Chewy Inc (CHWY) 2024 Q3 法說會逐字稿

Hello, everyone, and welcome to the Chewy third-quarter 2024 earnings call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions)

大家好，歡迎參加 Chewy 2024 年第三季財報電話會議。我叫艾米麗，今天我將協調您的電話。 （操作員說明）

I will now hand the call over to our host, Chewy CFO, David Reeder, to begin. David, please go ahead.

現在我將把電話交給我們的主持人 Chewy 財務長 David Reeder。大衛，請繼續。

Thank you for joining us on the call today to discuss our third-quarter results for fiscal year 2024. Joining me today is Chewy's CEO, Sumit Singh. Our earnings release, which was filed with the SEC earlier today, has been posted to the Investor Relations section of our website. In addition to the earnings release, a presentation summarizing our results is also available on our website at investor.chewy.com.

感謝您今天參加我們的電話會議，討論我們 2024 財年第三季的業績。今天稍早向美國證券交易委員會提交的收益報告已發佈到我們網站的投資者關係部分。除了收益發布之外，我們的網站 Investor.chewy.com 上還提供了總結我們業績的簡報。

On our call today, we will be making forward-looking statements, including statements concerning Chewy's financial results and performance, industry trends, strategic initiatives, share repurchase program, and the environment in which we operate.

在今天的電話會議上，我們將做出前瞻性聲明，包括有關 Chewy 的財務業績和業績、行業趨勢、策略舉措、股票回購計劃以及我們經營環境的聲明。

Such statements are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to certain risks, uncertainties, and other factors described in the section titled Risk Factors in our quarterly report on Form 10-Q for the first quarter of fiscal year 2024 and in our other filings with the SEC, which could cause actual results to differ materially from those contemplated by our forward-looking statements.

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、不確定性以及我們2019 年第一季10-Q 表格季度報告中標題為“風險因素”部分所述的其他因素的影響。

Reported results should not be considered an indication of future performance. Also note that the forward-looking statements on this call are based on information available to us as of today's date. We assume no obligation to update any forward-looking statements except as required by law.

報告的結果不應被視為未來績效的指標。另請注意，本次電話會議的前瞻性陳述是基於截至今天為止我們所掌握的資訊。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

Also during this call, we will discuss certain non-GAAP financial measures. Reconciliation 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. These non-GAAP measures are not intended as a substitute for GAAP results.

此外，在本次電話會議中，我們還將討論某些非公認會計準則財務指標。我們的投資者關係網站和收益報告中提供了這些非公認會計準則項目與最直接可比較的公認會計準則財務指標的對帳。這些非 GAAP 指標並非旨在取代 GAAP 結果。

Additionally, unless otherwise stated, all comparisons discussed on today's call will be against the comparable period of fiscal year 2023. Finally, this call in its entirety is being webcast on our Investor Relations website. A replay of the audio webcast will also be available on our Investor Relations website shortly.

此外，除非另有說明，今天電話會議中討論的所有比較都將與 2023 財年的可比期間進行比較。音訊網路廣播的重播也將很快在我們的投資者關係網站上提供。

And with that, I'd like to turn the call over to Sumit.

說到這裡，我想把電話轉給蘇米特。

Thank you, Dave. And thank you all for joining us on today's call. Our third-quarter results continued to build on the positive momentum we observed in Q2. We delivered top-line growth exceeding the high end of our net sales guidance range, a sequential increase in active customers, continued adjusted EBITDA margin expansion, and robust free cash flow generation. These results underscore the durability of our business model and our team's relentless focus on high-quality execution and operational discipline. With that, let's dive into the details.

謝謝你，戴夫。感謝大家參加今天的電話會議。我們的第三季業績繼續建立在我們第二季度觀察到的積極勢頭的基礎上。我們的營收成長超過了淨銷售額指引範圍的高端，活躍客戶連續增加，調整後的 EBITDA 利潤率持續擴張，以及強勁的自由現金流產生。這些結果強調了我們業務模式的持久性以及我們團隊對高品質執行和營運紀律的不懈關注。接下來，讓我們深入了解細節。

Q3 net sales increased by approximately 5% to $2.88 billion. Both the strength of our flagship autoship program and our customers' loyalty in non-discretionary categories, particularly within consumables and health, anchored our Q3 net sales performance. Our autoship program enables high visibility and predictability in our business and drives customer stickiness for Chewy.

第三季淨銷售額成長約 5%，達到 28.8 億美元。我們旗艦自動送貨計劃的實力以及客戶在非全權委託類別（特別是消費品和健康領域）的忠誠度支撐了我們第三季度的淨銷售業績。我們的自動出貨計劃使我們的業務具有較高的可見性和可預測性，並提高了 Chewy 的客戶黏著度。

Autoship customer sales reached $2.3 billion in the quarter, representing 80% of Q3 net sales and a year-over-year increase of approximately 9%. Non-discretionary categories, including consumables and healthcare products and services, accounted for 85% of Q3 net sales. Customers appreciate our comprehensive product catalog and our ongoing efforts to refresh assortment across food, treats, and hard goods.

本季 Autoship 客戶銷售額達 23 億美元，佔第三季淨銷售額的 80%，較去年同期成長約 9%。非全權委託品類，包括消耗品、醫療保健產品和服務，佔第三季淨銷售額的 85%。顧客讚賞我們全面的產品目錄以及我們不斷努力更新食品、零食和耐用品的品種。

Over the last few quarters, we have increased our assortment across popular categories such as pet tech, vet food, and supplements, to name a few, adding several new premium brands, most of which launched exclusively on Chewy.com. Additionally, we are continuously rolling out enhancements to our on-site and in-app experiences to ensure we are providing an even more enjoyable and convenient shopping journey for pet parents.

在過去的幾個季度中，我們增加了寵物科技、獸醫食品和補充劑等熱門類別的品種，增加了幾個新的優質品牌，其中大部分在 Chewy.com 上獨家推出。此外，我們不斷增強現場和應用程式內體驗，以確保為寵物父母提供更愉快和便捷的購物之旅。

Last quarter, I spoke about our efforts to redesign our mobile app and make the overall app experience more convenient for customers. In Q3, both unique customers who placed at least one order on the app and average app monthly active users, or app MAU, increased in the mid-teens range compared to Q3 of last year. I am excited by the strong engagement we continue to observe through our mobile app and the experience it brings to our customers.

上個季度，我談到了我們重新設計行動應用程式並使整體應用程式體驗為客戶提供更方便的努力。在第三季度，與去年第三季度相比，在應用程式上至少下過一筆訂單的唯一客戶和平均應用程式每月活躍用戶（即應用程式 MAU）均出現了中位數的成長。我對我們透過行動應用程式持續觀察到的強烈參與度及其為客戶帶來的體驗感到興奮。

Continuing on the topic of customers, I am pleased to share that Q3 marked another quarter of sequential active customer growth, building on the momentum we established coming out of our second quarter. Our efforts to enhance shopping experiences, expand assortment, and various ongoing innovations, combined with our powerful marketing and CRM strategy, continue to drive outperformance, while macro normalization steadily continues in the background.

繼續關於客戶的話題，我很高興地告訴大家，第三季度標誌著活躍客戶又一個連續成長的季度，這是在我們第二季度建立的勢頭的基礎上建立的。我們在增強購物體驗、擴大品種和各種持續創新方面所做的努力，再加上我們強大的行銷和 CRM 策略，繼續推動卓越業績，同時宏觀正常化也在穩步推進。

We ended the third quarter with approximately 20.2 million active customers, up 160,000 sequentially. We now expect to end fiscal 2024 with active customers up modestly over last year, a trend which we expect to continue to strengthen in 2025. Turning to profitability, we generated $138 million of adjusted EBITDA in the quarter, representing a 4.8% margin and approximately 180 basis points of margin expansion year-over-year.

截至第三季末，我們的活躍客戶數量約為 2,020 萬，比上一季增加 16 萬。現在，我們預計2024 財年結束時，活躍客戶將比去年小幅增加，我們預計這一趨勢將在2025 年繼續加強。率為4.8%，約為利潤率年增 180 個基點。

Our Q3 adjusted EBITDA results reflect a continuation of our strong gross margin performance, a disciplined approach to cost management, and the ongoing benefits of fixed cost leverage as we scale. Our increasing profitability has enabled us to continue to return meaningful capital to shareholders as reflected by the incremental $342 million we deployed to shareholders in the third quarter.

我們第三季調整後的 EBITDA 結果反映了我們繼續保持強勁的毛利率表現、嚴格的成本管理方法，以及隨著我們規模的擴大，固定成本槓桿的持續好處。我們不斷增長的獲利能力使我們能夠繼續向股東返還有意義的資本，第三季我們向股東增加的 3.42 億美元就體現了這一點。

Now let me provide an update on some of Chewy's strategic initiatives and innovations. The sponsored ads business continues to perform well. And as expected, we remain on track to reach the low end of our previously stated long-term target range of 1% to 3% of net sales in fiscal 2024. We remain on track with our 1P technology migration and look forward to starting the new fiscal year fully converted to our 1P software platform.

