Chewy Inc (CHWY) 2020 Q3 法說會逐字稿

Good day, and welcome to the Chewy Third Quarter 2020 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

美好的一天，歡迎參加耐嚼的 2020 年第三季度收益電話會議。 （操作員說明）請注意，此事件正在記錄中。

I would now like to turn the conference over to Mr. Robert LaFleur, Vice President of Investor Relations and Capital Markets. Please go ahead, sir.

我現在想將會議轉交給投資者關係和資本市場副總裁 Robert LaFleur 先生。請繼續，先生。

Thank you for joining us on the call today to discuss our third quarter fiscal 2020 results. Joining me today are Chewy's CEO, Sumit Singh; and CFO, Mario Marte.

感謝您今天加入我們的電話會議，討論我們 2020 財年第三季度的業績。今天加入我的是 Chewy 的首席執行官 Sumit Singh；和首席財務官馬里奧·馬爾特。

Our earnings release and letter to shareholders, which were filed with the SEC on Form 8-K earlier today, have been posted to the Investor Relations section of our website, investor.chewy.com. A link to the webcast of today's conference call is also available on our site.

我們今天早些時候以 8-K 表格向美國證券交易委員會提交的收益報告和致股東的信已發佈到我們網站investor.chewy.com 的投資者關係部分。今天電話會議的網絡直播鏈接也可以在我們的網站上找到。

On our call today, we will be making forward-looking statements, including statements concerning Chewy's future prospects, financial results, business strategies, industry trends and our ability to successfully respond to business risks, including those related to the spread of COVID-19, including any adverse impacts on our supply chain, workforce, fulfillment centers, other facilities, customer service operations and future plans. 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. Reported results should not be considered an indication of future performance.

在我們今天的電話會議上，我們將做出前瞻性陳述，包括有關 Chewy 的未來前景、財務業績、業務戰略、行業趨勢以及我們成功應對業務風險（包括與 COVID-19 傳播相關的風險）的能力的陳述，包括對我們的供應鏈、勞動力、履行中心、其他設施、客戶服務運營和未來計劃的任何不利影響。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，並受到某些風險和不確定性的影響，這可能導致實際結果與我們的前瞻性陳述所設想的結果大不相同。報告的結果不應被視為未來業績的指標。

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.

另請注意，本次電話會議的前瞻性陳述是基於我們截至今天可獲得的信息。除法律要求外，我們不承擔更新任何前瞻性陳述的義務。有關更多信息，請參閱 Chewy 今天早些時候提交的 10-Q 和 8-K 以及我們向 SEC 提交的其他文件中的風險因素和其他信息。

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, in our earnings release and letter to shareholders, which were filed with the SEC on Form 8-K earlier today and in our 10-Q. These non-GAAP measures are not intended as a substitute for GAAP results.

此外，在本次電話會議中，我們將討論某些非公認會計原則的財務措施。這些非 GAAP 項目與最直接可比的 GAAP 財務指標的對賬在我們的投資者關係網站、我們的收益發布和致股東的信函中提供，這些信息在今天早些時候以 8-K 表格和我們的 10-問。這些非 GAAP 措施不能替代 GAAP 結果。

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.

最後，本次電話會議的全部內容正在我們的投資者關係網站上進行網絡直播。該電話的重播也將很快在我們的 IR 網站上提供。

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

我現在想把電話轉給 Sumit。

Thanks, Bob, and thanks to all of you for joining us on the call.

謝謝鮑勃，也感謝大家加入我們的電話會議。

Our Q3 results reflect Chewy's relentless focus on execution and customer experience, coupled with the positive macro trends of accelerated e-commerce migration and increased pet ownership. These forces came together yet again to produce another quarter of strong net sales growth. Volume in the back half of the quarter outperformed our expectations as traffic, conversion, orders and customer retention all strengthened from September into October as customers shifted their shopping behavior this year and shopping earlier, responding favorably to thoughtful additions in our assortment and innovative product and service launches such as personalization and gifting.

我們的第三季度業績反映了 Chewy 對執行和客戶體驗的不懈關注，以及電子商務加速遷移和寵物擁有量增加的積極宏觀趨勢。這些力量再次聚集在一起，產生了又一個季度強勁的淨銷售額增長。本季度後半部分的銷量超出了我們的預期，因為從 9 月到 10 月，客流量、轉化率、訂單和客戶保留率均有所增強，因為客戶今年改變了購物行為並提早購物，對我們的分類和創新產品的周到增加做出了積極響應，以及服務推出，例如個性化和送禮。

Coming into the third quarter, we expected an early kickoff to the holiday season, and the Chewy team was prepared and ready to shift into high gear when it came. This summer, we began optimizing our inventory and preparing our fulfillment centers, knowing that the holiday spike would add to the elevated demand tempo that has been in place since March. The teams responded and executed to plan.

進入第三季度，我們預計假日季會提前開始，而 Chewy 團隊已做好準備，準備在它到來時進入高速狀態。今年夏天，我們開始優化我們的庫存並準備我們的履行中心，因為我們知道假期高峰會增加自 3 月以來一直存在的高需求節奏。團隊做出響應並按計劃執行。

Over the next few minutes, I will discuss our Q3 results and share some insights as to how the quarter unfolded. I will then use the balance of my remarks to talk through our exciting new health care launches and how those fit into the broader Chewy story as we prepare to celebrate our 10th anniversary next year and carry our mission into the second decade just as eagerly and enthusiastically as we approached its first. After that, I will turn the call over to Mario to discuss our third quarter results and guidance in more details.

在接下來的幾分鐘內，我將討論我們的第三季度業績，並就該季度的發展情況分享一些見解。然後，在我們準備明年慶祝成立 10 週年並將我們的使命帶入第二個十年之際，我將用餘下的發言來討論我們激動人心的新醫療保健產品發布，以及這些新產品如何融入更廣泛的 Chewy 故事。當我們接近它的第一個。之後，我將把電話轉給馬里奧，以更詳細地討論我們的第三季度業績和指導。

Q3 net sales increased 45% year-over-year to $1.78 billion, with Autoship net sales representing 69.2% of total net sales. We added 1.2 million net active customers in the quarter, ending Q3 with 17.8 million active customers. Q3 net sales per active customers, or NSPAC, was $363, an increase of 2.8% year-over-year when adjusting for the extra week in 2018. We delivered Q3 gross margins of 25.5%, 180 basis point increase year-over-year and consistent with our gross margin last quarter.

第三季度淨銷售額同比增長 45% 至 17.8 億美元，Autoship 淨銷售額佔總淨銷售額的 69.2%。我們在本季度增加了 120 萬淨活躍客戶，截至第三季度末有 1780 萬活躍客戶。第三季度每位活躍客戶或 NSPAC 的淨銷售額為 363 美元，在調整 2018 年的額外一周後，同比增長 2.8%。我們的第三季度毛利率為 25.5%，同比增長 180 個基點並與我們上個季度的毛利率一致。

The promotional environment was muted throughout most of the quarter before picking up in mid-October with the early launch of the holiday season. As such, promotional discounts were less of a gross margin headwind than forecasted. Shipping costs were also in line as we worked closely with our freight partners to uphold customer delivery experience.

促銷環境在本季度的大部分時間裡都很平靜，然後在 10 月中旬隨著假日季節的提前推出而回升。因此，促銷折扣對毛利率的不利影響低於預期。由於我們與貨運合作夥伴密切合作以維護客戶交付體驗，因此運輸成本也保持一致。

Private label remained a strong contributor this quarter, with Q3 private label hardgoods penetration reaching 16%. Our seasonal businesses, such as Halloween, were also strong in the quarter. And here, we improved our private label merchandise mix by 20 points to over 70%, showcasing the quality and appeal of our newly launched proprietary assortment. This helped grow total Q3 hardgoods sales, including third-party and private label, by more than 70% year-over-year.

自有品牌在本季度仍然是一個強勁的貢獻者，第三季度自有品牌的耐用品滲透率達到 16%。我們的季節性業務（例如萬聖節）在本季度也表現強勁。在這裡，我們將自有品牌商品組合提高了 20 個百分點，達到 70% 以上，展示了我們新推出的專有產品系列的質量和吸引力。這有助於將包括第三方和自有品牌在內的第三季度硬商品總銷售額同比增長 70% 以上。

Over the past few quarters, our team has been hard at work to reformat our proprietary brand strategy by introducing compelling merchandise, many at expanded price points, improving discoverability and delivering an overall tremendous value proposition for our customers. This strategy is creating a positive, consistent and sustainable momentum, and driving incremental profitability in our portfolio.

在過去的幾個季度中，我們的團隊一直在努力重新制定我們的專有品牌戰略，推出引人注目的商品，其中許多商品價格更高，提高了可發現性並為我們的客戶提供了整體巨大的價值主張。這一戰略正在創造積極、一致和可持續的勢頭，並推動我們投資組合的盈利能力增加。

Moving on to Q3 adjusted EBITDA. We produced another positive quarter, generating $5.5 million of adjusted EBITDA at a margin rate of 0.3%, representing 280 basis points of improvement year-over-year. While gross margins were strong in the quarter, several of the short-term operating cost headwinds we detailed on our last call materialized as anticipated and impacted our ability to translate our top line momentum into bottom line results as efficiently as we did in the first and the second quarters. These elevated costs were related to investments in labor and benefits as we ramped up our fulfillment centers and customer service sites to deliver a successful holiday amidst increasingly constrained labor markets and residual COVID-19 costs.

