Chewy Inc (CHWY) 2022 Q3 法說會逐字稿

Good evening, everyone. And thank you for joining today's Chewy Third Quarter Fiscal Year 2022 Earnings Call. My name is Don Tanami, the operator for today's call.

各位晚上好。感謝您參加今天的 Chewy 2022 財年第三季度收益電話會議。我叫 Don Tanami，是今天電話的接線員。

(Operator Instructions)

（操作員說明）

I would now like to pass the conference over to our host, Mr. Robert LaFleur, Vice President of Investor Relations. Sir, the floor is now yours.

我現在想將會議轉交給我們的主持人，投資者關係副總裁 Robert LaFleur 先生。主席先生，現在該發言了。

Thank you for joining us on the call today to discuss our third quarter 2022 results. Joining me today are Chewy's CEO, Sumit Singh; and CFO, Mario Marte. Our earnings release and letter to shareholders, which were filed with the SEC earlier today, have been posted to the Investor Relations section of our website, investor.chewy.com.

感謝您今天加入我們的電話會議，討論我們 2022 年第三季度的業績。今天加入我的是 Chewy 的首席執行官 Sumit Singh；和首席財務官 Mario Marte。我們今天早些時候向美國證券交易委員會提交的收益發布和致股東的信函已發佈到我們網站 investor.chewy.com 的投資者關係部分。

On our call today, we will be making forward-looking statements, including statements concerning Chewy's future prospects, financial results, business strategies, investments, industry trends and our ability to successfully respond to business risks, including those related to inflation and its effect on the economy and our industry. Such statements are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties, which could cause actual results to differ materially from those contemplated by our forward-looking statements.

在我們今天的電話會議上，我們將做出前瞻性陳述，包括關於 Chewy 的未來前景、財務業績、業務戰略、投資、行業趨勢以及我們成功應對業務風險的能力的陳述，包括與通貨膨脹相關的風險及其對經濟和我們的行業。根據 1995 年《私人證券訴訟改革法案》，此類陳述被視為前瞻性陳述，並受某些風險和不確定因素的影響，這可能導致實際結果與我們的前瞻性陳述中預期的結果存在重大差異。

Reported results should not be considered an indication of future performance. Also note that the forward looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements, except as required by law. For further information, please refer to the risk factors and other information in Chewy's 10-Q and 8-K filed earlier today and in our other filings with the SEC, including our annual report on Form 10-K.

報告的結果不應被視為未來業績的指標。另請注意，本次電話會議的前瞻性陳述是基於截至今天我們可獲得的信息。除非法律要求，否則我們不承擔任何更新任何前瞻性陳述的義務。有關更多信息，請參閱今天早些時候提交的 Chewy 的 10-Q 和 8-K 以及我們向美國證券交易委員會提交的其他文件中的風險因素和其他信息，包括我們關於 10-K 表格的年度報告。

Also, during this call, we will discuss certain non-GAAP financial measures. Reconciliations of these non-GAAP items to the most directly comparable GAAP financial measures are provided on our Investor Relations website and in today's SEC filings. These non-GAAP measures are not intended as a substitute for GAAP results. Additionally, unless otherwise noted, results discussed today refer to the third quarter of 2022, and all comparisons are accordingly against the third quarter of 2021. Finally, this call in its entirety is being webcast on our Investor Relations website. A replay of this call will also be available on our IR website shortly.

此外，在本次電話會議中，我們將討論某些非 GAAP 財務指標。我們的投資者關係網站和今天向美國證券交易委員會提交的文件中提供了這些非 GAAP 項目與最直接可比的 GAAP 財務指標的調節。這些非 GAAP 措施無意替代 GAAP 結果。此外，除非另有說明，否則今天討論的結果指的是 2022 年第三季度的結果，所有比較均相應地與 2021 年第三季度進行了比較。最後，我們的投資者關係網站上正在對整個電話會議進行網絡直播。我們的 IR 網站也將很快提供此次通話的重播。

I'd now like to turn the call over to Sumit.

我現在想把電話轉給 Sumit。

Thanks, Bob, and thank you all for joining us on the call today. Building on the momentum we reported in the second quarter, Chewy's Q3 results showed accelerating double-digit top line growth, a sequential increase in active customers, sustained gross margin expansion and solid free cash flow generation. We experienced strong demand throughout the third quarter, especially across our nondiscretionary categories, which provided a solid foundation for our growth.

謝謝鮑勃，感謝大家今天加入我們的電話會議。基於我們在第二季度報告的勢頭，Chewy 的第三季度業績顯示兩位數的營收加速增長、活躍客戶連續增加、毛利率持續增長和穩健的自由現金流產生。我們在整個第三季度經歷了強勁的需求，尤其是在我們的非全權委託類別中，這為我們的增長提供了堅實的基礎。

The resilience of the underlying demand in these categories, coupled with our ability to grow customer share of wallet, again enabled Chewy to outperform broader industry trends and take incremental market share. Q3 net sales were $2.53 billion, a year-over-year increase of 14.5% and a sequential acceleration from the 12.8% growth in the second quarter. Our top line results were anchored by the predictable nature of our Autoship customer sales, which grew nearly 19% to 73.3% of net sales and by rising customer engagement as measured by net sales per active customer, or NSPAC, which grew nearly 4% to $477. Digging a little deeper into our Q3 net sales, nondiscretionary categories like core food and health care collectively made up over 83% of our net sales and were the primary growth drivers, reflecting healthy unit demand and improved in-stock levels.

這些類別的潛在需求的彈性，加上我們增加客戶錢包份額的能力，再次使 Chewy 能夠超越更廣泛的行業趨勢並獲得更多的市場份額。第三季度淨銷售額為 25.3 億美元，同比增長 14.5%，較第二季度 12.8% 的增幅有所加快。我們的最高業績取決於我們的 Autoship 客戶銷售額的可預測性，淨銷售額增長近 19% 至 73.3%，以及客戶參與度的提高（以每位活躍客戶的淨銷售額或 NSPAC 衡量，增長近 4% 至 73.3%） 477 美元。更深入地研究我們第三季度的淨銷售額，核心食品和醫療保健等非自由支配類別合計占我們淨銷售額的 83% 以上，是主要的增長動力，反映出健康的單位需求和庫存水平的提高。

Within discretionary categories, hard goods showed relative improvement in Q3 with sales declining 5% year-over-year, which is a 400 basis point improvement versus the second quarter year-over-year performance. We remain confident that hard good sales will return to their growth path as the economic environment improves. Taking a longer-term view, over the last 3 years, our third quarter hard good sales are up 70%, gross profit has nearly doubled and gross margin has expanded by over 400 basis points.

在非必需品類別中，耐用品在第三季度表現出相對改善，銷售額同比下降 5%，與第二季度的同比表現相比提高了 400 個基點。我們仍然相信，隨著經濟環境的改善，硬商品銷售將重回增長軌道。從更長遠的角度來看，在過去 3 年中，我們第三季度的硬商品銷售額增長了 70%，毛利潤幾乎翻了一番，毛利率擴大了 400 多個基點。

Shifting to overall company profitability. Q3 gross margin expanded 200 basis points year-over-year to 28.4%, which is a new quarterly high. Our gross margin performance this quarter reflects the favorable comps from Q3 last year, the continuation of strong pricing trends without any noticeable impact on demand and the incremental benefits we realized from our ongoing supply chain and logistics transformation.

轉向公司整體盈利能力。 Q3毛利率同比擴大200個基點至28.4%，創季度新高。我們本季度的毛利率表現反映了去年第三季度的有利業績、強勁的定價趨勢的延續而對需求沒有任何明顯影響以及我們從持續的供應鍊和物流轉型中實現的增量收益。

Q3 adjusted EBITDA was $70.4 million and adjusted EBITDA margin was 2.8%, an increase of $64 million and 250 basis points, respectively. The primary drivers of adjusted EBITDA growth were higher gross margins and accelerated scaling of SG&A, results that showcase our ability to get big fast and get fit fast as we simultaneously drive top line growth and expand margins.

第三季度調整後的 EBITDA 為 7040 萬美元，調整後的 EBITDA 利潤率為 2.8%，分別增加了 6400 萬美元和 250 個基點。調整後的 EBITDA 增長的主要驅動力是更高的毛利率和 SG&A 的加速擴張，這些結果表明我們有能力在推動收入增長和擴大利潤率的同時快速壯大和快速適應。

Moving on to customers. We ended Q3 with 20.5 million active customers. Gross customer additions accelerated 6% sequentially and are up 9% compared to Q3 2019. Consistent with recent quarters, customer retention rates remain stable as we continue to work through the initial attrition phases of our pandemic era cohorts. In the third quarter, as consumers shifted their focus away from summertime pursuits like travel towards the upcoming holiday season, we saw opportunities to increase our level of marketing investment compared to recent quarters. While ad supply remained tight, we found ROI-positive opportunities consistent with our philosophy to maximize LTV payback and we invested accordingly.

轉向客戶。我們在第三季度末擁有 2050 萬活躍客戶。總客戶增加量環比增長 6%，與 2019 年第三季度相比增長了 9%。與最近幾個季度一致，隨著我們繼續努力度過大流行時代隊列的初始流失階段，客戶保留率保持穩定。在第三季度，隨著消費者將注意力從旅行等夏季活動轉向即將到來的假期，與最近幾個季度相比，我們看到了提高營銷投資水平的機會。雖然廣告供應仍然緊張，但我們發現投資回報率積極的機會符合我們最大化 LTV 回報的理念，因此我們進行了相應的投資。

Now let me update you on some of our latest innovations as we continue to build out the Chewy Health ecosystem, expand into new and exciting high-margin verticals and make meaningful strides in our supply chain transformation. Starting with Chewy Health. We recently announced the expansion of CarePlus, our exclusive suite of insurance and wellness offerings with plans provided by Lemonade. Combining the products from Lemonade and Trupanion under the CarePlus banner enables us to diversify our product offerings across the full spectrum of price points and coverage options in order to meet the needs of a wider range of pet parents.

現在讓我向您介紹我們的一些最新創新，因為我們將繼續構建 Chewy Health 生態系統，擴展到新的和令人興奮的高利潤垂直領域，並在我們的供應鏈轉型中取得有意義的進步。從 Chewy Health 開始。我們最近宣布擴展 CarePlus，這是我們的獨家保險和健康產品套件，由 Lemonade 提供計劃。將 Lemonade 和 Trupanion 的產品合併到 CarePlus 旗下，使我們能夠在各種價位和覆蓋範圍選項中提供多樣化的產品，以滿足更廣泛的寵物父母的需求。

We are targeting a nationwide launch of our Lemonade offerings beginning in Spring 2023. We remain bullish on the pet insurance space and our ability to drive customer acquisition, and deepen customer engagement. Elsewhere in Chewy Health, we recently launched Vibeful, our first private brand in the pet wellness category. Vibeful is a line of supplements featuring products from multivitamins to hip and join supplements. The nonprescription pet health and wellness category has an estimated 2022 TAM of over $2.4 billion. And given the increased consumer focus on wellness and the ongoing trend towards pet humanization, we believe this launch gives us another opportunity to strengthen our connection with customers and to drive top and bottom line results.

