Seyon Park

Seyon Park asked for more granularity on the Developing Offerings guidance for $950 million-$1 billion in losses for 2026, specifically how the loss trends would break down across product lines like Taiwan, Eats, Farfetch, Japan, and content spend.

Answer

CFO Gaurav Anand explained that Developing Offerings are managed as a portfolio at different stages of maturity and investment intensity, and specific guidance on individual product line losses is not provided. He reiterated conviction in their potential, especially Taiwan's strong momentum.

Seyon Park asked for more granularity on the Developing Offerings guidance of $950 million-$1 billion in losses for 2026, specifically how the loss trends would break down across product lines like Taiwan, Eats, Farfetch, Japan, and content spend.

Answer

CFO Gaurav Anand explained that Developing Offerings are managed as a portfolio at different stages of maturity and investment intensity, and specific guidance on individual product line losses is not provided. He reiterated strong momentum in Taiwan and deep conviction in the initiatives' potential to generate meaningful cash flow over time, anchored by rigorous analysis and disciplined capital allocation.

Seyon Park from Morgan Stanley asked about reports of Coupang's potential involvement in a government GPU management project and whether the company is seeing a reacceleration of domestic consumer growth in the second half.

Answer

CEO Bom Kim clarified that Coupang is developing its own AI computing infrastructure for internal use and is exploring offering these services to external customers as a small-scale test. Regarding the macro environment, he stated that Coupang's growth is driven by customer engagement, not economic cycles, and the full-year growth outlook of roughly 20% constant currency growth remains unchanged, as the company expects to continue outpacing the retail market.

Seyon Park from Morgan Stanley questioned Coupang's potential involvement in data center or GPU management as a new growth area and asked if the company is seeing a reacceleration in domestic consumer growth.

Answer

CEO Bom Kim clarified that Coupang is developing its own AI computing infrastructure for internal needs and is exploring offering these services to external customers as a small-scale test. Regarding the macro environment, he stated that Coupang's growth is driven by customer engagement and improvements in selection, service, and price, not economic cycles, and the full-year growth outlook remains unchanged.

Seyon Park followed up on the share repurchase program, asking about a specific timeline and whether the full $1 billion would be exercised. He also asked about Taiwan, questioning why third-party data doesn't reflect user growth and how consumers are receiving the new WOW membership program.

Answer

CFO Gaurav Anand reiterated that the share repurchase program has no fixed term and will be executed opportunistically. CEO Bom Suk Kim addressed Taiwan by stating that internal metrics show strong growth, with selection expanding nearly 500% in the quarter. He noted the WOW membership program just launched in March, and its full impact will materialize in the coming months and quarters.

Seyon Park of Morgan Stanley inquired about the go-forward strategy for Farfetch now that the initial restructuring phase is complete, including potential integration with Coupang for Korean consumers. He also asked for an outlook on CapEx spending, questioning if the cadence would change or shift away from pure coverage expansion.

Answer

CEO Bom Kim stated that while early progress at Farfetch is pleasing, the focus remains on streamlining operations and sharpening execution around customer experience to achieve sustainable growth. He noted it won't happen overnight. CFO Gaurav Anand addressed CapEx, explaining that it has historically remained consistent as a percentage of revenue and is expected to continue leveraging as the company scales. He confirmed the majority of CapEx supports growth capacity in Korea and Taiwan.

Seyon Park asked for clarification on the sequential increase in OG&A costs, questioning how much was temporary versus structural and if technology amortization was a factor. He also asked for the year-over-year growth of FLC on a gross basis.

Answer

Founder and CEO Bom Kim clarified that the higher technology and infrastructure spend within OG&A was a matter of investment timing, not a structural cost change, and that Coupang does not capitalize its tech investments, so amortization is not a factor. Regarding FLC, Kim highlighted strong momentum with units, sellers, and volumes each growing over 130% year-over-year but did not provide a specific gross basis growth figure.