Coupang, Inc.

Hello, everyone. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coupang 2024 Second Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number five on your telephone keypad. If you would like to withdraw your question, press star and the number five once again. Now, I'd like to turn the call over to Mike Parker, Vice President of Investor Relations. You may begin your conference.

Thanks, Operator. Welcome, everyone, to Coupang's second quarter 2024 earnings conference call. I'm pleased to be joined in the call today by our founder and CEO, Bom Kim, and our CFO, Gaurav Anand. The following discussion, including responses to your questions, reflects management's views as of today's date only. We do not undertake any obligation to update or revise this information, except as required by law. Certain statements made on today's call include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and in our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings. During today's call, we may present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable GAAP measures, are included in our earnings release, our slides accompanying this webcast, and our SEC filings, which are posted on the company's Investor Relations website. And now, I'll turn the call over to Bob.

Thanks everyone for joining us today. Before we dive into the results for Q2, here are three takeaways from another strong quarter. First, our results continue to be driven by years of investment and innovation to provide what we believe is the best retail customer experience on the planet. Second, our focus on innovation and operational excellence. helps us break traditional trade-offs so we can provide that superior customer experience at the lowest cost and, in turn, strengthen growth and profitability. One example, we deliver the vast majority of our fresh orders using eco-bags that replace almost all of the delivery-related disposable packaging. That saves us packaging costs, helps the environment, and allows us to provide free delivery within hours and do so profitably. That's just one example of how we strive to provide the best customer experience at the lowest cost and generate growth while expanding profitability, not one at the expense of the other. Third, our developing offerings are generating strong growth and exciting momentum for the future. Our historical investments in product commerce were misunderstood at the time, but today help generate the strong growth and cash flows you see each quarter. We believe our investments in developing offerings are building the next set of offerings that will further compound our growth and cash flow generation in the future. Now, a few numbers to highlight from our second quarter performance. This quarter, we grew constant currency revenues 30% over last year, or 23% excluding Farfetch, which we acquired in 2-1 of this year. And adjusting for the fulfillment and logistics by coupon or FLC accounting change we began in Q2 of last year, the growth would have been 660 bps higher than the 23% constant currency growth rate excluding Farfetch. Our product commerce active customers grew 12% year over year. It's important to note, however, that while new customers contribute to future growth, our growth today and tomorrow is powered primarily by the increasing spend of our existing customers. And we believe our future growth opportunity is massive and largely untapped because we still account for a small percentage of overall retail spend, even of our oldest and best customer cohorts. That's why all of our customer cohorts continue to increase their spend, even our oldest and highest spending cohorts. We can't stress enough how small a share we are of the massive and highly fragmented $560 billion commerce opportunity in the market and how early we are in that journey. This quarter, we saw the growth in our marketplace, which includes both third-party and FLC, significantly outpace the growth of our overall businesses. For the 13th consecutive quarter, our marketplace sales have grown faster than our first-party sales. Marketplace sellers are not only growing faster than our first party, they're also growing exponentially faster than the overall Korean retail market. Many of these marketplace sellers who have enjoyed this tremendous growth are SMEs, and that doesn't include sellers who were once SMEs but are now large businesses, thanks to the growth they've enjoyed on coupons. We're proud that we've helped over 9,000 SMEs graduate from SME status since 2020. We continue to invest in services that power that marketplace growth, and FLC's growth trajectory is worth highlighting. In Q2, the number of sellers joining FLC grew 25% quarter-over-quarter and over 150% year-over-year. Now, a few words on developing offerings. We continue to be pleased with the progress and momentum we're seeing in Eats, where customer adoption continues on its strong trajectory since we launched our wild free delivery program last quarter. And merchants are benefiting from that growth. In just three months, restaurants on Coupang on average have seen a nearly 30% growth in volumes. In Taiwan, we're focused on breaking the same trade-offs for the Taiwanese customer that we did for the Korean customer to win their loyalty and trust. Our conviction of the potential in Taiwan is as strong as ever. On a side note, while Korean products are just part of the assortment that we offer to customers in Taiwan, we're enabling tens of thousands of Korean companies to get their products to Taiwanese consumers, and our growth has helped triple their total sales volumes this year over last year. On Farfetch, as we stated last quarter, our goal is to generate close to positive adjusted EBITDA on a run rate basis by the end of the calendar year. We're executing to plan and it's on track to achieve these goals for the year so far. Though we're still in the very early stages of our journey, we're excited about Farfetch's progress and potential. It's important to highlight that in the markets we serve, we see massive potential that is still largely untapped. And our strategy to capture that potential has been unwavering. Discipline, investment, and operational excellence to deliver customer wow, the best selection, service, and savings for our customers. We believe to our core that the happiness of our customers is the key to maximizing opportunities in the long term for our suppliers, merchants, employees, and shareholders. Now, I'll turn the call over to Gaurav to review our results in greater detail.