現在讓我介紹一下 Chewy 的一些策略舉措和創新的最新情況。搜尋廣告業務持續表現良好。正如預期的那樣，我們仍有望在 2024 財年達到之前規定的長期目標範圍的低端，即 2024 財年淨銷售額的 1% 至 3%。財年完全轉換為我們的1P 軟體平台。

Moving to Chewy's healthcare offerings, I am proud of the progress our team has made this year across healthcare products and services, especially Chewy Vet Care or CVC. With the launch of Chewy Vet Care clinics earlier this year, we not only unlocked the $25 billion vet services TAM opportunity, but we are also observing compelling complementarities across the entire Chewy ecosystem.

談到 Chewy 的醫療保健產品，我為我們的團隊今年在醫療保健產品和服務方面取得的進展感到自豪，特別是 Chewy Vet Care 或 CVC。隨著今年稍早 Chewy 獸醫護理診所的推出，我們不僅釋放了價值 250 億美元的獸醫服務 TAM 機會，而且我們還觀察到整個 Chewy 生態系統之間引人注目的互補性。

We have six clinics open today and expect to reach the high end of our previously stated target range of four to eight clinic openings in 2024, later this fiscal year. Performance across our clinic footprint is promising, and I'm happy to share that the early signs of success we spoke about last quarter have continued through Q3. The proportion of new-to-Chewy customers acquired through Chewy Vet Care continues to outperform relative to expectations.

今天我們有 6 家診所開業，預計到 2024 年（即本財年晚些時候）開設 4 到 8 家診所的目標範圍將達到上限。我們整個診所的表現令人鼓舞，我很高興與大家分享，我們上季度談到的成功的早期跡像一直持續到第三季。透過 Chewy Vet Care 獲得的新 Chewy 客戶比例繼續超出預期。

Additionally, broader ecosystem benefits, including cross-category shopping and post-clinic visit purchases on Chewy.com, have strengthened since last quarter, indicating that our ability to seamlessly connect care with commerce is resonating with pet parents. I would also like to take a moment to talk about Chewy Plus, our paid membership program. Recall that we launched Chewy Plus in summer 2024 to a representative sample of customers.

此外，自上個季度以來，更廣泛的生態系統效益（包括Chewy.com 上的跨類別購物和診所後就診購買）有所加強，這表明我們將護理與商業無縫連接的能力正在引起寵物父母的共鳴。我還想花點時間談談我們的付費會員計劃 Chewy Plus。回想一下，我們在 2024 年夏季向具有代表性的客戶樣本推出了 Chewy Plus。

Since launching the program, we have been carefully studying the shopping behavior of Chewy Plus members and are tracking several key indicators of success, including the program's potential to accelerate wallet share consolidation and drive stronger cross-category engagement. Based on the data we have analyzed over the last several months, we are seeing that Chewy Plus members consistently place more orders, have higher cross-category penetration, and greater mobile app engagement relative to non-Chewy Plus customers.

自從啟動該計劃以來，我們一直在仔細研究 Chewy Plus 會員的購物行為，並追蹤幾個關鍵的成功指標，包括該計劃加速錢包份額整合和推動更強大的跨類別參與的潛力。根據我們過去幾個月分析的數據，我們發現與非 Chewy Plus 客戶相比，Chewy Plus 會員持續下更多訂單，具有更高的跨類別滲透率以及更高的行動應用程式參與度。

Furthermore, we are seeing higher autoship adoption rates from this early cohort of customers, signaling a potentially compelling flywheel effect of the Chewy Plus program. While contribution to the overall enterprise remains immaterial, we are encouraged by these early results and look forward to introducing the program to our broader base of customers.

此外，我們看到早期客戶群的自動送貨採用率更高，這表明 Chewy Plus 計劃可能具有引人注目的飛輪效應。雖然對整個企業的貢獻仍然微不足道，但我們對這些早期結果感到鼓舞，並期待將該計劃介紹給更廣泛的客戶群。

Touching on Canada, where we completed a full year of operations in Q3, the Canadian business, while still relatively small and immaterial to the overall scale of Chewy, continues to improve across key metrics, including autoship penetration, net sales growth, and profitability. Additionally, we remain focused on strengthening brand awareness in Canada and are excited by the brand partnership we've recently signed with the Toronto Maple Leafs hockey team.

說到加拿大，我們在第三季度完成了全年的運營，加拿大業務雖然仍然相對較小，對Chewy 的整體規模影響不大，但在關鍵指標上持續改善，包括自動船滲透率、淨銷售額成長和獲利能力。此外，我們仍然致力於加強在加拿大的品牌知名度，並對我們最近與多倫多楓葉曲棍球隊簽署的品牌合作夥伴關係感到興奮。

We believe Chewy's passion for pets perfectly aligns with Torontonians' passion for the Maple Leafs, and we are bringing this to life with dynamic advertising and interactive fan moments during games at Scotiabank Arena. Lastly, I would like to acknowledge a notable milestone for Chewy with our recent inclusion in the S&P 400 Index as of November 6. We view our inclusion in this index as an endorsement of our performance, our enduring business, and our compelling growth opportunities ahead.

我們相信 Chewy 對寵物的熱情與多倫多人對楓葉隊的熱情完全一致，我們在豐業銀行體育場的比賽期間通過動態廣告和互動球迷時刻將這一點變為現實。最後，我要承認Chewy 的一個顯著里程碑，我們最近於11 月6 日被納入標準普爾400 指數。機會的認可。

In closing, I would like to thank all of our dedicated Chewy team members for their hard work and strong execution in the third quarter. We are now focused on executing through our final quarter of 2024 and are excited about the customer engagement we have seen thus far through this holiday season and look forward to ending fiscal year 2024 on a high note.

最後，我要感謝所有敬業的 Chewy 團隊成員在第三季的辛勤工作和強大的執行力。我們現在的重點是 2024 年最後一個季度的執行，並對迄今為止在這個假期期間看到的客戶參與度感到興奮，並期待著 2024 財年的結束。

With that, I will turn the call over to Dave.

這樣，我會將電話轉給戴夫。

Thank you, Sumit. Third-quarter net sales grew 4.8% year over year to $2.88 billion, exceeding the high end of the guidance range we provided last quarter. The pricing, promotion, and discount environment remained stable throughout the quarter. As such, year-over-year revenue growth was primarily driven by active customer growth and cross-category product penetration, resulting in continued customer wallet share gain. We ended the quarter with 20.2 million active customers, reflecting a sequential net increase of approximately 160,000 customers. Gross additions exceeded pre-COVID levels and gross churn improved year-over-year. Within gross additions, both new customers and reactivations grew year-over-year in the quarter. We are encouraged by the positive momentum in active customers and expect these trends to continue through the balance of the year. Against the backdrop of a modestly improving pet industry and strong Chewy-specific execution, We now expect to end fiscal year 2024 with modest year-over-year active customer growth. Third quarter auto-ship customer sales increased by 8.7% to $2.3 billion, outpacing total net sales growth in the quarter by approximately 390 basis points. Auto-ship customer sales as a percentage of total net sales increased by 290 basis points to 80%, a new company record. Additionally, we continued to grow share of wallet with Q3 net sales per active customer, or Nespac, reaching $567. Moving to profitability, we reported third quarter gross margin of 29.3%, representing 80 basis points of margin expansion year over year. Our growing sponsored ads business was the largest driver of gross margin improvement in the quarter, followed by product mix shift into premium categories, including consumables and pharmacy. Additionally, promotional activity in the third quarter was in line with our expectations, and the promotional environment to date in the fourth quarter remains rational. Shifting to operating expenses, please note that my discussion of SG&A excludes share-based compensation expense and related taxes. Third quarter SG&A totaled $546 million, or 19% of net sales, representing 90 basis points of improvement on a year-over-year basis. SG&A leverage was primarily driven by continued discipline and efficiency with respect to corporate payroll, fulfillment, and other at-scale efficiency benefits. Third quarter advertising and marketing expense was 191.8 million or 6.7% of net sales. I would note that we expect advertising and marketing expense to come in at the high end of our previously stated range of 6 to 7% of net sales for the full year. This is primarily due to the timing of certain marketing campaigns in Q4. Third quarter adjusted net income was $84.9 million, representing a 34% increase year-over-year. Net income for the quarter was $3.9 million, which translated into one-cent earnings per share on both a basic and diluted basis. Finally, we reported adjusted EBITDA of $138.2 million, representing a 4.8% adjusted EBITDA margin, and 180 basis points of year-over-year margin expansion driven by the improvements in gross margin and SG&A described earlier. We reported free cash flow of $151.8 million in the third quarter, reflecting $183.5 million of net cash provided by operating activities and $31.7 million of capital expenditures. Our third quarter trailing 12-month free cash flow was over $360 million, and demonstrates our ability to generate increasing levels of free cash flow while continuing to invest in our growth initiatives and returning significant capital to shareholders. I'd now like to provide an update on our share repurchase activity completed in the quarter. In September, concurrently with a $500 million underwritten secondary offering of Class A common stock by BC Partners, We repurchased approximately 10.2 million shares of Class A common stock directly from BC Partners for an aggregate repurchase price of $300 million. This repurchase transaction allowed us to continue to reduce the ownership position of our largest shareholder and was executed separately from our existing $500 million share repurchase program. Additionally, during the quarter, we repurchased approximately 1.6 million shares of Class A common stock spending approximately 42.4 million under our 500 million share repurchase program. At the end of the quarter, we had approximately 424.8 million of remaining capacity under the program for future repurchases. Collectively, the company has repurchased and retired a total of 30.7 million shares year-to-date. Our ability to generate increasing levels of profitability and free cash flow will continue to enable us to invest in our business and return meaningful capital to shareholders. We ended the quarter with approximately $508 million in cash, cash equivalents, and marketable securities, and we remain debt-free with an overall liquidity position of approximately $1.3 billion. With that, I'd like to turn to our fourth quarter and updated full year 2024 guidance. We anticipate fourth quarter net sales of between 3.18 and 3.20 billion, or approximately 13% year-over-year growth, which reflects the full impact of the 53rd week. And we are narrowing and raising our full year 2024 net sales outlook to be between 11.79 and 11.81 billion, or approximately 6% year-over-year growth. This range includes the impact of a 53-week 2024 fiscal year, and as previously noted, the 53rd week will be fully reflected in the fourth quarter of 2024. We are raising our full-year 2024 adjusted EBITDA margin guidance to a range of 4.6% to 4.8%. The midpoint of our full-year adjusted EBITDA margin guidance range indicates approximately 140 basis points of year-over-year margin expansion and implies approximately 3.4% adjusted EBITDA margin for the fourth quarter. Consistent with our comments last quarter pertaining to the quarterly progression of 2024 adjusted EBITDA margin, we expect Q4 adjusted EBITDA margin to decline sequentially due to typical seasonality and the timing of certain investments primarily pertaining to marketing campaigns. Given the results of our previous three quarters, we anticipate 2024 capital expenditures to come in at the low end of our previously stated range of 1.5% to 2% of net sales, and we expect free cash flow conversion to remain above 80% for the full year. Finally, we expect basic shares outstanding at fiscal 2024 year end to be approximately $415 million. This incorporates the nearly 31 million shares that we have repurchased and retired year-to-date and does not incorporate any potential future share repurchases. In closing, our third quarter results reflect another quarter of strong execution. I want to thank our incredible Chewy team members for their collective efforts as we continue to execute against our strategic priorities to deliver long-term profitable growth. With that, I will turn the call over to the operator for questions.

