Chewy Inc (CHWY) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Chewy First Quarter 2020 Earnings Conference Call. (Operator Instructions)

女士們，先生們，感謝您的支持，歡迎參加 Chewy 2020 年第一季度收益電話會議。 （操作員說明）

I would now like to hand the conference over to your speaker today, Bob LaFleur, Vice President of Investor Relations and Capital Markets. Please go ahead.

我現在想把會議交給你今天的演講者，投資者關係和資本市場副總裁 Bob LaFleur。請繼續。

Thank you for joining us on the call today to discuss our first quarter 2020 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 on Form 8-K earlier today, have been posted to the Investor Relations section on our website, investor.chewy.com. The link to the webcast of today's conference call is also available on our site.

感謝您今天加入我們的電話會議，討論我們 2020 年第一季度的業績。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。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 the 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 as 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.

在今天的電話會議上，我們將發表前瞻性陳述，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，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。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 and in our earnings release and letter to shareholders, which were filed with the SEC on Form 8-K earlier today. These non-GAAP measures are not intended as a substitute for GAAP results.

同樣在本次電話會議中，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以及我們的收益發布和致股東的信函中提供，這些信息已在今天早些時候以 8-K 表格形式提交給 SEC。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 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。本次電話會議的重播將很快在我們的 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. Shortly, after we spoke in April, 3/4 of the U.S. population was under shelter-in-place orders. Two things became clear very quickly. First, the pandemic put Chewy in a unique position to provide essential services to pets and pet parents. And second, we needed to prepare for a significant change in operating conditions. Over the past 2 months, we have continued to adapt and respond rapidly to service millions of new and existing customers while caring for the safety and well-being of our team members.

謝謝鮑勃，也感謝大家加入我們的電話會議。不久，在我們 4 月發表講話後，3/4 的美國人口處於就地庇護令之下。有兩件事很快就清楚了。首先，大流行使 Chewy 處於一個獨特的位置，可以為寵物和寵物父母提供基本服務。其次，我們需要為運營條件的重大變化做好準備。在過去的 2 個月裡，我們繼續適應和快速響應，為數百萬新老客戶提供服務，同時關心團隊成員的安全和福祉。

I'm proud of the incredible spirit of innovation that we have sustained across the company as well as our team's ability to adapt and respond to COVID-19. For instance, in Q1, Chewy's busiest quarter ever, we launched gift cards for pet parents. This is a virtual product that customers have been asking us to offer for years, and the early adoption signs are encouraging. Our teams also built and led campaigns with shelters and rescues across the United States, raising awareness about this community and making over $7 million in charitable contributions. And then we also quickly developed effective work-from-home technology solutions from scratch that enabled us to move our entire customer service operations from 0 to 100 work-from-home in a matter of weeks. The pandemic has tested and proven our ability as a company and as a team to move rapidly and deliberately and to plan, communicate and innovate on behalf of our employees and customers.

我為我們在整個公司所保持的令人難以置信的創新精神以及我們團隊適應和應對 COVID-19 的能力感到自豪。例如，在 Chewy 有史以來最繁忙的第一季度，我們為寵物父母推出了禮品卡。這是客戶多年來一直要求我們提供的虛擬產品，早期採用的跡象令人鼓舞。我們的團隊還在美國各地建立和領導了有關庇護所和救援的活動，提高了對該社區的認識，並為慈善捐款超過 700 萬美元。然後，我們還從頭開始快速開發了有效的在家工作技術解決方案，使我們能夠在幾週內將我們的整個客戶服務運營從 0 個在家工作轉移到 100 個在家工作。大流行已經測試並證明了我們作為一家公司和一個團隊的能力，我們有能力代表我們的員工和客戶快速、謹慎地行動，並進行計劃、溝通和創新。

Now I will discuss our Q1 results and then share some insights about the new customers we have acquired in the first quarter and our ability to retain them over the long term. After that, I will share updates on our supply chain and fulfillment network. Finally, I will turn the call over to Mario to discuss our first quarter results and guidance in more detail.

現在我將討論我們的第一季度業績，然後分享一些關於我們在第一季度獲得的新客戶以及我們長期留住他們的能力的一些見解。之後，我將分享我們供應鍊和履行網絡的最新信息。最後，我將把電話轉給馬里奧，以更詳細地討論我們的第一季度業績和指導。

As anticipated, our shop-at-home business proved resilient amidst the current economic disruption. First quarter results reflect the significant change that occurred in customer shopping behavior as the pandemic spread. First quarter net sales increased 46% year-over-year to $1.62 billion. We ended the quarter with 15 million active customers, an increase of 3.7 million compared to the end of first quarter 2019 and the fastest acceleration of new customer acquisition in the company's history.

正如預期的那樣，在當前的經濟動盪中，我們的在家購物業務證明了彈性。第一季度的結果反映了隨著大流行的蔓延，客戶購物行為發生了重大變化。第一季度淨銷售額同比增長 46% 至 16.2 億美元。截至本季度末，我們擁有 1500 萬活躍客戶，與 2019 年第一季度末相比增加了 370 萬，是公司歷史上新客戶獲取速度最快的一次。

Autoship customer sales exceeded $1 billion for the first time in a single quarter, totaling $1.1 billion or 67.9% of total net sales. Net sales per active customer grew 6.6% to $357 when adjusting to exclude the extra week in 2018. Q1 gross margin expanded by 50 basis points year-over-year to 23.4%.

Autoship 客戶銷售額在單季度首次超過 10 億美元，總計 11 億美元，佔總淨銷售額的 67.9%。剔除 2018 年額外一周後，每位活躍客戶的淨銷售額增長 6.6% 至 357 美元。第一季度毛利率同比增長 50 個基點至 23.4%。

In addition to the scale benefits from overall revenue growth, our private label business contributed 60 basis points to the year-over-year expansion in gross margin. Our health care Rx business continued its robust growth in Q1 despite clinic closures and/or reduced clinic hours due to the pandemic. And lastly, incremental freight and logistics investments that we made to protect the customer experience due to COVID-19 decreased our gross margins by 120 basis points in the quarter.

除了整體收入增長帶來的規模效益外，我們的自有品牌業務為毛利率的同比增長貢獻了 60 個基點。儘管大流行導致診所關閉和/或診所時間減少，但我們的醫療保健 Rx 業務在第一季度繼續強勁增長。最後，由於 COVID-19，我們為保護客戶體驗而進行的增量貨運和物流投資在本季度使我們的毛利率下降了 120 個基點。

I am also pleased to report that for the first time in Chewy's history, we delivered positive adjusted EBITDA of $3.4 million, improving margins by 160 basis points year-over-year. This marks a significant milestone achievement for our company. Our sales momentum, combined with the marketing efficiencies, more than offset incremental COVID-related costs in the quarter, leading to positive adjusted EBITDA. We believe that the volume-related cost pressures are temporary, and we expect those to moderate as we look ahead. We further believe this combination of scale revenues and cost discipline will accelerate us along our path of sustainable profitability.

我也很高興地報告，在 Chewy 的歷史上，我們首次實現了 340 萬美元的正調整 EBITDA，利潤率同比提高了 160 個基點。這標誌著我們公司取得了重大的里程碑式成就。我們的銷售勢頭與營銷效率相結合，足以抵消本季度與 COVID 相關的增量成本，導致調整後的 EBITDA 為正。我們認為，與銷量相關的成本壓力是暫時的，我們預計隨著我們的展望，這些壓力將會緩和。我們進一步相信，規模收入和成本紀律的結合將加速我們沿著可持續盈利的道路前進。

Now let's shift our focus to customer acquisitions in the quarter and insights into their purchasing behavior. We collected data on 5 customer cohorts. Our control group consisted of customer cohorts from 6 weeks, 6 months and 1 year prior to the COVID-19 outbreak. We then looked at Q1 March and April customer cohorts after the outbreak. For the purposes of clarity, we've blended the 3 control group cohorts into a single pre-COVID cohort and the March and April cohorts into a single post-COVID cohort. Unless specified, the results that I will talk about reflect comparison of the blended cohorts.

