Dialogue. 3Q24 Coupang and Copart Business Update

14 snips

Dec 5, 2024

Dive into Coupang's ambitious leap into the luxury market as it faces competition from Temu and AliExpress. Explore the dynamics of Copart, detailing its growth in the automotive salvage industry and strategic moves, including entering the construction equipment sector. The podcast offers insights into cash flow metrics and long-term growth strategies for both companies. Additionally, the impact of autonomous vehicles on market trends is discussed, shedding light on future investment opportunities.

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INSIGHT

Coupang Informs Amazon Strategy

Coupang's one-day shipping allows testing of Amazon's strategy.
Amazon can estimate potential market share with faster delivery.

INSIGHT

Rocket Wow Spending

Coupang's Rocket Wow members' spending compared to average Korean household income is insightful.
This data could reveal the percentage of household spend captured by Rocket Wow.

INSIGHT

Coupang Cash Flow Dynamics

Coupang's free cash flow was inflated in 2023 due to working capital dynamics like extended supplier payment terms.
Free cash flow is declining as these dynamics unwind, highlighting the importance of adjusted EBITDA.

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On this Dialogue episode we give an update on two of our companies: Copart and Coupang! We talk about Coupang's new entrance into the luxury market and two call options for Copart. Plus a short diatribe on Temu and Aliexpress.

You can read the 3Q24 business update on Coupang here and on Copart here. *Note: it is Copart's 1Q25 fiscal year*

*Apologies, but it seems the mic recorded lower sound quality at times. We will fix it for future episodes*

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For Coupang and Copart we have an in-depth, company-specific episode. These are evergreen and extremely comprehensive deep dives on each company.

Listen to the Coupang ($CPNG)Company Podcast Episode here: (Apple, Spotify)

Listen to the Copart ($CRPT) Company Podcast Episode here: (Apple, Spotify)

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*Mentioned Memos*

Read one of our most popular memos on Wish here: The Future of Ecommerce That Wasn’t: An In-depth Look into What Went Wrong with Wish

Listen to our Dialogue Podcast on Wish here: Apple, Spotify

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Show Notes

(0:00) — Intro

Coupang

(0:56) — Coupang

(10:34) — Cash Flow Dynamics

(14:45) — Taking on the Luxury Market

(18:11) — The Lower End Market Threat with Temu and AliExpress

(23:30) — New markets and growth opportunities

Copart

(28:28) — Copart

(34:56) — Long Term Growth Rate Variables

(35:46) — Annoying Copart Question

(38:51) — Their Big Call Option

(48:09) — International

(50:42)— Valuation Three Ways

(1:21:00) Another Call Option

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. Contributors to the podcast may own securities discussed. Furthermore, accounts contributors advise on may also have positions in companies discussed. Please see our full disclaimers here: https://speedwellresearch.com/disclaimer/