謝謝你，蘇米特。第三季淨銷售額年增 4.8%，達到 28.8 億美元，超出了我們上季度提供的指導範圍的上限。整個季度的定價、促銷和折扣環境保持穩定。因此，同比收入成長主要是由活躍客戶成長和跨類別產品滲透推動的，從而導致客戶錢包份額持續成長。本季結束時，我們的活躍客戶數量為 2,020 萬，較上季淨增約 16 萬客戶。總增加量超過了新冠疫情爆發前的水平，總流失量較去年同期有所改善。在總增量中，本季新客戶和重新激活客戶均較去年同期成長。我們對活躍客戶的積極勢頭感到鼓舞，並預計這些趨勢將在今年剩餘時間內持續下去。在寵物行業適度改善和 Chewy 特定執行力強勁的背景下，我們現在預計 2024 財年結束時，活躍客戶將出現同比適度增長。第三季自動出貨客戶銷售額成長 8.7%，達到 23 億美元，較該季總淨銷售額成長約 390 個基點。自動出貨客戶銷售額佔總淨銷售額的百分比增加了 290 個基點，達到 80%，創下公司新紀錄。此外，我們的錢包份額持續成長，第三季每個活躍客戶（即 Nespac）的淨銷售額達到 567 美元。談到獲利能力，我們報告第三季毛利率為 29.3%，利潤率年增 80 個基點。我們不斷成長的搜尋廣告業務是本季毛利率改善的最大推動力，其次是產品組合轉向高端類別，包括消費品和藥品。此外，第三季的促銷活動符合我們的預期，第四季迄今的促銷環境仍然合理。轉向營運費用，請注意，我對 SG&A 的討論不包括基於股份的補償費用和相關稅費。第三季銷售、管理及行政費用總計 5.46 億美元，佔淨銷售額的 19%，較去年同期改善 90 個基點。 SG&A 槓桿主要是由公司薪資、履行和其他大規模效率效益方面的持續紀律和效率所驅動的。第三季廣告和行銷費用為 1.918 億美元，佔淨銷售額的 6.7%。我要指出的是，我們預計廣告和行銷費用將達到我們先前規定的全年淨銷售額 6% 至 7% 範圍的上限。這主要是由於第四季度某些行銷活動的時間安排所致。第三季調整後淨利為 8,490 萬美元，年增 34%。該季度淨利潤為 390 萬美元，折算為基本每股收益和稀釋每股收益 1 美分。最後，我們報告調整後 EBITDA 為 1.382 億美元，調整後 EBITDA 利潤率為 4.8%，由於毛利率和銷售、一般及行政費用 (SG&A) 的改善，利潤率同比增長 180 個基點。我們報告第三季自由現金流為 1.518 億美元，反映出經營活動提供的淨現金 1.835 億美元和資本支出 3,170 萬美元。我們第三季過去 12 個月的自由現金流超過 3.6 億美元，這表明我們有能力產生不斷增長的自由現金流，同時繼續投資於我們的成長計畫並向股東返還大量資本。我現在想提供有關本季完成的股票回購活動的最新資訊。 9 月，在 BC Partners 承銷 5 億美元 A 類普通股二次發行的同時，我們直接從 BC Partners 回購了約 1,020 萬股 A​​ 類普通股，回購總價為 3 億美元。此次回購交易使我們能夠繼續減少最大股東的持股比例，並與我們現有的 5 億美元股票回購計畫分開執行。此外，在本季度，我們回購了約 160 萬股 A​​ 類普通股，根據 5 億股回購計劃，支出約 4,240 萬股。截至本季末，我們根據該計劃還有約 4.248 億美元的剩餘產能供未來回購。年初至今，該公司已回購並註銷了總計 3,070 萬股股票。我們產生不斷提高的獲利水準和自由現金流的能力將繼續使我們能夠投資於我們的業務並向股東返還有意義的資本。本季末，我們擁有約 5.08 億美元的現金、現金等價物和有價證券，並且我們保持無債務狀態，整體流動性部位約為 13 億美元。接下來，我想談談我們第四季和更新的 2024 年全年指引。我們預計第四季度淨銷售額將在 3.18 億美元至 32 億美元之間，年增約 13%，這反映了第 53 週的全面影響。我們將 2024 年全年淨銷售額預期縮小並上調至 1179 至 118.1 億美元之間，即年增約 6%。此範圍包括 2024 財年 53 週的影響，如前所述，第 53 週將在 2024 年第四季得到全面反映。 %。我們全年調整後 EBITDA 利潤率指引範圍的中點顯示利潤率同比擴張約 140 個基點，意味著第四季度調整後 EBITDA 利潤率約為 3.4%。與我們上季度關於 2024 年調整後 EBITDA 利潤率季度進展的評論一致，我們預計第四季度調整後 EBITDA 利潤率將因典型季節性和主要與行銷活動相關的某些投資的時機而連續下降。鑑於我們前三個季度的業績，我們預計 2024 年的資本支出將處於我們之前規定的淨銷售額 1.5% 至 2% 範圍的低端，並且我們預計自由現金流轉換將保持在 80% 以上。年。最後，我們預計 2024 財年末已發行基本股約 4.15 億美元。這包括我們今年迄今已回購和退役的近 3,100 萬股股票，不包括任何未來潛在的股票回購。最後，我們第三季的業績反映出又一個季度的強勁執行力。我要感謝我們令人難以置信的 Chewy 團隊成員的集體努力，因為我們繼續執行我們的策略重點，以實現長期獲利成長。這樣，我會將電話轉給接線生詢問問題。

Thank you. We will now begin the question and answer session. As a reminder, if you would like to ask a question today, you can do so now by pressing Start followed by the number 1 on your telephone keypad. If you change your mind or you feel like your question has already been answered, you can press Start followed by 2 to withdraw yourself from the queue. Our first question today comes from the line of Nathan Feather with Morgan Stanley. Please go ahead.

謝謝。我們現在開始問答環節。提醒一下，如果您今天想提問，現在可以按“開始”，然後按電話鍵盤上的數字 1。如果您改變主意或您覺得您的問題已得到解答，您可以按“開始”，然後按 2 退出隊列。我們今天的第一個問題來自摩根士丹利的 Nathan Feather。請繼續。

Thanks for the question, and congrats on the strong results. Really encouraging to see the continued momentum. Active customer growth continues to accelerate. Can you double-click on what you're seeing in overall pandemic trends and how we should think about the relative contribution to customer growth as compared to some of the idiosyncratic initiatives you've been working on? And then, given the expectation for customer growth to improve further in 2025, How should we think about the key puts and takes you're considering for a growth year? Thank you.