繼續第三季度調整後的 EBITDA。我們創造了另一個積極的季度，以 0.3% 的利潤率產生了 550 萬美元的調整後 EBITDA，同比提高了 280 個基點。雖然本季度毛利率強勁，但我們在上次電話會議中詳述的一些短期運營成本逆風如預期般實現，並影響了我們將頂線動力轉化為底線結果的能力，就像我們在第一個和第二季度。這些高昂的成本與勞動力和福利投資有關，因為我們在勞動力市場日益受限和剩餘的 COVID-19 成本的情況下擴大了履行中心和客戶服務站點以提供成功的假期。

Additionally, as anticipated, we saw marketing costs increase in Q3, normalizing from the hyperefficient run rates we saw in Q1 and Q2. Mario will provide more details on these components in just a moment.

此外，正如預期的那樣，我們看到第三季度營銷成本增加，與我們在第一季度和第二季度看到的超高效運行率正常化。 Mario 稍後將提供有關這些組件的更多詳細信息。

We continue to be laser-focused on executing against our commitment to pets and pet parents to deliver exceptional customer experiences by offering a broad assortment of brands and products with the convenience of e-commerce. That commitment extends to pet health and wellness. As part of our goal to make pet health care more affordable and accessible, we recently launched Medication Compounding and Connect with the Vet, our proprietary telehealth platform. These 2 innovative businesses are valuable additions to the growing health care business and represent our first service-based offerings for pet parents.

我們將繼續專注於執行我們對寵物和寵物父母的承諾，通過提供廣泛的品牌和產品以及電子商務的便利來提供卓越的客戶體驗。這一承諾延伸到寵物健康和保健。作為我們讓寵物醫療保健更加負擔得起和更容易獲得的目標的一部分，我們最近推出了我們專有的遠程醫療平台 Medication Compounding and Connect with the Vet。這兩項創新業務是對不斷增長的醫療保健業務的寶貴補充，代表了我們為寵物父母提供的首個基於服務的產品。

But before I discuss these new businesses in greater detail, I would like to share some insight into our pharmacy, Rx business, which anchors our broader health care strategy. For clarity, when I refer to Chewy Pharmacy, I am referring to the business that we own and operate under our own licenses. Total pharmacy includes Chewy Pharmacy plus the pharmacy that we operate that generates third-party management fee. Total pharmacy operations are expected to generate over $500 million of gross revenue this year, which we believe makes us the largest e-commerce pet pharmacy in the U.S. To achieve this milestone just over 2 years after our launch is a remarkable achievement for which we, as a team, are proud.

但在我更詳細地討論這些新業務之前，我想分享一些關於我們的藥房 Rx 業務的見解，它鞏固了我們更廣泛的醫療保健戰略。為清楚起見，當我提到 Chewy Pharmacy 時，我指的是我們在自己的許可下擁有和經營的業務。總藥房包括 Chewy Pharmacy 加上我們經營的產生第三方管理費的藥房。預計今年總藥房業務將產生超過 5 億美元的總收入，我們相信這使我們成為美國最大的電子商務寵物藥房。在我們推出後僅 2 年多就實現這一里程碑是一項了不起的成就，我們，作為一個團隊，感到自豪。

Chewy Pharmacy, on a reported basis, is expected to generate over $350 million of net sales this year, which would equate to 5% of total net sales based on our current guidance. Given the scale, Pharmacy is now contributing positively to the year-over-year expansion in Chewy's total gross margins. As we have noted on previous earnings calls, we believe that we are still in the early innings regarding our Pharmacy business, and we remain focused on growing this vertical in a disciplined manner.

據報導，Chewy Pharmacy 預計今年將產生超過 3.5 億美元的淨銷售額，根據我們目前的指導，這相當於總淨銷售額的 5%。鑑於規模，Pharmacy 現在為 Chewy 總毛利率的同比增長做出了積極貢獻。正如我們在之前的財報電話會議上所指出的那樣，我們認為我們的藥房業務仍處於早期階段，我們仍然專注於以有紀律的方式發展這一垂直領域。

Now let me tell you a little bit more about our recent compounding and telehealth launches. Let's start with compounding. Compounding is a service offered through our pharmacy where we customize medications to the specific needs of individual pets as some pets can't take medications in their commercially available forms. They may need a liquid instead of a tablet or a specialized dosage or formula. To enable these requirements, our licensed pharmacists use ingredients sourced from FDA-registered manufacturers to custom-prepare medications in our labs to the specifications provided by the veterinarians. Today, we offer this service exclusively to pets and pet parents. In the future, we plan to extend this service to the vets so vets can offer compounded medications directly to their in-clinic patients.

現在讓我告訴你更多關於我們最近推出的複合和遠程醫療的信息。讓我們從復合開始。複合是通過我們的藥房提供的一項服務，我們根據個別寵物的特定需求定製藥物，因為有些寵物不能以市售形式服用藥物。他們可能需要液體而不是藥片或專門的劑量或配方。為了滿足這些要求，我們的持牌藥劑師使用來自 FDA 註冊製造商的成分，在我們的實驗室中根據獸醫提供的規格定製藥物。今天，我們專門為寵物和寵物父母提供這項服務。將來，我們計劃將這項服務擴展到獸醫，以便獸醫可以直接向他們的臨床患者提供複合藥物。

In both these use cases, we seek to pioneer bar-raising customer experiences across this $1 billion fragmented market. We are just as excited about our new telehealth service, Connect with the Vet, which connects Chewy pet parents directly to a contracted licensed veterinarian using our proprietary tele triage platform where vets answer questions, offer advise and discuss pet health concerns without diagnosing medical conditions or recommending treatments. Instead, they make referrals to local vets or emergency clinics, if needed, which drives customer traffic back into these veterinarian clinics for medical diagnosis and treatment.

在這兩個用例中，我們都力求在這個價值 10 億美元的分散市場中開創更高標準的客戶體驗。我們對我們的新遠程醫療服務 Connect with the Vet 感到同樣興奮，該服務使用我們專有的遠程分診平台將 Chewy 寵物父母與簽約的持牌獸醫直接聯繫起來，獸醫在該平台上回答問題、提供建議和討論寵物健康問題，而無需診斷醫療狀況或推薦治療。相反，如果需要，他們會轉介給當地的獸醫或急診診所，這將客戶流量推回這些獸醫診所進行醫療診斷和治療。

We offer the service free of charge to Autoship customers from 8 a.m. to 8 p.m. Eastern Time, Monday through Friday. We launched the program in 35 states in October. And starting today, I am happy to announce that we are rolling it out to another 12, which brings our total coverage up to 47 states.

我們從早上 8 點到晚上 8 點免費為 Autoship 客戶提供服務。東部時間，週一至週五。我們於 10 月在 35 個州啟動了該計劃。從今天開始，我很高興地宣布我們將把它推廣到另外 12 個州，這使我們的總覆蓋範圍達到 47 個州。

Program utilization rates to date are encouraging, as is the customer feedback we are receiving. Connect with the Vet is clearly a first-of-its-kind service. We are still in early days and have a lot more to learn. At the same time, we have taken an important first step towards building a telehealth platform that can evolve and expand over time as our culture of innovation advances the technology platform and as the regulatory environments modernize to meet the needs of today's patients and providers.

迄今為止的計劃利用率令人鼓舞，我們收到的客戶反饋也是如此。 Connect with the Vet 顯然是首創的服務。我們還處於早期階段，還有很多東西要學。與此同時，隨著我們的創新文化推動技術平台的發展以及監管環境的現代化以滿足當今患者和提供者的需求，我們朝著建立一個可以隨著時間推移不斷發展和擴展的遠程醫療平台邁出了重要的第一步。

2020 has been an unbelievably busy year so far, and I'm proud of the way every member of the Chewy team across our fulfillment centers, customer service sites and corporate offices has stepped up to meet both the challenge and the opportunity. Not only do we continue to optimize our day-to-day operations, we are always looking for ways to enhance customer assortment, service and experience as we welcome a record number of new customers and offer current customers a safe and reliable way to care for their pets. The bond between pets and their pet parents has never been stronger, and we look forward to a robust holiday season and close to the year.

到目前為止，2020 年是令人難以置信的忙碌的一年，我為 Chewy 團隊的每一位成員在我們的履行中心、客戶服務站點和公司辦公室都加緊應對挑戰和機遇的方式感到自豪。我們不僅繼續優化我們的日常運營，而且一直在尋找增強客戶分類、服務和體驗的方法，因為我們歡迎創紀錄數量的新客戶，並為現有客戶提供安全可靠的服務方式他們的寵物。寵物與其寵物父母之間的紐帶從未如此緊密，我們期待著一個強勁的假期季節和臨近的一年。

I will now turn the call over to Mario who will provide the details on our third quarter results and financial outlook. Mario?

我現在將把電話轉給馬里奧，他將提供有關我們第三季度業績和財務前景的詳細信息。馬里奧？

Thank you, Sumit.

謝謝你，蘇米特。

Third quarter net sales reached $1.78 billion, increasing $552.2 million or 44.9% year-over-year. In absolute dollar terms, third quarter growth marked the biggest increase we have reported in the company's history. Year-to-date, net sales are up 46% on accelerated customer growth and solid increases in per customer spending. Q3 sales from Autoship customers totaled $1.23 billion, representing 69.2% of total net sales for the quarter.

第三季度淨銷售額達到 17.8 億美元，同比增長 5.522 億美元或 44.9%。以絕對美元計算，第三季度的增長是我們報告的公司歷史上最大的增長。年初至今，由於客戶增長加速和每位客戶支出穩步增長，淨銷售額增長了 46%。來自 Autoship 客戶的第三季度銷售額總計 12.3 億美元，佔該季度總淨銷售額的 69.2%。

Customer acquisition rate remains healthy and continues to run above pre-pandemic levels. In Q3, we added 1.2 million net active customers and ended the quarter with 17.8 million active customers. Year-to-date, we have added 5.1 million active customers, an increase of nearly 40%.