現在讓我們將重點轉移到本季度的客戶獲取和對他們購買行為的洞察上。我們收集了 5 個客戶群的數據。我們的對照組由 COVID-19 爆發前 6 週、6 個月和 1 年的客戶群組組成。然後，我們查看了疫情爆發後的第一季度 3 月和 4 月客戶群。為清楚起見，我們將 3 個對照組的隊列混合為一個單獨的 COVID 前隊列，將 3 月和 4 月的隊列混合為一個單獨的 COVID 後隊列。除非另有說明，否則我將討論的結果反映了混合隊列的比較。

First, we added a record 1.6 million net active customers in the first quarter, which was more than double our average quarterly pace of net active customer adds in 2019. Second, and equally as important, the behavior shown so far by these new customers is promising. Initial orders were up 11%, larger in value than our pre-COVID-19 customers. In the first 4 weeks since their initial purchase, a higher percentage of our new customers returned to make a second purchase, and the average value of those repeat orders was as much as 5% higher than the pre-COVID customers. Finally, we analyzed their Autoship sign-up and cancellation risk. And on a net basis, they were within historical ranges. These insights bode well as a sign of future customer engagement. And although we cannot predict the future, currently, we're expecting these customers to become long-term Chewy customers.

首先，我們在第一季度新增了創紀錄的 160 萬淨活躍客戶，是 2019 年平均季度淨活躍客戶增加速度的兩倍多。其次，同樣重要的是，這些新客戶迄今為止表現出的行為是有希望。初始訂單增長了 11%，價值高於我們在 COVID-19 之前的客戶。在首次購買後的前 4 週內，我們的新客戶中有更高比例的人返回進行第二次購買，這些重複訂單的平均價值比 COVID 之前的客戶高出 5%。最後，我們分析了他們的 Autoship 註冊和取消風險。從淨值來看，它們在歷史範圍內。這些見解是未來客戶參與度的好兆頭。儘管我們無法預測未來，但目前，我們預計這些客戶將成為 Chewy 的長期客戶。

We also observed encouraging signs from our existing customers. In the quarter, we saw nearly double the number of customers coming back into active status versus previous quarters. This means more customers who had not made a purchase with us in the previous year returned to an active status, providing us an opportunity to reengage them. Also, after the COVID-19 outbreak, our existing customers started creating bigger baskets. These baskets had a higher mix of consumables in them. We believe these larger baskets with a higher mix of consumables were evidence of pandemic-related pantry stocking, and we estimate this benefited first quarter net sales by approximately $70 million. We view this as a onetime benefit that we have not seen reverse in the second quarter, and we do not expect to see it reverse going forward. All in all, we see these as positive data points as we look ahead into the second quarter and the rest of the year.

我們還觀察到現有客戶的令人鼓舞的跡象。在本季度，我們看到恢復活躍狀態的客戶數量幾乎是前幾個季度的兩倍。這意味著更多在上一年未與我們進行過購買的客戶恢復了活躍狀態，為我們提供了重新吸引他們的機會。此外，在 COVID-19 爆發後，我們現有的客戶開始創建更大的籃子。這些籃子中的消耗品組合更高。我們認為，這些具有更高消耗品組合的較大籃子是與流行病相關的食品儲藏的證據，我們估計這使第一季度的淨銷售額受益約 7000 萬美元。我們認為這是一個一次性的好處，我們在第二季度沒有看到逆轉，我們預計它不會在未來出現逆轉。總而言之，當我們展望第二季度和今年剩餘時間時，我們將這些視為積極的數據點。

Now let me share some observations for Q1 across our supply chain and fulfillment network. The surge in orders increased our shipping volume in March by over 50% compared to February. Although our supply chain remained resilient through the quarter, the unplanned nature of the demand surge related to COVID-19 created temporary stress points in our supply chain as well as customer service and fulfillment operations. We typically spend months preparing for our annual Q4 holiday cycle. But in this situation, there was no advanced warning or preparation. The demand shock, which was also felt by our supplier network, caused elevated out-of-stock levels for certain product categories and led to some temporary conditions of suboptimal inventory placement across our fulfillment network.

現在讓我在我們的供應鍊和履行網絡中分享對第一季度的一些觀察。訂單激增使我們 3 月份的出貨量與 2 月份相比增加了 50% 以上。儘管我們的供應鏈在本季度保持彈性，但與 COVID-19 相關的需求激增的計劃外性質在我們的供應鏈以及客戶服務和履行運營中造成了暫時的壓力點。我們通常會花幾個月的時間來準備我們每年的第四季度假期週期。但在這種情況下，並沒有提前警告或準備。我們的供應商網絡也感受到了需求衝擊，導致某些產品類別的缺貨水平升高，並導致我們履行網絡中的一些暫時性的庫存放置不理想。

We were able to quickly react to this by updating our recommendation engines so customers could easily sub-select different brands, sizes or patterns if their original choices were unavailable. Our private brand portfolio categories like crates, litter and hard goods offered customers attractive alternatives and experienced strong year-over-year growth in the quarter. These actions helped reduce abandoned orders and maintain customer engagement and conversion levels, which kept sales momentum strong throughout the quarter.

我們能夠通過更新我們的推薦引擎來快速對此做出反應，這樣如果客戶的原始選擇不可用，他們就可以輕鬆地選擇不同的品牌、尺寸或圖案。我們的自有品牌組合類別（如板條箱、垃圾和硬貨）為客戶提供了有吸引力的替代品，並在本季度實現了強勁的同比增長。這些行動有助於減少放棄訂單並保持客戶參與度和轉化率，從而使整個季度的銷售勢頭保持強勁。

However, inventory imbalances in the fulfillment network led to a higher rate of split customer orders and led us to ship more orders in multiple boxes and ship more orders over longer distances. For a portion of our volume, we increased the use of express shipments as a way to ensure timely deliveries and protect customer experience. This deviation from our standard playbook increased first quarter freight and packaging costs by approximately $20 million and negatively impacted gross margins.

然而，履行網絡中的庫存不平衡導致更高的客戶訂單拆分率，並導致我們在多個箱子中運送更多訂單，並在更遠的距離運送更多訂單。對於我們的一部分銷量，我們增加了快遞運輸的使用，以確保及時交付並保護客戶體驗。這種與我們標準劇本的偏差使第一季度的貨運和包裝成本增加了約 2000 萬美元，並對毛利率產生了負面影響。

The elevated volumes also led to a sizable increase in order backlog across the fulfillment network, which we tackled with a multipronged strategy. Our first priority was the well-being of team members, so we did everything we could to make fulfillment center workspaces as clean and safe as possible. In Q1, we also hired 4,600 new hourly associates, most of whom were dedicated to our fulfillment centers. Since the end of the quarter, we have achieved 100% of our original hiring target of 6,000. These new team members, along with thousands of other dedicated Chewtopians helped us work through the backlog and tackle the increase in customer demand.

數量的增加還導致整個履行網絡的訂單積壓大幅增加，我們採用多管齊下的策略來解決這個問題。我們的首要任務是團隊成員的福祉，因此我們盡一切努力使履行中心的工作空間盡可能乾淨和安全。在第一季度，我們還僱傭了 4,600 名新的小時工，其中大部分人致力於我們的履行中心。自本季度末以來，我們已完成 6,000 人的原定招聘目標的 100%。這些新的團隊成員以及其他數千名敬業的 Chewtopians 幫助我們解決了積壓問題並解決了客戶需求的增長。

Now that fulfillment center staffing is properly aligned with our elevated order volumes, we are better positioned to maintain equilibrium going forward. The process here is similar to hiring up around the holiday season. We add positions as demand ramps up and then balance out our ongoing staffing needs by calibrating our replacement hiring rate against natural attrition, depending upon volume requirement. We also opened our ninth fulfillment center in Salisbury, North Carolina on April 6 and immediately accelerated its volume ramp to further help reduce backlog.

既然履行中心的人員配備與我們增加的訂單量適當地保持一致，我們就可以更好地保持未來的平衡。這裡的過程類似於在假期期間招聘。隨著需求的增加，我們會增加職位，然後根據數量需求，通過校准我們的替代招聘率與自然減員來平衡我們持續的人員需求。我們還於 4 月 6 日在北卡羅來納州索爾茲伯里開設了第九個履行中心，並立即加快了其銷量增長，以進一步幫助減少積壓。

I would like to thank the Chewy team members who came together for this opening under exceptionally difficult circumstances. It is a demanding task to open a fulfillment center, and it is even more challenging to do so in the middle of a pandemic. Our next fulfillment center in Archibald, Pennsylvania remains on track to open later this year.