感謝您的提問，並對我們所取得的優異成績表示祝賀。看到持續的勢頭確實令人鼓舞。活躍客戶成長持續加速。您能否雙擊您在整體流行趨勢中看到的內容，以及與您一直致力於的一些特殊舉措相比，我們應該如何考慮對客戶成長的相對貢獻？然後，考慮到 2025 年客戶成長將進一步改善的預期，我們應該如何考慮您正在考慮的成長年的關鍵投入和支出？謝謝。

And this is Sumit. I'll start, and Dave will jump in wherever he sees appropriate. So in terms of household formation trends, I think you started with that. We continue to see signs of industrial normalization. Pricing remains stable. Inflation continues to move towards a more normalized level. In fact, we saw no benefit of pricing, as we mentioned on the as we move through Q3. Regarding pet household formation, of course, there's no single source of truth for this data. Our triangulation continues to tell us that latest adoption and relinquishment trends are both trending in a better direction. We believe year-over-year adoption growth was in the high single-digit to low double-digit ranges, and relinquishments were down low single digits. So overall, we observed a return to positive net adoptions in a cycle of Q3 from an external point of view. In terms of, let me see, you had another question here. Double-click to bet expectation for active customer growth in 25 inputs and takes. So I mean, there's a lot going on. Ultimately, we believe, as I mentioned last quarter, the active customer growth that we are driving, now it's a trend. is largely due to our own efforts, and the industry continues to normalize in the background, which is, of course, a stabilizing factor that is very good to see. On our side, enhancing onsite and mobile experiences, expanding assortment, performance and CRM strategy, and all of that is sort of what's working in conjunction. As we move into 25, what has really started to work for us is our focus on connecting the marketing funnel to expanded audiences and driving that funnel exposure is enabling our teams to find both the right level of efficiency as well as the flexibility to move spend up and down the funnel to capture both share of voice and demand. And when we bring them to the site, we are able to convert them effectively with the previous efforts that I've talked about around improvement of site experience, customer choices, assortment, other innovations, et cetera. So our 25 strategy is very much in line with operating the playbook that we've uncovered. and strengthen for ourselves in 24. Another data point that I just want to draw your attention to, more of a recall from last quarter, is we've said we have an improved ability to identify and segment customers and target them to drive improved second purchase rates, auto-ship sign-ups, mobile app engagement, et cetera, et cetera. And so on the background, we've now sort of played this playbook for At least two quarters, we're going to rinse and repeat in Q4 and 2025, strengthening our channel and share performance in the market.

這是蘇米特。我先開始，戴夫會在他認為合適的地方介入。因此，就家庭形成趨勢而言，我認為您是從這一點開始的。我們繼續看到工業正常化的跡象。定價保持穩定。通貨膨脹繼續走向更正常化的水平。事實上，正如我們在第三季提到的那樣，我們沒有看到定價的好處。當然，關於寵物家庭的形成，這些數據沒有單一的真實來源。我們的三角測量繼續告訴我們，最新的採用和放棄趨勢都朝著更好的方向發展。我們認為，年比採用率成長處於高個位數到低兩位數的範圍內，而放棄率則下降了低個位數。因此，總體而言，從外部角度來看，我們在第三季的一個週期中觀察到淨採用率恢復正值。讓我想想，你還有另一個問題。雙擊即可在 25 個輸入和獲取中投注活躍客戶成長的預期。所以我的意思是，發生了很多事情。最終，正如我上季度提到的，我們相信我們正在推動的活躍客戶成長，現在已經成為一種趨勢。很大程度上得益於我們自身的努力，背景下產業不斷走向常態化，這當然是一個非常值得看到的穩定因素。就我們而言，增強現場和移動體驗、擴大品種、績效和 CRM 策略，所有這些都是協同作用的。隨著我們進入 25 週年，真正開始對我們起作用的是我們專注於將行銷漏斗與擴大的受眾連接起來，並推動漏斗曝光，使我們的團隊能夠找到適當的效率水平以及轉移支出的靈活性在漏斗中上下移動以捕捉聲音和需求份額。當我們將它們帶到網站上時，我們能夠透過我之前討論過的圍繞改進網站體驗、客戶選擇、分類、其他創新等的努力來有效地轉換它們。因此，我們的 25 策略與我們發現的操作手冊非常一致。並在24 月為我們自己加強。並以他們為目標，以推動改進第二季度購買率、自動發貨註冊、行動應用程式參與度等等。因此，在背景方面，我們現在至少已經玩了兩個季度的劇本，我們將在第四季度和 2025 年進行沖洗和重複，以加強我們在市場上的通路和份額表現。

Great. Thank you.

偉大的。謝謝。

Thank you, Nate.

謝謝你，內特。

The next question comes from Curtis Nagle with Bank of America Merrill Lynch. Curtis, please go ahead.

下一個問題來自美銀美林的柯蒂斯·內格爾。柯蒂斯，請繼續。

Awesome. Thanks very much for taking the question. So I want to focus a bit on the 4Q guidance and maybe specifically on the comments in terms of the advertising and marketing spend. Just in terms of context at the high end of the range around 7% for the year, it implies like a really big dollar increase, right, certainly relative to the other quarters, like no relative leverage from the extra week. So you know, I guess just kind of digging into that what does the spend pertain to? It looks to me it implies like $40 to $50 million year-over-year. Is that correct? And are there specific products or customers you're targeting? Is it one time? Just kind of dig into that and kind of how we should specifically think about that increase and whether it applies to conservatism or not.

驚人的。非常感謝您提出問題。因此，我想專注於第四季度的指導，也許特別關注廣告和行銷支出方面的評論。就今年7%左右的區間高端而言，這意味著美元確實大幅上漲，對吧，肯定是相對於其他季度而言，就像額外一周沒有相對槓桿作用一樣。所以你知道，我想只是深入研究一下這筆支出與什麼有關？在我看來，這意味著同比增長 4,000 至 5,000 萬美元。這是正確的嗎？您是否有針對的特定產品或客戶？是一次嗎？只是深入研究一下這一點，以及我們應該如何具體考慮這種增長以及它是否適用於保守主義。

Good morning. Thanks for the question. I'll take this one and then submit if you want to build upon any of it let me know. I'll build upon Sumit's comments about active customers. So in the third quarter, when you think about the elements that go into gross additions, you've got new customers added, you've got reactivations, and then, of course, you have churn. And we actually saw improvement across all three of those metrics in the third quarter on a year-over-year basis. And so we're entering the fourth quarter with some momentum on the activities that we're driving across those three elements I mentioned. We're entering the fourth quarter with the continuation of what we believe is a normalizing industry as we previously referenced with moderating inflation as well as the shelter data that we've mentioned previously as well, which has continued in the third quarter. So with that momentum going into the fourth quarter, There's a couple of elements to consider. Number one, you typically have a little bit higher elevated advertising and marketing in the fourth quarter given the holiday season as well as the timing of certain campaigns. And then building on that, we see an opportunity in the industry in the fourth quarter where we believe that we want to invest and lean into the fourth quarter such that we can continue to build on what we believe is some improvement in the industry, and then continue that, of course, into 2025. So net-net, you take a step back, you think about what we've told you for the year in terms of our guidance, active customer growth, flat to down in the first half, flat to up in the second half, ending flat. We've moved up that guidance. We've pulled in that guidance. and we see an opportunity to invest in the fourth quarter in advertising and marketing and we're doing that. For the full year, we'll be at the high end of the 6% to 7% range and as you mentioned, to get to the high end of that 6% to 7% range for the year, that would imply being above 7% specifically for the fourth quarter.

早安.謝謝你的提問。我將接受這個，然後提交，如果您想在其中任何一個的基礎上進行構建，請告訴我。我將以 Sumit 關於活躍客戶的評論為基礎。因此，在第三季度，當你考慮總增加的因素時，你會發現新客戶的增加、重新激活，當然還有客戶流失。事實上，我們在第三季看到所有這三個指標都較去年同期有所改善。因此，當我們進入第四季時，在我提到的這三個要素方面開展的活動取得了一定的勢頭。當我們進入第四季度時，我們認為行業正常化的情況仍在繼續，正如我們之前提到的通膨放緩以及我們之前提到的住房數據，這種情況在第三季度仍在繼續。因此，隨著這種勢頭進入第四季度，有幾個因素需要考慮。第一，考慮到假期季節以及某些活動的時間安排，第四季度的廣告和行銷活動通常會稍高。然後在此基礎上，我們在第四季度看到了該行業的機會，我們相信我們希望在第四季度進行投資和傾斜，以便我們可以繼續在我們認為行業有所改善的基礎上繼續發展，當然，然後繼續到2025 年。我們已經提高了該指導意見。我們已經採納了該指導意見。我們看到了第四季度廣告和行銷投資的機會，我們正在這樣做。就全年而言，我們將處於 6% 至 7% 範圍的高端，正如您所提到的，要達到今年 6% 至 7% 範圍的高端，這意味著高於 7 % 特別針對第四季度。

Yes, Kurt, I would just like to add more of a reminder on the conversations that we've had on this call in the past, which is we spend based on the ROI and the LTV potential that we're seeing in the current cohort of customers that we pick up from market and the existing customer base that we're developing share of wallet on. So in the past, as you know, we've swung the marketing spend all the way to the left down 70, 80 basis points from our average, and now we're picking that back up. Why didn't we spend in the past and why are we spending now? Well, because we didn't see the ROI in the past and we are now. The cohorts that we're acquiring, the efficiencies that we're gaining based on the full-funnel audience expansions that I talked about are really compelling and behooves us to be able to invest to continue this trend as well as solidify growth for year 2025 and beyond. Let me share some of the data points that we're seeing. Our orientation is three-fourths of the customers that we're picking up had at least one SKU from a repeatable category. And that's an encouraging trend because it promotes ownership growth and builds the layer cake that then compels and spins the flywheel in a more efficient manner. We're seeing these new customers' reorder rates and settlement rates improving as our engagements with these consumable-type categories. When you look at year-to-date 24 new customer cohorts, in terms of year-over-year reorder rates, in the first few periods of post-acquisition, we're running roughly 300 to 500 basis points higher than the T3 month averages. So these are just some data points in the background that allows us to sort of study and increase or decrease the values of propensity modeling, and therefore go out and invest if we see the returns. That's what we're doing right now.

