Coupang, Inc. Q4 FY2025 earnings call

• Addressed the data incident: Apologized for the concern and inconvenience caused, provided details of the incident including what data was accessed, remediation steps, and a customer compensation program. • Product commerce focus: Deploying innovation and automation, investing in rocket delivery and FLC merchant offering; Taiwan experiencing hypergrowth with triple-digit revenue growth and building last mile logistics capabilities. • Developing offerings: Encouraged by results, Taiwan driving growth, Eats offerings showing stabilization, Farfetch generating positive year-over-year revenue growth with positive overall economics

Product Commerce: Net revenue was $7.4 billion, growing 8% year over year or 12% on a constant currency basis. Active customers for the quarter were 24.6 million, growing 8% year over year. Product commerce gross profit was $2.4 billion, increasing 5% year over year or 9% in constant currency. Product commerce generated segment-adjusted EBITDA of $567 million for the quarter, up 5% year over year. Developing Offerings: Reported record segment net revenues of $1.4 billion for the quarter, growing 32% or 31% in constant currency. Developing offerings generated $183 million in gross profit for the quarter, down 24% over last year. Total segment-adjusted EBITDA losses for developing offerings were $300 million for the quarter. Consolidated: Total net revenues were $8.8 billion, growing 11% on a reported basis and 14% on a constant currency basis. Consolidated gross profit was $2.5 billion, increasing 2% year over year or 5% in constant currency. Operating income for the fourth quarter was $8 million, decreasing $171 million versus last year. Net loss attributable to Coupang stockholders was $26 million. Consolidated adjusted EBITDA was $267 million this quarter, a 37% decrease versus last year

• Muted trends in growth and profitability expected in next few months with data incident impacts diminishing over the year. • Q1 consolidated constant currency revenues anticipated in the 5-10% range. • Full-year adjusted EBITDA losses for developing offerings in 2026 expected between $950 million and $1 billion

• Data incident: Former employee illegally accessed user data, potential customer impact and regulatory actions. • Market and operational risks: Fluctuations in growth rates, challenges in scaling developing offerings, potential impact of AI on e-commerce

Q: What is the estimated negative impact of the data hacking issue on fourth quarter financials such as revenue and EBITDA?

A: The data incident began to adversely impact revenue growth rates, active customers, and WOW membership towards the end of the quarter. Product commerce was delivering strong revenue growth of 16% in constant currency for the three-month period prior to December, and the softening reached its lowest levels in January with an estimated 4% constant currency growth rate, with improving trends since then.

Q: Timeline for the Taiwan business to reach unit economics positive?

A: Taiwan is following the strategy of building the best customer experience and foundation for long-term scalability and profitability. Focus is on getting the fundamentals right now; early signs are encouraging with next day delivery at 75% of overall volume and growing without a meaningful cost increase.

Q: How does Coupang view the impact of AI on e-commerce?

A: Excited about progress on AI; customers care about selection, service, and savings, and AI can amplify the value delivered across these pillars.

Q: Update on share repurchase?

A: Repurchased about 5.9 million shares during the quarter as part of the existing authorization. $243 million has been utilized to date under the $1 billion authorization approved by the board; continue to view share repurchases as an important component of the allocation framework