客戶獲取率保持健康，並繼續高於大流行前的水平。在第三季度，我們增加了 120 萬淨活躍客戶，並在本季度末擁有 1780 萬活躍客戶。年初至今，我們增加了 510 萬活躍客戶，增長近 40%。

We continue to monitor and be pleased with the purchasing behavior of our 2020 customer cohorts. The first and second quarter cohorts remain engaged, and the initial engagement levels of the Q3 cohort is consistent with their peers from earlier in the year.

我們將繼續監控 2020 年客戶群的購買行為，並對此感到滿意。第一季度和第二季度的隊列保持參與度，第三季度隊列的初始參與度與今年早些時候的同行一致。

Trends in basket size, reorder rates and Autoship sign-up all remain favorable, reflecting the continued success of our assortment and merchandising strategies.

籃子大小、重新訂購率和自動發貨註冊的趨勢都保持良好，反映了我們的分類和銷售策略的持續成功。

Net sales per active customer, or NSPAC, increased to $363 in the third quarter, $7 or 2% higher versus the second quarter and 2.8% higher year-over-year when adjusting Q3 2019 NSPAC to exclude the benefit from the extra week in the fourth quarter of 2018. As a reminder, net sales per active customer reflects trailing 4-quarter net sales, divided by the number of active customers at the end of the quarter. This is the last quarter we will have to adjust for the extra week in Q4 2018 in our year-over-year comps.

第三季度每位活躍客戶或 NSPAC 的淨銷售額增至 363 美元，與第二季度相比增長 7 美元或 2%，在調整 2019 年第三季度 NSPAC 以排除額外一周的收益時，同比增長 2.8% 2018 年第四季度。提醒一下，每位活躍客戶的淨銷售額反映了過去 4 個季度的淨銷售額除以季度末的活躍客戶數量。這是我們必須為 2018 年第四季度的額外一周調整的最後一個季度。

We should note that the quarter-over-quarter increase is a reversal from recent quarters when NSPAC remained relatively flat. This is what we would expect as the mechanics of the NSPAC calculation begin to more fully reflect the positive revenue impact of the large customer cohorts that we acquired earlier this year, and as our pace of quarterly active customer adds, moderates from its peak lockdown highs.

我們應該注意到，環比增長與最近幾個季度 NSPAC 保持相對平穩的情況相反。這是我們所期望的，因為 NSPAC 計算的機制開始更充分地反映我們今年早些時候獲得的大型客戶群對收入的積極影響，並且隨著我們季度活躍客戶的增加，從鎖定高峰期的高點放緩.

Moving to the income statement. Third quarter gross margin was 25.5%, a year-over-year increase of 180 basis points as we again surpassed the low end of our long-term target range. In the third quarter, we benefited from strong execution as hardgoods, private label and health care collectively contributed 110 of the 180 basis points of year-over-year gross margin expansion. Q3 operating expenses, which include SG&A and advertising and marketing, were $486.9 million or 27.3% of net sales, scaling 280 basis points year-over-year.

轉到損益表。第三季度毛利率為 25.5%，同比增長 180 個基點，因為我們再次超過了長期目標範圍的低端。在第三季度，我們受益於強勁的執行力，因為硬商品、自有品牌和醫療保健共同貢獻了 180 個基點的同比毛利率增長中的 110 個。第三季度運營費用（包括 SG&A 以及廣告和營銷）為 4.869 億美元，占淨銷售額的 27.3%，同比增長 280 個基點。

SG&A, which includes all fulfillment, customer service, credit card processing fees, corporate G&A, corporate payroll and share-based compensation, totaled $352.3 million in the third quarter or 19.8% of net sales. This improved 120 basis points year-over-year, which on a fully loaded basis again scaled versus 2019 as our share-based compensation declined versus our prior period run rate. Factors affecting third quarter SG&A expenses include the launch of 2 fulfillment centers, investments and bonuses and other incentives for our fulfillment and customer service team members and absorption of some residual costs related to COVID-19. Q3 advertising and marketing was $134.6 million or 7.6% of net sales, scaling 150 basis points year-over-year.

SG&A 包括所有履行、客戶服務、信用卡處理費、公司 G&A、公司工資和基於股票的薪酬，第三季度的總額為 3.523 億美元，占淨銷售額的 19.8%。這與去年同期相比提高了 120 個基點，在滿負荷的基礎上，與 2019 年相比再次擴大，因為我們的股票薪酬與上一期的運行率相比有所下降。影響第三季度 SG&A 費用的因素包括啟動 2 個履行中心、投資和獎金以及對我們履行和客戶服務團隊成員的其他激勵措施，以及吸收與 COVID-19 相關的一些剩餘成本。第三季度廣告和營銷為 1.346 億美元，占淨銷售額的 7.6%，同比增長 150 個基點。

As previewed in our Q2 call in September, as the economy reopened in Q3, organic acquisition rates as a percent of total acquisitions began to normalize after running at elevated levels through the first half of 2020. Likewise, the stronger economy and increased political advertising around the election helped drive a search and digital advertising during Q3, which led to channel input costs rising from the depressed rates we saw in Q1 and Q2. In response, we adjusted our acquisition marketing efforts accordingly and continue to acquire customers smartly while still delivering year-over-year marketing efficiencies and progressing towards our long-term target of 6% to 7% through net sales.

正如我們在 9 月份的第二季度電話會議中所預測的那樣，隨著經濟在第三季度重新開放，有機收購率佔總收購量的百分比在 2020 年上半年一直處於較高水平後開始正常化。同樣，經濟走強和政治廣告增加選舉幫助推動了第三季度的搜索和數字廣告，這導致渠道投入成本從我們在第一季度和第二季度看到的低迷率上升。作為回應，我們相應地調整了我們的收購營銷工作，繼續巧妙地獲得客戶，同時仍然提供同比營銷效率，並通過淨銷售額朝著我們 6% 至 7% 的長期目標前進。

Third quarter net loss was $32.8 million, and net margin improved 460 basis points year-over-year to negative 1.8%. Third quarter net income, excluding share-based compensation of $25.1 million, was negative $7.8 million. Net margin, excluding share-based compensation, improved 280 basis points to negative 0.4%. Third quarter adjusted EBITDA was $5.5 million, and adjusted EBITDA margin improved 280 basis points year-over-year to 0.3%, again exceeding breakeven.

第三季度淨虧損為 3280 萬美元，淨利潤同比增長 460 個基點至負 1.8%。第三季度淨收入（不包括 2510 萬美元的股票薪酬）為負 780 萬美元。不包括基於股票的薪酬的淨利潤率提高了 280 個基點至負 0.4%。第三季度調整後 EBITDA 為 550 萬美元，調整後 EBITDA 利潤率同比提高 280 個基點至 0.3%，再次超過盈虧平衡點。

While gross margins were solid this quarter, the operating cost headwinds that we faced in SG&A and marketing that I detailed earlier affected our ability to convert gross profit into adjusted EBITDA as efficiently as we did the first 2 quarters of the year. In our view, several of these headwinds are not systemic and simply reflect short-term issues related to new FC ramp-up and residual costs related to COVID-19.

雖然本季度毛利率穩健，但我之前詳述的 SG&A 和營銷方面的運營成本逆風影響了我們將毛利潤轉換為調整後 EBITDA 的能力，與今年前兩個季度一樣有效。我們認為，其中一些不利因素不是系統性的，只是反映了與新的 FC 增加相關的短期問題以及與 COVID-19 相關的剩餘成本。

Turning now to free cash flow. Third quarter free cash flow was positive $32.9 million, reflecting $63.4 million in positive cash flow from operating activities and $30.5 million of capital expenditures. Positive operating cash in Q3 was primarily a function of the strong sales momentum we saw in the latter half of the quarter.

現在轉向自由現金流。第三季度自由現金流為正 3,290 萬美元，反映了來自運營活動的 6,340 萬美元正現金流和 3,050 萬美元的資本支出。第三季度的正運營現金主要是由於我們在本季度後半段看到的強勁銷售勢頭。

Capital investments continue to be focused on capacity build, including cash outlays for our new automated fulfillment center in Archibald, Pennsylvania and our new limited catalog fulfillment center in Kansas City, Missouri. We finished the quarter with over $0.5 billion of cash on the balance sheet, which is a function of the $154 million we started the quarter with, combined with the $318 million we raised through our September follow-on offering and the $33 million of free cash flow we generated during the quarter. This level of liquidity gives us tremendous flexibility, first, to support our growth; and second, it gives us the ability to evaluate internal and external opportunities to expand our addressable market.

資本投資繼續集中在能力建設上，包括為我們在賓夕法尼亞州阿奇博爾德的新自動化履行中心和我們在密蘇里州堪薩斯城的新有限目錄履行中心的現金支出。我們在本季度結束時資產負債表上有超過 5 億美元的現金，這是我們在本季度開始時的 1.54 億美元加上我們通過 9 月份的後續發行籌集的 3.18 億美元和 3300 萬美元的自由現金的函數我們在本季度產生的流量。這種流動性水平給了我們巨大的靈活性，首先，支持我們的增長；其次，它使我們能夠評估內部和外部機會以擴大我們的潛在市場。

Now to guidance. Based on strong early quarter results and accelerated customer demand spending, we are increasing our guidance ranges as follows: fourth quarter net sales to between $1.94 billion and $1.96 billion, representing year-over-year growth of 43% to 45%; full year 2020 net sales to between $7.04 billion and $7.06 billion, representing year-over-year growth of 45% to 46% and reflecting over $2.2 billion of incremental net sales added in 2020. We now expect to be profitable on a full year adjusted EBITDA basis, and we are increasing our full year 2020 adjusted EBITDA margin guidance range to between 0.2% and 0.4%. While some potential cost headwinds remain, these mostly reflect short-term impacts directly related to COVID or its temporary effects on areas like labor and logistics.