是的，庫爾特，我想對我們過去在這次電話會議上進行的對話進行更多提醒，即我們根據當前隊列中看到的投資回報率和生命週期價值潛力進行支出我們從市場中獲得的客戶數量以及我們正在開發錢包份額的現有客戶群。因此，如您所知，過去我們將行銷支出從平均水平一路向左下降了 70、80 個基點，現在我們正在回升。為什麼我們過去不花錢，為什麼現在要花錢？嗯，因為我們過去沒有看到投資報酬率，而現在我們看到了。我們正在收購的群體，以及我所談到的基於全通路受眾擴展而獲得的效率確實非常引人注目，我們理應能夠進行投資以延續這一趨勢，並鞏固 2025 年的增長以及更遠的地方。讓我分享一些我們看到的數據點。我們的定位是，四分之三的客戶至少擁有一個來自可重複類別的 SKU。這是一個令人鼓舞的趨勢，因為它促進了所有權的增長並構建了層蛋糕，然後以更有效的方式迫使和旋轉飛輪。隨著我們與這些消費品類型的合作，我們看到這些新客戶的再訂購率和結算率有所提高。當你觀察今年迄今為止的 24 個新客戶群時，就同比再訂購率而言，在收購後的前幾個時期，我們的成長率比 T3 個月高出約 300 到 500 個基點平均值。因此，這些只是背景中的一些數據點，使我們能夠進行研究並增加或減少傾向模型的值，因此，如果我們看到回報，我們就可以出去投資。這就是我們現在正在做的事情。

Okay. And then just so that makes total sense, just a quick follow-up. The points you made, Anthony, Nate's question on the adoptions were really interesting. I think you said up on a gross basis, high singles to low double, relinquishments down low singles. net a pretty good number. How does that compare to 2Q? Just trying to sort of size it in terms of relative improvement.

好的。然後就這樣完全有意義，只需快速跟進即可。安東尼，你提出的觀點，內特關於收養的問題非常有趣。我想你說的是從總量來看，高單打到低雙打，放棄低單打。淨值相當不錯。與第二季相比如何？只是試圖根據相對改進來確定其大小。

It's positive by, I think, the margins extended by low to mid-single-digit ranges relative to Q2.

我認為，相對於第二季度，利潤率擴大了低至中個位數範圍，這是正面的。

Low to mid-single. Okay. Awesome. Appreciate it. Thank you.

低至中單曲。好的。驚人的。欣賞它。謝謝。

The next question comes from Doug Anmuth with JP Morgan. Please go ahead.

下一個問題來自摩根大通的 Doug Anmuth。請繼續。

Great. Thanks for taking questions. Two, if I could. First, just on vet clinics, it looks like you're on track to the eight locations by year end. Can you talk more about what you've learned this year and how that informs your 25 expansion plans and the investments that may be required then? And then, Sumit, if you could also perhaps give us an update on automation, just kind of how you're tracking relative to the 70% to 80% kind of long-term percentage of volume that you've talked about over time. Thanks.

偉大的。感謝您提出問題。兩個，如果可以的話。首先，就獸醫診所而言，看起來您預計在年底前達到八個地點。您能否多談談您今年所學到的知識以及這些知識如何為您的 25 個擴張計劃以及屆時可能需要的投資提供資訊？然後，Sumit，您是否也可以向我們介紹一下自動化方面的最新情況，例如您如何追蹤您一直以來所討論的 70% 到 80% 的長期交易量百分比。謝謝。

Yes, so with respect to the vet clinics as we talked about, We were planning to roll out four to eight vet clinics this year. We're going to be at the high end of that range. The positive trends that we've seen on vet clinics have continued. Some of those positive metrics has been the operational utilization of those clinics. It's been high. The customer engagement from those clinics and the corresponding customer service levels have been high. the net promoter kind of score around those clinics and the service level high. The new customer cross-category penetration, new customers to Chewy that come in through Vet Clinics, and then their propensity to go to Chewy.com and then shop online at Chewy.com, also high. In fact, more than half of those new customers consistent with last quarter, actually improvement from last quarter, are leaving the vet clinic, new customer to Chewy, and then going online and also shopping at Chewy.com. So all the metrics across the vet clinics trending positive. I'll leave the 2025 guidance for 2025, but I would just tell you that we've been very encouraged by our engagement with customers. We're encouraged by the size of the TAM, roughly 25 billion that we've opened up through these vet clinics. and we're excited about continuing to grow our presence in this space. Sumit, anything that you would build on there?

是的，就我們談到的獸醫診所而言，我們計劃今年推出四到八家獸醫診所。我們將處於該範圍的高端。我們在獸醫診所看到的積極趨勢仍在繼續。其中一些積極指標是這些診所的營運利用率。已經很高了。這些診所的客戶參與度和相應的客戶服務水準都很高。這些診所的淨推薦值和服務水準都很高。新客戶的跨類別滲透、透過獸醫診所進入 Chewy 的新客戶以及他們訪問 Chewy.com 然後在 Chewy.com 在線購物的傾向也很高。事實上，超過一半的新客戶與上個季度一致，實際上比上個季度有所改善，他們正在離開獸醫診所，新客戶轉向 Chewy，然後上網並在 Chewy.com 上購物。因此，獸醫診所的所有指標都呈現正面趨勢。我將把 2025 年的指導保留到 2025 年，但我只想告訴你們，我們與客戶的互動讓我們深受鼓舞。我們對 TAM 的規模感到鼓舞，我們透過這些獸醫診所開放了大約 250 億美元。我們很高興能夠繼續擴大我們在這一領域的影響力。 Sumit，你會在那裡建立什麼嗎？

On the automation, no, that's perfect. Thank you. On the automation side, Doug, we continue to trend upwards. A little less than half of our volume is now shipping to our 2G fulfillment centers and touching some sort of automation in the network. And that, combined with the improved supply chain tooling that we have, is allowing us to execute through a really strong peak. And we continue to gain those efficiencies and flow through the bottom line, as you can see in the OpEx scaling that Dave talked about on the script. Happy to dive deeper in any area, if you like.

在自動化方面，不，那是完美的。謝謝。在自動化方面，道格，我們持續呈上升趨勢。現在，我們的數量中不到一半正在運送到我們的 2G 履行中心，並在網路中實現某種自動化。再加上我們擁有的改進的供應鏈工具，使我們能夠執行一個真正強勁的高峰。我們將繼續提高效率並實現盈利，正如您在戴夫在腳本中談到的營運支出擴展中看到的那樣。如果您願意，很樂意在任何領域進行更深入的研究。

And just to build on that comment, in using some data points from the third quarter, Given the efficiencies that you've mentioned, we had an improvement on the variable fulfillment side. We had improvement on the fixed fulfillment side. In other words, we got more fixed cost absorption through those fulfillment centers. And orders every quarter this year, year-over-year, so Q1, Q2, Q3 on a year-over-year basis, orders are up across all those quarters and in total year-to-date. In fact, we had our highest order period during this most recent peak. holiday peak cycle over the last week or so. And so the team is executing very well, and the automation that's been referenced here is a big contributor to that, both in terms of output as well as efficiency and productivity. Did you have a follow-up, Doug?

在此評論的基礎上，在使用第三季的一些數據點時，考慮到您提到的效率，我們在可變履行方面取得了進步。我們在固定履行方面取得了進展。換句話說，我們透過這些履行中心吸收了更多的固定成本。今年每季的訂單量都與去年同期相比，因此第一季、第二季、第三季的訂單量與去年同期相比，所有這些季度的訂單量以及年初至今的訂單總量均有所增加。事實上，我們在最近的高峰期經歷了訂單最高時期。假期高峰週期在過去一周左右。因此，團隊執行得非常好，這裡提到的自動化在產出以及效率和生產力方面都對此做出了巨大貢獻。道格，你有後續行動嗎？

That's great. Thank you both. Appreciate it. No, all good. Thank you. Thanks.

那太棒了。謝謝你們倆。欣賞它。不，一切都好。謝謝。謝謝。

The next question comes from David Bellinger with Mizuho. David, please go ahead.

下一個問題來自瑞穗的大衛·貝林格。大衛，請繼續。

Okay, good morning. Thanks for the question. First one, I wanted to revisit the app, which I think you mentioned last quarter was around 20% of revenues. Is there any update on how quickly that percentage could ramp up? How fast can we get to 30% or 40%? And then secondly, how should we think about the P&L impact of that? Can you simply bypass marketing spend and sort of get more leverage on the ad expense line by getting more volumes through your app?