我們的目標是從 2023 年春季開始在全國范圍內推出 Lemonade 產品。我們仍然看好寵物保險領域以及我們推動客戶獲取和深化客戶參與的能力。在 Chewy Health 的其他地方，我們最近推出了 Vibeful，這是我們在寵物健康類別中的第一個自有品牌。 Vibeful 是一系列補充劑，包括從多種維生素到臀部和關節補充劑的產品。非處方寵物保健類別估計 2022 年 TAM 超過 24 億美元。鑑於消費者越來越關注健康以及寵物人性化的持續趨勢，我們相信這次發佈為我們提供了另一個機會來加強我們與客戶的聯繫並推動收入和利潤結果。

Moving to new lines of growth. We recently launched the beta version of our sponsored ads program, several months ahead of schedule. Sponsored ads are dedicated product placements on chewy.com that promote specific products from select vendors. When these ads, our suppliers can seamlessly advertise to our 20-plus million active customers. We believe sponsored ads will enable us to scale contextual advertisements, which in turn should deliver highly relevant products to customers and high-margin revenue to our business. The full launch is on track for 2023.

轉向新的增長線。我們最近推出了搜索廣告計劃的測試版，比計劃提前了幾個月。贊助廣告是 chewy.com 上的專門產品展示位置，用於推廣精選供應商的特定產品。當投放這些廣告時，我們的供應商可以無縫地向我們 20 多萬活躍客戶投放廣告。我們相信贊助廣告將使我們能夠擴展上下文廣告，這反過來應該為客戶提供高度相關的產品，並為我們的業務帶來高利潤收入。全面啟動將於 2023 年按計劃進行。

And last but not least, we continue to make excellent progress transforming our supply chain and logistics operations and developing world-class capabilities across our organization. More importantly, these efforts produced meaningful operational and financial benefits throughout the company in Q3. First, our automated FC network is handling an increasingly larger portion of our outbound shipping volume at progressively lower variable cost per order. In Q3, we shipped nearly 30% of our volume through our automated FC network, up from 10% in Q3 last year.

最後但並非最不重要的一點是，我們繼續在轉變我們的供應鍊和物流運營以及在我們的組織中發展世界級能力方面取得卓越進展。更重要的是，這些努力在第三季度為整個公司帶來了有意義的運營和財務收益。首先，我們的自動化 FC 網絡正在以逐漸降低的每筆訂單可變成本處理越來越多的出境運輸量。在第三季度，我們通過自動化 FC 網絡運送了近 30% 的貨物，高於去年第三季度的 10%。

Second, our inventory rebalancing efforts to enhance software and planning capabilities have improved in-stock levels across our network, which has lowered costs by reducing average shipping distances by 25% compared to last year and enhanced customer experience by reducing click-to-deliver times and improving order accuracy. These efforts have been complemented by our middle-mile initiative, which also cuts average shipping distance and reduces costs.

其次，我們為增強軟件和規劃能力而進行的庫存重新平衡工作提高了整個網絡的庫存水平，與去年相比平均運輸距離縮短了 25%，從而降低了成本，並通過減少點擊交付時間增強了客戶體驗並提高訂單準確性。這些努力得到了我們的中英里計劃的補充，該計劃還縮短了平均運輸距離並降低了成本。

Finally, our 2 new import routing facilities are on pace to handle 90% of our import volume by the end of 2022, which further enhances our ability to optimize inventory distribution across our FC network and reduce inbound freight costs. Collectively, these supply chain and logistics efforts have allowed us to mitigate freight costs, begin leveraging our SG&A expenses for quarter ahead of Schedule and improve customer experience on multiple fronts.

最後，到 2022 年底，我們的 2 個新進口路由設施有望處理我們 90% 的進口量，這進一步增強了我們優化整個 FC 網絡的庫存分配並降低入境貨運成本的能力。總的來說，這些供應鍊和物流工作使我們能夠降低運費，開始提前一個季度利用我們的 SG&A 費用，並在多個方面改善客戶體驗。

Let me conclude with the following. The operating environment remains dynamic and evolving. What hasn't changed is how much pet parents value the enduring companionship of their pets, and it is this emotional bond that sustains the pet category through all phases of the economic cycle. Chewy's compelling value proposition backed by low prices, personalized service and delivery convenience across a broad selection of products continues to resonate with our customers. This enables us to build the long-term trust that, in our view, allows us to outgrow our competitors and take market share. Concurrently and unequivocally, our team's relentless focus on execution and operational excellence allows us to take this growing market share and transform it into incrementally higher profitability and in growing free cash flow.

讓我總結如下。運營環境保持動態和不斷發展。沒有改變的是寵物父母對寵物持久陪伴的重視程度，正是這種情感紐帶在經濟周期的各個階段支撐著寵物類別。 Chewy 以低廉的價格、個性化的服務和廣泛的產品交付便利性為後盾的引人注目的價值主張繼續引起我們客戶的共鳴。這使我們能夠建立長期信任，在我們看來，這使我們能夠超越競爭對手並佔據市場份額。同時明確地，我們團隊對執行和卓越運營的不懈關注使我們能夠佔據不斷增長的市場份額，並將其轉化為更高的盈利能力和不斷增長的自由現金流。

Before I turn the call over to Mario, I would like to share an important development with you. After nearly 8 years at Chewy, Mario has decided to retire from the company. Now it's too soon to plan his retirement party or order the proverbial gold watch, although those things will be appropriate sometime next year. As of today, we have no specific date in mind for Mario's departure, and our intent right now is simply to inform you of our transition plans. We have begun a search for top-tier internal or external candidates for this important and strategic position.

在我把電話轉給馬里奧之前，我想和你分享一個重要的進展。在 Chewy 工作了近 8 年後，馬里奧決定從公司退休。現在計劃他的退休派對或訂購眾所周知的金表還為時過早，儘管這些事情明年某個時候會很合適。到今天為止，我們還沒有確定馬里奧離開的具體日期，我們現在的目的只是通知您我們的過渡計劃。我們已經開始為這個重要的戰略職位尋找頂級的內部或外部候選人。

In the meantime, it's business as usual, and we are grateful to have Mario's services for as long as necessary to find and ramp a worthy successor. Please understand that this is not a matter about which we will provide regular updates, and we don't plan to comment about this until we have a successor in place.

與此同時，一切如常，我們很高興馬里奧在必要的時間內提供服務，以尋找和培養一位有價值的繼任者。請理解，這不是我們將提供定期更新的問題，並且在我們有繼任者之前我們不打算對此發表評論。

With that, I will turn the call over to Mario. Mario?

有了這個，我會把電話轉給馬里奧。馬里奧？

Thank you, Sumit. Appreciate the kind words, and I'm looking forward to a little R&R when the time comes. But until then, it is business as usual. Now let's talk about our third quarter results. Net sales increased 14.5% or $320 million to $2.53 billion. Growth was led by our nondiscretionary consumables and health care categories, which collectively represented over 83% of our Q3 net sales. Driving our third quarter net sales growth was an 18.8% increase in Autoship customer sales, which reached a new high of 73.3% of net sales, a 13.8% increase in NSPAC, also a new high for the company and an active customer base of just over 20.5 million, increasing approximately 30,000 versus the second quarter and 100,000 versus last year.

謝謝你，蘇米特。感謝您的客氣話，我期待著在適當的時候進行一些 R&R。但在那之前，一切如常。現在讓我們談談我們第三季度的業績。淨銷售額增長 14.5% 或 3.2 億美元，達到 25.3 億美元。增長由我們的非必需消費品和醫療保健類別引領，它們合計占我們第三季度淨銷售額的 83% 以上。推動我們第三季度淨銷售額增長的是 Autoship 客戶銷售額增長 18.8%，創下淨銷售額 73.3% 的新高，NSPAC 增長 13.8%，這也是公司的新高，活躍客戶群僅為超過 2050 萬，比第二季度增加約 30,000，比去年增加 100,000。

Moving to profitability. Our third quarter gross margin expanded 200 basis points year-over-year to 28.4%. Approximately 100 basis points of the year-over-year improvement is a result of favorable comps against Q3 last year when global supply chain disruptions and product cost inflation adversely affected our gross margin. The balance came from continuation of the strong pricing trends that emerged last quarter and greater efficiency in outbound shipping costs, which resulted from bigger basket sizes and the favorable progress we've made in our supply chain and logistics initiatives.

轉向盈利。我們第三季度的毛利率同比增長 200 個基點至 28.4%。同比改善約 100 個基點是由於去年第三季度全球供應鏈中斷和產品成本上漲對我們的毛利率產生不利影響時的有利補償。平衡來自上個季度出現的強勁定價趨勢的延續以及出境運輸成本效率的提高，這是由於更大的籃子尺寸以及我們在供應鍊和物流計劃方面取得的有利進展。

Continuing on to OpEx. SG&A, which includes all fulfillment and customer service costs, credit card processing fees, corporate overhead and share-based compensation, totaled $543.5 million in the third quarter or 21.5% of net sales compared to 21.1% in the third quarter of 2021. Excluding share-based compensation, SG&A totaled $497.4 million or 19.6% of net sales. This is an improvement of 60 basis points compared to the third quarter of 2021 and was flat on a sequential basis.

繼續討論 OpEx。 SG&A，包括所有履行和客戶服務成本、信用卡手續費、公司管理費用和基於股份的薪酬，第三季度總計 5.435 億美元，占淨銷售額的 21.5%，而 2021 年第三季度為 21.1%。不包括股份基於薪酬的 SG&A 總額為 4.974 億美元，占淨銷售額的 19.6%。與 2021 年第三季度相比提高了 60 個基點，環比持平。

As we shared previously, we expected to begin leveraging SG&A expenses, excluding share-based comp as we exited 2022 and we are pleased to be a quarter ahead of schedule in delivering on this expectation. I will now take a moment to elaborate on how our efforts to leverage these costs are paying off.

正如我們之前分享的那樣，我們預計將在 2022 年結束時開始利用 SG&A 費用，不包括基於股份的補償，我們很高興提前四分之一實現這一預期。我現在將花點時間詳細說明我們利用這些成本所做的努力是如何取得回報的。

First, greater efficiency and variable fulfillment costs provided 120 basis points of leverage in the quarter, led by ongoing improvements in fulfillment center productivity from our expanded network of automated FCs.