現在來指導。基於強勁的早期季度業績和加速的客戶需求支出，我們將指導範圍擴大如下：第四季度淨銷售額至 19.4 億美元至 19.6 億美元之間，同比增長 43% 至 45%； 2020 年全年淨銷售額在 70.4 億美元至 70.6 億美元之間，同比增長 45% 至 46%，反映了 2020 年淨銷售額增加超過 22 億美元。我們現在預計全年調整後將實現盈利以 EBITDA 為基礎，我們將 2020 年全年調整後的 EBITDA 利潤率指導範圍提高到 0.2% 至 0.4% 之間。儘管仍然存在一些潛在的成本不利因素，但這些因素主要反映了與 COVID 直接相關的短期影響或其對勞動力和物流等領域的臨時影響。

I will conclude by saying that our third quarter results demonstrate the appeal and resilience of the value proposition we offer pet parents and our ability to grow and scale the business profitably. We remain optimistic about our future and look forward to wrapping up a successful 2020 and building on this momentum in 2021 for which we plan to provide you more details on our next earnings call.

最後，我要說的是，我們第三季度的業績證明了我們為寵物父母提供的價值主張的吸引力和彈性，以及我們以盈利方式發展和擴大業務的能力。我們對我們的未來保持樂觀，並期待在 2020 年取得成功，並在 2021 年繼續保持這一勢頭，為此我們計劃在下一次財報電話會議上為您提供更多細節。

With that, I'll turn the call over to the operator. Operator?

有了這個，我會把電話轉給接線員。操作員？

(Operator Instructions) And our first question will come from Steph Wissink with Jefferies.

（操作員說明）我們的第一個問題將來自 Jefferies 的 Steph Wissink。

Sumit, congratulations on your Business Week recognition. Our question actually is twofold. If we could just start with some of the private label penetration. You're seeing good success there, but maybe give us a pathway to what you think that penetration rate could be over the course of the next 12 to 24 months. And then how does that influence the way you're thinking about gross margin advancement over that same time frame?

Sumit，恭喜您獲得《商業周刊》的認可。我們的問題實際上是雙重的。如果我們可以從一些自有品牌滲透開始。您在那裡看到了良好的成功，但也許可以給我們一條途徑，讓我們了解您認為未來 12 到 24 個月內滲透率可能達到的水平。那麼這如何影響您在同一時間範圍內考慮毛利率增長的方式？

Steph, thank you. Private label is a strategic vector for us. It's a 3 -- little bit over a 3-year old business. And we have been ramping assortment in private label both across our consumables and hardgoods portfolio. While we haven't broken out the specific size of private label, it can be inferred to be between somewhere around the mid- to high single-digit percentage of net sales. And we aspire to grow private label to become between 15% and 30% of net sales.

斯蒂芬，謝謝。自有品牌是我們的戰略載體。這是一個 3 - 有點超過 3 年曆史的業務。我們一直在增加我們的消耗品和耐用品產品組合中的自有品牌品種。雖然我們沒有詳細說明自有品牌的具體規模，但可以推斷它在淨銷售額的中高個位數百分比之間。我們渴望將自有品牌增長到占淨銷售額的 15% 到 30% 之間。

The comment that we shared today on the call was particularly giving private label penetration for our hardgoods portfolio that has now reached 16% of overall hardgoods sales. In hardgoods, where we believe product lines are commoditized and customer loyalty isn't indexed to a particular brand, we believe we can reach north of 30% -- somewhere around 40%, 45%, perhaps even 50% penetration for private label goods.

我們今天在電話會議上分享的評論特別為我們的硬商品組合提供了自有品牌滲透，該組合現在已達到整體硬商品銷售額的 16%。在我們認為產品線商品化且客戶忠誠度未與特定品牌掛鉤的硬貨中，我們相信我們可以達到 30% 以上——自有品牌商品的滲透率約為 40%、45% 甚至 50% .

For consumables, this is -- obviously, we are -- we will keep the context of our customers' loyalty towards their brands and our strategic nature of relationship with our suppliers in mind as we grow the private label portfolio there.

對於消耗品，這是 - 顯然，我們是 - 在我們在那裡發展自有品牌組合時，我們將牢記客戶對其品牌的忠誠度以及我們與供應商關係的戰略性質。

Overall, as we get to ranges between 15% and 30% over time for overall private label business, we expect this business to generate 800 to 1,000 basis points higher gross profit than our base business. From the progress that we're making, we're pleased with it. Not only have we added assortment within private label, effectively doubling assortment over the last 18-month period, we've also increased price points as we've added new assortment across newer subcategories and higher price point products that are driving tremendous engagement and tremendous response from customers, particularly given the quality of these products remain 4, 4.2, 4.4 star-rated products at a minimum.

總體而言，隨著時間的推移，整個自有品牌業務的增長幅度在 15% 至 30% 之間，我們預計該業務的毛利潤將比我們的基礎業務高 800 至 1,000 個基點。從我們正在取得的進展來看，我們對此感到滿意。我們不僅在自有品牌中增加了分類，在過去 18 個月期間有效地將分類增加了一倍，而且我們還增加了價格點，因為我們在新的子類別和更高價格點的產品中增加了新的分類，這些產品推動了巨大的參與度和巨大的客戶的反應，特別是考慮到這些產品的質量至少仍然是 4、4.2、4.4 星級產品。

And our next question will come from Cory Carpenter with JPMorgan.

我們的下一個問題將來自摩根大通的 Cory Carpenter。

(technical difficulty) sales accelerating in October. It seemed like you called out early holiday demand, but hoping you could expand a bit more on some of the dynamics you saw that month and then also how you're thinking about the potential pull-forward of demand that maybe typically would have come later.

（技術難度）10月份銷售加速。似乎您呼籲提前假期需求，但希望您可以更多地擴展您在當月看到的一些動態，然後您如何考慮可能通常會在以後出現的潛在需求拉動.

And then as a second question, just curious over the past month or so what type of impact you've seen, if any, from the second wave virus on consumer demand or in the evidence of pantry loading.

然後作為第二個問題，只是好奇在過去一個月左右的時間裡，您從第二波病毒對消費者需求或食品儲藏室裝載的證據中看到了什麼類型的影響（如果有的話）。

Cory, this is Sumit. I'll take it. Two-part question. I'll answer them collectively because we believe they're connected and related. Let's start with -- when we provided Q3 guidance in early September, we shared that sales pace coming into the third quarter was strong. We saw, as anticipated, trends start to accelerate in October as the holiday season kicked off earlier this year. That momentum built through November and has carried through Black Friday and Cyber Week, with those 2 days being the highest days -- highest net sales days in the company's history.

科里，這是蘇米特。我要買它。兩部分的問題。我將集體回答它們，因為我們相信它們是相互聯繫和相關的。讓我們開始吧——當我們在 9 月初提供第三季度指導時，我們分享了進入第三季度的銷售步伐強勁。正如預期的那樣，隨著今年早些時候假期季節的開始，我們看到趨勢在 10 月份開始加速。這種勢頭一直持續到 11 月，並且一直持續到黑色星期五和網絡週，這兩天是公司歷史上最高的淨銷售額天。

As we've examined the drivers of this momentum across traffic and conversion patterns, Cory, we don't believe that this is a simple pull forward or a COVID-induced second wave phenomena. In fact, we believe that the demand that we're seeing is primarily organic and structural in nature.

當我們研究了跨流量和轉換模式的這種勢頭的驅動因素時，科里，我們不認為這是一個簡單的拉動或 COVID 引發的第二波現象。事實上，我們相信我們看到的需求本質上是有機的和結構性的。

So let me sort of expand on that a little bit. First of all, we haven't found evidence within our internal data to suggest the same type of COVID-induced customer purchase behaviors as we observed in spring. For example, we aren't seeing a material variance in metrics such as units per order or a disruption or a change in order frequency to suggest any kind of panic buying that we saw in kind of March, April time frames or the early onset of the pandemic.

所以讓我稍微擴展一下。首先，我們在內部數據中沒有發現證據表明與我們在春季觀察到的相同類型的 COVID 誘導的客戶購買行為。例如，我們沒有看到諸如每個訂單的單位數量或訂單頻率的中斷或變化等指標存在重大差異，以表明我們在 3 月、4 月的時間框架或早期開始時看到的任何類型的恐慌性購買流行病。

As we look to the balance of the Q4, so we remain optimistic that these demand trends will continue. Underneath of the organic volume, when we analyze the data here, we're seeing a couple of things. First, we are retaining a larger portion of our cohorts. Overall customer retention for our active customer base is up more than 600 basis points year-to-date, which also, by the way, helps address the question that we've all been wondering about through the onset of this year as to are we going to be able to retain the cohort of customers that we are acquiring during the pandemic, and we believe that sort of hits on that.

當我們關注第四季度的平衡時，我們仍然樂觀地認為這些需求趨勢將繼續下去。在有機捲的下方，當我們分析這裡的數據時，我們看到了幾件事。首先，我們保留了更大一部分的同夥。迄今為止，我們活躍客戶群的總體客戶保留率增加了 600 多個基點，順便說一句，這也有助於解決我們在今年開始時一直想知道的問題，即我們是將能夠留住我們在大流行期間獲得的客戶群，我們相信這種方式會受到影響。

Second, we're attracting larger newer cohorts, and we're seeing higher engagement from these active customers, especially where we're garnering our larger share of wallet from new cohorts earlier in their life cycle. So for example, if you use Q2 of this year cohort as an example, this cohort was 50% larger than the Q2 2019 cohort. And the initial net sales per active customer or share of wallet for this cohort, this Q2 2020 cohort, was 10% higher than the Q2 2019 cohort.