我要感謝 Chewy 團隊的成員，他們在異常困難的情況下為這次開幕式而齊心協力。開設履行中心是一項艱鉅的任務，在大流行期間這樣做更具挑戰性。我們在賓夕法尼亞州阿奇博爾德的下一個配送中心仍有望在今年晚些時候開業。

In closing, we are proud of the way the team executed through this milestone first quarter of 2020. We experienced strong revenue growth, record new customer acquisition and generated positive adjusted EBITDA for the first time. 2020 will be a pivotal year for Chewy, and we plan to remain true to our mission of being the most trusted and convenient online destination for pet parents and partners everywhere. Now more than ever, we are focused on execution through communication, innovation and perseverance.

最後，我們為團隊在 2020 年第一季度這一里程碑式的執行方式感到自豪。我們經歷了強勁的收入增長、創紀錄的新客戶獲取，並首次產生了正的調整後 EBITDA。 2020 年對於 Chewy 來說將是關鍵的一年，我們計劃繼續履行我們的使命，成為世界各地寵物父母和合作夥伴最值得信賴和最方便的在線目的地。現在，我們比以往任何時候都更注重通過溝通、創新和毅力來執行。

I will now turn the call over to Mario who will provide the details on our first quarter results and walk you through our current second quarter and full year financial outlook. Mario?

我現在將把電話轉給馬里奧，他將提供我們第一季度業績的詳細信息，並引導您了解我們當前的第二季度和全年財務展望。馬里奧？

Thank you, Sumit. Our first quarter results provide further proof of how our operating discipline and customer focus drive long-term shareholder value. First quarter net sales reached $1.62 billion, increasing $513 million or 46.2% year-over-year. This is the fastest year-over-year growth in absolute terms in the company's history. Excluding the estimated $70 million benefit from pantry stocking in the first quarter, net sales grew 40% year-over-year, which, in itself, represents a meaningful acceleration in our growth rate compared to fourth quarter of 2019.

謝謝你，蘇米特。我們的第一季度業績進一步證明了我們的運營紀律和以客戶為中心如何推動長期股東價值。第一季度淨銷售額達到 16.2 億美元，同比增長 5.13 億美元或 46.2%。這是該公司歷史上以絕對值計算的最快同比增長。不包括第一季度從食品儲藏中獲得的 7000 萬美元收益，淨銷售額同比增長 40%，與 2019 年第四季度相比，這本身意味著我們的增長率顯著加快。

Autoship customer sales for the first quarter totaled $1.1 billion, another company milestone, or 67.9% of total net sales. Autoship customer sales growth again outpaced total net sales growth, increasing 48% year-over-year or 180 basis points faster than total net sales growth.

第一季度 Autoship 客戶銷售額總計 11 億美元，是公司的另一個里程碑，佔總淨銷售額的 67.9%。汽車客戶銷售增長再次超過總淨銷售額增長，同比增長 48%，或比總淨銷售額增長快 180 個基點。

In the first quarter, we added 1.6 million active customers, bringing our total active customers to 15 million. On a year-over-year basis, we added 3.7 million active customers, an increase of 32.6% year-over-year. As we have shared previously, our active customer count at the end of the quarter is equal to the active customers at the end of the previous quarter plus any new customers added in the quarter, minus any customers who have not made a purchase in the last 364 days.

第一季度，我們增加了 160 萬活躍客戶，使我們的活躍客戶總數達到 1500 萬。與去年同期相比，我們增加了 370 萬活躍客戶，同比增長 32.6%。正如我們之前所分享的，我們在本季度末的活躍客戶數量等於上一季度末的活躍客戶加上本季度增加的任何新客戶，減去上一季度未購買的任何客戶364 天。

Net sales per active customer for Q1 2020 increased 6.6% year-over-year to $357 when adjusting Q1 2019 results to exclude the benefit of the extra week in Q4 2018. As a reminder, net sales per active customer equals trailing 4-quarter net sales divided by the number of active customers at the end of the quarter. In this case, and through the third quarter of 2020, we will adjust out the impact of the extra week in Q4 2018 when presenting year-over-year growth in NSPAC versus 2019.

在調整 2019 年第一季度的業績以排除 2018 年第四季度額外一周的收益時，2020 年第一季度每位活躍客戶的淨銷售額同比增長 6.6% 至 357 美元。提醒一下，每位活躍客戶的淨銷售額等於過去 4 個季度的淨銷售額銷售額除以季度末的活躍客戶數量。在這種情況下，到 2020 年第三季度，當 NSPAC 與 2019 年相比呈現同比增長時，我們將調整 2018 年第四季度額外一周的影響。

Our first quarter NSPAC shows a 1% decline quarter-over-quarter. This is a function of the magnitude and timing of new customer additions in Q1 2020. Nearly 80% of the new customer acquisitions in the quarter took place in March and April. While we include all of these new customers in the active customer count, the relative impact on revenue over the past 4 quarters is small. The true value of these new customers is the cumulative positive impact of their purchases on our revenue in future quarters as their repeat purchasing activity ramps up and they direct more of their wallet share to Chewy over time.

我們的第一季度 NSPAC 顯示環比下降 1%。這是 2020 年第一季度新增客戶數量和時間的函數。本季度近 80% 的新客戶獲取發生在 3 月和 4 月。雖然我們將所有這些新客戶都包括在活躍客戶數量中，但過去 4 個季度對收入的相對影響很小。這些新客戶的真正價值在於他們的購買對我們未來幾個季度的收入產生了累積的積極影響，因為他們的重複購買活動增加了，並且隨著時間的推移，他們將更多的錢包份額分配給了 Chewy。

Q1 gross margin increased 50 basis points year-over-year to 23.4% in spite of increased freight and packaging costs, which negatively impacted our gross margin by approximately 120 basis points in the quarter.

儘管運費和包裝成本增加，但第一季度毛利率同比增長 50 個基點至 23.4%，這對本季度的毛利率產生了約 120 個基點的負面影響。

Q1 operating expenses, which include SG&A and advertising and marketing, were $426.2 million or 26.3% of net sales, scaling 70 basis points year-over-year compared to Q1 2019. SG&A, which includes all fulfillment costs, customer service, credit card processing fees, corporate G&A, corporate payroll and share-based compensation, totaled $320.1 million in the first quarter or 19.7% of net sales. On a fully loaded basis, this represents a 130 basis point improvement versus the fourth quarter of 2019. And excluding share-based compensation, SG&A as a percent of net sales improved 50 basis points to 17.1% in Q1 versus 17.6% in Q4 2019. The primary driver of this accelerated quarter-over-quarter scaling we saw in SG&A was a surge in sales.

包括 SG&A 以及廣告和營銷在內的第一季度運營費用為 4.262 億美元，占淨銷售額的 26.3%，與 2019 年第一季度相比同比增長 70 個基點。SG&A，包括所有履行成本、客戶服務、信用卡處理第一季度的費用、公司 G&A、公司工資和股票薪酬總計 3.201 億美元，占淨銷售額的 19.7%。在滿負荷的基礎上，這比 2019 年第四季度提高了 130 個基點。不包括基於股票的薪酬，SG&A 占淨銷售額的百分比在第一季度提高了 50 個基點，達到 17.1%，而 2019 年第四季度為 17.6%。我們在 SG&A 中看到的這種加速的季度環比擴展的主要驅動力是銷售額的激增。

As part of our COVID-19 mitigation efforts, in the first quarter, we updated employee benefits and policies, invested in temporary pay raises and bonuses for our hourly team members and materially raised our cleaning and sanitation protocols to keep our network operational and our employees safe. Additionally, starting in mid-March, we hired 4,600 hourly associates into our fulfillment network. All of this combined led to approximately $10 million incremental expenses or 60 basis points to SG&A as a percent of net sales in Q1. These investments were prudent in size, scalable in nature and highly focused on protecting our customers and employees.