首先，更高的效率和可變的履行成本在本季度提供了 120 個基點的槓桿作用，這得益於我們擴展的自動化 FC 網絡不斷提高的履行中心生產力。

As Sumit shared in his remarks, nearly 30% of our Q3 volume shipped from automated FCs compared to 10% last year. This helped drive down variable fulfillment cost per order which provided about half of the Q3 year-over-year cost leverage in this area, with the remainder coming from an increase in average order size. We also gained an additional 20 basis points of SG&A leverage, as the incremental volumes shipped through our automated FCs absorbed more of the incremental fixed carry cost of those facilities.

正如 Sumit 在他的評論中分享的那樣，我們第三季度近 30% 的銷量來自自動化 FC，而去年這一比例為 10%。這有助於降低每筆訂單的可變履行成本，這在該領域提供了第三季度約一半的同比成本槓桿，其餘部分來自平均訂單規模的增加。我們還獲得了額外 20 個基點的 SG&A 槓桿，因為通過我們的自動化 FC 運送的增量數量吸收了這些設施的增量固定持有成本。

In addition to these gains, corporate overhead scaled by 40 basis points year-over-year as a result of our disciplined management of G&A spend and tight cost controls. At the same time that we are scaling our base cost, we continue to invest in the future. This includes the upfront investments we began making in the second half of 2021 and the personnel and technology needed to support the growth and profitability initiatives that we have detailed for you on this and prior calls. This contributed approximately 90 basis points of deleveraging in Q3, which is a 20 basis point sequential improvement from the deleveraging that we saw in the second quarter.

除了這些收益之外，由於我們對 G&A 支出的嚴格管理和嚴格的成本控制，公司管理費用同比減少了 40 個基點。在我們降低基本成本的同時，我們繼續投資於未來。這包括我們在 2021 年下半年開始進行的前期投資，以及支持增長和盈利計劃所需的人員和技術，我們在本次和之前的電話會議上為您詳細介紹了這些計劃。這在第三季度貢獻了大約 90 個基點的去槓桿化，比我們在第二季度看到的去槓桿化連續改善了 20 個基點。

As a reminder, while the growth-driving investments we make show up in our SG&A expenses today, the benefits will be realized over time through incremental top line growth and gross margin expansion. Third quarter advertising and marketing expense was $177.1 million or 7% of net sales, a 20 basis point increase over the third quarter of 2021 and a 110 basis point sequential increase compared to the second quarter of 2022.

提醒一下，雖然我們今天進行的增長驅動投資顯示在我們的 SG&A 費用中，但隨著時間的推移，收益將通過增量收入增長和毛利率擴張來實現。第三季度廣告和營銷費用為 1.771 億美元，占淨銷售額的 7%，比 2021 年第三季度增加 20 個基點，比 2022 年第二季度增加 110 個基點。

As we have said before, our marketing investments are ROI driven and may fluctuate from quarter-to-quarter depending on market conditions. In Q3, we saw the opportunity to make incremental investments across the full spectrum of marketing channels and we lean into those opportunities to maximize long-term gains in terms of active customers and top line growth. Overall, our marketing spend remained within the 5% to 7% of net sales range that we articulated on our last call.

正如我們之前所說，我們的營銷投資是 ROI 驅動的，並且可能會根據市場情況從一個季度到另一個季度波動。在第三季度，我們看到了在整個營銷渠道進行增量投資的機會，我們利用這些機會在活躍客戶和營收增長方面實現長期收益最大化。總體而言，我們的營銷支出保持在我們在上次電話會議上闡明的淨銷售額的 5% 至 7% 範圍內。

Wrapping up the income statement. Third quarter net income was $2.3 million, a year-over-year increase of $34.6 million. Net margin expanded 160 basis points to 0.1%. Third quarter adjusted EBITDA increased to $70.4 million and our adjusted EBITDA margin expanded 250 basis points to 2.8%, which we believe clearly demonstrates the operating leverage that we are unlocking as we realized the benefits of higher gross margin and accelerated scaling of SG&A expenses. Moving on to free cash flow. Third quarter free cash flow was $69.8 million, reflecting $117.4 million in cash flow from operating activities and $47.6 million of capital expenditures.

總結損益表。第三季度淨收入為 230 萬美元，同比增長 3460 萬美元。淨利潤率擴大 160 個基點至 0.1%。第三季度調整後的 EBITDA 增加到 7040 萬美元，我們調整後的 EBITDA 利潤率擴大了 250 個基點，達到 2.8%，我們認為這清楚地表明了我們正在釋放的經營槓桿，因為我們意識到更高的毛利率和加速擴大 SG&A 費用的好處。繼續自由現金流。第三季度自由現金流為 6980 萬美元，反映了 1.174 億美元的經營活動現金流和 4760 萬美元的資本支出。

Capital investments were primarily comprised of investments in our automated FC in Reno and ongoing technology projects. We finished the quarter with $675 million in cash and cash equivalents and marketable securities, which is $68 million higher than our cash and cash equivalents balance at the end of last quarter. This quarter, you will notice that our balance sheet includes $297 million of marketable securities. Starting in Q3, we took advantage of rising short-term interest rates to redeploy excess cash from overnight deposits into highly liquid commercial paper and short-term treasury bills.

資本投資主要包括對我們在里諾的自動化 FC 和正在進行的技術項目的投資。本季度結束時，我們擁有 6.75 億美元的現金和現金等價物以及有價證券，比上一季度末的現金和現金等價物餘額高出 6800 萬美元。本季度，您會注意到我們的資產負債表包括 2.97 億美元的有價證券。從第三季度開始，我們利用短期利率上升的機會，將隔夜存款中的過剩現金重新部署到流動性高的商業票據和短期國庫券中。

At the end of Q3, we remain debt-free and between cash on hand, marketable securities and our availability on our ABL, our liquidity currently stands at over $1.1 billion. That concludes my third quarter recap. So now let me cover our fourth quarter and full year 2022 guidance.

在第三季度末，我們仍然沒有債務，在手頭現金、有價證券和我們的 ABL 可用性之間，我們的流動性目前超過 11 億美元。我的第三季度回顧到此結束。現在讓我介紹一下我們的第四季度和 2022 年全年指導。

As 2022 winds down, the resilience of consumer spending in the pet category continues and Chewy's value proposition remains as compelling as ever. Our current outlook for the balance of 2022 assumes no material change from current trends in the macro environment. We are increasing our full year 2022 guidance to incorporate our Q3 results and a tighter range of expectations for Q4. We're also raising our full year adjusted EBITDA guidance to reflect our gross margin and leverage in SG&A as reported through the third quarter. We expect fourth quarter net sales to be between $2.63 billion and $2.65 billion, representing year-over-year growth of approximately 10% to 11%. We are raising our full year 2022 net sales outlook to a range of $10.02 billion to $10.04 billion, representing year-over-year growth of approximately 13% and over $11 billion in absolute dollar growth compared to 2021.

隨著 2022 年的臨近，寵物類別的消費者支出將繼續保持彈性，而 Chewy 的價值主張仍然一如既往地引人注目。我們目前對 2022 年剩餘時間的展望假設宏觀環境的當前趨勢不會發生重大變化。我們正在增加 2022 年全年的指導，以納入我們第三季度的業績和對第四季度更嚴格的預期。我們還提高了全年調整後的 EBITDA 指引，以反映截至第三季度報告的 SG&A 毛利率和槓桿率。我們預計第四季度淨銷售額將在 26.3 億美元至 26.5 億美元之間，同比增長約 10% 至 11%。我們將 2022 年全年淨銷售額預期上調至 100.2 億美元至 100.4 億美元，與 2021 年相比，同比增長約 13%，絕對美元增長超過 110 億美元。

We're also raising our full year 2022 adjusted EBITDA margin outlook to a range of 2.3% to 2.4%, up from our prior range of 1.75% to 2%. As you update your models, here are a few housekeeping items to keep in mind. We now expect full year 2022 gross margin to expand by approximately 90 to 100 basis points from our full year 2021 gross margin of 26.7%. While we expect Q4 gross margin to improve year-over-year, it is likely to come in somewhat below Q3 due to seasonal factors like higher promotional activity and fewer opportunities to achieve freight and shipping efficiencies amid higher holiday volumes and peak season surcharges.

我們還將 2022 年全年調整後的 EBITDA 利潤率預期從之前的 1.75% 至 2% 上調至 2.3% 至 2.4%。在更新模型時，請記住以下幾項管理事項。我們現在預計 2022 年全年毛利率將從 2021 年全年 26.7% 的毛利率增加約 90 至 100 個基點。雖然我們預計第 4 季度的毛利率將同比提高，但由於季節性因素，如促銷活動增加，以及在假期量增加和旺季附加費增加的情況下實現貨運和航運效率的機會減少，它可能會略低於第 3 季度。

In terms of CapEx, year-to-date CapEx is running at 2.3% of net sales. As we articulated on prior calls, the higher CapEx this year reflects a pull forward of payments on our next round of FC projects given longer project lead times. We now expect full year 2022 CapEx will come in slightly below our previous expectation of 2.5% of net sales as some anticipated spending shifts into 2023. We now expect to generate approximately $50 million to $100 million of positive free cash flow in 2022, given our revised profitability and CapEx outlook.

就資本支出而言，年初至今的資本支出占淨銷售額的 2.3%。正如我們在之前的電話會議上所闡明的那樣，今年較高的資本支出反映了在項目交付週期較長的情況下我們下一輪 FC 項目的付款提前。我們現在預計 2022 年全年資本支出將略低於我們之前預期的淨銷售額的 2.5%，因為一些預期支出將轉移到 2023 年。我們現在預計 2022 年將產生大約 5000 萬至 1 億美元的正自由現金流，因為我們的修訂後的盈利能力和資本支出前景。

Q3 results demonstrate Chewy's ability to expand margins and grow profitability in the current macro environment. This is a direct result of our sustained track record of making targeted investments in areas that enhance customer experience, grow our top line, expand margins and improve free cash flow. We believe our unwavering customer centricity, combined with our sharp operational execution will enable us to continue extending our industry-leading position in pet.

第三季度的業績證明了 Chewy 在當前宏觀環境下擴大利潤和提高盈利能力的能力。這是我們在增強客戶體驗、增加收入、擴大利潤和改善自由現金流的領域進行有針對性投資的持續記錄的直接結果。我們相信，我們堅定不移地以客戶為中心，加上我們敏銳的運營執行力，將使我們能夠繼續擴大我們在寵物領域的行業領先地位。

And with that, I'll turn the call over to the operator for questions.

