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]

Core Viewpoint - Investors are advised to wait at least a year before investing in new IPOs due to their volatility and overvaluation during the transition from private to public markets [1] Company Overview - Coupang is a leading e-commerce company in South Korea, accounting for approximately 25% of the country's e-commerce market [5] - The company went public at around $50 per share in 2021 but saw its share price drop to $8 within 18 months, currently trading at about half of its IPO price [2] Growth and Market Position - Coupang has doubled its revenue over the past four years and has established itself as a cash-generating entity [2] - The company aims to provide best-in-class customer service, leveraging its first-mover advantage in the South Korean market [5] Customer Satisfaction and Services - Coupang has the highest customer satisfaction score among its peers in South Korea, according to the National Customer Satisfaction Index [8] - The company offers a wide range of services, including free grocery delivery, restaurant delivery, streaming media, and a membership program for under $6 a month [8][9] Logistics and Operational Efficiency - Coupang's logistics network is more efficient than those of similar retailers in other regions, allowing for services like dawn delivery and next-day delivery [6][7] - The company's streamlined operations position it well against competitors, enhancing customer satisfaction [7] Expansion and Growth Opportunities - Coupang acquired luxury goods e-commerce platform Farfetch for $500 million, which has since reached breakeven profitability and attracts 49 million monthly visitors [10][11] - The company is expanding into Taiwan, where it has seen a 23% quarter-over-quarter sales growth and launched its WOW membership program [12][13] Valuation Metrics - Coupang trades at 48 times free cash flow (FCF), primarily due to significant capital expenditures for growth [14][16] - If the company were to reduce its capital spending, its price-to-CFO ratio would be closer to 24, which is a discount compared to the S&P 500 average of 32 times FCF [16] Financial Performance - In Q1, Coupang reported an 11% increase in sales and a 9% increase in active customers, with improvements in gross and net profit margins [17]