好的，早安。謝謝你的提問。首先，我想重新審視該應用程序，我認為您提到上季度該應用程式約佔收入的 20%。是否有關於該百分比上升速度的最新消息？我們能多快達到 30% 或 40%？其次，我們該如何考慮其對損益的影響？您是否可以簡單地繞過行銷支出，並透過提高應用程式的銷售量來獲得更多的廣告費用線槓桿？

David, so this is a priority for us, and we are essentially ramping up our efforts very quickly to be able to push this volume. I would consider this not a few quarters of effort, but perhaps a couple of years of efforts to get to sort of market standard rates of about 40%, 45% of our – so doubling kind of the volume that is moving through the app. But the progress that we are making on a quarter-over-quarter basis is something that we like. And of course, yes, we like it for the fact that it's a closed-loop ecosystem. It allows us to collect 1P data, market on a 1P basis, take advantage of the direct traffic, stay in touch with customers who are really more engaged, and capitalize on the trends that we see in the app, which are highly encouraging from an overall conversion of revenue into profitability point of view. you know, auto-ship engagement rates are higher in the app, AOVs are higher in the app, retention rates in apps are several hundred base points higher than customers who engage with us over the web or desktop. You know, the cross-category attach rate that we see go to the app is higher. So all in all, it's just not only a more productive experience, it's also a more enjoyable and personalized experience that allows us to build a quality of relationship that we believe will be even stronger alongside the P&L benefits that come with it. will size the benefits out in 2025. So I'm taking that question to note, and we'll come back in 2025 and size it up.

大衛，所以這是我們的首要任務，我們基本上正在迅速加大努力，以推動這一數量。 I would consider this not a few quarters of effort, but perhaps a couple of years of efforts to get to sort of market standard rates of about 40%, 45% of our – so doubling kind of the volume that is moving through the應用程式.但我們每季所取得的進展是我們喜歡的。當然，是的，我們喜歡它，因為它是一個閉環生態系統。它使我們能夠收集 1P 數據，在 1P 基礎上進行行銷，利用直接流量，與真正參與度更高的客戶保持聯繫，並利用我們在應用程式中看到的趨勢，這些趨勢非常令人鼓舞整體將收入轉化為獲利的角度。您知道，應用程式中的自動出貨參與率更高，應用程式中的 AOV 更高，應用程式中的保留率比透過網路或桌面與我們互動的客戶高出數百個基點。您知道，我們看到應用程式的跨類別附加率更高。總而言之，這不僅是一種更有成效的體驗，也是一種更愉快和個性化的體驗，使我們能夠建立一種高品質的關係，我們相信這種關係將隨著隨之而來的損益效益而變得更加牢固。將在 2025 年評估收益。

All right, perfect. We'll come back on that one. And then just to follow up, in your 10 filing, it looked like there was some new language around a project on the finance IT side. Not meaningful from a capital investment perspective, but can you elaborate on the SG&A portion? How much will that, detract in 2025. And are there any deficiencies within the system that this is correcting?

好吧，完美。我們會回來討論這一點。接下來，在您的第 10 份文件中，看起來似乎有一些圍繞財務 IT 方面的專案的新語言。從資本投資的角度來看沒有意義，但您能詳細說明一下 SG&A 部分嗎？到 2025 年，這會帶來多大的影響？

No. No, there are no deficiencies in the system that this is correcting. This is new capability for us. So I think you should think about this as the migration of some of our planning engines to a more comprehensive online suite. And by being able to do that, which at no material impact really to the P&L. By being able to do that, we're able to get more granularity with respect to all of our operations, and we're also going to be able to apply some AI to those same operations to get some automated intelligence and reporting out of the system in a more comprehensive way.

不，不，這正在糾正的系統中沒有任何缺陷。這對我們來說是新能力。因此，我認為您應該將此視為我們的一些規劃引擎遷移到更全面的線上套件的過程。如果能夠做到這一點，這對損益不會產生實質影響。透過做到這一點，我們能夠獲得所有操作的更詳細粒度，並且我們還能夠將一些人工智慧應用到這些相同的操作中，以獲得一些自動化的情報和報告。

Perfect. Thank you both. Thanks, David.

完美的。謝謝你們倆。謝謝，大衛。

The next question comes from Steven Zaccone with Citigroup. Steven, please go ahead.

下一個問題來自花旗集團的 Steven Zaccone。史蒂文，請繼續。

Great. Good morning. Thanks very much for taking my question. First question I had was just on pricing summit. You said there was no benefit from pricing in the third quarter. How do you see that playing out in 4Q and then any preliminary views on 2025? It seems like the industry overall has been flattish for some time, so your thoughts on maybe what looks like next year would be helpful.

偉大的。早安.非常感謝您提出我的問題。我的第一個問題是關於定價高峰會的。您說第三季的定價沒有帶來任何好處。您如何看待第四季度的情況以及對 2025 年的初步看法？似乎整個行業已經平淡了一段時間了，所以你對明年的看法可能會有所幫助。

So hi, Steve. This is David. I'll take this one and then submit if you want to build on it to chime in. With respect to pricing in third quarter, really no material benefit nor detriment in the third quarter with respect to pricing. We had goodness on the gross margin line, largely driven by sponsored ads and product mix. And then, of course, that flowed all the way through the P&L, ultimately to give us a pretty sizable EBITDA beat for the quarter on a year-over-year basis, roughly half driven by gross margin and half driven by leverage through the remainder of the P&L, but really no impact either way from pricing. With respect to fourth quarter, you typically do have some pricing and discounting in the fourth quarter related to the holiday season. We fully baked that into our guidance for the fourth quarter. But again, no material kind of impact from inflation nor deflation, which the inflation pieces obviously we had seen in prior years and in prior periods, but really no meaningful impact. Really throughout 2024, we had a little bit in the first quarter. Second quarter, it moderated significantly. Third quarter, relatively nonexistent. Fourth quarter, expecting the same. other than the traditional seasonality. And that's how we're kind of expecting rolling into 2025. We're expecting those trends to largely continue.

嗨，史蒂夫。這是大衛。如果您想在此基礎上進行補充，我將接受此內容，然後提交。我們的毛利率很好，這主要是由搜尋廣告和產品組合所推動的。當然，這一直貫穿損益表中，最終使我們本季的 EBITDA 同比增長相當可觀，其中大約一半由毛利率驅動，一半由其餘部分的槓桿驅動損益表，但定價實際上沒有任何影響。就第四季度而言，您通常會在第四季度進行一些與假期相關的定價和折扣。我們將其完全納入第四季度的指導中。但同樣，通貨膨脹和通貨緊縮都沒有產生實質影響，我們在前幾年和之前的時期顯然已經看到了通貨膨脹的影響，但實際上沒有任何有意義的影響。事實上，整個 2024 年，我們在第一季都有一些進展。第二季度，成長率明顯放緩。第三季度，相對不存在。第四季度，預期相同。除了傳統的季節性。這就是我們對 2025 年的預期。

Yes, the overall environment, Stephen, the market remains very rational with, of course, some seasonal spikes that you would expect as we played through the Cyber Week last week, which was a very good week for us. If you remember our comments from the beginning of this year, the composition of revenue has shifted from part pricing, part unit growth or structural growth coming into Q1 of this year to much more weighted towards structural growth as we exit this year. We are not seeing deflation happen in the category. The category that, of course, is more elastic right now as we move to Q4, particularly cyber, is more on the hard goods and discretionary side, but you would expect that as the industry normalizes and we push volumes through this seasonal holiday peak season. But outside of that, you should expect 25. If you recall our long-term growth algorithm, The revenue is a function of active customer growth in the low-to-mid single-digit and Nespac growth in the mid-to-high single-digit. And there's a benefit of roughly 2% to 2.5% of pricing built in when the industry normalizes. And that long-term growth algorithm we expect will come true as the industry continues to normalize and we move out of 24 into 25 and 26.

是的，史蒂芬，整體環境仍然非常理性，當然，當我們上週參加網絡週時，您會預料到一些季節性的高峰，這對我們來說是非常好的一周。如果你還記得我們今年年初的評論，收入的組成已經從今年第一季的部分定價、部分單位增長或結構性增長轉向今年退出時更加註重結構性增長。我們沒有看到該類別發生通貨緊縮。當然，隨著我們進入第四季度，目前更具彈性的類別，特別是網絡，更多地集中在耐用品和非必需品方面，但您會期望隨著行業的正常化，我們會在這個季節性假期旺季推動銷售。但除此之外，您應該期望 25。當行業正常化時，定價會帶來約 2% 到 2.5% 的好處。隨著產業繼續正常化，我們預期的長期成長演算法將會實現，我們將從 24 家進入 25 家和 26 家。

Okay, that's very helpful. The follow-up I had is just, In the context of raising the customer count outlook and then the commentary about that strengthening in 2025, how much of that is driven by the industry data points getting a little bit better, like you mentioned pet adoptions, versus your own idiosyncratic efforts, talking about marketing and stuff of that nature?

好的，這非常有幫助。我的後續行動是，在提高客戶數量前景的背景下，然後對 2025 年這種加強進行評論，其中有多少是由行業數據點變得更好推動的，就像你提到的寵物收養一樣，與你自己獨特的努力相比，談論行銷和類似性質的東西？

Yes, it's hard to put a ratio on it, but we believe a majority of this change that we have seen is driven by internal efforts. And so we are bullish that we should get an incremental tailwind when the industry fully normalizes. Currently, we are not taking that into account because we'd like that to sit on top. And so presently, our comments around us growing active customer is on the back of efforts that we are internally driving and seeing success with.

