and APEC sponsorship - Management reported encouraging early responses to the WOW membership and clarified that the APEC sponsorship is not a significant business lever but a means to build relationships [49][50]

Financial Data and Key Metrics Changes - The company reported consolidated revenues of $9.3 billion for Q3 2025, reflecting an 18% year-over-year growth and a 20% growth in constant currency [4][16] - Gross profit margins expanded over 50 basis points to 29.4%, while Adjusted EBITDA margins increased by 10 basis points to 4.5% [4][16] - Operating income rose to $162 million, a 50% increase year-over-year, with an operating income margin of 1.7% [17] Business Line Data and Key Metrics Changes - Product commerce net revenues reached $8 billion, up 16% year-over-year, with a gross profit of $2.6 billion, increasing 24% year-over-year [11][12] - Developing offerings generated net revenue of $1.3 billion, a 32% increase year-over-year, but reported a gross profit decrease of 22% due to ongoing investments [14][15] Market Data and Key Metrics Changes - The company experienced a 10% growth in active customers, with increased spending primarily from existing customers [11] - In Taiwan, the company reported accelerating revenue growth, with customer adoption and retention improving significantly [9][28] Company Strategy and Development Direction - The company aims to broaden selection across first-party and marketplace offerings, focusing on deepening direct relationships with brand partners [5][10] - Significant investments are being made in FLC (Fulfillment Logistics Center) to enhance convenience and savings for merchants, which will benefit customers [6][10] - The company is committed to operational excellence through automation technologies across its logistics and fulfillment network [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Korea's growth potential, highlighting the untapped opportunities in the market [4][5] - The company anticipates continued growth in Taiwan, driven by expanding selection and the rollout of its own last-mile logistics [9][10] - Management expects to maintain disciplined capital allocation while investing in developing offerings [10][18] Other Important Information - The effective income tax rate for the quarter was 42%, with expectations of a full-year rate of 60%-65% due to early-stage operational losses [17] - The company reported robust growth in operating cash flow, reaching $2.4 billion, a 30% increase year-over-year [19] Q&A Session Summary Question: Impact of Naver Curly partnership on fresh GMV - Management noted that the growth trajectory of Fresh continues to exceed overall business growth, driven by investments in customer experience and competitive pricing [23] Question: Expectation of headwinds in Q4 due to holiday timing - Management indicated that the timing of Chuseok impacted comparability, but underlying demand trends remain solid, expecting full-year growth rates to align with guidance [25] Question: E-commerce share and operating loss trajectory in Taiwan - Management stated that Taiwan has exceeded expectations, with strong customer adoption and engagement, and they are focused on building capabilities for long-term growth [28] Question: Differences between Taiwan and Korea markets - Management acknowledged market differences but emphasized similarities in customer response, focusing on improving service levels and operational excellence [32] Question: AI investment plans - The company is building internal AI infrastructure to enhance operations and improve efficiencies, with ongoing efforts to apply AI across various functions [34] Question: 1P logistics percentage in Taiwan and growth trajectory - Management confirmed that it is still early in the journey for 1P logistics in Taiwan, but they are making good progress and expect rapid expansion [38] Question: Technology investment cycle and EBITDA margins - Management indicated that while technology investments continue, the pace has slowed, and they expect product commerce margins to grow beyond 10% over time [40][41] Question: WOW membership retention and APEC sponsorship - Early customer response to the WOW membership has been encouraging, and the APEC sponsorship is not seen as a significant business lever but rather a relationship-building opportunity [46][47]

Overall Financial Performance - Total net revenues increased by 18% year-over-year to $93 billion in Q3 2025[11], or 20% on an FX-neutral basis[10] - Total net revenues for the trailing twelve months (TTM) increased by 17% year-over-year to $337 billion in Q3 2025[15], or 22% on an FX-neutral basis[14] - Gross profit increased by 20% year-over-year to $27 billion in Q3 2025[18], or 22% on an FX-neutral basis[17], with gross profit margin (GPM) up by 51 bps year-over-year[17] - Net income attributable to Coupang stockholders increased by $25 million year-over-year to $95 million in Q3 2025[21] - Adjusted EBITDA increased by $70 million year-over-year to $413 million in Q3 2025[28], with a margin of 45%, up 10 bps year-over-year[27] - Adjusted EBITDA for the trailing twelve months (TTM) increased by $396 million year-over-year to $16 billion in Q3 2025[32], with a margin of 49%, up 56 bps year-over-year[31] - Operating cash flow (TTM) increased by $549 million year-over-year to $24 billion in Q3 2025[36] - Free cash flow (TTM) increased by $333 million year-over-year to $13 billion in Q3 2025[36] Segment Performance - Product Commerce net revenue increased by 16% year-over-year to $80 billion in Q3 2025[40], or 18% on an FX-neutral basis[39] - Product Commerce net revenue (TTM) increased by 11% year-over-year to $291 billion in Q3 2025[40], or 17% on an FX-neutral basis[39] - Product Commerce Adjusted EBITDA increased by $235 million year-over-year to $705 million in Q3 2025[43], with a margin of 88%, up 201 bps year-over-year[42] - Developing Offerings net revenue increased by 32% year-over-year to $13 billion in Q3 2025[49], or 31% on an FX-neutral basis[48]

