Coupang, Inc. (NYSE:CPNG) Q4 2022 Earnings Call Transcript

Operator: And we’ll take our next question from Jiong Shao with Barclays. Please go ahead.

Jiong Shao: Thank you very much for taking my questions. I have two as well. The first question is about your Fresh. I was just wondering, are you able to provide a little bit additional color about the GMV contribution, where you are in terms of the profitability? Any kind of a outlook when that business may be profitable at some point in a somewhat near future. Anything you can provide would be very helpful. Second question is about the Developing Offering as well. Some of your peers, global peers seem to have had a very good success in the fintech area, but every country, whether or not it’s Brazil or Southeast Asia, they have different offline banking system. With that, as a backdrop, the offline banking system or financial services industry in Korea, could you elaborate a bit on the sort of the specific products you are contemplating or already launched to get additional growth for your business in the financial services, the fintech area?

Bom Kim: Thanks, Jiong for the question on Fresh. As we’ve mentioned before, we have a structural advantage of combining Fresh and general merchandise in the same logistics and network that allows us, enables us to provide customers with the best experience at the lowest cost. Fresh has positive unit economics. We expect profitability to continue to improve with economies of scale and continued efforts to improve our technology and operations. We still also have a significant growth opportunity in Fresh. Just a third of active customers in Q4 or customers of Fresh will continue to expand assortment and focus on providing high quality and low prices — high quality products and low prices to customers there. On Developing Offerings and fintech, I think again, generally we’ll continue to be opportunistic and disciplined here.

We do see lots of opportunities. We’re still in the learning phase in some of those areas. Our approach has always been to test, learn, iterate, discipline and opportunistic there. And I think you’ll see us continue to take that approach there. I think at the right time we’ll share more information, but we’re still very early in the journey on many of the initiatives that we are pursuing on Developing Offerings.

Operator: And this will conclude today’s conference call. Thank you for your participation. You may disconnect at any time.