是的，很難給出一個比率，但我們相信我們看到的這種變化大部分是由內部努力推動的。因此，我們樂觀地認為，當產業完全正常化時，我們應該會獲得增量的推動力。目前，我們沒有考慮到這一點，因為我們希望將其放在首位。因此，目前，我們對不斷增長的活躍客戶的評論是基於我們內部推動並取得成功的努力。

Very helpful. Thanks for the question.

非常有幫助。謝謝你的提問。

The next question comes from Rupesh Parikh with Oppenheimer. Please go ahead.

下一個問題來自魯佩什·帕里克和奧本海默。請繼續。

Good morning, and thanks for taking my question. Also, congrats on this quarter. So just going back to the hard goods category, we'd love to get more color in terms of what you saw during the quarter, expectations going forward, and then from a tariff perspective, does any exposure on the tariff front? Thank you.

早安，感謝您提出我的問題。另外，恭喜本季。因此，回到硬商品類別，我們希望了解本季的情況、未來的預期，然後從關稅的角度來看，關稅方面是否有任何風險？謝謝。

I'll take the first part. Dave will chime in on the second one. So we're – as you can see, I mean hard goods continues to improve, and it did in Q3 as well. And so on the backdrop, it's really good to kind of recognize the industry normalizing. You know, we are viewing the steady improvement in hard goods performance as a result of both our efforts that I've talked about and indicative of that industry stabilization. Specific to our efforts, it includes expanding assortment across several merge classes. We've been very focused on bringing in high-value added assortment onto the platform, and our suppliers and vendors are very excited to partner with us there. We're focused on upgrading site experience to improve padding, discovery, and conversion, and we are marrying that up with thoughtful campaign execution. and so these efforts, so we believe the work done by our teams is paying off. And I also want to note that we will only fully benefit from this when we start to see a more fulsome recovery in discretionary purchasing. We're happy with the results so far.

我將採取第一部分。戴夫將插話第二個。所以我們 - 正如你所看到的，我的意思是硬商品繼續改善，第三季也是如此。因此，在這種背景下，認識到產業正常化確實是件好事。您知道，我們看到耐用品績效的穩定改善是我所談到的我們努力的結果，也顯示了產業的穩定性。具體到我們的努力，它包括擴展多個合併類別的分類。我們一直非常專注於將高附加價值的品種引入該平台，我們的供應商和供應商非常高興與我們合作。我們專注於升級網站體驗，以改善填充、發現和轉化，並將其與深思熟慮的行銷活動執行相結合。這些努力，所以我們相信我們團隊所做的工作正在得到回報。我還想指出，只有當我們開始看到自主採購更全面的復甦時，我們才能充分受益。我們對迄今為止的結果感到滿意。

And building on that, we're excited about hard goods growing two quarters in a row now on a year-over-year basis, so both second quarter this year and third quarter of this year have now grown on a year-over-year basis. We're pretty excited about that growth. And we're also excited about the early trends that we've seen here in fourth quarter. So don't want to guide by a product category, but certainly we feel good about hard goods where we stand today in the fourth quarter. With respect to the tariff question that you mentioned, We have a very small reliance and presence on China, specifically. We do source some hard goods from China, primarily related to some of our hard goods. But the vast, vast majority of our net sales at Chewy are pretty much domestically sourced. So our reliance on the region and the impact of any potential tariffs are relatively low on Chewy.

在此基礎上，我們對耐用品連續兩個季度同比增長感到興奮，因此今年第二季和第三季現在都同比增長基礎。我們對這種增長感到非常興奮。我們也對第四季看到的早期趨勢感到興奮。因此，不想以產品類別為指導，但我們當然對第四季度的耐用品狀況感到滿意。關於你提到的關稅問題，我們對中國的依賴和存在非常小。我們確實從中國採購一些耐用品，主要與我們的一些耐用品有關。但 Chewy 的絕大多數淨銷售額幾乎都是來自國內。因此，我們對該地區的依賴以及任何潛在關稅的影響對該地區來說相對較低。

Great, thank you. I'll pass it along.

太好了，謝謝。我會把它傳遞下去。

The next question comes from Mark Mahaney with Evercore ISI. Please go ahead, Mark.

下一個問題來自 Evercore ISI 的 Mark Mahaney。請繼續，馬克。

Thanks. Two questions, please. So this active customer growth, can you tell how much of that is from reactivated customers, customers you've had in the past who've churned off for whatever reasons and have come back? And if so, any color on what those reasons are? It sounds like competitive intensity is relatively moderate, given your comments on pricing. But other than pricing, is there anything else you're seeing notable in the competitive landscape? Thank you.

謝謝。請教兩個問題。那麼，這種活躍的客戶成長，你能說出其中有多少來自重新啟動的客戶，也就是你過去因某種原因流失但又回來的客戶嗎？如果是這樣，有什麼顏色可以說明這些原因嗎？鑑於您對定價的評論，聽起來競爭強度相對適中。但除了定價之外，您認為競爭格局中還有什麼值得注意的地方嗎？謝謝。

Hi, Mark. A greater number of customers were from net new customers that we acquired relative to the reactivated customers that we count towards gross ads. The other encouraging factor that we saw this time was the cohort stabilization that we've been talking about. So churn stabilized as we would expect, which was Dave's earlier comment on all three indicators were positive, net new reactivated as well as lower churn. But between the gross ad, the portion of net new customers on an absolute basis absolutely exceeded reactivation. So we were happy to see that, of course, and we would want that. And then if you combine that with some of the results that I shared around how these cohorts are engaging in terms of second purchase rates, et cetera, that is encouraging to see. On the retention side, we're tracking settled orders, which is a metric that we developed as we came out of the COVID timeframe. So to be really able to see turnover settlement rates so that we're not calling early success or early wins on these customer cohorts. And we're seeing customers' settlement rates also improve from cohorts that we've acquired from P5 of this year and before that. So all Competitive intensity, you're right, it seems relatively moderate. Pricing environments, rational. And overall, we're playing a pretty strong playbook, continuing to differentiate ourselves both in terms of the basics of the category on price and convenience and assortment, but also in bringing new innovations to life. Super excited about Chewy Plus, super excited about the App Initiative. Canada's ramping well. Sponsored ads are ramping well. Nothing else to report.

嗨，馬克。相對於我們計入廣告總額的重新啟動的客戶，更多的客戶來自我們獲得的淨新客戶。這次我們看到的另一個令人鼓舞的因素是我們一直在談論的群體穩定。正如我們所預期的那樣，客戶流失率穩定下來，這是戴夫早些時候對所有三個指標的評論，這些指標都是積極的，淨新重新激活以及客戶流失率降低。但在總廣告中，淨新客戶的比例絕對超過了重新啟動的客戶。所以我們很高興看到這一點，當然，我們也希望如此。然後，如果你將其與我分享的關於這些群體如何參與二次購買率等方面的一些結果結合起來，那就令人鼓舞。在保留方面，我們正在追蹤已結算的訂單，這是我們在疫情結束後製定的指標。因此，為了真正能夠看到營業額結算率，這樣我們就不會在這些客戶群中稱之為早期成功或早期勝利。我們發現，從今年和之前我們從 P5 獲得的客戶群中，客戶的結算率也有所提高。所以所有的競爭強度，你是對的，看起來比較溫和。定價環境合理。總體而言，我們正在發揮相當強大的作用，繼續在價格、便利性和品種等基本類別方面脫穎而出，而且還在將新的創新帶入生活方面。對 Chewy Plus 超級興奮，對應用程式計劃超級興奮。加拿大發展勢頭良好。贊助廣告進展順利。沒有其他可報告的。

Okay. Thank you, Sumit.

好的。謝謝你，蘇米特。

Sure.

當然。

The next question comes from Shweta Khajuria with Wolfe Research. Please go ahead.

下一個問題來自 Wolfe Research 的 Shweta Khajuria。請繼續。

Thank you so much for taking my questions. Let me try two, please. One is, could you please talk to some of the marketing channels that are working really well for you were a positive surprise or have been a positive surprise for you over the past couple quarters as you lean into different channels and seeing better returns. That's one. And then second is, could you please talk about trends you saw quarter-to-date, so through October, November, December, and how the trend did versus your internal expectations? Thanks a lot.

非常感謝您回答我的問題。請讓我嘗試兩個。一是，您能否談談一些對您來說非常有效的行銷管道，這些管道對您來說是一個積極的驚喜，或者在過去幾個季度中，當您轉向不同的管道並看到更好的回報時，這些管道對您來說是一個正面的驚喜。這是一個。其次，您能否談談您在本季至今（包括 10 月、11 月、12 月）看到的趨勢，以及該趨勢與您的內部預期相比如何？多謝。

Sure. So I won't fully satisfy your curiosity on specific marketing channels working for us. I would reorient us back to the comment I made at the start of the call, which if you were trying to draw, hey, what's different, I would focus on the comment around really connecting the marketing funnel to expanded audiences and driving that full funnel exposure. That has been the most significant change that we've made over the last few quarters. Combine that with our ability to target those customers when they arrive on our platforms and drive to better conversion, I believe is a powerful recipe, which we are continuing to perfect. So more room to go there, but we're excited about what we are seeing so far. So I would likely just stick with that. and any color on quarter-to-date trends. We're happy with quarter-to-date performance. We just wrapped up our cyber week, and by all measure of the word, I would classify peak holiday event performance to be successful. We had a thoughtful and curated plan comprised of great assortment offers, experience, and marketing strategy, and customers in return engaged robustly with visits and spending exceeding our expectations. driving some of the biggest net sales day in Chewy history. And as you heard from David in the prepared remarks, we're increasing our net sales guidance range for the year. And while we did not specifically call out the last few weeks that we've played through, this increase is a result of the strengths that we are currently seeing in the engine. Anything to add, Nick?