有了這個，我會把電話轉給接線員提問。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Doug Anmuth with JPMorgan.

我們的第一個問題來自摩根大通的 Doug Anmuth。

I have 2. Just I guess, first on the 4Q revenue. Can you just talk about the deceleration versus 3Q? And if there's anything in particular driving that? Or anything that you're seeing in terms of trends quarter-to-date or during the holidays? And then second, the accelerated scaling of SG&A expenses. Where do you think you're seeing the biggest gains across warehouses and automation and just overall logistics?

我有 2 個。我猜，首先是第四季度的收入。你能談談減速與 3Q 的關係嗎？如果有什麼特別的驅動力呢？或者你在季度至今或假期期間看到的任何趨勢？其次，SG&A 費用的加速增長。您認為倉庫和自動化以及整體物流的最大收益在哪裡？

Doug, it's Mario. I'll start off with the Q4 guidance. So as you've heard us say before, our guidance doesn't anticipate -- it takes into consideration all the data that we have as of right now. When we look at the fourth quarter, we're considering the fact that hard goods seem to make potentially a bigger piece of the -- of sales usually in the fourth quarter. Seasonally, Q4 tends to show a little more heavily towards hard goods given the holidays. And while we saw some demand firming up in the -- between Q2 and Q3 generally speaking, demand for that category remains relatively soft compared to nondiscretionary demand in things like consumables and health care. And it's those headwinds produced by that softer discretionary demand that's likely to keep net sales growth rates below what we saw, for example, in Q3.

道格，是馬里奧。我將從第四季度的指導開始。因此，正如您之前聽過我們所說的那樣，我們的指南並沒有預期——它考慮了我們目前擁有的所有數據。當我們看第四季度時，我們正在考慮這樣一個事實，即硬商品通常在第四季度似乎可能在銷售額中佔據更大的份額。從季節性來看，考慮到假期，第 4 季度往往會更偏向於耐用品。雖然我們看到一些需求在第二季度和第三季度之間普遍上升，但與消耗品和醫療保健等非自由支配需求相比，對該類別的需求仍然相對疲軟。正是由於可自由支配需求疲軟而產生的不利因素，可能使淨銷售額增長率低於我們在第三季度看到的水平。

Also recall that last year, Q4, we had a bit of a boost from the Omicron surge in December and January. So that's an impact of higher comps last year regarding Omicron. Now that all said, look, the midpoint of the fourth quarter guidance that still -- it suggests an over $250 million increase year-over-year and the quarter is off to a good start. And if you look at the full year, you see that our guidance now for full year 2022 is about 13% growth, over $1.1 billion growth in dollar terms year-over-year and more than double the revenue over the last 3 years.

還記得去年第四季度，我們從 12 月和 1 月的 Omicron 激增中得到了一些提振。所以這是去年更高的補償對 Omicron 的影響。既然所有人都說，看，第四季度指導的中點仍然 - 它表明同比增長超過 2.5 億美元，並且本季度開局良好。如果你看一下全年，你會發現我們現在對 2022 年全年的指導是增長約 13%，按美元計算同比增長超過 11 億美元，是過去 3 年收入的兩倍多。

Doug, this is Sumit. I'll take the second part of the question. You said what's contributing to accelerated SG&A. You also said logistics. I'll take both logistics initiatives are rolling up through gross margin, but I'll explain as I kind of go through. On the SG&A scaling, it's a couple things that are in play here. One, the benefits that we're getting from automation, which we rolled out a couple of years ago are really starting to come through now. So if you've heard me talk about kind of a physics analogy in the past where I said there's a lot of kinetic -- potential energy conserved in the system, which once we start unlocking turns into kinetic energy and that's kind of what you're seeing flow through. So basically, the 2 fulfillment centers that we launched last year are fully ramped. We pushed nearly 1/3 of our volume or just a little under 30% of our volume through that network. We know the third one is still ramping and we realized half of our 120 basis point leverage to the accelerated ramp of the fulfillment centers.

道格，這是蘇米特。我將回答問題的第二部分。你說什麼有助於加速 SG&A。你還說物流。我會採取兩項物流計劃都通過毛利率上升，但我會在我經歷的過程中進行解釋。在 SG&A 規模上，這裡有幾件事在起作用。第一，我們從幾年前推出的自動化中獲得的好處現在真正開始顯現。所以如果你聽過我在過去談論過某種物理類比，我說過系統中有很多動能——勢能守恆，一旦我們開始解鎖，它就會變成動能，這就是你的意思重新看到流過。所以基本上，我們去年推出的 2 個履行中心已經全面升級。我們通過該網絡推送了近 1/3 的交易量或略低於 30% 的交易量。我們知道第三個仍在增加，我們實現了 120 個基點槓桿的一半用於加速履行中心的增加。

The ramp is also helped by the fact that our inventory positioning is improving, both as a result of our work and as a result of improved in-stock levels. And so when you do that, you actually create density in the fulfillment centers that allows you to be more productive and the labor situation has been fairly stable. So when you put all of that together, it allows us to leverage our network in a manner that we essentially planned it or built it to begin with.

由於我們的工作和庫存水平的提高，我們的庫存定位正在改善，這也有助於提高產量。所以當你這樣做時，你實際上在履行中心創造了密度，讓你更有生產力，勞動力情況也相當穩定。因此，當您將所有這些放在一起時，它使我們能夠以我們最初計劃或構建它的方式利用我們的網絡。

So that's the fulfillment center portion. Underneath of that, we're also getting operating leverage as a result of higher basket sizes. And as incremental volume flows through, that's the 20 basis points that Mario talked about today. And then third, of course, the G&A component that is built in, strong OpEx management, strong controls on kind of spending, headcount, travel, relocation, anything basically that you need to run the company in a disciplined manner. The team is all over that. So that all is contributing to SG&A.

這就是履行中心部分。在此之下，由於籃子規模增加，我們也獲得了經營槓桿。隨著交易量的增加，這就是馬里奧今天談到的 20 個基點。第三，當然是內置的 G&A 組件，強大的運營支出管理，對支出類型、員工人數、差旅、搬遷的強大控制，基本上是你以有紀律的方式經營公司所需的一切。整個團隊都在努力。因此，所有人都在為 SG&A 做出貢獻。

On the freight and logistics initiatives, there are basically 3 that we've talked about. One, our work with inventory and positioning allows us to better position inventory. We've gotten inventory in lower zones that allows us to ship lower distances, that allows us to essentially be more efficient with our shipping cost.

關於貨運和物流計劃，我們基本上討論了 3 個。第一，我們在庫存和定位方面的工作使我們能夠更好地定位庫存。我們在較低的區域獲得了庫存，這使我們能夠運輸更短的距離，這使我們能夠從根本上提高運輸成本的效率。

Number two, we're also improving package density that allows us to improve cartonization per order, that allows us to extract that benefit. Number three, the middle-mile initiative is contributing. Again, it helps us consolidate orders and deeper inject into carrier networks. And then, four, the work with our import routing centers allows us to move inventory more effectively. That hits the inbound freight side, which also rolls up to gross margin. So as a result of these 4, you're seeing us leverage kind of the cost on the freight side, and the previous comments were relative to the SG&A side.

第二，我們還在提高包裝密度，使我們能夠改進每個訂單的裝箱情況，從而使我們能夠從中獲益。第三，中英里計劃正在做出貢獻。再次，它幫助我們整合訂單並更深入地註入運營商網絡。然後，第四，與我們的進口路由中心的合作使我們能夠更有效地轉移庫存。這打擊了入境貨運方面，這也影響了毛利率。因此，由於這 4 個，您看到我們在貨運方面利用了某種成本，而之前的評論是與 SG&A 方面相關的。

Our next line of questions comes from the line of Mark Mahaney with Evercore.

我們的下一行問題來自 Evercore 的 Mark Mahaney。

Okay. Let me try 2 questions. First, the sponsored ad revenue opportunity. Have you sized the TAM before? And just talk about the -- which kind of advertisers you would expect to bring on to the platform? And then in terms of the net active customers, this growth you had this quarter after 2 quarters of decline. And I know there's a factor here, which is kind of moving beyond the COVID cohort a little bit. Should the interpretation be that you've now are kind of at the end of that tunnel and that you're back to kind of more normalized churn levels across the customer base? And as the gross adds kind of stay high that we should now expect a consistently ongoing growth in net active customers?

好的。讓我嘗試 2 個問題。首先，贊助廣告收入機會。您之前評估過 TAM 的大小嗎？只是談談 - 您希望將哪種廣告商帶到平台上？然後就淨活躍客戶而言，在經歷了兩個季度的下降後，本季度實現了增長。而且我知道這裡有一個因素，有點超出了 COVID 隊列。是否應該解釋為您現在已經走到了那條隧道的盡頭，並且您又回到了整個客戶群的更正常化的流失水平？隨著總收入保持高位，我們現在應該期望淨活躍客戶持續增長？

Mark, I'll take the first one. Mario will take the second one. So on sponsored ads, since it's just launched and still in beta, we haven't fully kind of shared the financial benefits. The way we would think about it is we'd compare ourselves to other companies that run single category or sponsored ads in single category. So I think that would become a reference. And then we would also consider the power of the Autoship program that allows us to build repeat purchase and loyalty into brands that allows us kind of an ROI, which is just different and more powerful than we've seen in the industry.

馬克，我要第一個。馬里奧會拿第二個。因此，在讚助廣告方面，由於它剛剛推出且仍處於測試階段，我們還沒有完全分享經濟利益。我們的想法是將自己與其他運行單一類別或單一類別贊助廣告的公司進行比較。所以我認為這將成為一個參考。然後我們還會考慮 Autoship 計劃的力量，它使我們能夠為品牌建立重複購買和忠誠度，從而使我們獲得某種投資回報率，這與我們在行業中看到的不同且更強大。

So you put those 2 together, the type of products then kind of lends itself to either consumables, health care, all products where you can build loyalty, whether it's search demand, whether it's direct index on the website. And we've seen basically great response from partners from that standpoint right now. So we're prioritizing those, too.

所以你把這兩個放在一起，產品類型就適合於消費品、醫療保健，所有你可以建立忠誠度的產品，無論是搜索需求，還是網站上的直接索引。從這個角度來看，我們現在已經看到合作夥伴基本上做出了很好的回應。所以我們也在優先考慮這些。

Mark, on your second question about active customer growth. In the third quarter, you saw that we did increase the active customer count by about 30,000 and up about 100,000 year-over-year. That was in line with our expectations. The increase really is a result of a small uptick in the number of gross customer adds in the quarter and a small reduction in the number of churn customers. As to your point, we continue to lapse the very large COVID era cohorts that we acquired in '20 and '21. You know that, obviously, we don't guide to active customers just as we don't guide to NSPAC. But that said, our expectations for active customer growth going into the fourth quarter, remain generally consistent with what we said on prior calls. And that's all reflected in the guidance we provided for sales and the like.

