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 Coupon 2024 Third 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 third 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 Baum.

Thanks everyone for joining us today. Before we review our results for the third quarter in detail, I'd like to start with three key takeaways. First, our strong and consistent growth and expanding margins are the result of years of investment and a relentless drive to break trade-offs, to do the hard things that deliver an ever-improving experience for our customers and operational excellence, not one at the expense of the other. Second, Our growth in product commerce is fueled primarily by deeper engagement from our existing customer cohorts, driven in large part by selection expansion in both established categories and newer offerings like fresh and fulfillment and logistics by coupon or FLC. Over the long term, growth from existing cohorts will be supplemented by the converging spend of new active customer cohorts. Third, our nascent offerings like Eats Taiwan, Play, and Farfetch, along with ads and FLC, continue to march forward on the positive trajectory that we've seen throughout the year. It's important to note that with each of these offerings, we're still in the very early stages of the journey. And with each step, we become even more encouraged by their potential to create meaningful moments of wow for customers and deliver attractive returns. Now, a few highlights from our results for the quarter. This quarter, constant currency revenues grew 32% over last year, or 25% excluding Farfetch, which we acquired earlier this year. This marks yet another quarter of at least 20% constant currency growth, which we've been able to do in 14 out of the 15 quarters we've reported since our IPO. And still, we continue to represent just a small percentage of the massive commerce opportunity in the markets we serve. We believe the growth opportunity in the years to come is still largely untapped, with much of it yet to be realized. Active customers in product commerce grow again. up 11% year over year. It's important to note that our growth continues to be driven primarily by the increasing spend of our existing customers. We continue to see higher engagement as we add more selection on Rocket and provide more services. Again this quarter, all of our customer cohorts increased their spend at strong levels, even our oldest and highest spending cohorts. And currently, only a quarter of our customers purchase in nine or more categories out of the more than 20 categories we offer. We're still in the process of discovering what the potential spend is for all of our cohorts, including our oldest. One driver of the expanding cohort spend is the compounding value of our WOW membership savings program. Our WOW members increasingly see the value of WOW and the many benefits they receive on coupon, including access to free shipping, free dawn and same day delivery, free returns, free content on play, free eats delivery, and free rocket fresh deliveries. We see the higher levels of engagement reflected in the order frequency of our WOW members, which is nine times that of our non-WOW customers. And our most mature WOW members spend on average over two and a half times that of our newest WOW members. Our mission is to provide the best overall customer experience by offering the best in selection, savings, and service. And we believe there's a significant opportunity to break the trade-off between selection and service, as there's still a lot of selection that is yet to become available on rocket delivery. Just one small example. This quarter, we launched Arlux, our new luxury offering, which gives customers access to some of the most in-demand luxury beauty brands. We've partnered directly with luxury brands to provide a new kind of white glove service. Customers interact with the most exclusive brands in Arlux's rich and sophisticated shopping environment and receive products via Rockets Next or same-day delivery in elevated packaging, custom-designed exclusively for Arlux. It's just another example of the latest selection and service we've added to our customers' delight, and there's much more to come. We continue to see impressive momentum in our FLC offering, which also expands the selection that customers can enjoy with free rocket delivery. Our growth in units, sellers, and overall volumes in FLC continued this quarter at the strong pace we've seen throughout the year, each of them growing over 130% year over year. FLC is also in the early stages of its growth trajectory, and we believe it will be a significant part of our growth story for years to come. Now, a few words on developing offerings. As I previously noted, we continue to see our initiatives advancing on the positive trajectory that we've seen throughout the year. With ForeFetch, our team is making significant progress in driving operational efficiency through disciplined execution. As we stated earlier this year, our goal was to achieve near break-even profitability by the end of the year. We hit that milestone this quarter. We're also excited about the strong response we're seeing from Eats customers who have embraced the exceptional service and value that we're providing through our food delivery offering. In Taiwan, we're partnering directly with more and more brands to expand selection and inventory for our customers. And where we've added meaningful supply, we've seen dramatic growth. We're excited to redefine what customers in Taiwan can expect from online retail and to alter the growth trajectory of the brands with whom we partner, as we've demonstrated many times in the past. In the context of the massive and untapped potential that lies ahead, we're just getting started. Our ability to capture that opportunity will depend on our ability to stay focused on the relentless pursuit of customer wow and operational excellence. Now, I'll turn the call over to Gaurav to review the results of the quarter in greater detail.