當然。因此，我不會完全滿足您對為我們工作的特定行銷管道的好奇心。 I would reorient us back to the comment I made at the start of the call, which if you were trying to draw, hey, what's different, I would focus on the comment around really connecting the marketing funnel to expanded audiences and driving that full funnel曝露.這是我們在過去幾季中做出的最重大的改變。我相信，將這一點與我們在這些客戶到達我們平台時瞄準這些客戶並推動更好的轉換的能力相結合，這是一個強大的秘訣，我們正在繼續完善這一秘訣。所以還有更多的空間去那裡，但我們對迄今為止所看到的感到興奮。所以我可能會堅持下去。以及季度至今趨勢的任何顏色。我們對本季迄今的表現感到滿意。我們剛結束了網路週，從所有方面來看，我將假期高峰活動的表現歸為成功。我們制定了一個深思熟慮且精心策劃的計劃，其中包括優質的產品組合、體驗和行銷策略，作為回報，客戶的積極參與，訪問量和支出超出了我們的預期。推動了耐嚼史上最大的淨銷售額日。正如您在準備好的演講中從大衛那裡聽到的那樣，我們正在提高今年的淨銷售額指導範圍。雖然我們沒有具體指出過去幾週我們所經歷的情況，但這種成長是我們目前在引擎中看到的優勢的結果。有什麼要補充的嗎，尼克？

Yes, if I could build on that with a few softer points here that don't necessarily show up in the P&L. But they certainly give us a good brand umbrella. Number one, Chewy Claws. I'll call that out, especially this time of year. It's a program where pets submit their Santa wish list, and it's gotten quite a bit of traction in prior years. It's gotten even more traction this year. It's not part of a paid marketing program. but it is a program that's organic and it's trending and it's a program that when people associate pets, pet parents, the humanization of pets in an emotive category like this, it is an organic trend that gets a lot of play this time of year and it's a program that we love to run. And then finally, I'd be remiss if I didn't just point out the WOW experience that our customer service provides every day. and the brand uplift and emotive attachment to Chewy that that type of program does.

是的，如果我可以在此基礎上添加一些不一定會出現在損益表中的軟點的話。但他們確實為我們提供了一個好的品牌保護傘。第一名，耐嚼的爪子。我會指出這一點，尤其是每年的這個時候。這是一個寵物提交聖誕老人願望清單的項目，在前幾年獲得了相當大的關注。今年它的吸引力更大。它不是付費行銷計劃的一部分。但這是一個有機的節目，它是一個趨勢，當人們將寵物、寵物父母、寵物的人性化與這樣的情感類別聯繫起來時，這是一個有機的趨勢，每年的這個時候都會得到很多發揮，這是我們喜歡運行的程式。最後，如果我不指出我們的客戶服務每天提供的令人驚嘆的體驗，那就是我的失職。以及此類計劃所帶來的品牌提升和對 Chewy 的情感依戀。

Shweta, if the CFO is talking about it, the Chewy clause program must really be working better.

Shweta，如果財務長在談論這個問題，那麼 Chewy 條款計劃一定確實運作得更好。

Thank you, Sumit. Thanks, Dave.

謝謝你，蘇米特。謝謝，戴夫。

Thanks.

謝謝。

We have time for one more question, and so our final question today comes from Anna Andreeva with Piper Sandler. Anna, please go ahead.

我們還有時間再問一個問題，所以今天的最後一個問題來自安娜·安德烈娃 (Anna Andreeva) 和派珀·桑德勒 (Piper Sandler)。安娜，請繼續。

Great. Thanks so much. Happy to have made it, and congrats. Nice results. Two questions from us. I wanted to follow up on hard goods. Sumit, just remind us what's the size of your own brand business within that? Are you starting to see growth there, and should that continue into next year? And is own brands still a higher margin category for Chewy? and secondly, I guess to Dave, FC automation has been a pretty big story here and you quantified that benefit in the 10Q to OpEx. Can you remind us how many FCs are automated now? What's the benefit and OpEx savings you see per FC and how many do you still have to automate ahead into 25 or beyond?

偉大的。非常感謝。很高興成功了，恭喜你。不錯的結果。我們提出兩個問題。我想跟進硬貨。 Sumit，請提醒我們您自己的品牌業務規模有多大？您是否開始看到那裡的成長？對 Chewy 來說，自有品牌仍然是利潤率較高的類別嗎？其次，我想對 Dave 來說，FC 自動化在這裡是一個相當大的故事，您在 10Q 的營運支出中量化了這一收益。您能提醒我們現在有多少 FC 實現了自動化嗎？您看到每個 FC 的好處和營運支出節省是多少？

Thank you so much. Let me start perhaps with hard goods. Again, if you go into the 10Q, you'll see that we report on hard goods. As I mentioned earlier, after several kind of quarters where we had experienced decline in the past, we have had two consecutive quarters now with growth in hard goods year over year. So the second quarter, we grew year over year. The third quarter, we've grown year over year again. And in fact, we've grown faster than we did in the second quarter. and while we don't guide by a product line or category, we have experienced some good trends in hard goods here in the fourth quarter, so we're quite pleased from that perspective. With regards to our own private brands, either within hard goods or other categories, we don't comment extensively on that. I would say in general, private brands for us has been stable. We have several initiatives where we are expanding assortment across both consumables as well as hard goods. Most of those initiatives are future benefits and not really reflected in the P&L that we've produced for third quarter or that we're guiding for fourth quarter. So those benefits are yet to come. But hard goods in general up two consecutive quarters, trending well for fourth quarter. and then private brands within hard goods continuing to improve assortment and selection.

太感謝了。也許讓我從耐用品開始。同樣，如果您進入第 10 季度，您會看到我們報告的是硬商品。正如我之前提到的，在經歷了過去幾個季度的下滑之後，我們現在已經連續兩個季度實現了耐用品同比增長。所以第二季度，我們年增。第三季度，我們再次年增。事實上，我們的成長速度比第二季更快。雖然我們不以產品線或類別為指導，但我們在第四季度經歷了耐用品的一些良好趨勢，因此從這個角度來看我們非常滿意。對於我們自己的自有品牌，無論是在耐用品還是其他類別中，我們都不會對此進行廣泛評論。我想說，總的來說，我們的自有品牌一直很穩定。我們採取了多項措施來擴大消費品和耐用品的品種。這些措施中的大多數都是未來的好處，並沒有真正反映在我們為第三季制定的損益表或我們為第四季提供的指引中。因此，這些好處尚未到來。但耐用品整體連續兩季上漲，第四季趨勢良好。然後是耐用消費品領域的自有品牌，繼續改善品種和選擇。

And I would just say that even though the relative stability is absolutely right, if you recall, this is an area of opportunity that we recognize as a strategic pillar. We want to get net sales penetration up to mid-teens level and at that scale we expect private brands to contribute up to 500 basis points of higher gross margin to the core business. For hard goods, we've mentioned in the past that penetration for our private brands is in the mid-teens to high-teens level. It fluctuates that range across the year and we are relatively stable in that penetration. In terms of automation, six fulfillment centers are currently automated. What I would recall, what I would draw your attention to is at Capital Markets Day, we said we can continue to automate across our network and reach or touch over 70% of volume in one way, shape, or form to push through these improved processes. And if you look at just the FC itself, we have said it drives improvement to the tune of up to 50% in productivity, 30% in volume per square foot, and up to 60% improvements in ergonomics and safety. And those results are pretty true even now.

我只想說，儘管相對穩定是絕對正確的，但如果你還記得的話，這是一個我們認為是戰略支柱的機會領域。我們希望將淨銷售滲透率提高到中位數水平，在這一規模下，我們預計自有品牌將為核心業務貢獻高達 500 個基點的更高毛利率。對於耐用品，我們過去曾提到過，我們自有品牌的滲透率處於十幾歲到十幾歲的水平。它在全年範圍內波動，但我們的滲透率相對穩定。在自動化方面，目前有六個履行中心實現了自動化。我記得，我想提請您注意的是，在資本市場日，我們表示我們可以繼續在整個網路中實現自動化，並以一種方式、形狀或形式達到或觸及超過70% 的交易量，以推動這些改進流程。如果您只看 FC 本身，我們表示它可將生產力提高高達 50%，每平方英尺體積提高 30%，並將人體工學和安全性提高高達 60%。即使現在，這些結果也相當正確。

Those are all the questions we have time for today, and so this concludes today's call. Thank you everyone for your participation you may now disconnect your lines.

這些就是我們今天有時間討論的所有問題，今天的電話會議到此結束。感謝大家的參與，現在可以斷開線路了。