作為我們緩解 COVID-19 工作的一部分，在第一季度，我們更新了員工福利和政策，為我們的每小時團隊成員投資了臨時加薪和獎金，並大幅提高了我們的清潔和衛生協議，以保持我們的網絡和員工的正常運行安全的。此外，從 3 月中旬開始，我們僱傭了 4,600 名小時工加入我們的履行網絡。所有這些加起來導致大約 1000 萬美元的增量費用或 SG&A 佔第一季度淨銷售額的 60 個基點。這些投資在規模上是審慎的，本質上是可擴展的，並且高度專注於保護我們的客戶和員工。

Q1 advertising and marketing was $106.1 million or 6.5% of net sales, scaling 270 basis points year-over-year. The increase in organic, or said another way, customers who come to our site without the aid of acquisition and marketing spend, allowed us to thoughtfully reduce our overall media buys in the quarter. Additionally, our team was quick to capitalize on the lower media costs that we observed across digital and off-line channels, thus creating a tailwind that resulted in lower cost for all other customer acquisitions. These twin benefits allowed us to optimize our investments in advertising and marketing in the quarter and acquire a record number of new customers.

第一季度的廣告和營銷為 1.061 億美元，占淨銷售額的 6.5%，同比增長 270 個基點。在沒有收購和營銷支出幫助的情況下訪問我們網站的有機客戶的增加，或者換句話說，使我們能夠謹慎地減少本季度的整體媒體購買量。此外，我們的團隊迅速利用了我們在數字和線下渠道中觀察到的較低媒體成本，從而創造了順風，從而降低了所有其他客戶獲取的成本。這些雙重好處使我們能夠在本季度優化我們在廣告和營銷方面的投資，並獲得創紀錄數量的新客戶。

First quarter net loss was $47.9 million as net margin declined 30 basis points year-over-year to negative 3.0%. Excluding share-based compensation of $42.3 million, our first quarter net loss was $5.5 million, and net margin improved 170 basis points to negative 0.3%.

第一季度淨虧損為 4790 萬美元，淨利潤同比下降 30 個基點至負 3.0%。剔除 4230 萬美元的股票薪酬，我們第一季度的淨虧損為 550 萬美元，淨利潤率提高 170 個基點至負 0.3%。

In the first quarter, we also marked a milestone as Q1 was our first adjusted EBITDA positive quarter in the company's history. Q1 adjusted EBITDA was $3.4 million, and adjusted EBITDA margin improved 160 basis points year-over-year to 0.2%. Improvements in both adjusted EBITDA and adjusted EBITDA margin reflected our ability to grow the top line, improve gross margin and scale advertising and marketing despite the challenging operating environment and incremental costs brought about by the COVID-19 outbreak. More than ever, we believe that our disciplined data-driven operating strategy, coupled with a secular shift to online our category, will propel us faster along our trajectory of long-term sustainable growth and margin expansion.

在第一季度，我們也標誌著一個里程碑，因為第一季度是我們公司歷史上第一個調整後的 EBITDA 正數季度。第一季度調整後 EBITDA 為 340 萬美元，調整後 EBITDA 利潤率同比提高 160 個基點至 0.2%。調整後 EBITDA 和調整後 EBITDA 利潤率的改善反映了儘管 COVID-19 爆發帶來了具有挑戰性的運營環境和增加成本，但我們仍有能力增加收入、提高毛利率以及擴大廣告和營銷規模。我們比以往任何時候都更相信，我們嚴格的數據驅動運營戰略，再加上我們類別向在線的長期轉變，將推動我們更快地沿著長期可持續增長和利潤率擴張的軌跡前進。

Turning now to free cash flow. Q1 free cash flow was negative $21.8 million as $42.5 million in capital investments offset $20.7 million of positive cash from operations. Q1 capital investments were primarily driven by cash outlays for our new fulfillment centers in North Carolina and Pennsylvania, in IT projects and equipment.

現在轉向自由現金流。第一季度自由現金流為負 2180 萬美元，因為 4250 萬美元的資本投資抵消了 2070 萬美元的運營正現金流。第一季度的資本投資主要由我們在北卡羅來納州和賓夕法尼亞州的新履行中心的 IT 項目和設備方面的現金支出推動。

Now to guidance. As we navigate Q2 and full year 2020, our team remains aligned on our mission, and we continue to execute our growth strategy. The inputs in our business remain in line with our expectations and are reflected in our Q2 guidance. Some ongoing costs related to the residual impact of COVID-19 are expected to carry over to varying degrees into Q2. Our cleaning and sanitizing tempo will remain elevated, and we continue to see some pressure on packaging and freight costs. SG&A in Q2 will also reflect the full quarterly cost of the 6,000 newly hired fulfillment center workers whereas Q1 SG&A only reflect the proportional costs during the hiring ramp-up.

現在來指導。在我們度過第二季度和 2020 年全年的過程中，我們的團隊始終堅持我們的使命，我們將繼續執行我們的增長戰略。我們業務的投入仍然符合我們的預期，並反映在我們的第二季度指導中。與 COVID-19 的殘餘影響相關的一些持續成本預計將不同程度地延續到第二季度。我們的清潔和消毒節奏將保持較高水平，我們繼續看到包裝和運輸成本面臨一些壓力。第二季度的 SG&A 還將反映 6,000 名新聘用的履行中心員工的全部季度成本，而第一季度的 SG&A 僅反映招聘增加期間的成比例成本。

On balance, we believe we have sufficient visibility on the revenue and cost sides of the business to again provide quarterly and full year guidance for net sales and full year guidance for adjusted EBITDA margin. This guidance assumes no material changes or disruptions in the current operating environment, our supply chain or our fulfillment network.

總的來說，我們相信我們對業務的收入和成本方面有足夠的了解，可以再次提供淨銷售額的季度和全年指導以及調整後 EBITDA 利潤率的全年指導。本指南假定當前運營環境、我們的供應鍊或我們的履行網絡沒有重大變化或中斷。

For the second quarter 2020, we are expecting net sales to be between $1.62 billion and $1.64 billion, representing year-over-year growth of between 40% and 42%. Recall that we provide profit guidance at the annual level, not quarterly.

對於 2020 年第二季度，我們預計淨銷售額將在 16.2 億美元至 16.4 億美元之間，同比增長 40% 至 42%。回想一下，我們提供年度利潤指導，而不是每季度。

For the full year 2020, we are expecting net sales to be between $6.55 billion and $6.65 billion, representing year-over-year growth of between 35% and 37%, and full year 2020 adjusted EBITDA margin to be approximately breakeven, plus or minus 30 basis points.

對於 2020 年全年，我們預計淨銷售額在 65.5 億美元至 66.5 億美元之間，同比增長 35% 至 37%，2020 年全年調整後 EBITDA 利潤率約為盈虧平衡，上下浮動30 個基點。

While we're not guiding to full year SG&A, I will share a few thoughts that may provide additional context in this area. As I mentioned earlier, we expect to incur ongoing COVID-related expenses in the second quarter as we remain committed to safeguarding our team members' health and well-being and protecting the customer experience. On a fully loaded basis, we expect full year SG&A as a percentage of net sales to be lower than fiscal 2019.

雖然我們沒有指導全年的 SG&A，但我將分享一些想法，這些想法可能會在該領域提供更多背景信息。正如我之前提到的，我們預計將在第二季度持續產生與 COVID 相關的費用，因為我們將繼續致力於保護我們團隊成員的健康和福祉並保護客戶體驗。在滿負荷的基礎上，我們預計全年 SG&A 占淨銷售額的百分比將低於 2019 財年。

I will conclude by saying that we are pleased with our Q1 2020 results and look forward to Q2 and to the rest of the year.

最後我想說的是，我們對 2020 年第一季度的業績感到滿意，並期待第二季度和今年餘下的時間。

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

有了這個，我會把電話轉給接線員提問。操作員？

(Operator Instructions) And your first question comes from Doug Anmuth with JPMorgan.

（操作員說明）您的第一個問題來自摩根大通的 Doug Anmuth。

First, just given the 1Q strength and your views that 1Q is not a one-off event and that e-commerce adoption has accelerated and that new customer behavior is promising, can you just talk a little bit more about your guidance in the back half and the decel that's implied? I think it's about 31% at the high end in the back half.

首先，鑑於 1Q 的實力以及您認為 1Q 不是一次性事件、電子商務採用速度加快以及新客戶行為有希望的觀點，您能否多談談您在後半部分的指導以及暗示的減速？我認為後半部分的高端約為 31%。

And then just related to that, you talked about $70 million of onetime benefit in the quarter from pantry stocking and mix towards the consumables, but yet you don't expect it to reverse. Can you just help us understand those comments better? And what gives you confidence that, that behavior may be permanently shifted here?