馬克，關於你關於活躍客戶增長的第二個問題。在第三季度，您看到我們的活躍客戶數量確實增加了約 30,000，同比增加了約 100,000。這符合我們的預期。這一增長實際上是本季度新增客戶數量小幅上升以及流失客戶數量小幅減少的結果。至於你的觀點，我們繼續讓我們在 20 年和 21 年獲得的非常龐大的 COVID 時代隊列失效。你知道，很明顯，我們不會像不引導 NSPAC 一樣引導活躍客戶。但話雖如此，我們對進入第四季度的活躍客戶增長的預期與我們在之前的電話會議上所說的基本一致。這一切都反映在我們為銷售等提供的指導中。

Okay. And Mario, congratulations on 8 years of great success in execution. So wishing you all the best.

好的。祝賀馬里奧 8 年來在執行方面取得的巨大成功。所以祝你一切順利。

Thank you, Mark.

謝謝你，馬克。

Our next line of questions comes from the line of Anna Andreeva with Needham & Company.

我們的下一行問題來自 Needham & Company 的 Anna Andreeva。

Great. And congrats, great results. Two quick questions from us. On higher pricing, I know you have more of a portfolio approach towards managing that. Just any initial thoughts on how we should think about your price versus unit relationship into '23 and as you start lapping the price increases implemented this year? And then secondly, on advertising, it's fluctuated in the last couple of quarters. Can you talk about what's implied for advertising for the fourth quarter? And should we think the 5% to 7% range is still the right level for the business as we look out?

偉大的。恭喜，結果很好。我們有兩個簡短的問題。關於更高的定價，我知道你有更多的投資組合方法來管理它。關於我們應該如何考慮您的價格與單位關係到 23 年以及您開始評估今年實施的價格上漲的任何初步想法？其次，在廣告方面，它在過去幾個季度出現了波動。你能談談第四季度的廣告暗示嗎？我們是否應該認為 5% 到 7% 的範圍在我們看來仍然是適合業務的水平？

This is Sumit. I'll start, and if Mario has to add anything he'll jump in here. So first of all, pricing and unit growth contributed about equally to sales in Q3. We grew pricing, but we also grew units meaningfully as we moved through Q3. And in terms of lapping next year. So one, obviously, this year, we've seen increasingly elevated pricing as we moved from Q1 through Q3. And so the first half of year, there's still positive favorable comps to be lapped. So that's one. Number two, we are expecting incremental costs, as we've shared in the previous calls, we're expecting incremental cost and therefore, more inflation to be passed through into the industry as we enter 2023.

這是蘇米特。我會開始，如果馬里奧需要添加任何內容，他會跳到這裡。因此，首先，定價和單位增長對第三季度銷售額的貢獻大致相同。我們提高了定價，但隨著我們進入第三季度，我們也有意義地增加了單位。就明年的研磨而言。所以，很明顯，今年，隨著我們從第一季度到第三季度，我們看到價格越來越高。因此，今年上半年，仍有積極的有利競爭可以疊加。這就是一個。第二，我們預計會增加成本，正如我們在之前的電話會議中所分享的那樣，我們預計會增加成本，因此，隨著我們進入 2023 年，更多的通貨膨脹將傳遞到該行業。

So we believe that's how the pricing environment would look like as we get out of Q4 into the first half of 2023. And then, of course, in a similar manner where we're growing units which is actually structurally different than how industry growth occurred in Q3. In Q3, industry growth occurred primarily on the back of price. But at Chewy we grew units and price. We expect to do that in Q3 -- in '23 as well.

因此，我們相信這就是我們從第四季度進入 2023 年上半年時定價環境的樣子。然後，當然，我們以類似的方式增加單位，這實際上在結構上不同於行業增長的發生方式在第三季度。第三季度，行業增長主要得益於價格。但在 Chewy，我們增加了銷量和價格。我們希望在第三季度——也是在 23 年做到這一點。

Yes. Anna, to your second part of the question on marketing spend, we would expect Q4 marketing as a percent of net sales to be similar to Q3 and for the year to be in that 6% to 7% range, given where we are year-to-date.

是的。安娜，關於營銷支出問題的第二部分，我們預計第四季度營銷占淨銷售額的百分比將與第三季度相似，並且今年將在 6% 至 7% 的範圍內，考慮到我們今年的情況-迄今為止。

Our next line of questions comes from the line of Brian Fitzgerald with Wells Fargo.

我們的下一行問題來自富國銀行的 Brian Fitzgerald。

30% of volume handled by the automated FCs. Any update or how should we frame up the cost savings that you realized from that? And then as you ramp up to your automation and efficiency and then you drive these logistics improvements across the network, it drives a better user experience, right? And so have you seen anything in terms of positive impacts on engagement, order frequency, NSPAC as a direct result of what you're doing to the network?

30% 的體積由自動化 FC 處理。任何更新或我們應該如何構建您從中實現的成本節約？然後，隨著您提高自動化和效率，然後在整個網絡中推動這些物流改進，它會帶來更好的用戶體驗，對嗎？因此，作為您對網絡所做工作的直接結果，您是否看到了對參與度、訂單頻率、NSPAC 的積極影響？

Brian, this is Sumit. So the improvement and how do we think about potential there. So I think you were asking a cost question. We've seen favorability to the [few troughs] somewhere between 18% and 20%. So the volume fulfilled out of the 2G network was roughly 18% to 20% cheaper than the volume that we fulfilled from our first 1 legacy -- 1G network. And two, we're still ramping volume into the third fulfillment center. So there's incremental volume leverage that we expect to gain, and we're still continuing to scale our costs. So there's incremental productivity improvement that we would expect from our network. So all positive story there.

布賴恩，這是蘇米特。那麼改進以及我們如何考慮那裡的潛力。所以我認為你問的是成本問題。我們已經看到 [few troughs] 的好感度在 18% 到 20% 之間。因此，通過 2G 網絡實現的數量比我們從第一個傳統網絡——1G 網絡中實現的數量便宜大約 18% 到 20%。第二，我們仍在增加第三個運營中心的數量。因此，我們希望獲得增量數量槓桿，並且我們仍在繼續擴大成本。因此，我們期望從我們的網絡中獲得漸進的生產力改進。所以所有積極的故事都在那裡。

In terms of the impact that we've seen, we have -- I mean, we've seen an acceleration both in -- it's reflected in the gross adds number. It's also reflected in the reactivation number as we've improved both our inventory positioning and as we've improved CX. It's not -- this is not an exact science. So getting down to specific numbers is a little bit hard, but you can clearly see it in the way that our network plays out and our ownership rates, both kind of net and gross work out there.

就我們所看到的影響而言，我們已經 - 我的意思是，我們已經看到了加速 - 它反映在總增加數中。這也反映在重新激活數量上，因為我們改善了庫存定位和改善了 CX。這不是——這不是一門精確的科學。因此，確定具體數字有點困難，但您可以從我們的網絡運作方式和我們的所有權率（無論是淨工作還是總工作）中清楚地看到這一點。

And Brian, if I can add 1 more thing here is the -- if you look at where we are today, we have -- you saw the numbers we recounted or we reported in terms of the benefit we're seeing in SG&A from these 3 FCs. And as a reminder, Reno just opened more or less at the end of second quarter. So it's still ramping. So there's 3 FCs, 1 of which is ramping out of 13. And over the next year or a year, 18 months, we're going to see a couple of more FCs open up that are also automated. So these are layers of profitability, as we said before, as we get more and more of our volume through these automated facilities over time.

布賴恩，如果我可以在這裡再補充一件事，那就是——如果你看看我們今天的處境，我們有——你看到了我們重新計算的數字，或者我們報告了我們在 SG&A 中從這些中看到的好處3個FC。提醒一下，Reno 在第二季度末剛剛開業。所以它仍然在上升。所以有 3 個 FC，其中 1 個正在從 13 個中逐漸減少。在接下來的一年或一年，18 個月內，我們將看到更多的 FC 開放，它們也是自動化的。因此，正如我們之前所說，隨著時間的推移，我們通過這些自動化設施獲得越來越多的產量，因此這些是盈利能力的層次。

But if you add these up, like Reno has several basis points of improvements to give when it ramps. The next 2, we sized it at 30 to 50 basis points. We also said there is 20 to 30 basis points of FC utilization capacity, which is operating leverage that will get released. So when you add that kind of improvement along with the fact that we continue to push more volume and expect lower cost, we're satisfied with the journey so far. There's more to come.

但是如果你把這些加起來，就像里諾在它上升時有幾個改進的基點。接下來的 2 個，我們將其調整為 30 到 50 個基點。我們還說有 20 到 30 個基點的 FC 利用率，這是將被釋放的運營槓桿。因此，當您添加這種改進以及我們繼續推動更多數量並期望降低成本這一事實時，我們對迄今為止的旅程感到滿意。還有更多。

Our next line of questions comes from the line of Corey Grady with Jefferies.

我們的下一行問題來自 Corey Grady 與 Jefferies 的對話。

I wanted to follow up on the pricing you're talking about in 2023. Can you say more about what you're hearing from brands and commodity costs and additional pricing and what you're expecting in terms of the magnitude of pricing next year? And then on hard goods, so as we come off the COVID adoption cycle and sort of think about a potential recession in 2023, how are you thinking about a recovery in that segment? And what are the leading indicators you would look at to gauge recovery and hard good demand?

我想跟進你在 2023 年談論的定價。你能詳細談談你從品牌和商品成本和額外定價中聽到的信息，以及你對明年定價幅度的預期嗎？然後是硬商品，當我們結束 COVID 採用周期並考慮 2023 年可能出現的經濟衰退時，您如何看待該領域的複蘇？您會關注哪些領先指標來衡量復甦和強勁的需求？

Sure, sure, sure. So pricing conversations, it's early to define or to put a range on the magnitude. So perhaps we could discuss that on the next earnings call when we have a little more clarity when we meet in March. We are expecting pricing to start rolling through in the Q1 time frame. So this will actually become more clear as we kind of wrap up the year and get into next year. So far, we're not hearing of multiple rounds of increase. But then again, as we get more information, we will definitely pass that on.

