Coupang, Inc. (NYSE:CPNG) Q3 2023 Earnings Call Transcript

But it’s also a reflection, we think. Our strong growth or accelerating growth is a reminder of just how early we are. We’re just at single-digit share of a massive retail market that’s projected to exceed $550 billion in just three short years. We continue to believe that given our stage of growth, given our stage of share of the overall retail spend, our success will be determined by our execution. And we continue to be laser-focused on execution on both customer experience and operational excellence. And your second question was around Taiwan. I think generally, we can say that we’re drawn to opportunities where we can break trade-offs and provide the best customer experience at the lowest cost. That’s how we’ve been able to capture both rapid growth – over the past 12 months, we’ve demonstrated that growth did not come at the cost of profitability or free cash flow.

We’ve generated, as I mentioned, nearly $1 billion in adjusted EBITDA, increasing margins by 500 bps with accelerating growth. And that comes from investments we make to break trade-offs fundamentally at an operational level to build the best customer experience at the lowest cost. That is our strategy in any initiative, any market that we enter. And of these opportunities, we invest only in those that we believe will generate significant free cash flows in the future. Efforts that demonstrate potential to achieve both a meaningful customer experience and significant free cash flow in the future earn their way to more significant investments. And as you point out, we’ve also unflinchingly discontinued investments that have not demonstrated the potential to achieve these objectives in the past.

What we’ve seen so far in Taiwan strengthens our confidence and reinforces our hypothesis. We’ll continue to test, iterate and learn, but we will maintain this framework. And we’ll continue to operate by the tenets that we shared shortly after we went public, we published these every quarter, the same tenets, that framework of rigor and discipline will remain unchanged as we pursue opportunities in different markets and different initiative areas.

Operator: There are no further questions. This concludes today’s conference call. Thank you and you may now disconnect.