然後就與此相關，您談到本季度從食品儲藏室和消耗品的混合中獲得了 7000 萬美元的一次性收益，但您預計它不會逆轉。你能幫助我們更好地理解這些評論嗎？是什麼讓你相信，這種行為可能會在這里永久改變？

Doug, thanks for the question. This is Mario. I'll take the first question, and Sumit will answer the second part. What I think you're getting at is what is our guidance philosophy, how do we think about the guidance that we provide. And so a couple of things. One is we are very data-driven. When we create guidance, we look at a variety of metrics: macro, micro factors and trends; things like customer behavior, including Autoship, and that's a factor for us; the strength of our catalog; competitive data; and we take into account also our projected marketing spend and resulting customer acquisition. So the guidance that we provide is based on lots of data. And currently, the guidance we provide is based on the best available information we have as of right now.

道格，謝謝你的提問。這是馬里奧。我會回答第一個問題，Sumit 會回答第二部分。我認為您所了解的是我們的指導理念是什麼，我們如何看待我們提供的指導。還有幾件事。一是我們非常受數據驅動。當我們創建指導時，我們會查看各種指標：宏觀、微觀因素和趨勢；諸如客戶行為之類的事情，包括 Autoship，這對我們來說是一個因素；我們目錄的實力；競爭數據；我們還考慮了我們預計的營銷支出和由此產生的客戶獲取。因此，我們提供的指導基於大量數據。目前，我們提供的指導是基於我們目前掌握的最佳信息。

I think let me -- so let me add to that a little bit. Hey, Doug, this is Sumit. As we look at our business to the balance of the year, we see a few variables at play on top of what Mario has said. So on net sales, we have a good understanding of the pre-COVID customer behavior and expect limited variability in their behavior. We also have early conclusions about the post-COVID new customers that we've written in the earnings script. And although we expect them to behave similar to previous cohorts, their behavior could vary, right, relative to expectations, either up or down slightly. And then there is the new customer acquisition piece, which could actually get a second tailwind from COVID, which is currently not baked into our assumptions.

我想讓我 - 所以讓我補充一點。嘿，道格，我是蘇米特。當我們審視我們今年的業務時，除了馬里奧所說的之外，我們還看到了一些變數。因此，在淨銷售額方面，我們對 COVID 之前的客戶行為有很好的了解，並期望他們的行為變化有限。我們還對我們在收益腳本中編寫的 COVID 後新客戶有早期結論。儘管我們預計他們的行為與之前的同類群體相似，但他們的行為可能會有所不同，正確的，相對於預期而言，可能會略有上升或下降。然後是新的客戶獲取部分，它實際上可能會從 COVID 中獲得第二次順風，目前尚未納入我們的假設。

And then on the cost side, we could see incremental cost pressures in areas like media costs. It's an election year, competition reengaging in the back half of the year. We may also have incremental expenses associated with the second wave that we believe we have a comprehensive plan, and we're going to be better prepared to meet that potential need. So netting these factors out, we feel good about the guidance that we're providing today. And as these evolve, we'll continue to update you and the rest of the audience as the year plays out. So hopefully, that provides a comprehensive point of view.

然後在成本方面，我們可以看到媒體成本等領域的成本壓力增加。這是一個選舉年，競爭在下半年重新開始。我們可能還會有與第二波相關的增量費用，我們認為我們有一個全面的計劃，我們將為滿足這一潛在需求做好更好的準備。因此，將這些因素排除在外，我們對我們今天提供的指導感覺良好。隨著這些的發展，隨著這一年的結束，我們將繼續為您和其他觀眾提供最新信息。因此，希望這提供了一個全面的觀點。

Your second question is about pantry stocking and the comment that we're not seeing it reverse. So what we mean by that is we're not actually seeing customers hold their purchases back as they step out from Q1 into Q2. So that's -- so we continue to track repeat order behavior. We continue to track subscriber rates to our Autoship program, and we continue to track metrics such as AOV, attach rates, order attach rates, et cetera, et cetera. And so far, we're seeing behaviors that are promising and mirror previous cohort behavior. That's the context of the comment there.

您的第二個問題是關於食品儲藏室的庫存以及我們沒有看到它反轉的評論。因此，我們的意思是，我們實際上並沒有看到客戶在從第一季度進入第二季度時推遲購買。所以這就是 - 所以我們繼續跟踪重複訂單行為。我們將繼續跟踪 Autoship 計劃的訂戶率，並繼續跟踪 AOV、附加率、訂單附加率等指標。到目前為止，我們看到的行為是有希望的，並且反映了以前的同類行為。這就是那裡評論的上下文。

Your next question comes from Brian Fitzgerald with Wells Fargo.

您的下一個問題來自富國銀行的 Brian Fitzgerald。

A quick clarification on, Sumit, what you just said to that. The post-COVID Autoship customers, you said the sign-ups and cancellations are within historical ranges, but you're also seeing basket sizes increase faster with the new cohorts. Have you seen anything with propensity to use additional hard goods or attach rates or private label or pharma with those newer post-COVID cohorts?

快速澄清一下，Sumit，你剛才說的話。您說 COVID 後 Autoship 客戶的註冊和取消都在歷史範圍內，但您也看到新群組的購物籃大小增加得更快。您是否看到任何傾向於使用額外的硬商品或附加費率或自有品牌或製藥與那些較新的後 COVID 隊列？

And then second question is just around adoption rates. And we've seen indications that the pandemic had initially sent adoption rates up, but then they reverted back to normal maybe as shelters emptied out. We did see a spike in fostering though. So anything you can -- any color you can give us on net-net? Is that more pets in the household? Is that good for you? Or are you seeing the shelters start to open up and fill back up? That would be great.

然後第二個問題是關於採用率的。我們已經看到有跡象表明，大流行最初導致採用率上升，但隨後可能隨著避難所的清空而恢復正常。不過，我們確實看到了培養的高峰。所以你能做的任何事情——你可以在net-net上給我們任何顏色？是不是家裡的寵物多了？這對你有好處嗎？或者您是否看到避難所開始開放並重新填滿？那很好啊。

Yes. Hey, Brian. Okay, lots of questions there. I'll take them one by one. The -- let's talk about the shelter adoption and foster sort of rates that we're seeing. We -- there's not perfect data available in the space. However, the data that we're tracking that shows us -- essentially shows that in March and April, fosters and adoption on a year-over-year basis were up 60%. And you're right, coming into May and June, they've sort of reverted back to sort of pre-pandemic levels. Net-net, what we saw on our side was an increase on pet profile sign-up. Over 2.5 million customers signed up for pet profiles with us in Q1. And the encouraging data point there is 1 in every 4 customers who signed up was a new puppy or a new kitten. And so we're trying to correlate this back into shelter and adoption as much as possible, and there's some correlation, but I think there's an overall trend that we're winning with here.

是的。嘿，布賴恩。好吧，那裡有很多問題。我會一一拿走。 - 讓我們談談我們看到的收容所採用和培養率。我們——空間中沒有完美的數據可用。然而，我們跟踪的數據向我們展示了——基本上顯示，在 3 月和 4 月，培育和採用率同比增長了 60%。你是對的，進入 5 月和 6 月，它們已經恢復到大流行前的水平。 Net-net，我們看到的是寵物檔案註冊的增加。第一季度有超過 250 萬客戶向我們註冊了寵物檔案。令人鼓舞的數據點是，每 4 個註冊的客戶中就有 1 個是新的小狗或新的小貓。因此，我們正試圖盡可能地將其與庇護所和收養相關聯，並且存在一些相關性，但我認為我們在這裡獲勝的總體趨勢。

And when you look at that type of customer, the type of baskets that they build are richer baskets because you require a full array and an assortment of essential food and supplies but also a lot of hard goods and the combination. So that's -- I hope that provides a bit of a color into the type of customer behavior in the -- and connecting it back to the shelter, foster, rescue sort of trends.

當您查看這種類型的客戶時，他們構建的籃子類型更豐富，因為您需要完整的陣列和各種必需的食物和用品，還需要大量的硬商品和組合。所以這就是 - 我希望這為客戶行為類型提供了一些色彩 - 並將其與庇護所，培育，救援類趨勢聯繫起來。

Our next question comes from Mark Mahaney with RBC.

我們的下一個問題來自 RBC 的 Mark Mahaney。

Okay. I know you touched on 2 things, but you didn't quantify them, so I'm going to try to draw you out on that. Private label and pharmacy, anything about the growth rates, their contribution overall to revenue. And is there any particular reason why this COVID crisis would have been a catalyst to one of those, maybe the pharmacy products? Do you happen to see -- just throwing it out as an idea that you would see a greater interest in pharmacy products for pets during this environment?