其次，我們正在吸引更大的新群體，我們看到這些活躍客戶的參與度更高，特別是在我們從新群體生命週期的早期獲得更大份額的錢包的情況下。例如，如果你以今年第二季度的隊列為例，這個隊列比 2019 年第二季度的隊列大 50%。 2020 年第二季度這一群體的每個活躍客戶或錢包份額的初始淨銷售額比 2019 年第二季度高出 10%。

So when you put it all together, it sort of nets out to be we're attracting more new customers. We're keeping more of our established customers and more and more of our -- of these customers are building larger and more profitable baskets early on. That's sort of the summary of what we're seeing right now in terms of demand patterns.

因此，當您將它們放在一起時，可以看出我們正在吸引更多的新客戶。我們保留了更多的老客戶，並且越來越多的客戶在早期就建立了更大、更有利可圖的籃子。這就是我們現在在需求模式方面看到的總結。

Our next question will come from Mark Mahaney with RBC Capital Markets.

我們的下一個問題將來自 RBC Capital Markets 的 Mark Mahaney。

I guess I'll just ask 2 specific P&L questions. The -- were there specific drag factors on gross margins? I know they were up nicely year-over-year. There was nice revenue growth sequentially, but the gross margin was the same. Is that where the build-out of the new fulfillment center cost kind of came in and limited the sequential gross margin expansion?

我想我只會問 2 個特定的損益表問題。 - 毛利率是否有特定的拖累因素？我知道他們一年比一年好。收入連續增長不錯，但毛利率是一樣的。這是否是新的履行中心成本的建立並限制了連續毛利率擴張的地方？

And then secondly, you talked about this rising competitiveness for online ad spend. Do you feel like what you're -- where you ended the quarter, is that back to kind of par based on your historical experience? Do you think you're still -- would you -- to get back to par, would you expect advertising costs -- advertising intensity to continue to rise? So just put that in context, where are you now versus where you think you normally would run the business?

其次，您談到了在線廣告支出的競爭日益激烈。你覺得你現在是什麼——你在本季度結束的地方，根據你的歷史經驗，這是否回到了某種水平？你認為你仍然——你會——回到標準，你會期望廣告成本——廣告強度繼續上升嗎？所以只要把它放在上下文中，你現在在哪裡與你認為你通常會在哪裡經營業務？

Okay. Mark, this is Sumit. I'll take them. So from a gross margin point of view, we saw a drag in 2 places, right? One was a natural drag as we came into the holiday season. There's obviously a higher degree of promotability, particularly as the holiday season arrived earlier in October. On a year-over-year comparative basis, the promotions environment was relatively muted. But on an absolute basis, we obviously did see promotions kick in. So that's kind of one.

好的。馬克，這是蘇米特。我會帶他們。所以從毛利率的角度來看，我們看到了兩個地方的拖累，對吧？當我們進入假期時，其中一個是自然的拖累。顯然有更高程度的促銷活動，尤其是在 10 月初假期到來之際。與去年同期相比，促銷環境相對溫和。但在絕對基礎上，我們顯然確實看到了促銷活動。所以這是一種。

Number two, when you look at our supply chain, our supply chain is healthy from an in-stock level point of view, but the placement of inventory, right, is -- could be suboptimal in places as we're still adjusting and balancing out value chains as we work closely with our suppliers to get products into the warehouses. So from that standpoint, there's still a little bit of an effect of us either shipping products over longer zones, which generally shows up in freight cost, that generally is a drag to gross margin. So that's sort of the first part of the question.

第二，當您查看我們的供應鏈時，從庫存水平的角度來看，我們的供應鍊是健康的，但是庫存的放置，對，在某些地方可能不是最理想的，因為我們仍在調整和平衡當我們與供應商密切合作將產品送入倉庫時，我們會走出價值鏈。因此，從這個角度來看，我們將產品運送到更長的區域仍然會有一點影響，這通常會出現在運費成本中，這通常會拖累毛利率。這就是問題的第一部分。

Well, overall, must be said, I mean, 180 basis points improvement year-over-year and the fact that our newer strategic pillars are driving positive incremental gross margin into the portfolio is something that we're tremendously proud of and satisfied with.

好吧，總的來說，必須說，我的意思是，同比提高了 180 個基點，而且我們新的戰略支柱正在推動投資組合的正增量毛利率，這是我們非常自豪和滿意的事情。

Moving on to marketing. Marketing, as expected, as we came out of Q2, when we talked to you in September, we said, hey, marketing costs are starting to rise because inputs are starting to rise as the economy opens up as more advertisers come in and the demand/supply ratio offsets to be able to raise kind of bid cost in the market environment. What we saw was essentially exactly that happened. On the back of that, we also saw opportunities where we could efficiently spend money and acquire customers, which our team continue to do.

繼續營銷。營銷，正如我們預期的那樣，正如我們從第二季度出來的那樣，當我們在 9 月份與您交談時，我們說，嘿，營銷成本開始上升，因為隨著更多廣告商的進入和需求的經濟開放，投入開始上升/供應比率抵消了在市場環境中能夠提高類投標成本。我們所看到的基本上就是這樣發生的。在此之後，我們還看到了可以有效花錢和獲得客戶的機會，我們的團隊將繼續這樣做。

Overall, due to the shifting in holiday, we observed a pull-forward trend in new customers that were acquired kind of pre-cyber period starting from late October into mid-November, and that growth was built on strong shopper demand that reflected across the digital network. On the television side, obviously, this is prebought inventory given everybody anticipated sort of the political campaigning advertisement spend. So there, we pulled in our spend a little bit to the left and spent money efficiently.

總體而言，由於假期的變化，我們觀察到從 10 月下旬到 11 月中旬在網絡前時期獲得的新客戶呈拉動趨勢，這種增長建立在強勁的購物者需求之上，這反映了整個數字網絡。在電視方面，顯然，鑑於每個人都預期的政治競選廣告支出，這是預購的庫存。所以在那裡，我們把我們的支出拉到左邊一點，有效地花錢。

We -- overall marketing costs, as you know, and as you've seen in the P&L, continues to trend below from a year-over-year point of view. It's obviously higher than the hyperefficient periods that we saw in the early onset of the pandemic. And yes, we do believe that marketing costs will continue to be pressured as we execute the rest of Q4, perhaps even into next year.

我們——如您所知，以及您在損益表中看到的，總體營銷成本從同比的角度來看繼續呈下降趨勢。這顯然高於我們在大流行初期看到的高效率時期。是的，我們確實相信，隨著我們執行第四季度的剩餘時間，甚至可能到明年，營銷成本將繼續受到壓力。

And Mark, if I can add one more thing because I think what you're referring to, a couple of points on gross margin. One is, obviously, we've stated that we did increase gross margin 180 basis points year-over-year. But if you're looking at quarter-over-quarter, you're right, they were 25% in both quarters. Now if you look at the mix of sales in the second quarter versus the third quarter, you see that in the third quarter, we had an increase as a percent of sales that went to consumables. And we talked about the relative margin performance of different components of revenue. So when you go from a 69.4% in -- rather 68.2% of sales being consumables in the second quarter, and that increased to over 69%, it is those mix between the sales -- the components of net revenue that would have an impact on gross margin.

馬克，如果我可以再補充一點，因為我認為你所指的是毛利率上的幾個點。一個是，顯然，我們已經表示我們確實將毛利率同比增加了 180 個基點。但如果你看的是季度環比，你是對的，兩個季度都是 25%。現在，如果您查看第二季度與第三季度的銷售額組合，您會發現在第三季度，我們的銷售額佔消耗品銷售額的百分比有所增加。我們討論了不同收入組成部分的相對利潤率表現。因此，當您從第二季度的 69.4%（而不是 68.2% 的銷售額是消耗品）增加到超過 69% 時，銷售額之間的組合（淨收入的組成部分）會產生影響在毛利率上。

Our next question will come from Brian Fitzgerald with Wells Fargo.

我們的下一個問題將來自富國銀行的 Brian Fitzgerald。

And then, Sumit, congrats also. Could you guys talk to the opportunity to monetize Connect with the Vet, the referrals to local vets? Is that really monetized today? What is the monetization mechanism there? It seems like there's a lot of new pandemic parents, and this is a good way to drive Autoship for the uninitiated.

然後，Sumit，也恭喜你。你們能談談將 Connect with the Vet、推薦給當地獸醫的機會嗎？今天真的賺錢了嗎？那裡的貨幣化機制是什麼？似乎有很多新的流行病父母，這是為外行駕駛 Autoship 的好方法。

And then similar topic on Connect with the Vet, can you talk about how you're growing awareness of this offering with your current Autoship customers? It's very early, but do you have any sense of how much awareness you have been able to drive already? And maybe how you think about how that can help drive Autoship retention? And last point, the path to availability of that service in all 50 states.

然後是關於 Connect with the Vet 的類似主題，您能否談談您如何提高當前 Autoship 客戶對該產品的認識？現在還為時過早，但你知道你已經能夠駕駛多少意識了嗎？也許您如何看待這將如何幫助推動 Autoship 保留？最後一點，該服務在所有 50 個州的可用性路徑。

Brian, thank you. Let's start with the availability. So as of this morning, the service is available across 47 of the 50 states. So we have rapidly expanded it from the 35 4, 5 weeks ago to the 47 as of this morning. So as of this morning, it is available coast to coast across our base of Autoship customers, which we're happy and proud of.