當然，當然，當然。因此，在定價對話中，現在定義或確定幅度範圍還為時過早。因此，也許我們可以在下一次財報電話會議上討論這個問題，屆時我們在 3 月份開會時會更加清楚一些。我們預計定價將在第一季度開始滾動。因此，隨著我們結束這一年並進入明年，這實際上會變得更加清晰。到目前為止，我們還沒有聽到多輪增加的消息。但話又說回來，隨著我們獲得更多信息，我們一定會傳遞它。

If you look at 2022, we've had 4 rounds of cost increases over the last 15 months starting from Q3 of 2021 through Q3 of 2022. We don't expect multiple rounds of cost increases coming, but there is certainly incremental cost that needs to pass through the system first half of next year. Your second question on hard goods. The inputs that are driving the hard goods lag, essentially are a couple here.

如果你看看 2022 年，從 2021 年第三季度到 2022 年第三季度，過去 15 個月我們已經進行了 4 輪成本增加。我們預計不會出現多輪成本增加，但肯定需要增加成本明年上半年通過該系統。你關於耐用品的第二個問題。推動硬商品滯後的輸入基本上是一對夫婦。

One is it's tied directly to the consumer's mindset, to inflation pressures and consumer mindset to pull back spending from discretionary categories. Number 2 is refresh cycles on hard goods are typically longer. So for example, if you recall the last 2 years, every bed in America pretty much got let's say, a bed refresh, all -- every new puppy got a crate, et cetera.

一是它與消費者的心態、通脹壓力和消費者從可自由支配類別中撤回支出的心態直接相關。第二，耐用品的更新周期通常更長。因此，舉例來說，如果你還記得過去兩年，美國的每張床幾乎都可以說是翻新床——每隻新來的小狗都有一個板條箱，等等。

And so these refresh cycles are generally 12 to 15 months long, and they don't get as refreshed as quickly refreshed as toys would, for example. So there's a little bit of that, that we have to lap -- lapse as we play the kind of a timescale here. And the third one is pet household formation. When you look at the options and relinquishment, they're basically flat to very slightly down from a year-over-year perspective. So as pet household formation returns to normalcy, which again is tied back to the inflationary environment, as these inputs correct themselves, we expect hard goods growth to return to normal.

因此，這些更新周期通常為 12 到 15 個月，而且它們不會像玩具那樣快速更新。所以有一點，我們必須在我們玩這種時間尺度時失效。第三個是寵物家庭組建。當您查看選項和放棄時，從同比角度來看，它們基本上持平或略有下降。因此，隨著寵物家庭的形成恢復正常，這又與通貨膨脹環境相關，隨著這些投入自我糾正，我們預計耐用品增長將恢復正常。

Our next line of questions comes from the line of Lee Horowitz with Deutsche Bank.

我們的下一行問題來自德意志銀行的 Lee Horowitz。

Maybe another one on NSPAC. For the quarter, can you help us unpack a bit how much of the NSPAC work you saw in the quarter was from share of wallet gains versus just general inflationary pass-through and the pricing environment? And then I know we'll have this conversation next quarter again, but just at a high level when you think about the path forward for NSPAC growth next year, you'll have some pricing pass-through. But you're obviously comping it's a big inflationary year and don't necessarily have, say, a big '22 cohort that's going to be in that, call it, rapid pace of NSPAC growth next year. So how are you thinking about the inputs for NSPAC growth next year?

也許是 NSPAC 上的另一個。對於本季度，您能否幫助我們了解一下您在本季度看到的 NSPAC 工作中有多少來自錢包收益份額，而不是一般通貨膨脹傳遞和定價環境？然後我知道我們將在下個季度再次進行這種對話，但是當你考慮明年 NSPAC 增長的前進道路時，只是在一個高層次上，你會有一些定價傳遞。但你顯然認為今年是通貨膨脹大的一年，而且不一定有一個 22 歲的大群體，稱之為明年 NSPAC 增長的快速步伐。那麼，您如何看待明年 NSPAC 增長的投入？

This is Mario. I'll take that one. I can go on for a while on this answer. But look, let me kind of give -- preface it with a couple of things, which we mentioned in the prepared remarks. Our NSPAC did reach another all-time high in the third quarter at $477. If you take that number back to Q1 2020, that's a [34%] increase over the last couple of years. So significant increase in [green of] share of wallet there.

這是馬里奧。我會拿那個。我可以繼續討論這個答案。但是看，讓我先說幾件事，我們在準備好的評論中提到過。我們的 NSPAC 在第三季度確實達到了 477 美元的歷史新高。如果將該數字追溯到 2020 年第一季度，那麼在過去幾年中增長了 [34%]。那裡的 [綠色] 錢包份額顯著增加。

The other thing is from a spending perspective, if you're just comparing to customers that have been with us for a long time versus more recent customers. The customers we added during the last couple of years, they're displaying similar spending patterns to customers we acquired prior to the pandemic. And what that simply means is that they spend more the longer they stay with us. We've seen that for several years. In fact, we've seen it back to the first cohort as we projected out to today. And I mean the first cohort back in 2011 to today.

另一件事是從支出的角度來看，如果您只是將長期與我們合作的客戶與最近的客戶進行比較。我們在過去幾年增加的客戶，他們表現出與我們在大流行之前獲得的客戶相似的消費模式。這只是意味著他們在我們這裡待的時間越長，花的錢就越多。我們已經看到了好幾年了。事實上，正如我們預測到今天的那樣，我們已經看到它回到了第一批人。我指的是從 2011 年到今天的第一批人。

Also consider that our current NSPAC is, as I said, about $477. And if you look at our oldest cohorts 11, 12, 13, they're spending about $1,000 a year with us. Add that to the fact that 60% of customers today have been with us for 3 years or less. So think about what that means. There's this long curve that takes you from first year about $150, $200 to about $1,000. And on average, today, our cohorts are fairly young on a weighted basis, and the average NSPAC is $477. So there's a tremendous amount of upside potential to how much more share of wallet we can gain over time from those customers.

還要考慮一下，正如我所說，我們目前的 NSPAC 約為 477 美元。如果你看看我們年齡最大的 11、12、13 歲，他們每年在我們這里花費大約 1,000 美元。再加上今天 60% 的客戶與我們合作的時間不超過 3 年。所以想一想這意味著什麼。這條長曲線使您從第一年的大約 150 美元、200 美元到大約 1,000 美元。平均而言，今天，我們的同齡人在加權基礎上相當年輕，平均 NSPAC 為 477 美元。因此，隨著時間的推移，我們可以從這些客戶那裡獲得更多的錢包份額，這具有巨大的上行潛力。

Of course, we help drive NSPAC growth by adding new product categories like health care. We expand our catalog. Now we have over 100,000 products in our catalog. And we also make it easier to -- for customers to discover product and drive more cross-category shopping. So all these things that we're doing to continue to gain that share of wallet. But again, if you look back at over the years, cohort after cohort, they have these nice long curves as they stay, they spend more with us the longer they stay with us. Sumit, anything you want to add there?

當然，我們通過添加醫療保健等新產品類別來幫助推動 NSPAC 的增長。我們擴大我們的目錄。現在我們的目錄中有超過 100,000 種產品。我們還讓客戶更容易發現產品並推動更多跨類別購物。因此，我們正在做的所有這些事情都是為了繼續獲得錢包份額。但是，如果你回顧這些年來，一個又一個隊列，他們在留下來時有這些漂亮的長曲線，他們和我們在一起的時間越長，他們花在我們身上的時間就越多。 Sumit，你有什麼要補充的嗎？

Yes, I think Mario hit it. If you look at the business unit level, we have several growth factors are still growing to deliver scale and contribute to positive NSPAC development. I mean if you look at health care, that's a rapidly developing $40 billion TAM and less than 15%, 20% of our customers are active customers. And when you look at private label, there's an opportunity to ramp that up. We just launched Fresh & Prepared category, a high NSPAC driver in itself. Our premium and specialty businesses have plenty of runway in front of them.

是的，我認為馬里奧成功了。如果您查看業務部門級別，我們有幾個增長因素仍在增長以實現規模並為 NSPAC 的積極發展做出貢獻。我的意思是，如果你看一下醫療保健，那是一個快速發展的 400 億美元 TAM，不到 15%，我們的客戶中有 20% 是活躍客戶。當您查看自有品牌時，就有機會提升它。我們剛剛推出了 Fresh & Prepared 類別，它本身就是一個高 NSPAC 驅動程序。我們的優質和專業業務在他們面前有很多跑道。

On top of this, our B2C and B2B services, such as telehealth or Connect With a Vet, Compounding, Practice Hub, shelters, pet insurance. They all remain in nascent stages and early stages. And then on top of that, new initiatives such as sponsored ads, et cetera, are all -- these are all early kind of vectors that we believe can really compound the value proposition that we deliver and capture kind of the full life cycle output, offer customers engagement with our platform. So we're super bullish about this.

除此之外，我們的 B2C 和 B2B 服務，例如遠程醫療或與獸醫聯繫、複合、實踐中心、庇護所、寵物保險。它們都處於萌芽階段和早期階段。然後最重要的是，贊助廣告等新舉措都是——這些都是早期的載體，我們相信它們可以真正複合我們提供的價值主張，並捕獲整個生命週期輸出，讓客戶參與我們的平台。所以我們對此非常看好。

Our next line of question comes from the line of Steve Forbes with Guggenheim.

我們的下一個問題來自古根海姆的史蒂夫福布斯。

Julio Marquez on for Steve Forbes. Just a quick question on automated FCs. I see you mentioned 30% of the volume is shipped from automated. Any color you can give us on what that might look like at maturity? And any color you can give on additional investments either in Reno or additional facilities into 2023?

Julio Marquez 代替 Steve Forbes。只是一個關於自動化 FC 的快速問題。我看到你提到 30% 的數量是通過自動化發貨的。你可以給我們任何關於成熟時可能是什麼樣子的顏色嗎？您可以對 2023 年在里諾或其他設施的額外投資給出任何顏色嗎？

So in terms of additional investments, we've talked about launching 2 new fulfillment centers, which will launch in the next 12 to 15 months. So one will definitely hit '23, one might hit towards the end of '23, perhaps early '24. But in the next 12 to 15 months, so we've shared with you 2 more fulfillment center launches, and both of them are automated.

因此，就額外投資而言，我們已經討論過啟動 2 個新的履行中心，這些中心將在未來 12 到 15 個月內啟動。所以一個人肯定會打到 23 年，一個人可能會在 23 年末，也許是 24 年初。但在接下來的 12 到 15 個月內，我們與您分享了另外 2 個運營中心的啟動，它們都是自動化的。

In terms of volume entitlement, of course, by the nature of the fact that we would have at that point 15 fulfillment centers and 5 of the 15 would be automated, linearly we would say 30% of the volume. But we're already there, so what you can tell is that we're densifying the region as much as possible to be able to shift or place these fulfillment centers closest to customers and then pack them up with as much volume as possible. If you recall in one of the previous scripts, we've said we expect fixed output per -- throughput per square foot to improve 25% is the efficiency that these buildings are giving us at overall 30% improvement in kind of full CPU or full cost per unit measure.

