Coupang, Inc. Q1 FY2025 earnings call

• Consolidated revenue grew 11% year-over-year or 21% in constant currency in Q1. Gross profit margin was 29.3%, up 217 basis points, and adjusted EBITDA margin was 4.8%, up nearly 90 basis points. - Product Commerce focused on expanding selection (e.g., adding Kiehl's, Dolce & Gabbana, etc. in Beauty; Swarovski, Converse in other categories), with number of customers purchasing in 9 or more categories growing over 25% this quarter. Rocket Delivery service expanded reach. FLC (Fulfillment and Logistics by Coupang) saw strong momentum with sellers, selection, and volumes growing at multiples of the overall business. - Investments in technology, automation, and robotics improved operations, with benefits from automated picking, packing, sorting systems and machine learning. - In Taiwan, selection expanded nearly 500% this quarter, launch of WOW membership program, and positive customer response with higher engagement and spend. - Eats continued to sustain momentum with focus on broad selection, great value, and fast delivery, though still incurring adjusted EBITDA losses.

Product Commerce: Revenue grew 6% year-over-year or 16% in constant currency. Gross profit was $2.2 billion with a margin of 31.3%, representing a margin improvement of over 300 basis points versus the prior year. Adjusted EBITDA for Product Commerce was $550 million this quarter with a margin of 8%, an expansion of over 80 basis points year-over-year. Developing Offerings: Revenue grew 67% year-over-year or 78% in constant currency. In Q1, adjusted EBITDA losses for Developing Offerings were $168 million, reflecting increased investment consistent with 2025 guidance.

• Consolidated growth target: Expect full-year constant currency consolidated growth rate to be about 20%. - Product Commerce: Expected to continue growth with FLC as a significant growth driver. - Developing Offerings: Expect adjusted EBITDA losses for the full year to be between $650 million to $750 million. - Share repurchase: Board approved a $1 billion share repurchase program for opportunistic buybacks to generate meaningful returns for shareholders.

• Macro environment: No meaningful impact from recent global events on core business so far, but will continue to monitor changes in the macro environment. - Competitive landscape: Retail market is highly competitive with new entrants, and need to continue innovating to maintain market position.

Q: Impact on macro and tariff on business, and user behavior change?

A: No significant impact seen yet, will continue to monitor macroeconomic environment closely.

Q: Motive and thinking behind $1 billion share repurchase program?

A: Board approved program to act opportunistically on market conditions to generate returns for shareholders, no fixed term, pace will be opportunistic and disciplined.

Q: Comfort with 20% revenue growth guidance under current macro and competitive environment, and Product Commerce revenue growth outlook?

A: No change to 20% consolidated growth outlook, inventory model not highly susceptible to tariffs, FLC growing at high multiples of overall business.

Q: Development offering loss increase and margin trend in East and Taiwan?

A: Eats continues to incur losses but sustains momentum with broad selection and fast delivery; in Taiwan, strong growth in selection and customer engagement expected to continue.

Q: FLC growth, customer and merchant penetration, and macro impact on competitors?

A: FLC growing at high multiples of overall business, still early with room for growth; focus on providing best customer experience rather than competitor phase; no significant behavioral changes from Chinese competitors in Korea noted yet