好的。我知道你提到了兩件事，但你沒有量化它們，所以我會試著讓你明白這一點。自有品牌和藥房，關於增長率的任何事情，它們對收入的整體貢獻。有什麼特別的原因可以說明這場 COVID 危機會成為其中一個催化劑，也許是藥房產品？您是否碰巧看到 - 只是將其視為在這種環境下您會看到對寵物藥房產品的更大興趣的想法？

Mark, good to hear from you. So overall, the pharmacy business had another strong quarter, and we remain pleased with this young vertical's progress. Young being the operative word and, therefore, I'll stay away from kind of providing specific contribution to the business today. We saw increased demand from customers who no longer had direct access to their vet's office during the lockdown. We also saw -- and this was driven by either clinic closures or reduced clinic hours. And at the same time, we experienced -- there was a competing phenomenon where we experienced delays in processing prescription approvals due to those trends of office reduced hours or closures. It did not, however, in our opinion, impact conversion. And on balance, we believe that the pharmacy business saw a net benefit from consumer changes during the lockdown, supporting the intuitive or the hypothesis that you led with.

馬克，很高興收到你的來信。因此，總體而言，藥房業務又迎來了一個強勁的季度，我們仍然對這個年輕的垂直行業的進步感到滿意。年輕是一個有效的詞，因此，我不會為今天的業務提供具體的貢獻。我們看到在封鎖期間不再能夠直接進入獸醫辦公室的客戶的需求增加了。我們還看到 - 這是由診所關閉或診所時間減少所驅動的。與此同時，我們經歷了一種競爭現象，由於辦公室減少工作時間或關閉的趨勢，我們在處理處方批准方面遇到了延誤。然而，在我們看來，它並不影響轉換。總的來說，我們認為藥房業務在鎖定期間從消費者變化中獲得了淨收益，這支持了您所領導的直覺或假設。

On private brands, we continue to treat private brands as strategic. You can kind of observe from the comment, we tested -- this was an opportunity for us to really test out substitutability and the value that we provide with private brands, and we led with those in many categories opportunistically and deliberately. And we saw our private brand portfolio hold up strong in this regard. So we continue to fuel growth with these 2 new verticals, and they continue to provide us the complementarity and net benefit of overall basket value.

在自有品牌方面，我們繼續將自有品牌視為戰略性品牌。您可以從評論中觀察到，我們進行了測試——這是我們真正測試可替代性和我們為自有品牌提供的價值的機會，我們機會主義地和故意地在許多類別中領先。我們看到我們的自有品牌組合在這方面表現強勁。因此，我們繼續通過這兩個新的垂直領域推動增長，它們繼續為我們提供整體籃子價值的互補性和淨收益。

Our next question comes from Oliver Wintermantel with Evercore ISI.

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

I had 2 questions. One is inventories. They were up about 77%. Now that probably has to do with the opening up of the new FC. But from your commentary in the prepared remarks, there was also some hiccups in -- with your vendors or fulfillment, so maybe a few comments on inventory and how that is shaping up for the rest of the year.

我有 2 個問題。一是庫存。他們上漲了約77%。現在這可能與新FC的開放有關。但是從你在準備好的評論中的評論來看，你的供應商或履行方面也有一些小問題，所以也許有一些關於庫存的評論，以及今年剩餘時間的情況。

And then just the other one was on gross margins. I know the fulfillment cost had some impact on the gross margin here and how you would think about that going forward in the next 1 or 2 quarters.

然後只有另一個是毛利率。我知道履行成本對這裡的毛利率以及您如何看待未來 1 或 2 個季度的毛利率有一些影響。

Oliver, this is Mario. I'll take that question. So in regards to the inventory build, you're right that it grew versus the start of the year at the end of Q4 2019. And I think your intuition is right as well that part of the growth is because we launched a new facility, our Charlotte fulfillment center on April 6. Now the other reason why inventory would grow is simply the fact that our sales grew. So as our sales grow, we have more inventory to maintain levels of our customer experience that we aim for. I think that -- hopefully, that answers your question on the inventory itself.

奧利弗，這是馬里奧。我會回答這個問題。因此，關於庫存建設，您是對的，它與 2019 年第四季度末的年初相比有所增長。我認為您的直覺也是正確的，部分增長是因為我們推出了一個新設施，我們的夏洛特履行中心於 4 月 6 日舉行。現在庫存增長的另一個原因僅僅是我們的銷售額增長了。因此，隨著我們的銷售額增長，我們有更多的庫存來維持我們所追求的客戶體驗水平。我認為——希望這能回答你關於庫存本身的問題。

In terms of gross margin going forward, let me point you back to our Q1 results and the fact that we increased gross margin year-over-year and, otherwise, would have been higher than when we report it had it not been for the impact of COVID that drove an impact of about 120 basis points in the quarter which, obviously, we don't believe it's a recurring cost in terms of gross margin.

就未來的毛利率而言，讓我回顧一下我們的第一季度業績，以及我們的毛利率同比增加的事實，否則，如果沒有影響，我們會比我們報告時的毛利率更高COVID 在本季度推動了約 120 個基點的影響，顯然，我們認為這不是毛利率方面的經常性成本。

Oliver, just to clarify, gross margin -- freight and logistics hits gross margin for us. Fulfillment expenses hit below the gross margin line into contribution profit.

奧利弗，只是為了澄清一下，毛利率——貨運和物流對我們來說是毛利率。履行費用低於毛利率線成為貢獻利潤。

Yes. That's actually fulfillment new expenses, meaning fixed fulfillment, like the rent and the like. That's all in SG&A.

是的。這實際上是履行新費用，意味著固定履行，如租金等。這就是 SG&A 中的全部內容。

Yes.

是的。

Your next question comes from Seth Basham with Wedbush.

您的下一個問題來自 Wedbush 的 Seth Basham。

Congrats on some great results. My question is on customer acquisition costs. If you could give us some quantitative insight into how they trended in the first quarter and your expectations for Q2 and the balance of the year, that would be really helpful.

祝賀一些偉大的結果。我的問題是關於客戶獲取成本的。如果您能給我們一些關於它們在第一季度的趨勢以及您對第二季度和今年剩餘時間的預期的定量見解，那將非常有幫助。

Sure. Seth, so as we had anticipated when we met in April, we saw efficiencies in marketing in Q1, both the inputs -- input costs across media marketing mix change and lowered, in fact, the change was in favorable condition in this way. And we also saw a boost on organic traffic towards our site, combination of which drove marketing efficiencies that we've mentioned in the earnings today. For Q2, we are gradually and opportunistically ramping up marketing starting now. And as we've anticipated, we are observing an increase in channel input costs across an array of media mix channels, digital and mass media, driven by businesses ramping up spending on these channels or marketing channels. Our marketing teams continue to work smartly to balance investment levels to maximize acquisition against customer LTV and the resulting overall marketing yield as an output of that equation. Net-net, we expect advertising and marketing costs to be higher in Q2 than they were in Q1 driven by these higher input costs as well as greater participation from retailers in the space.

當然。賽斯，正如我們在 4 月份見面時所預料的那樣，我們在第一季度看到了營銷效率，無論是投入——跨媒體營銷組合的投入成本都發生了變化並降低了，事實上，這種變化以這種方式處於有利狀態。我們還看到我們網站的自然流量有所增加，這兩者的結合推動了我們今天在收益中提到的營銷效率。對於第二季度，我們從現在開始逐步並有機會地加大營銷力度。正如我們所預期的那樣，我們觀察到，在企業增加在這些渠道或營銷渠道上的支出的推動下，一系列媒體混合渠道、數字和大眾媒體的渠道投入成本有所增加。我們的營銷團隊繼續巧妙地平衡投資水平，以最大限度地提高客戶 LTV 的獲取以及由此產生的整體營銷收益作為該等式的輸出。 Net-net，我們預計第二季度的廣告和營銷成本將高於第一季度，這是由於這些更高的投入成本以及零售商對該領域的更多參與。

That's helpful. And just to clarify, from a year-over-year perspective, are you expecting as much leverage in sales and marketing in the second quarter as you experienced in the first? I gather no.