當然，就數量權利而言，根據我們屆時將擁有 15 個履行中心並且 15 個中的 5 個將實現自動化這一事實的性質，我們可以線性地說佔數量的 30%。但我們已經在那裡了，所以你可以說，我們正在盡可能地增加該地區的密度，以便能夠轉移或將這些履行中心放置在離客戶最近的地方，然後儘可能多地打包它們。如果您還記得以前的腳本之一，我們說過我們希望每平方英尺的固定輸出 - 每平方英尺的吞吐量提高 25% 是這些建築物為我們提供的效率，在某種完整的 CPU 或完整的方面總體提高 30%每單位措施的成本。

And so our goal will be to push as much volume as possible. The constraint there is optimally locating inventory and of course, corresponding to normal demand distribution that exists in the country. So more to come as we continue to scale this.

因此，我們的目標是盡可能多地增加銷量。那裡的約束條件是庫存的最佳定位，當然，這與該國存在的正常需求分佈相對應。隨著我們繼續擴大規模，還會有更多。

Our next line of questions comes from the line of Eric Sheridan with Goldman Sachs.

我們的下一行問題來自高盛的 Eric Sheridan。

Maybe a 2-parter, if I can. Compared to what you've seen historically, is there any way to frame or quantify what you're embedding in the forward guidance for promotional activity or competitive intensity in the next quarter over the holiday period versus what you've seen historically? And is there any sense that you might see a different bent to competition in the industry given some of the inflation dynamics and consumer wallet dynamics out there broadly?

如果可以的話，也許是 2 人。與您以往所見相比，是否有任何方法可以構建或量化您在假期期間下個季度的促銷活動或競爭強度前瞻性指導中嵌入的內容與您以往所見的情況相比？考慮到普遍存在的一些通貨膨脹動態和消費者錢包動態，您是否有任何感覺可能會看到行業競爭的不同傾向？

Eric, compared to Q3, the promotional environment is elevated in Q4. This is normal seasonal pattern we see every year heading into the holidays. But within the context of Q4 itself, we believe the promotional environment remains rational and more or less in line with what we've seen in previous holiday periods. And looking forward, we don't expect the levels of promotions will intensify beyond the current levels that we're seeing.

Eric，與第三季度相比，第四季度的促銷環境有所提升。這是正常的季節性模式，我們每年都會看到進入假期。但在第四季度本身的背景下，我們認為促銷環境仍然是理性的，並且或多或少與我們在之前的假期期間所看到的一致。展望未來，我們預計促銷水平不會超過我們目前看到的水平。

On your second question, we aren't -- do we expect competitors to add differently given inflation? The fact that the industry, primarily on the consumables and health care side is mapped, I think it allows a (technical difficulty) discipline in a market. And secondly, supply chains haven't yet fully recovered. So in stock positions are certainly improving, but they're not back to normal to be able to expect hyperactivity. And then third, when you look at hard goods sales that are generally the elastic category, currently, there isn't much elasticity to be driven given the consumers' mindset plus the inventory there, it doesn't -- like when you look at the contribution -- from a contribution point of view, it makes up about 15% of our overall sales. So we're a little more insured there from a spend point of view.

關於你的第二個問題，我們不是——我們是否期望競爭對手在考慮到通貨膨脹的情況下增加不同的產品？事實上，主要是在消費品和醫療保健方面的行業被映射，我認為它允許市場中的（技術難度）紀律。其次，供應鏈尚未完全恢復。因此，股票頭寸肯定在改善，但它們還沒有恢復到正常水平，無法預期過度活躍。第三，當您查看通常屬於彈性類別的耐用品銷售時，目前，考慮到消費者的心態以及那裡的庫存，沒有多少彈性可以驅動，就像您查看貢獻——從貢獻的角度來看，它約占我們總銷售額的 15%。因此，從支出的角度來看，我們在那裡更有保障。

Our next line of questions comes from the line of Dylan Carden with William Blair.

我們的下一行問題來自 Dylan Carden 和 William Blair 的對話。

Just curious if you guys could decide today to provide any detail on the other revenue line item? I know there's a couple of moving parts there, particularly if you're seeing trade down or any benefit more broadly in the last several quarters in the private label space? And any update on the partnerships with vets or Practice Hub, sort of how pharmaceuticals are trending?

只是好奇你們今天是否可以決定提供有關其他收入項目的任何詳細信息？我知道那裡有幾個活動部分，特別是如果你在過去幾個季度看到自有品牌空間的貿易下降或更廣泛的任何好處？關於與獸醫或實踐中心的合作夥伴關係的任何更新，藥物的趨勢如何？

Dylan, this is Mario. I'll take the first part of that. So as you know, we don't desegregate that other line item, other revenue item. But in there, we include not only our pharmacy, but also our private -- all of our proprietary brand sales, specialty, meaning anything that is non-dog, non-cat type of product, meaning other pet types. As you would expect, then you saw in the hardgoods -- I'll give you context rather than specific numbers. But as you saw in hard goods, though that was an improvement quarter-over-quarter in the terms of decline.

迪倫，這是馬里奧。我先講第一部分。如您所知，我們不會取消對其他行項目、其他收入項目的分類。但在那裡，我們不僅包括我們的藥房，還包括我們的私人——我們所有的專有品牌銷售、專業，意思是任何非狗、非貓類型的產品，也就是其他寵物類型。正如您所預料的那樣，然後您在硬貨中看到了——我會給您提供背景信息而不是具體數字。但正如您在耐用品中看到的那樣，儘管下降方面的環比有所改善。

A lot of our sales in the [pet product] space are going to be hard goods. So just like we saw with third-party or national brands hard goods declined year-over-year. You would have expected something similar on the product [type] side of thing. Our health care offerings, our pharmacy, especially continues to perform really well and to grow faster than the rest of the business. So I'll say that.

我們在 [寵物產品] 領域的很多銷售都將是硬貨。因此，就像我們看到的第三方或民族品牌硬商品同比下降一樣。您會期望在產品 [類型] 方面有類似的東西。我們的醫療保健產品，我們的藥房，尤其是繼續表現非常好，並且比其他業務增長得更快。所以我會這麼說。

And then we have not seen trade downs. I think that was part of your question. Your second part of your question was on Practice Hub updates or vet initiatives. Look, we're pleased with the update. Practice Hub scale is up 30% quarter-over-quarter from the last time we met you. So we continue to deepen our presence, our engagement and our penetration with the vets and in a positively oriented manner. Connect With a Vet continues to scale well. We're pleased with insurance. We're very early in insurance.

然後我們還沒有看到貿易下降。我認為這是你問題的一部分。您問題的第二部分是關於實踐中心更新或審查計劃。看，我們對更新很滿意。與我們上次見面時相比，Practice Hub 的規模環比增長了 30%。因此，我們繼續以積極的態度加深與獸醫的關係、參與和滲透。與獸醫聯繫繼續擴大規模。我們對保險很滿意。我們在保險方面還很早。

So these are generally arcs that are certainly beyond the 1-year mark. These are verticals that we think of in terms of 3-year increments. Just as we did pharmacy when we launched it back in -- middle of 2018, '19 time frame. So -- but overall, we're pleased with the way that we're building out the health care ecosystem, and we're bullish about our place in this [thing].

所以這些通常是肯定超過 1 年標記的弧線。這些是我們根據 3 年增量考慮的垂直領域。就像我們在 2018 年年中推出藥房一樣，即 19 年的時間框架。所以 - 但總的來說，我們對我們構建醫療保健生態系統的方式感到滿意，並且我們看好我們在這個 [thing] 中的地位。

Our next line of questions comes from the line of Justin Kleber with Baird.

我們的下一行問題來自 Justin Kleber 和 Baird 的對話。

Just a follow-up to the question on promotions. If we look at gross margin, you're going to end this year about 4 points above '19. Can you help us understand how much margin has benefited over these past 3 years from this more benign promotional backdrop? Just so we can assess what a normalization in the environment could mean if it does happen for gross margins in '23 and beyond?

只是關於促銷問題的後續行動。如果我們看一下毛利率，你將在今年結束時比 19 年高出 4 個百分點。您能否幫助我們了解在過去 3 年中，這種更為良性的促銷背景使利潤率提高了多少？這樣我們就可以評估如果 23 世紀及以後的毛利率確實發生了環境正常化意味著什麼？

It's immaterial to the gross margin progress that we are showing. Any context to add, Mario?

這對我們展示的毛利率進展並不重要。馬里奧，有什麼要補充的嗎？

Yes. No, I think that's exactly right. I think it's de minimis. And I would say where you see the gross margin improvement over time is everything we've talked about. It is getting into or expanding our higher-margin categories, health care, hard goods. It is the embedded business getting bigger, gaining the scale. It is gain sharing of the benefits across our entire vendor supply and inbound and outbound, it is all those drivers there. But not -- promotional environment doesn't really affect it, not materially here.

是的。不，我認為這是完全正確的。我認為這是微不足道的。而且我會說你看到毛利率隨著時間的推移而提高的地方就是我們所談論的一切。它正在進入或擴大我們利潤率較高的類別、醫療保健、耐用品。嵌入式業務越來越大，規模越來越大。它是在我們整個供應商供應和入站和出站中分享利益，這是所有這些驅動因素。但不是——促銷環境並沒有真正影響它，在這裡沒有實質性影響。

Okay. I guess, then why the big step down implied in 4Q on gross margin, it's -- there's always a promotional holiday, right? So I guess it sounds like -- but there's not a year-over-year change in promotions that you're anticipating this holiday. So if it's not been a big benefit, I guess, I'm trying to understand why the step down in margin here in 4Q relative to the [28 4] in 3Q?

好的。我想，那麼為什麼第四季度毛利率大幅下降，它總是有促銷假期，對吧？所以我想這聽起來像——但你預計這個假期的促銷活動並沒有同比變化。因此，如果這不是一個很大的好處，我想，我想了解為什麼第四季度的利潤率相對於第三季度的 [28 4] 有所下降？

Oh, sequentially, I mean, margins, of course, Q4 is a seasonal period. So you would expect increased promotional activity. And we are seeing that. We've seen increased promotional activity as we move sequentially out of Q3 into Q4. On an annual basis, we will be stronger this quarter relative to last quarter, relative to the same quarter last year.

