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Coupang, Inc.


Wall street consensus:


​Recent Conference Call

### Coupang, Inc. (NYSE:CPNG) FQ3 2023 Earnings Call Summary

**Insightful Quote:**
"Our conviction about the long-term potential in Taiwan continues to strengthen... our app is on pace to be the most downloaded app in the market for all of 2023. We're off to a promising start." - Bom Suk Kim, Founder, CEO & Chairman

**Quarterly Business Trends:**
1. **Accelerating Ecosystem Flywheel:** The company reported accelerated growth in active customers and revenue, emphasizing the expansion across both first and third-party selections. Key to this acceleration was Coupang's investment in consumer experience and operational excellence, with fresh categories growing twice as fast as the overall business.

2. **WOW Membership Amplification:** The growing engagement in the WOW membership program, specifically through Eats, denotes a cross-benefit amplification across Coupang's offerings. About 90% increase in WOW members participating in Eats since the launch of the savings program illustrates an integrated ecosystem benefitting the core commerce and food delivery segments.

3. **Expanding Global Footprint - Focus on Taiwan:** The company's introductory year in Taiwan showcased faster growth compared to its first year in Korea. This strategic expansion not only positions Coupang for more substantial global outreach but also cements its commitment to breaking into new markets with its proven operational efficiency and customer-centric approach.

**Critical Analyst Questions:**
1. **Minuh Cha (Goldman Sachs):** Concerning Product Commerce margins and the sequential decline, specifically querying the influence of new inventory expansions and future expectations.
- **Management Response:** Emphasized the impact of one-time expenses tied to expanding selection and merchant acquisition costs, reassuring that the underlying drivers of margin remain strong with confidence in long-term margin expansion goals.

2. **Stanley Yang (JPMorgan):** Asked about the unexpected Product Commerce EBITDA margin directions and whether strategic focuses or competitive factors influenced it.
- **Management Response:** Clarified that there was no change in pricing policies; external factors such as onetime expenses from new merchant acquisitions mainly drove margin fluctuations, with a strong focus on the enduring strength of their business model and operational excellence.

3. **Jiong Shao (Barclays):** Inquired about competition impacts in Korea from international players and sought metrics or KPIs that gauge Taiwan's operation's success.
- **Management Response:** Highlighted the continuous acceleration in Korea despite new entrants and reiterated a disciplined, rigorous approach to investments and expansion into new markets like Taiwan, driven by customer experience and operational efficiencies.

**Outlook & Guidance:**
Coupang remains committed to investing in growth opportunities, prioritizing customer experience and operational efficiencies. The company expects its margin journey to continue favorably over time, despite the acknowledged quarter-to-quarter unevenness due to strategic investments in selection expansion and new market entries. The expansion into Taiwan and

Key Questions to follow

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