這很有幫助。澄清一下，從同比的角度來看，您是否期望第二季度的銷售和營銷槓桿與第一季度一樣多？我收集沒有。

We are -- we will continue to drive efficiencies. I will stay away from commenting on the specific amount of the efficiency at this moment.

我們是——我們將繼續提高效率。我暫時不評論效率的具體數量。

Our next question comes from Lauren Cassel with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Lauren Cassel。

Great. Just one follow-up on that. I guess are you assuming any increase in marketing or advertising costs in the back half of this year and maybe the first half of '21 to retain these new customers? Or do you sort of expect that their behaviors will remain sticky without any incremental spend?

偉大的。只是一個後續行動。我想您是否假設今年下半年以及 21 年上半年可能會增加營銷或廣告成本以留住這些新客戶？或者你是否期望他們的行為會在沒有任何增量支出的情況下保持粘性？

And then my second question, just sort of a big picture question. I guess what are sort of the 1 or 2 key learnings from the COVID period? And has that changed any of your long-term strategic priorities or plans for the business?

然後是我的第二個問題，只是一個大問題。我猜想從 COVID 時期學到的 1 或 2 個關鍵知識是什麼？這是否改變了您的任何長期戰略重點或業務計劃？

In terms of marketing, no. We -- as long as the inputs in the customer behavior continue to align with the output behaviors of purchase rate and subscribe rate that we are observing, we do not plan to spend incremental marketing, and that's not something that we've baked in.

在營銷方面，沒有。我們——只要客戶行為的輸入繼續與我們觀察到的購買率和訂閱率的輸出行為保持一致，我們不打算進行增量營銷，這不是我們已經考慮的。

Number two, in terms of learning from the COVID period, I think the -- thematically, we've captured -- looking back, if we were to summarize the playbook that the team executed, I would summarize it as communicating, innovating and really persevering. We've needed the agility of a sprint and the stamina of a marathon as we have come into this and as we come out of it. We have continued to innovate on our customers' behalf, and we will continue to do so. We are focused appropriately in making sure that priorities that hit growth, profitability and customer experience are top of mind for us. And we've been able to appropriately prioritize others below the line. And last, but not least, we continue to communicate and overcommunicate with our teams to make sure that we're totally aligned.

第二，就從 COVID 時期的學習而言，我認為 - 從主題上講，我們已經捕捉到 - 回顧過去，如果我們要總結團隊執行的劇本，我會將其總結為溝通、創新和真正堅持不懈。我們需要衝刺的敏捷性和馬拉鬆的耐力，因為我們已經進入這個階段，當我們走出這個階段時。我們一直代表客戶進行創新，我們將繼續這樣做。我們適當地專注於確保影響增長、盈利能力和客戶體驗的優先事項是我們的首要任務。我們已經能夠適當地優先考慮線下的其他人。最後但並非最不重要的一點是，我們繼續與我們的團隊進行溝通和過度溝通，以確保我們完全一致。

Your next question comes from Brent Thill with Jefferies.

您的下一個問題來自 Jefferies 的 Brent Thill。

This is John Colantuoni on for Brent. Last quarter, you mentioned plans to hire 6,000 to 10,000 new employees. It looks like you're now at 6,000. Are you planning to continue hiring more? Or have you reached your target for the year? And if not, was your decision to hire at the low end the result of seeing slightly less pickup in demand than you originally had expected? And also, can you give us a sense for what portion of these employees that you hired are part-time versus full time?

這是布倫特原油的約翰·科蘭托尼。上個季度，您提到計劃僱用 6,000 到 10,000 名新員工。看起來你現在是6000。你打算繼續招聘更多人嗎？或者你達到了今年的目標？如果不是，您決定在低端招聘是否是因為需求回升略低於您最初的預期？此外，您能否告訴我們您僱用的這些員工中有多少是兼職和全職？

Sure. You might have to clarify one part of your question, but there were several in there I'll start and then maybe we can go back to the second part of the question. The -- so we've met our target. We are not continuing to hire more people. As we've articulated in the script, we believe that we have reached a point with variable labor where our demand and supply equilibrium has been achieved, and we essentially will follow the playbook that we always do. We will let natural attrition take care of kind of maintaining those equilibriums. To handle the elevated demand that we continue to knock out of the park, we are continuing to utilize that labor. And if demand levels fall off at any point, then we'll let natural attrition take care of it, which is very similar to the way that we actually plan our holiday cycle. So there's nothing unique that is going on with this specific time. It's just that the demand shock happened before we could actually align the labor, so now the labor is aligned.

當然。您可能需要澄清您問題的一部分，但我將開始其中的幾個，然後也許我們可以回到問題的第二部分。 - 所以我們已經達到了我們的目標。我們不會繼續僱用更多的人。正如我們在劇本中所闡述的那樣，我們相信我們已經達到了一個可變勞動力的點，我們的供需平衡已經實現，我們基本上將遵循我們一直做的劇本。我們將讓自然損耗來維持這些平衡。為了處理我們繼續淘汰園區的高需求，我們將繼續利用這些勞動力。如果需求水平在任何時候下降，那麼我們會讓自然減員來處理它，這與我們實際計劃假期週期的方式非常相似。所以在這個特定的時間裡沒有什麼獨特的事情發生。只是需求衝擊發生在我們真正調整勞動力之前，所以現在勞動力已經調整好了。

What was the second part of your question, if you don't mind repeating?

如果您不介意重複，您的問題的第二部分是什麼？

Well, you pretty much answered it, but I did also just have a question about whether you can give us a sense for what portion of these employees are part-time versus full time?

好吧，你幾乎回答了這個問題，但我也確實有一個問題，你是否可以讓我們了解這些員工中有哪些部分是兼職和全職？

Yes, sure. So this is -- you have to think of these as hourly team members, right, who are full-time employees. And they flex up and down in maintaining the equilibrium of demand and labor plan.

是的，當然。所以這是 - 你必須將這些視為小時團隊成員，對，他們是全職員工。他們在保持需求和勞動力計劃的平衡方面上下彎曲。

Our next question comes from Deepak Mathivanan with Barclays.

我們的下一個問題來自巴克萊銀行的 Deepak Mathivanan。

So 2 quick ones from us. First, Sumit, can you talk a little bit more about the reactivation trends? Do you have a large base of customers who historically bought just hard goods, just toys and kind of churned off after a one-off purchase? Anything you're doing to engage with them more? And how much of the new customers, the 1.6 million in 1Q, is reactivation versus first time to the platform?

所以我們有2個快速的。首先，Sumit，您能多談談重新激活的趨勢嗎？您是否擁有大量客戶，他們過去只購買硬貨、玩具，並且在一次性購買後就流失了？您正在做些什麼來與他們進行更多互動？與第一次訪問平台相比，第一季度的 160 萬新客戶中有多少是重新激活的？

And then second question, does the strong demand that you're seeing recently give you some flexibility to leverage maybe with vendors better at this time, perhaps in terms of funding first Autoship orders or any other forms of vendor rebates at this time?

然後是第二個問題，您最近看到的強勁需求是否給了您一些靈活性，可以在此時更好地利用供應商，也許是在資助第一個 Autoship 訂單或此時任何其他形式的供應商回扣方面？

Sure. So getting to the second question, our relationship with suppliers, we view that as strategic, and we also view our participation levels as an ongoing strategy not driven by opportunistic or changes in events. So as we've continued to scale, you've seen that our scale and market share has produced leverage to be able to drive efficiencies across product margin as well as overall supply chain. So that -- I think with the acceleration in the trends that we're seeing here, we continue to be bullish that we can continue to drive that scale and, therefore, fitness in the bottom line.

當然。所以談到第二個問題，我們與供應商的關係，我們認為這是戰略性的，我們也將我們的參與水平視為一項持續的戰略，而不是由機會主義或事件變化驅動。因此，隨著我們繼續擴大規模，您已經看到我們的規模和市場份額已經產生了槓桿作用，能夠提高產品利潤率和整個供應鏈的效率。所以 - 我認為隨著我們在這裡看到的趨勢加速，我們繼續看好我們可以繼續推動這種規模，因此，底線的適應性。

On the first part of the question, reactivation trends. So the reactivated base of customers is a small portion relative to the overall customer base that we're talking about, which is also natural for us because our retention rates are high -- are multiple is higher than traditional e-commerce cohorts. And also recall that our attrition is de minimis year 2, into year 3. So these kind of trends are encouraging where, when we bring customers onto our platform, we are -- we have the ability to retain them for long periods of time, and they ship their share of wallet over to Chewy the longer that they stay with us. So their net sales per active customer or share of wallet grows with us. And it's the same behavior that we're observing with our current customer base. So we're not taking any unnatural measures standing on the side to drive excess reactivation or we're not seeing any kind of change in pattern there.