Financial Performance - Total net revenues for Q3 2025 reached $9,267 million, an 18% increase from $7,866 million in Q3 2024[100] - Gross profit for Q3 2025 was $2,720 million, reflecting a 20% growth compared to $2,269 million in Q3 2024[100] - Net income for Q3 2025 was $95 million, a 48% increase from $64 million in Q3 2024, with a net income margin of 1.0%[100] - Net retail sales for Q3 2025 were $7,081 million, a 15% increase from $6,140 million in Q3 2024[105] - Net other revenue for Q3 2025 was $2,186 million, a 27% increase from $1,726 million in Q3 2024[105] - Adjusted EBITDA for Q3 2025 was $413 million, up 20% from $343 million in Q3 2024[100] - Operating income for Q3 2025 was $162 million, a 49% increase from $109 million in Q3 2024[105] - Product Commerce net revenues increased to $7,980 million for Q3 2025, a 16% increase from $6,891 million in Q3 2024[110] - Developing Offerings net revenues rose to $1,287 million for Q3 2025, reflecting a 32% increase from $975 million in Q3 2024[110] - Free cash flow for Q3 2025 was $442 million, compared to a loss of $42 million in Q3 2024[100] Customer Metrics - Product Commerce Active Customers increased to 24.7 million in Q3 2025, a 10% rise from 22.5 million in Q3 2024[102] - The company experienced a 7% growth in total net revenues per Product Commerce Active Customer, driven by increased customer engagement[110] Expenses and Costs - Cost of sales increased by $950 million or 17% for Q3 2025, while the cost of sales as a percentage of revenue decreased to 70.6% from 71.2% in Q3 2024[113] - The increase in operating, general and administrative expenses for Q3 2025 was primarily due to higher infrastructure and technology costs, with expenses as a percentage of revenue slightly increasing to 27.6%[115] Tax and Income Adjustments - The effective tax rate decreased from 51.5% to 42.4% in Q3 2025 compared to Q3 2024, primarily due to changes in U.S. taxes on foreign income[119] - Developing Offerings adjusted EBITDA showed a loss of $292 million in Q3 2025, a 130% increase in loss compared to $127 million in Q3 2024[122] Cash Flow and Equity - Free cash flow for the nine months ended September 30, 2025, was $805 million, up from $553 million in the same period of 2024[130] - Net income for the nine months ended September 30, 2025, was $240 million, a significant improvement from a net loss of $65 million in 2024[131] - The company had total cash, cash equivalents, and restricted cash of $7.3 billion as of September 30, 2025[133] - Stockholders' equity increased to $4.7 billion as of September 30, 2025, compared to $4.1 billion at the end of 2024[135] Investment and Growth Strategy - The company plans to invest significantly in its growth strategy, particularly in the Developing Offerings segment, with expected future expenditures exceeding several billion dollars[135] - A stock repurchase program was authorized for up to $1 billion, with $81 million spent to repurchase 2.8 million shares during the three and nine months ended September 30, 2025[136] - The company entered into various new construction contracts with remaining capital expenditure commitments of $365 million as of September 30, 2025[135] Debt and Borrowing - Aggregate outstanding borrowings under all other credit facilities totaled $953 million as of September 30, 2025[148] - Coupang, Inc. entered into a three-year term loan agreement in September 2025 with aggregate borrowings of $449 million at an average fixed interest rate of 3.80%[150] - The company had an outstanding balance of $669 million on credit facilities with variable interest rates as of September 30, 2025[157] Currency and Interest Rate Risk - A hypothetical 10% adverse change in average exchange rates would have resulted in a decline in total net revenues of approximately $808 million for the three months ended September 30, 2025[160] - The company is exposed to fluctuations in the exchange rates of various currencies against the USD, predominantly the KRW[158] - Coupang, Inc. does not currently use derivatives to hedge foreign currency risk but may consider it in the future[161] - The company evaluates and approves credit standards to manage credit risk related to cash and cash equivalents held with financial institutions[162] - Coupang, Inc. aims to align costs with revenue denominated in the same currency but is not always able to do so due to geographic spread[159] - The company’s interest rate risk arises primarily from variable rate debt and undrawn revolving credit agreements[156] Acquisition and Settlement - The acquisition of Farfetch in January 2024 included a settlement agreement that terminated guaranteed minimum royalty payments totaling $264 million[95] - Coupang, Inc. fully redeemed $392 million of principal amount outstanding on the Farfetch Term Loans in July 2025[151]