布賴恩，謝謝。讓我們從可用性開始。因此，截至今天早上，該服務已在 50 個州中的 47 個州提供。因此，我們迅速將其從 4、5 週前的 35 個擴展到今天早上的 47 個。因此，從今天早上開始，我們的 Autoship 客戶群可以從東海岸到西海岸，我們對此感到高興和自豪。

Number two, of course, us starting the opportunity with Autoship customers is strategic in my mind as what we expect to do there is to observe. We believe this will help both fuel acquisition into the Autoship program or stronger acquisition and also help with retention of Autoship members, which is obviously both of them are incremental to the portfolio in driving top line and bottom line to the portfolio.

第二，當然，我們從 Autoship 客戶開始這個機會在我看來是具有戰略意義的，因為我們期望在那裡做的是觀察。我們相信，這將有助於推動收購進入 Autoship 計劃或更強大的收購，並有助於留住 Autoship 成員，這顯然都是對投資組合的增量，從而推動投資組合的收入和利潤。

Over time, as you've pointed out, the opportunity -- these are early innings. And as we develop the product, we will obviously seek opportunities to embed it or offer it to our entire base of customers. And there, we have several ideas in the way that we can monetize this product over time. But so far, we're focused on Autoship customers and learning how the service does there. Did I miss a part of your question? I don't believe so.

正如你所指出的，隨著時間的推移，機會——這些都是早期的局面。在我們開發產品時，我們顯然會尋找機會將其嵌入或提供給我們的整個客戶群。在那裡，我們有幾個想法可以隨著時間的推移通過這個產品獲利。但到目前為止，我們專注於 Autoship 客戶並了解該服務如何在那裡發揮作用。我錯過了你問題的一部分嗎？我不相信。

Our next question will come from Lauren Schenk with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Lauren Schenk。

I guess following up a little bit on an earlier question, thinking about marketing spending into next year. Obviously, I think we're hearing about CPC is largely going to be higher to next year. But from a sort of retention of new buyers perspective, is there anything that you think you need to invest in from that perspective? Or is it really going to be sort of continued new customer growth? And to that effect, how should we think about new customer growth next year given the really strong growth that you've seen this year?

我想對較早的問題進行一些跟進，考慮到明年的營銷支出。顯然，我認為我們聽說 CPC 在很大程度上會在明年上漲。但是從保留新買家的角度來看，您認為從這個角度來看，您有什麼需要投資的嗎？或者它真的會是一種持續的新客戶增長？為此，鑑於您今年看到的真正強勁的增長，我們應該如何看待明年的新客戶增長？

Sure. Lauren, we'll stay away from speculating on numbers for next year. We'll talk to you more about 2021 on our Q4 call. But I'll generally answer the question. First of all, no, we do not expect to spend incremental dollars on retention. In fact, as we have seen or as we have shared on this earnings call, customer retention year-to-date is up more than 600 basis points, including -- that obviously includes the cohort of customers that we acquired this year who continue to engage with us in a positive manner with higher AOVs driven by ASP and mix, not actually driven by higher UPO, therefore, not indicating any kind of pandemic buying behavior there.

當然。勞倫，我們不會猜測明年的數字。我們將在第四季度電話會議上與您詳細討論 2021 年。但我一般會回答這個問題。首先，不，我們不希望在保留上花費更多的錢。事實上，正如我們已經看到或在本次財報電話會議上分享的那樣，今年迄今為止的客戶保留率上升了 600 多個基點，其中顯然包括我們今年獲得的客戶群，他們繼續以積極的方式與我們合作，由 ASP 和混合驅動的更高 AOV，實際上並非由更高的 UPO 驅動，因此，並不表明那裡有任何類型的大流行購買行為。

Number two, we expect to continue to broaden or open up more marketing channels as we step out from 2020 into '21. So you should expect us to broaden our range, our reach, our frequency. Overall, we are a strong direct response performance marketing engine, and you should expect us to be -- to hold ourselves disciplined and accountable in the way that we spend money and acquire customers.

第二，隨著我們從 2020 年跨入 21 年，我們預計將繼續拓寬或開闢更多營銷渠道。所以你應該期待我們擴大我們的範圍，我們的範圍，我們的頻率。總體而言，我們是一個強大的直接響應績效營銷引擎，您應該期望我們能夠——在我們花錢和獲取客戶的方式上保持紀律和負責。

Last but not least, I will remind the audience that we've enhanced the value proposition of products and services that we bring to Chewy customers. And in that way, we've actually -- not only are we seeing customers spend more early on, we believe the overall potential of net customer spend and LTV is greater, therefore generating higher LTV-to-CAC ratios, which has been our North Star as we think about marketing, and we will continue to do so as we move from this year into next.

最後但並非最不重要的一點是，我會提醒觀眾，我們已經增強了我們為 Chewy 客戶帶來的產品和服務的價值主張。通過這種方式，我們實際上 - 我們不僅看到客戶在早期花費更多，我們相信淨客戶支出和 LTV 的整體潛力更大，因此產生更高的 LTV 與 CAC 比率，這一直是我們的北極星，我們考慮營銷，從今年到明年，我們將繼續這樣做。

Our next question will come from Seth Basham with Wedbush Securities.

我們的下一個問題將來自 Wedbush Securities 的 Seth Basham。

My question is around sales per active customer. We saw a metric increase, but it slowed a little bit sequentially in terms of year-over-year growth. Is there anything to think about as it relates to that metric here?

我的問題是關於每位活躍客戶的銷售額。我們看到了指標的增長，但就同比增長而言，它環比有所放緩。這裡有什麼與該指標相關的考慮嗎？

Yes. Seth, this is Mario. So you're referring to NSPAC. And so the mechanics of NSPAC, if you remember, is that we take all the revenue in the last 4 quarters and divided by the active customers at the end of the quarter. So we're starting to see the sequential increase is the positive revenue impact of the large customer cohorts that we acquired earlier this year. So now we're seeing that number move up again.

是的。賽斯，這是馬里奧。所以你指的是NSPAC。因此，如果您還記得的話，NSPAC 的機制是我們將過去 4 個季度的所有收入除以季度末的活躍客戶。因此，我們開始看到連續增長是我們今年早些時候收購的大型客戶群對收入的積極影響。所以現在我們看到這個數字再次上升。

You would expect that -- we would expect that NSPAC should continue to improve over the balance of the year and into next year as the revenue from those cohorts continues to be realized for the full trailing 4 quarters of, I think, acquired the cohort itself.

您會期望 - 我們預計 NSPAC 應該會在今年餘下時間和明年繼續改善，因為這些群組的收入在我認為收購群組本身的整個尾隨 4 個季度中繼續實現.

I think what you have to do for the last years, you still have to adjust for the extra week in the fourth quarter of 2018. If we do that, then our NSPAC is up almost 3%, and you can see how many new active customers we added in the quarter, which obviously has a temporary drag on that number from moving up.

我認為過去幾年你必須做的事情，你仍然需要為 2018 年第四季度的額外一周進行調整。如果我們這樣做，那麼我們的 NSPAC 上漲了近 3%，你可以看到有多少新的活躍我們在本季度增加的客戶，這顯然暫時拖累了這個數字的上升。

Our next question will come from Oliver Wintermantel with Evercore ISI.

我們的下一個問題將來自 Evercore ISI 的 Oliver Wintermantel。

I just had a question regarding the cost headwinds that you mentioned in Q3. And I think in your prepared remarks, you said they should shift into Q4 and then maybe into next year as well. While overall, you said they should be not permanent in nature, but you mentioned labor and logistics as well as COVID. So maybe a little bit more information of what you expect in Q4 and what part of these cost headwinds should fall off in next year.

我剛剛對您在第三季度提到的成本不利因素提出了疑問。我認為在你準備好的評論中，你說他們應該轉移到第四季度，然後可能也轉移到明年。雖然總體而言，您說它們本質上不應該是永久性的，但您提到了勞動力和物流以及 COVID。因此，可能會提供更多關於您對第四季度的預期以及明年這些成本逆風的哪一部分應該下降的信息。

Yes. Certainly. Oli, it's Mario. I'll answer that one. So you've heard us say that unlike the first quarter, COVID did not have a material impact to our gross margin in the third quarter, but we did see an impact in SG&A. We had approximately $8 million of expenses that were either directly or indirectly related to COVID in the third quarter, which is about in line with what we shared with you. For first quarter and second quarter, we said $11 million in the first quarter and -- rather $11 million in the second quarter, $10 million in the first quarter. For the fourth quarter, we do expect somewhere between $15 million and $20 million of incremental SG&A, and again, directly or indirectly related to COVID, and that's partially due to higher wages and benefits for our fulfillment center team members, but we do believe these are temporary in nature.

是的。當然。奧利，是馬里奧。我會回答那個。所以你聽說我們說，與第一季度不同，COVID 對我們第三季度的毛利率沒有產生重大影響，但我們確實看到了 SG&A 的影響。在第三季度，我們有大約 800 萬美元與 COVID 直接或間接相關的費用，這與我們與您分享的內容大致一致。對於第一季度和第二季度，我們說第一季度是 1100 萬美元，第二季度是 1100 萬美元，第一季度是 1000 萬美元。對於第四季度，我們確實預計 SG&A 的增量在 1500 萬美元到 2000 萬美元之間，並且與 COVID 直接或間接相關，這部分是由於我們的履行中心團隊成員的工資和福利更高，但我們確實相信這些是暫時的。

I'll add a couple of things. As you know, we're also ramping up 2 fulfillment centers along the way that kind of go into that SG&A number. And then we've just talked about marketing where input costs are increasing, and it's a bit of an open playing field on marketing. So there, we will continue to remain disciplined and also opportunistic so that depending upon how the market behaves, our team can respond accordingly to drive both yield as well as net customer adds to the portfolio.