關於問題的第一部分，重新激活趨勢。因此，相對於我們正在談論的整體客戶群而言，重新激活的客戶群只是一小部分，這對我們來說也是很自然的，因為我們的保留率很高 - 比傳統的電子商務群組要高很多倍。還記得我們的減員是從第 2 年到第 3 年的最低限度。因此，當我們將客戶帶入我們的平台時，這些趨勢令人鼓舞，我們有能力長期留住他們，他們和我們在一起的時間越長，他們就會把錢包裡的那一份寄給 Chewy。因此，他們每個活躍客戶的淨銷售額或錢包份額與我們一起增長。這與我們在當前客戶群中觀察到的行為相同。所以我們沒有採取任何不自然的措施來推動過度的重新激活，或者我們沒有看到那裡的模式發生任何變化。

If I can add one more thing to that, Deepak, because I think the point that Sumit mentioned earlier in the earlier remarks is that not only do we see new customers join the platform but to the question of active -- of customers reactivating, we have customers coming back to the platform all the time. But in the first quarter, what we saw is that, that number -- that rate doubled. So we had a lot more new -- existing customers who hadn't purchased from us in the last year come back to the platform. So that's a very good, very positive sign for us.

如果我可以再補充一件事，Deepak，因為我認為 Sumit 在前面的評論中提到的一點是，我們不僅看到新客戶加入平台，而且對於活躍的問題 - 客戶重新激活，我們讓客戶一直回到平台。但在第一季度，我們看到的是，這個數字——這個比率翻了一番。所以我們有更多的新客戶——去年沒有從我們這裡購買過的現有客戶回到了這個平台。所以這對我們來說是一個非常好的、非常積極的信號。

(Operator Instructions) And your next question comes from Eric Sheridan with UBS.

（操作員說明）您的下一個問題來自瑞銀的 Eric Sheridan。

Mario, I want to come back to something you said in your part of the prepared remarks where you said this could accelerate -- if I'm paraphrasing right, accelerating the path to increased levels of profitability over the next couple of years. Is there any way to give a greater sense of how you're thinking about the exit velocity on profit margins coming out of 2020, '21 and thinking about what that means for pulling forward levels of profitability in the next couple of years? And what are some of the levers you're thinking about seeing leverage in the business versus investing back in the business?

馬里奧，我想回到你在準備好的評論中所說的話，你說這可能會加速——如果我的解釋是正確的，那就是在未來幾年加速提高盈利水平的道路。有什麼方法可以讓您更好地了解您如何看待 2020 年 21 年的利潤率退出速度，並思考這對未來幾年提高盈利水平意味著什麼？您正在考慮在業務中看到槓桿與對業務進行投資的一些槓桿是什麼？

And maybe part 2, if I can, as you see increased levels of profitability in the business as you've built it in the U.S., Sumit, does that make you rethink maybe looking beyond the U.S. and thinking internationally for Chewy as a company over the medium to long term?

如果可以的話，也許是第 2 部分，因為您看到隨著您在美國建立業務的盈利水平不斷提高，Sumit，這是否會讓您重新考慮是否將目光投向美國之外，並在國際上將 Chewy 作為一家公司考慮中長期？

Eric, it's Mario. I'll try to answer the first part of that, I'm going to see if I remember the pieces and unpack it. What I think you're getting at is what is our -- how do we look at our path to profitability. And the fact is that in Q1, you saw our results. We were able to achieve, for the first time, positive EBITDA, $3.4 million, improving year-over-year. We expanded gross margins. We scaled the P&L lines like marketing SG&A. And the guidance that we provided just a few minutes ago was approximately breakeven for the year, plus or minus 30 basis points. So I think those are proof points that executing against the strategy that we've laid out and we've communicated, it works.

埃里克，是馬里奧。我會嘗試回答第一部分，我會看看我是否記得這些碎片並打開它。我認為你所了解的是我們的 - 我們如何看待我們的盈利之路。事實是，在第一季度，您看到了我們的結果。我們首次實現了 340 萬美元的正 EBITDA，同比增長。我們擴大了毛利率。我們像營銷 SG&A 一樣擴展了損益線。我們幾分鐘前提供的指導大約是今年的盈虧平衡點，上下浮動 30 個基點。因此，我認為這些證據表明，執行我們制定的策略並進行了溝通，它是有效的。

The specifics of the exit rate on this year versus next year and the timing of when we expect to achieve some of our long-term targets, that I think -- what I can say is that we are closer now, having seen this shift in demand and this increased volume sales, we're closer now than we were just 90 days ago. But specific to timing, I'll refrain from addressing that.

今年與明年退出率的具體情況以及我們預計何時實現我們的一些長期目標的時間，我認為——我可以說的是，我們現在更接近了，看到了這種轉變需求和銷量的增加，我們現在比 90 天前更接近了。但具體到時間，我將避免解決這個問題。

Eric, this is Sumit. I'll add some color to that, which will also answer the international question. We're not coming off of our strategy, which we've been very clear about from the beginning and continue to execute on with rigor and with discipline. So acquiring new customers and growing share of wallet for existing customer base, combined with focusing on new verticals, private brands, health care, remains our priority. On top of this, we're not taking our foot off the gas as it pertains to innovation or launching newer types of businesses. We launched gift cards in Q1. We'll continue to seek out business ideas that can augment our sales and profits while also delivering value to our customers. And as we do that, we'll, of course, keep the audience updated.

埃里克，這是蘇米特。我將為此添加一些顏色，這也將回答國際問題。我們並沒有脫離我們的戰略，我們從一開始就非常清楚這一點，並繼續以嚴謹和紀律的方式執行。因此，獲取新客戶和增加現有客戶群的錢包份額，以及專注於新的垂直行業、自有品牌、醫療保健，仍然是我們的首要任務。最重要的是，我們不會因為它與創新或推出新型業務有關而放棄我們的腳步。我們在第一季度推出了禮品卡。我們將繼續尋找可以增加我們的銷售額和利潤的商業理念，同時也為我們的客戶創造價值。當我們這樣做時，我們當然會保持觀眾的最新狀態。

So our road map on international -- our thinking on international also hasn't changed. We believe that there are 3 trends going on right now that meaningfully accelerate our position to play in this space. One is we're observing pet spending per household going up, and we anticipate a 5% CAGR on that over the next 3 to 4 years. Two, we've also observed U.S. pet household ownership is going up at a rate of 1% to 2% CAGR. And then three, what we've seen with this pandemic is that the online penetration projections have increased from 25% penetrated through 2024 to now north of 35% penetrated. And we're well positioned to capitalize on this because we've been planning for it. We're preparing for it. We've been -- we have 17,000 people focused on it. So from a people, process, infrastructure and tech point of view, we're aligned and focused squarely on the United States with this massive opportunity in front that we'll continue to execute on. And our international thinking remains the same, greater than 1 year out, less than 5 years out.

所以我們的國際路線圖——我們對國際的想法也沒有改變。我們相信，目前有 3 種趨勢正在發生，這些趨勢有意義地加速了我們在這一領域的地位。一是我們觀察到每家每戶的寵物支出都在上升，我們預計未來 3 到 4 年的複合年增長率將達到 5%。第二，我們還觀察到美國寵物家庭擁有量正以 1% 至 2% 的複合年增長率增長。然後三，我們在這場大流行中看到的是，在線滲透率預測已經從 25% 到 2024 年增加到現在的 35% 以上。我們已經做好了充分利用這一點的準備，因為我們一直在為此做計劃。我們正在為此做準備。我們一直 - 我們有 17,000 人專注於它。因此，從人員、流程、基礎設施和技術的角度來看，我們與美國保持一致並直接關注美國，我們將繼續執行這一巨大機遇。而且我們的國際思維保持不變，超過 1 年，不到 5 年。

There are currently no further questions at this time. I'll turn the call back to management for closing remarks.

目前沒有進一步的問題。我會將電話轉回給管理層以結束髮言。

Thank you all. Have a nice evening.

謝謝你們。祝你有個愉快的夜晚。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。