Financial Performance - Net revenues for Q3 2025 were $9.3 billion, representing an 18% increase year-over-year (YoY) and a 20% increase on a constant currency basis[5]. - Gross profit increased to $2.7 billion, up 20% YoY and 22% on a constant currency basis, with a gross profit margin of 29.4%, an improvement of 51 basis points YoY[5]. - Operating income reached $162 million, an increase of $53 million compared to the previous year[5]. - Net income attributable to Coupang stockholders was $95 million, up $31 million YoY, with diluted EPS of $0.05, an increase of $0.01[5]. - Adjusted EBITDA for the quarter was $413 million, with a margin of 4.5%, up 10 basis points from last year[5]. - Net income for the nine months ended September 30, 2025, was $240 million, a significant improvement compared to a net loss of $65 million in the same period of 2024[22]. - Net income attributable to Coupang stockholders for Q3 2025 was $95 million, compared to $70 million in Q3 2024[35]. - The company reported a net income margin of 1.0% for Q3 2025, compared to 0.8% in Q3 2024[35]. Cash Flow and Assets - Operating cash flow for the trailing twelve months was $2.4 billion, an increase of $549 million YoY, while free cash flow was $1.3 billion, up $333 million YoY[5]. - Cash and cash equivalents increased to $7,324 million as of September 30, 2025, compared to $5,962 million at the end of the previous year, marking a rise of 22.8%[22]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,691 million, compared to $1,210 million in 2024, showing a growth of 39.7%[22]. - Net cash provided by operating activities for the trailing twelve months ended September 30, 2025, was $2,367 million, up from $1,818 million in the previous year[34]. - Free cash flow for Q3 2025 was $442 million, a significant improvement from a negative $42 million in Q3 2024[34]. Customer Metrics - Active Customers in the Product Commerce segment reached 24.7 million, growing 10% YoY[5]. - Product Commerce Active Customers grew to 24.7 million, a 10% increase from 22.5 million in the previous year[28]. - Net revenues per Product Commerce Active Customer reached $323, reflecting a 5% increase from $307 in the prior year[28]. Segment Performance - Product Commerce segment net revenues were $8.0 billion, up 16% YoY, with gross profit of $2.6 billion, reflecting a 24% increase YoY[7]. - Developing Offerings segment net revenues were $1.3 billion, up 32% YoY, but reported an adjusted EBITDA loss of $292 million, increasing $165 million YoY[7]. - Developing offerings segment reported revenues of $1,287 million in Q3 2025, a 32% increase from $975 million in Q3 2024[33]. - Net retail sales for Q3 2025 were $7,081 million, reflecting a 15% year-over-year growth from $6,140 million in Q3 2024[33]. Equity and Liabilities - Total assets increased to $18,668 million as of September 30, 2025, up from $15,344 million on December 31, 2024, representing a growth of 21.1%[20]. - Total liabilities rose to $13,927 million, up from $11,167 million, indicating a 24.9% increase[20]. - The company reported a total equity of $4,741 million as of September 30, 2025, an increase from $4,102 million at the end of 2024, representing a growth of 15.6%[20]. Strategic Focus - Adjusted EBITDA margin is a key measure used by the company to evaluate performance and allocate resources effectively[31]. - The company plans to continue focusing on increasing customer engagement and retention to drive future revenue growth[25]. Share Repurchase - Coupang repurchased 2.8 million shares of Class A common stock for an aggregate amount of $81 million during the quarter[5]. Capital Expenditures - Total purchases of property and equipment for Q3 2025 amounted to $353 million, a decrease from $380 million in Q3 2024[34].