我會補充幾件事。如您所知，我們還在增加 2 個履行中心，以達到該 SG&A 編號。然後我們剛剛談到了投入成本正在增加的營銷，這在營銷方面有點開放。因此，在那裡，我們將繼續保持紀律性和機會主義，以便根據市場的表現，我們的團隊可以做出相應的反應，以提高投資組合的收益和淨客戶增加。

And just, if I may, the $15 million to $20 million incremental SG&A, does that compare to the $8 million COVID cost or was that a total number?

而且，如果可以的話，1500 萬到 2000 萬美元的 SG&A 增量，與 800 萬美元的 COVID 成本相比，還是一個總數？

It's a total number.

這是一個總數。

Our next question will come from Erin Wright with Crédit Suisse.

我們的下一個問題將來自瑞士信貸的 Erin Wright。

Great. On Pharmacy, how much do you think you are taking share from other e-commerce players versus veterinary practices? And then more broadly on the Pharmacy business, do you anticipate this will be a large new organic approach over time or down the road? Do you see the opportunity to bolter your Pharmacy business more rapidly through acquisitions or just potentially the highly synergistic Pharmacy file buy, which could be an opportunity for you? Or will this be a more organic approach?

偉大的。在藥房方面，您認為您從其他電子商務參與者那裡獲得了多少份額，而不是獸醫實踐？然後更廣泛地涉及藥房業務，您是否預計隨著時間的推移或將來這將是一種大型的新有機方法？您是否看到通過收購或只是潛在的高度協同藥房文件購買來更快地鞏固您的藥房業務的機會，這對您來說可能是一個機會？或者這會是一種更有機的方法嗎？

Erin, I'll take the question. So first of all, the first question on share. We -- let's start from the top. So we view health care as a $35 billion market. And of that $35 billion, approximately $7 billion in our research is Rx medication, which is growing at 10% CAGR. And we believe if you do that math, then we're roughly 7% of the overall total available market share in that category. 70% or higher is still owned within the veterinarian channel. E-commerce in our opinion is approximately between $1 billion to $1.3 billion for total Rx medication, which gives us a segment share of somewhere between -- somewhere around 40%, 45%. So that's the first part of that question.

艾琳，我會回答這個問題。所以首先，關於共享的第一個問題。我們——讓我們從頭開始。因此，我們將醫療保健視為一個價值 350 億美元的市場。在這 350 億美元中，我們研究中的大約 70 億美元是 Rx 藥物，其複合年增長率為 10%。我們相信，如果你做這個數學，那麼我們大約佔該類別總可用市場份額的 7%。 70% 或更高的股份仍屬於獸醫渠道。在我們看來，電子商務對於 Rx 藥物的總價值大約在 10 億美元到 13 億美元之間，這使我們的細分市場份額介於 40% 和 45% 之間。這是該問題的第一部分。

With the market growing at 10% and the vet channel owning over 70%, I mean, at these dynamics, the category in our opinion has multiple -- has room for multiple simultaneous winners. And our job is to ensure that Chewy is one of them.

隨著市場以 10% 的速度增長，獸醫渠道擁有超過 70% 的份額，我的意思是，在這種動態下，我們認為該類別有多個 - 有多個同時獲勝的空間。我們的工作是確保 Chewy 是其中之一。

In terms of our strategy in terms of the growth, we're clearly focused on organic growth at this point. And as that strategy evolves, we are first focused on making sure that we have value-added services and products both for our customers and the veterinarian space where we can keep the veterinarians in the center of the equation as we go, make health care more affordable and accessible. That will be our primary focus over the next 9 to 12 to 15 months as we grow the category and the space overall.

就我們的增長戰略而言，我們目前顯然專注於有機增長。隨著該戰略的發展，我們首先專注於確保我們為我們的客戶和獸醫領域提供增值服務和產品，在那裡我們可以讓獸醫在我們前進的過程中處於等式的中心，讓醫療保健更多負擔得起且易於使用。這將是我們在未來 9 到 12 到 15 個月內的主要關注點，因為我們會擴大類別和整體空間。

Okay. That's helpful. And just a related question on the triage offering. How do the economics work with the veterinary referral partners? Would you agree these clinics would in turn partner with you on the prescription management side? Will this be material near term? And are these exclusive relationships with these practices? How does that essentially work?

好的。這很有幫助。只是關於分類產品的一個相關問題。經濟學如何與獸醫推薦合作夥伴合作？您是否同意這些診所反過來在處方管理方面與您合作？這在短期內會很重要嗎？這些排他性關係是否與這些做法有關？這基本上是如何工作的？

Sure. So so far, thus far, there are no exclusive relationships. The referrals are -- essentially, we are providing a service to the customer in identifying the type of veterinarian that might be suited to be able to appropriately diagnose the medical condition or the level of urgency with which the -- this -- the diagnosis might be required. In that way, Chewy partner veterinarians are redirecting customers to either neighborhood veterinarians, the customers' own veterinarian or to emergency clinics.

當然。到目前為止，到目前為止，還沒有排他性關係。轉介是 - 本質上，我們正在為客戶提供服務，以確定可能適合能夠適當地診斷醫療狀況或 - 這 - 診斷的緊急程度的獸醫類型需要。通過這種方式，Chewy 合作夥伴獸醫將客戶重定向到附近的獸醫、客戶自己的獸醫或急診診所。

When the -- if you've gone through the experience, what you will find is that we provide a full diagnosis summary or a full summary of the conversation and some specific notes for the veterinarian in clinic to take a look at that can actually -- so in this way, what we are essentially doing is driving what we call high-quality traffic into the veterinarian's office where the opportunity for conversion or offering that service or treatment and receptiveness on -- for that for the customer is the greatest and the highest. So that's one way to think about it.

當——如果你經歷過體驗，你會發現我們提供了完整的診斷總結或對話的完整總結，以及一些具體的筆記供臨床獸醫查看，實際上可以—— - 因此，通過這種方式，我們本質上所做的就是將我們所謂的高質量流量推入獸醫辦公室，在那裡轉換或提供該服務或治療的機會和接受度——因為對客戶來說是最大的，也是最重要的最高。所以這是一種思考方式。

The other way that we're thinking about it, which we're excited about is when you think -- look, we believe that services like these can help solve challenges like compliance and also grow TAM for the health care space, which is obviously a vested interest and a joint mission that the veterinarians have. How? Well, we believe that -- and I've shared this data point earlier on this call. We believe that 1/3 of pet parents in the U.S. either do not take their pets to vet or don't do so routinely. And the barriers to doing so in our opinion is either the cost of vet care, the barriers of friction in the process itself or just a lack of awareness around preventative health care in the minds of the pet parents.

我們正在考慮的另一種方式，我們對此感到興奮的是，當您思考時——看，我們相信這樣的服務可以幫助解決合規性等挑戰，並為醫療保健領域發展 TAM，這顯然是獸醫的既得利益和共同使命。如何？好吧，我們相信 - 我在本次電話會議的早些時候分享了這個數據點。我們認為，美國 1/3 的寵物父母要么不帶他們的寵物接受檢查，要么不定期檢查。在我們看來，這樣做的障礙要么是獸醫護理的成本，要么是過程本身的摩擦障礙，要么只是寵物父母對預防性醫療保健缺乏認識。

And so by offering or by bringing triage services like Connect with a Vet, we can offer the service to that type of pet parent from the convenience of their home and essentially earn their trust to be able to educate them and, therefore, drive that traffic into the veterinarian clinics, and in doing so, both increased compliance as well as open up the entire TAM for that particular customer segment that's not touched or not fully unleash an opportunity from a veterinarian side standpoint. So those are 2 different ways of thinking about it.

因此，通過提供或引入諸如 Connect with a Vet 之類的分類服務，我們可以在家中方便地為這類寵物父母提供服務，並從本質上贏得他們的信任，以便能夠教育他們，從而推動流量進入獸醫診所，這樣做既提高了合規性，又為未觸及或未完全釋放從獸醫角度的機會的特定客戶群開放了整個 TAM。所以這是兩種不同的思考方式。

(Operator Instructions) Our next question will come from Rick Patel with Needham & Company.

（操作員說明）我們的下一個問題將來自 Needham & Company 的 Rick Patel。

Earlier, you touched on how newer cohorts are spending more earlier on compared to prior cohorts. I believe that, historically, revenue per active customer has been in the 150 to 200 ballpark for year 1. If this has, in fact, ticked higher, do you see upside to NSPAC in the out years as well? Or does this mean that lifetime value is consistent, but the ability to capture revenues earlier on has improved?

早些時候，您談到了與以前的同類群組相比，較新的同類群組如何更早地花費更多。我相信，從歷史上看，第 1 年每個活躍客戶的收入一直在 150 到 200 之間。如果這實際上已經上升，那麼您是否也認為 NSPAC 在未來幾年也有上漲空間？或者這是否意味著終生價值是一致的，但早期獲取收入的能力有所提高？

Rick, I think -- this is Mario. I think I understood your question. So -- but let me -- I think the answer to that question is both. Not only are we capturing more revenue earlier, which impacts LTV to CAC. And therefore, we would expect that behavior to continue going forward -- continuing to improve the LTV to CAC versus prior cohorts. But the -- an uptick in the first year revenue per active customer could be a good indicator of future year NSPAC also being higher than prior customer boards. But that doesn't just happen, right? We've been doing that actively by expanding the catalog, expanding the categories. The fact that 2 years ago, we did not have a pharmacy, that meant that a customer could spend potentially $700 to $800 with us products and -- being consumables or hardgoods, but they couldn't buy their medicine. Well, they can do that today.