哦，按順序，我的意思是，利潤率，當然，第四季度是一個季節性時期。所以你會期待更多的促銷活動。我們正在看到這一點。隨著我們依次從第三季度進入第四季度，我們看到促銷活動有所增加。按年度計算，我們本季度將比上季度和去年同期更強勁。

Yes. So between that and the peak surcharges that are happening during the holidays, so that's expected. We wouldn't have seen that in the third quarter, we would see it more in the fourth quarter. So there are different drivers there.

是的。因此，在此和假期期間發生的高峰附加費之間，這是意料之中的。我們不會在第三季度看到這種情況，我們會在第四季度看到更多。所以那裡有不同的驅動程序。

Now I think maybe the other part of your question you didn't ask, and I'll answer it anyway, was if you look at what we're looking at for the full year, we came into this year expecting to be basically -- we said "broadly in line." We expected it to be more or less flat year over year on a full year basis, and now we're guiding to a 90 to 100 basis point improvement in the end gross margin. So we're seeing certainly a lift there as we go through the year.

現在我想也許你問題的另一部分你沒有問過，我還是會回答，如果你看看我們全年的目標，我們進入今年的時候基本上是—— - 我們說“大致一致”。我們預計它在全年的基礎上與去年同期相比或多或少持平，現在我們正在指導最終毛利率提高 90 到 100 個基點。因此，在我們度過這一年的過程中，我們肯定會看到那裡的提升。

Got it. And just an unrelated question. You mentioned price -- another round of, I guess, cost increases and therefore, price increases that need to be pushed through the system. If we eventually enter a period of deflation as input costs decline, how do you guys think about the ability to sustain all this pricing that's been taken here over the past few years, particularly in the consumables category?

知道了。只是一個不相關的問題。你提到了價格 - 我猜是另一輪成本增加，因此需要通過系統推動價格上漲。如果我們最終隨著投入成本的下降進入通貨緊縮時期，你們如何看待維持過去幾年在這裡採取的所有這些定價的能力，特別是在消耗品類別中？

Yes, we think pricing will sustain because most of the pricing is getting translated or applied in the industry through MAP pricing and MAP prices are generally sticky. So you see less variability and, therefore, more stability at the same time. So we expect these to be sticky.

是的，我們認為定價會持續下去，因為大多數定價都是通過 MAP 定價在行業中轉化或應用的，而 MAP 價格通常具有粘性。所以你會看到更少的可變性，因此同時也更穩定。所以我們希望它們具有粘性。

Our next line of questions comes from the line of Chris Bottiglieri from BNP Paribas.

我們的下一行問題來自法國巴黎銀行的 Chris Bottiglieri。

You made a small bolt-on acquisition of Petabyte Technology in November. Can you talk more about what capabilities this gives you and how it fits into your broader ambitions in the health care space?

您在 11 月對 Petabyte Technology 進行了小規模的補強收購。您能否更多地談談這為您提供了哪些能力，以及它如何符合您在醫療保健領域的更廣泛抱負？

Yes, sure. So Petabyte is a relatively small acquisition of a cloud-based provider of technology solutions for the vet sector that we completed in November. We're excited to welcome the Petabyte team into the Chewy family. And we see opportunities -- significant opportunities associating -- associated with adding Petabyte's technology to our broader portfolio of health care service offerings. And today, there's not much more to comment because we're -- it's early stages and work has just begun, but we look forward to sharing more with you in the quarters to come.

是的，當然。因此，Petabyte 是我們在 11 月完成的對獸醫行業基於雲的技術解決方案提供商的相對較小的收購。我們很高興歡迎 Petabyte 團隊加入 Chewy 家族。我們看到了將 Petabyte 的技術添加到我們更廣泛的醫療保健服務產品組合中的機會——重要的相關機會。今天，沒有太多要評論的，因為我們 - 這是早期階段，工作才剛剛開始，但我們期待在未來幾個季度與您分享更多信息。

Got you. Okay. And then I guess the next question is, can you just talk more about the -- I guess, the basket sizes, what you're seeing there? Are you seeing -- like your basket size has grown. It sounds like discretionary is under pressure, seems like you're adding more discretionary. What's driving the bigger basket sizes? Are people trading into bigger package sizes in order to save more money per unit viz inflation? Or is this just -- are you finding more ways to attach like health care products and stuff like that, and that's what's driving the basket size?

明白了好的。然後我想下一個問題是，你能多談談——我想，籃子的大小，你在那裡看到了什麼？你看到了嗎——你的籃子尺寸變大了。聽起來自由裁量權面臨壓力，似乎你正在增加更多的自由裁量權。是什麼推動了更大的籃子尺寸？人們是否在交易更大的包裝尺寸以節省每單位更多的錢，即通貨膨脹？或者這只是 - 您是否正在尋找更多的方式來附加醫療保健產品之類的東西，這就是推動籃子大小的原因？

It's a combination of pricing strength and our complementary growth on the health care side. We've come up with several different complementary products to add to the simple consumables and supplies purchase. So as attach rates for highly discretionary categories such as toys, perhaps is near-term impacted right? The attach for pharma drugs, other products such as insurance, telehealth, these are all additive to the basket size. Autoships have higher basket sizes than non-Autoship orders and Autoship percent has continued to increase. So that's a contributor in improving basket sizes as well. But this is all in play.

這是定價優勢和我們在醫療保健方面的互補增長的結合。我們提出了幾種不同的補充產品，以添加到簡單的消耗品和耗材採購中。因此，對於高度自由裁量的類別（例如玩具）的附加費率，也許近期會受到影響，對嗎？藥品的附件，保險，遠程醫療等其他產品，這些都是籃子大小的附加值。 Autoship 的訂單數量高於非 Autoship 訂單，並且 Autoship 百分比持續增加。所以這也是改善籃子大小的一個因素。但這一切都在起作用。

Our next line of questions comes from the line of Seth Basham.

我們的下一行問題來自 Seth Basham。

Thanks a lot, and good afternoon. My question is on customer acquisition costs. You know that gross customer adds increased 6% sequentially, while your advertising and marketing expense increased 23% sequentially. So your TAC was up sharply. Did your LTV expectations on customizations changed that much from last quarter to this quarter to maintain ROI expectations on new customers?

非常感謝，下午好。我的問題是關於客戶獲取成本的。您知道總客戶增加量環比增長了 6%，而您的廣告和營銷費用環比增長了 23%。所以你的 TAC 急劇上升。從上個季度到本季度，您對定制的 LTV 期望是否發生了很大變化，以保持對新客戶的 ROI 期望？

Seth, this is Mario. I'll start off and maybe Sumit can cover something. The customer, you said that our gross adds were up 6% quarter-over-quarter. So expand on that one. I'm trying to make sure that I answer your question correctly.

賽斯，這是馬里奧。我會開始，也許 Sumit 可以介紹一些內容。客戶，您說我們的總收入環比增長了 6%。所以擴大那個。我正在努力確保我正確回答了您的問題。

I believe that's what you said in the script and in the shareholders letter?

我相信這就是你在劇本和股東信中所說的？

Yes, the growth adds, that is both new customers and customer reactivations. So it is a combination of both customers that have lapsed and came back and also gross adds. I wouldn't try to tie the 2 directly together. We've gotten this question somewhat similar before on the active customer count increase and comparing that to investments in marketing. But I'd say it's -- you have to sort of disconnect the 2. They're not -- they shouldn't be tightly connected that way.

是的，增長增加了，即新客戶和客戶重新激活。因此，它是流失和回來的客戶以及總增加量的組合。我不會嘗試將兩者直接聯繫在一起。關於活躍客戶數量的增加以及將其與營銷投資進行比較，我們之前已經得到了這個有點相似的問題。但我要說的是——你必須斷開 2。它們不是——它們不應該那樣緊密連接。

This is Sumit. We are continuing to see NSPAC growth, LTV growth. So when you look at Q3, there were multiple areas that the spend actually went in. On top of the increased CPC or increased ad cost that we see in Q3, which you typically do coming out of a lull in Q2 as you gain -- as everybody tries to gain kind of mind share of the consumer in a current environment where the consumer pool remains shallow. So CPCs have continued to increase. But beyond that, we saw opportunities to invest in 3 different areas where we did. First is customer development, focus on increasing engagement and expanding NSPAC. So that was part of our investment. Number two, reactivating previously churned customers.

這是蘇米特。我們繼續看到 NSPAC 增長，LTV 增長。因此，當您查看第 3 季度時，實際支出有多個領域。除了我們在第 3 季度看到的每次點擊費用增加或廣告成本增加之外，您通常會在第 2 季度的平靜期中獲得收益——因為每個人都試圖在消費者群體仍然很淺的當前環境中獲得消費者的某種思想份額。因此每次點擊費用繼續增加。但除此之外，我們還看到了在 3 個不同領域進行投資的機會。首先是客戶開發，專注於增加參與度和擴大 NSPAC。所以這是我們投資的一部分。第二，重新激活之前流失的客戶。

And in Q3, we saw a double-digit year-over-year increase in customer reactivations. And then three, there's always some experimentation and testing that we're doing with new channels that are designed to drive broader reach and awareness of the Chewy brand and positioning that right in front of the holiday season as we gain more traction with customers is just a prudent thing to do. So all in all, we're -- we -- in the way that we spent the money, we kept it within the 5% to 7% range that we've talked about before, and we were satisfied with the outcome here.

在第三季度，我們看到客戶重新激活的數量同比增長了兩位數。第三，我們總是在新渠道上進行一些實驗和測試，這些渠道旨在擴大 Chewy 品牌的影響力和知名度，並將其定位在假期前夕，因為我們對客戶的吸引力越來越大。謹慎的做法所以總而言之，我們 - 我們 - 在我們花錢的方式上，我們將它保持在我們之前談到的 5% 到 7% 的範圍內，我們對這裡的結果感到滿意。

Got it. Okay. So your TAC was up sequentially, but in line with expectation to maintain ROI and the customers you acquired in this quarter relative to last?

知道了。好的。因此，您的 TAC 連續上升，但與維持 ROI 和您在本季度相對於上一季度獲得的客戶的預期相符？

That's right. Yes.

這是正確的。是的。

I would now like to pass the call back to Mr. Sumit Singh for any closing remarks.

我現在想將電話轉回給 Sumit Singh 先生，請他發表任何結束語。

Thank you all for joining us. Happy holidays, and a happy New Year.

謝謝大家加入我們。節日快樂，新年快樂。

And with that, we will conclude today's Chewy Third Quarter Fiscal Year 2022 Earnings Call. Thank you for your participation. You may now disconnect your lines.

至此，我們將結束今天的 Chewy 2022 財年第三季度收益電話會議。感謝您的參與。您現在可以斷開線路。