Group 1 - Coupang, Inc. (NYSE:CPNG) is recognized as a top analyst call, with a focus on its expansion into various areas within a super app, primarily in South Korea and Taiwan [1] - The company experienced a 10.5% correction in Q4 2024, despite finishing the year with a 33.9% increase in share price [2] - Coupang reported a 27% year-on-year revenue growth, although its product commerce EBITDA margin fell short of expectations due to increased spending on technology and automation [2] Group 2 - The sluggish domestic consumption in Korea and political uncertainty, including President Yoon's declaration of martial law, negatively impacted Coupang's stock performance [2] - Despite short-term challenges, there is a positive long-term outlook for Coupang's market share expansion and margin growth, positioning it as a competitively advantaged e-commerce business globally [2] - The company is viewed as having significant potential for both revenue and earnings growth in the future [2]

Core Insights - Coupang (CPNG) is set to report its third-quarter 2025 results on November 4, with revenue expectations of $9.06 billion, reflecting a 15.15% year-over-year increase, while earnings per share are estimated at 4 cents, indicating a 33.33% decline from the previous year [2][8]. Financial Performance - CPNG achieved a 19% year-over-year constant currency revenue growth in the second quarter of 2025, reaching $8.5 billion, and is expected to continue this momentum into the third quarter [4]. - The Product Commerce segment is anticipated to maintain its margin expansion, building on a 227-basis-point improvement in gross profit margin from the previous quarter [4]. Customer Engagement - Active customer growth of 10% and increased average spending across customer cohorts suggest strong engagement levels through the third quarter [4]. Growth Drivers - Taiwan operations are projected to remain a significant growth driver, following triple-digit year-over-year revenue growth and a 54% sequential acceleration in the second quarter of 2025 [5]. Profitability Challenges - Profitability pressures are expected to persist, with CPNG raising its full-year Developing Offerings adjusted EBITDA loss guidance to between $900 million and $950 million due to high investment levels in Taiwan and Eats [6]. - Operating expenses as a percentage of revenues increased by 96 basis points sequentially in the prior quarter and are expected to remain elevated as the company invests in technology infrastructure and AI initiatives [6]. Earnings Outlook - According to the Zacks model, CPNG currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [7].

Core Insights - Coupang, Inc. is utilizing AI innovation to redefine the future of commerce and expand U.S. exports [1] - The company supports America's mission to maintain global leadership in AI and advanced technologies [1] Company Initiatives - Coupang is leveraging AI and advanced technologies to drive American exports [1] - The remarks were made by Chief Global Affairs Officer Robert Porter during a keynote speech at the 2025 APEC CEO Summit [1]

Core Insights - Greenoaks focuses on identifying potential future S&P 500 companies and aims to be a long-term core partner for these firms [3][4] - The firm emphasizes the importance of "Jaw Dropping Customer Experience" (JDCE) as a key factor in creating value and driving innovation [9][10] - Greenoaks has a concentrated investment strategy, managing approximately $15 billion in assets across only 55 companies, which allows for deep collaboration with founders [2][4] Investment Philosophy - Greenoaks prioritizes exceptional customer experiences and believes that only a few founders can drive significant advancements in human civilization [9][10] - The firm rejects a matrix management approach, opting instead for deep collaboration with a select group of top founders [4][31] - In AI investments, Greenoaks adheres to fundamental business principles, focusing on customer value, competitive barriers, and market size rather than solely on technological advancements [4][39] Case Study: Coupang - Coupang, often referred to as the "Amazon of Korea," transformed its logistics to offer rapid delivery services, significantly increasing customer retention rates from 30% to 60% [11][13] - Greenoaks has invested nearly $1 billion in Coupang over ten years, participating in multiple funding rounds and holding a 3.2% stake in the company [15][20] - The founder of Coupang, Bom Kim, is noted for his intense focus and ambition, which are key traits that Greenoaks looks for in founders [16][19] Growth and Market Dynamics - Greenoaks believes that the best companies exhibit sustained high growth rates and that a small percentage of companies contribute significantly to overall market value [21][22] - The firm acknowledges that while high growth can pose risks, it is essential for long-term success, especially in technology and software sectors [23][25] - Greenoaks has successfully navigated market volatility, often investing during downturns, as seen with Coupang and Carvana [27][53] Future Investment Strategy - Greenoaks aims to maintain a focused investment approach, limiting the number of companies in its portfolio to enhance engagement and support [56] - The firm is open to exploring new markets and investment structures, having previously attempted to establish a holding company for insurance in emerging markets [58][60] - Greenoaks emphasizes the importance of building strong relationships with founders and understanding their businesses deeply to identify the best investment opportunities [32][40]