Stanley Yang

Stanley Yang asked about the estimated negative financial impact (revenue and EBITDA) of the data breach incident in Q4 2025 and requested more details on key consumer metrics trajectory, including active users, GMV, and per-person spending, beyond WOW membership stabilization.

Answer

CFO Gaurav Anand explained that Product Commerce revenue growth rates, active customers, and WOW membership were adversely impacted towards the end of Q4 2025, with January 2026 seeing the lowest growth (estimated 4% constant currency, adjusted for Lunar New Year). He noted improving trends since then, with active customers and WOW membership stabilizing and churn returning to historical low levels.

Stanley Yang asked about the estimated negative financial impact (revenue and EBITDA) of the data breach incident in Q4 2025, and for more details on key consumer metrics trajectory, such as active users, GMV, per-person spending, and WOW membership trends.

Answer

CFO Gaurav Anand explained that Product Commerce revenue growth was 16% constant currency prior to December, decelerating to an estimated 4% in January due to the data incident, with improving trends since. He noted stabilization in active customers and WOW membership, with churn returning to historical low levels.

Stanley Yang asked for an estimated e-commerce market share for Coupang in Taiwan and its growth rate. He also questioned the future operating loss trajectory for Taiwan, asking if losses are expected to increase or decrease next year, and when they might peak.

Answer

CEO Bom Kim explained that it's very early in Taiwan, but the market has exceeded expectations and is one of the fastest-growing opportunities. He noted strong customer adoption and engagement, similar to the early stages of Coupang's Korea retail journey, and emphasized building a durable last-mile network. He did not provide specific market share or future loss projections, stating the trajectory won't always be linear.

Stanley Yang from JPMorgan Chase & Co. asked for an estimated e-commerce market share and growth rate for Coupang in Taiwan, and sought clarity on the expected trajectory of operating losses in Taiwan, including when losses might peak and begin to decline.

Answer

CEO Bom Kim indicated it's too early to provide specific market share data for Taiwan but noted the market has exceeded expectations and is one of Coupang's fastest-growing opportunities. He highlighted strong customer adoption, engagement, and accelerating revenue growth, with customer behavior mirroring early stages in Korea. Bom Kim emphasized the focus on building a strong customer experience and last-mile network, while remaining disciplined on capital allocation.

Stanley Yang from JPMorgan Chase & Co. inquired about the outlook for Product Commerce margin improvement in the second half of 2025 and Coupang's forward-looking AI strategy.

Answer

CEO Bom Kim explained that AI has been core to operations for years and sees generative AI as a long-term enabler for growth and margin expansion, with a focus on practical applications like software development and robotics. CFO Gaurav Anand added that while Product Commerce margins have reached 9%, further annual expansion is expected from technology and efficiency gains, though not necessarily in a linear fashion. He also confirmed the expectation for consolidated OG&A expenses to decline as a percentage of revenue in the near to medium term.

Stanley Yang from JPMorgan Chase & Co. asked about the potential for further Product Commerce margin improvement in the second half of 2025 and inquired about Coupang's forward-looking AI strategy.

Answer

CEO Bom Kim explained that AI has been core to operations for years and sees generative AI as a long-term enabler for growth and margin expansion, with a focus on practical applications and disciplined investment. CFO Gaurav Anand reiterated that Product Commerce margins are expected to exceed 10% over time, driven by technology and operational efficiencies, though the growth may not be linear quarter-to-quarter. He also confirmed expectations for consolidated OG&A expenses to decline as a percentage of revenue in the near to medium term.

Stanley Yang questioned Coupang's confidence in achieving its 20% revenue growth guidance amid the current macro and competitive environment, seeking color on the Product Commerce outlook, particularly the split between 1P and FLC. He also asked about the significant sequential increase in Developing Offerings losses and the margin trends for Eats and Taiwan.

Answer

CEO Bom Suk Kim affirmed confidence in the 20% growth outlook, highlighting that Fulfillment and Logistics by Coupang (FLC) is a significant driver growing at a high multiple of the overall business. He noted that Coupang Eats continues its strong momentum from 2024 and has significant room for growth and improved profitability as it scales, especially outside of Seoul.

Stanley Yang of JPMorgan Chase & Co. inquired about a potential slowdown in the domestic e-commerce market, the macroeconomic impact on Coupang's 2025 growth outlook, the revenue growth breakdown between Product Commerce and Developing Offerings, and the margin profile trend for the FLC (Fulfillment and Logistics by Coupang) business.

Answer

CEO Bom Kim responded that despite macro uncertainty, Coupang's growth outlook remains strong due to increasing customer engagement and its small share of the total retail market. He affirmed that Q1 growth would align with Q4's rate (ex-Farfetch). Regarding FLC, Kim stated the focus is on enhancing service levels for customers and merchants, noting that FLC's growth continues to be a high multiple of the overall business, driven by strong merchant adoption.

Stanley Yang questioned the Product Commerce margin expansion trajectory for the upcoming year and the potential for FLC to be a more meaningful driver. He also asked for any color on the Developing Offerings loss guidance for 2025.

Answer

Founder and CEO Bom Kim acknowledged quarterly margin fluctuations, citing seasonal impacts, but reiterated confidence in achieving the long-term adjusted EBITDA margin target of over 10% through various operational leverage opportunities. He deferred providing 2025 guidance for Developing Offerings to a future call, stating that the immediate focus for Farfetch is completing its stabilization.