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 2026 First 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 first quarter's 2026 earnings conference call. I'm pleased to be joined on the call today by our founder and CEO, Bom Kim, and our CFO, Gore Bonin. 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 may 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. As we share our first quarter 2026 results on today's call, the comparisons we make to prior periods will be on a year-over-year basis, unless otherwise noted. We may also 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. I'd like to cover a few things, where we stand in the recovery from last quarter's data incident, how we see the path forward on growth, and the nature of the temporary dislocation in margins and how we think about it over the longer term. Starting with where we are, customer obsession, operational excellence, and disciplined capital allocation have guided us since our inception, and they're the same principles guiding us through this period. As we shared previously, January marked the low point in our product commerce revenue growth rate. Each month since has improved on a year-over-year basis, and the pace of improvement strengthened through February and March. Our recovery is powered by the same drivers that have shaped our business since we launched Rocket Delivery over 10 years ago, a relentless focus on wowing customers across selection, price, and service. That experience was built over many years and billions of dollars of investment, and one which we believe continues to widen its lead in the market. The customer behavior we've seen since the data incident reinforces this. For example, the vast majority of wild members never left, and they have continued to compound their spend at double-digit rates throughout this period. Of those who did leave, the majority have come back and picked up where they left off, resuming the levels of spend they were at before the incident, and they're now compounding alongside the members who stayed. Through the end of April, we've closed nearly 80% of the decline in WoW memberships that followed the incident through a combination of those returning members and strong new signups. New WoW signups and churn have returned to historical stable levels. Across the board, customers are reengaging in ways that reflect the conviction they've long placed in the Coupang experience. It's worth spending a moment on how this recovery shows up in the reported numbers in product commerce. Year-over-year growth will take time to fully reflect the underlying recovery. The months of paused compounding from the affected period continue to weigh on the comps even as customer behavior normalizes. Our revenue growth rate trajectory from January to March is running ahead of historical patterns and we expect the year-over-year comps to continue improving throughout the year. Turning to margins, two distinct factors are pressuring profitability this quarter, and I want to describe them separately because they behave very differently going forward. The first is the customer vouchers we issued in response to the incident. These are one time in nature. The bulk of the impact is contained to Q1 with a modest tail into the first part of Q2. The second is a set of temporary inefficiencies in our network. Our capacity build-out and supply chain commitments are all made well in advance, calibrated to a demand trajectory we project based on a stable, predictable customer pattern. That's how we manage cost to serve efficiently, and that's the path we were on before the incident. When an external event of this kind disrupts that pattern, actual demand falls short of what those commitments were sized for, and we carry the cost of underutilized capacity and inventory secure through the period. As demand returns to a predictable curve, we expect our capacity and supply chain to come back into balance and the inefficiencies to work their way out. We're adapting our network and supply chain through this period as we did when we came out of COVID, and we expect those adjustments will show up progressively in the P&L. Stepping back from the near term, we believe the long-term drivers of margin expansion at Coupang remain intact and continue to improve. We expect operational efficiencies across our network, supply chain optimization, ongoing investment in automation and technology, and the scaling of our margin and creative categories and offerings to drive further margin expansion over the long term. We expect annual margin expansion to resume next year, and we have strong conviction in the underlying margin potential of the business over the long term. Beyond the recovery, the work of building the business continues. Selection remains the primary lever for unlocking the underlying growth potential in our product commerce segment. A meaningful portion of what customers want to buy is still not available on Rocket, and we believe the combination of our first-party catalog and fulfillment and logistics by coupon is the path to closing that gap at scale. Automation and AI across our services, including our fulfillment logistics network, continue to improve service levels and lower costs to serve in parallel, and we expect them to be meaningful contributors to both the customer experience and margin expansion in the years ahead. Turning to developing offerings. In Taiwan, we're building the foundation for a truly differentiated customer experience. Our own last mile delivery network, which guarantees next day delivery, now covers the vast majority of our volume, and that coverage continues to expand. We're still in the early stages of bringing the full rocket delivery experience to Taiwan customers. But even at this stage, the response from customers has been remarkable. Cohort retention behavior is reminiscent of what we saw in the early years of product commerce in Korea. Our conviction in the long-term opportunity both to wow customers and to generate attractive returns on the capital we're deploying grows stronger each quarter. Given that conviction, this year our focus in Taiwan is on building the foundation for an unparalleled customer experience and durable growth over the long term. That means deliberate long-term investments in network design, last-mile logistics build-out, and supply chain improvements, the kind of foundation that takes time to lay, but that will define the customer experience and competitive position of the service for years to come. In EATS, as I mentioned, the recovery is following a similar path to product commerce, which speaks to the strength of the customer value proposition we are building across both services. In developing offerings, our approach is unchanged. We start with small investments, test rigorously and deploy more capital only into opportunities we believe can generate lasting customer wow and durable cash flows. We remain disciplined capital allocators taking the long view. Our recovery is ongoing and we have more work ahead. We're focused on continuing to build and improve on the experience that brought customers to Coupang in the first place across product commerce and developing offerings. I'll now turn the call over to Gaurav to walk through the financials in more detail.