瑞克，我想——這是馬里奧。我想我理解了你的問題。所以 - 但讓我 - 我認為這個問題的答案是兩者兼而有之。我們不僅更早地獲得了更多收入，這影響了 LTV 到 CAC。因此，我們預計這種行為將繼續向前發展——與之前的隊列相比，繼續將 LTV 提高到 CAC。但是 - 每個活躍客戶的第一年收入的上升可能是未來一年 NSPAC 也高於以前的客戶委員會的一個很好的指標。但這不僅會發生，對嗎？我們一直在積極地通過擴大目錄、擴大類別來做到這一點。事實上，2 年前，我們沒有藥房，這意味著客戶可能會在我們的產品上花費 700 到 800 美元——作為消耗品或耐用品，但他們無法購買他們的藥品。好吧，他們今天可以做到。

Our hardgoods catalog itself was much smaller 2 years ago. And as we continue to expand not only the product selection but also the price point, it means that, that customer now has an opportunity to buy their food and their dog bed, cattery, et cetera, from us. We've expanded the product selection of non-dog, non-cat pets at home. So again, that customer may have to split their purchases with us in another channel, and now they can consolidate all their spend on our -- on chewy.com.

2 年前，我們的硬貨目錄本身要小得多。隨著我們繼續擴大產品選擇和價格點，這意味著客戶現在有機會從我們這裡購買他們的食物和他們的狗床、貓舍等。我們擴大了家中非狗、非貓寵物的產品選擇。再說一次，該客戶可能不得不在另一個渠道中與我們分開購買，現在他們可以在我們的網站上合併所有支出 - 在chewy.com上。

So therefore, the answer is -- the -- not only can we capture more of the revenue early -- earlier, but also the LTV to CAC for those customers should improve not only with higher revenue, but also more profitable orders for each of the -- for that -- for those customers.

因此，答案是——我們不僅可以更早——更早地獲得更多的收入，而且這些客戶的 LTV 到 CAC 不僅應該隨著更高的收入而提高，而且每個訂單的利潤也更高——為此——為那些客戶。

Our next question will come from Peter Keith with Piper Sandler.

我們的下一個問題將來自 Peter Keith 和 Piper Sandler。

Maybe as a quick follow-up to Rick's question on the cohort spending. You have had this impressive 150% increase in cohort spend from year 1 to year 2 historically. So maybe with a higher starting point in year 1, do you still see that type of increase for all these customers moving into next year? Or do you think maybe that growth moderates somewhat?

也許作為對 Rick 關於隊列支出問題的快速跟進。從歷史上看，從第 1 年到第 2 年，您的同類群組支出增長了 150%，令人印象深刻。因此，也許第一年的起點更高，您是否仍然看到所有這些客戶進入明年的那種增長？還是您認為增長可能會有所放緩？

Peter, this is Mario. So the cohort spend increasing from year 1 to year 2, look, without speaking to 2021 because we will do that on the fourth quarter call, nothing that we're seeing from the customers that we acquired this year would have us believe that they're going to behave any different than prior year customers. So I think that's the short answer without me getting into 2021 any guidance discussion.

彼得，這是馬里奧。因此，隊列支出從第 1 年到第 2 年增加，看，不用說 2021 年，因為我們將在第四季度電話會議上這樣做，我們從今年獲得的客戶那裡看到的任何東西都不會讓我們相信他們重新的行為將與去年的客戶有所不同。所以我認為這是一個簡短的答案，我沒有進入 2021 年的任何指導討論。

Okay. That's fair enough. And if I can ask maybe a simplistic, big picture follow-up. So impressive numbers that you're giving out in the higher retention rate this year. I think there are some views out there that maybe your churn rate would actually be higher, your retention will be lower because you've acquired a lot of customers when brick-and-mortar stores were closed. So simplistically, could you just maybe give us an overview of why you think the retention rates this year, in particular, are trending so much stronger?

好的。這很公平。如果我可以問一個簡單的、宏觀的後續行動。如此令人印象深刻的數字，以至於您今年的保留率更高。我認為有一些觀點認為你的流失率實際上會更高，你的保留率會更低，因為當實體店關閉時你已經獲得了很多客戶。簡單地說，您能否給我們概述一下為什麼您認為今年的保留率特別是趨勢如此強勁？

Peter, this is Sumit. I'll take that. Well, I think it goes back to the entire value proposition, right? I mean, we -- first of all, we seek to deliver a high bar credible experience from the get-go, and we aim to repeat that with every interaction that a pet parent has with us, so much so that we build relationships, not acquire mere transactions. And in some way, the relationships that we acquire fuels long-term loyalty and evangelism towards the brand, and that has a lot of value in a category like pet where customers refer to themselves as pet parents. It's an emotive category.

彼得，這是蘇米特。我會接受的。好吧，我認為這可以追溯到整個價值主張，對吧？我的意思是，我們——首先，我們尋求從一開始就提供高標準的可信體驗，我們的目標是在寵物父母與我們的每一次互動中重複這一點，以至於我們建立關係，不獲取單純的交易。在某種程度上，我們獲得的關係促進了對品牌的長期忠誠度和宣傳，這在寵物等客戶稱自己為寵物父母的類別中具有很大的價值。這是一個情感類別。

Underneath of that, when you layer on the core tenets of e-commerce on offering competitive pricing, broad assortment and reliable and convenient delivery services, and you complement that with an expanded portfolio of products and services, it allows us to inch closer every month, every quarter to our mission statement of being the most trusted convenient destination for pet parents everywhere. And we believe that it's reflected in the numbers that we're sharing today, including retention type statistics or spend per cohort statistics that we've shared or numbers that we shared on the call today, both up more than 600 basis points on the retention basis and cohorts, on a year-over-year basis, spending 10% higher in quarter as I kind of shared earlier on the call. You should expect us to continue to operate in a high disciplined and high customer experience, high bar manner.

在此之下，當您將電子商務的核心原則放在提供有競爭力的價格、廣泛的分類以及可靠和方便的送貨服務上，並通過擴展的產品和服務組合來補充這一點時，它使我們每個月都更接近，每個季度都是我們的使命宣言，即成為世界各地寵物父母最值得信賴的便捷目的地。我們相信這反映在我們今天分享的數字中，包括我們分享的留存類型統計數據或每個群組的支出統計數據或我們今天在電話會議上分享的數字，留存率都增加了 600 多個基點正如我早些時候在電話會議上分享的那樣，基礎和同類群組的支出同比增長 10%。您應該期望我們繼續以高度自律、高客戶體驗、高標準的方式運營。

Our next question will come from Deepak Mathivanan with Barclays.

我們的下一個問題將來自巴克萊銀行的 Deepak Mathivanan。

So the first one on Autoship. You've had the first order discount on Autoship program at around 40% for a few months now. What are the benefits you're seeing from this change? And how do you think about the ROIs at these levels? Also, is the Autoship penetration currently the same on more recent cohorts maybe on a monthly basis? Because of the pandemic, there's been some fluctuation there. So just curious on how that adoption has been.

所以第一個關於Autoship。幾個月來，您在 Autoship 計劃中獲得了大約 40% 的首筆訂單折扣。您從這種變化中看到了什麼好處？您如何看待這些級別的投資回報率？此外，Autoship 滲透率目前在最近的隊列中是否可能每月相同？由於大流行，那裡出現了一些波動。所以只是好奇這種採用是如何進行的。

Sure. Deepak, I'll take the second one. Mario will take the first one. The Autoship penetration is same or better on customer cohorts that we are acquiring.

當然。迪帕克，我要第二個。馬里奧會拿第一個。在我們獲得的客戶群中，Autoship 滲透率相同或更好。

Yes. That's -- I think your first part of your question was about the discount and then the -- I think the simple answer is, you're right, the Autoship penetration is increasing or is higher at this higher level. But then the other side is, what is the cost to us, right? And the cost is minimal. And so you have the benefit of having more sign-up rate, a higher sign-up rate net of any cancellations and a lower cost, which then leads to an improved LTV to CAC for these customers.

是的。那是 - 我認為你的問題的第一部分是關於折扣，然後 - 我認為簡單的答案是，你是對的，Autoship 滲透率正在增加或在這個更高的水平上更高。但另一方面是，我們的成本是多少，對吧？而且成本是最低的。因此，您可以獲得更高的註冊率、更高的註冊率（不包括任何取消）和更低的成本，從而為這些客戶帶來更高的 LTV 到 CAC。

And Deepak, these are transient, seasonal promotions that we do. We're not seeking to disrupt the value proposition in the program driven by deep discounting or any such sort. These are seasonal holiday-driven promotions where we are particularly sensitive and data-driven in understanding what our gross customer adds would be in Autoship and also understanding the cancellation rate post event, therefore, arriving at net adds that we -- that form the basis of the payback calculation given that we understand how long the customers are going to stay with us, what their spend patterns are going to be and how we can develop them from 1 category into purchasing multiple categories over time. That's how we think about it.

Deepak，這些都是我們做的短暫的季節性促銷活動。我們並不尋求破壞由大幅折扣或任何此類驅動的計劃中的價值主張。這些是季節性假日驅動的促銷活動，我們特別敏感和數據驅動，以了解我們的總客戶在 Autoship 中增加的內容以及了解事件後的取消率，因此，達到淨增加我們 - 這是基礎考慮到我們了解客戶將與我們在一起的時間、他們的消費模式以及我們如何將他們從一個類別發展為隨著時間的推移購買多個類別，我們可以計算投資回報率。這就是我們的想法。

This concludes our question-and-answer session. I would like to turn the conference back over to Sumit Singh for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想把會議轉回給 Sumit Singh 做任何閉幕詞。請繼續，先生。

Thank you, everyone. Have a good night.

謝謝大家。祝你晚安。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。