Coupang Inc (CPNG) 2022 Q4 法說會逐字稿

Good afternoon. My name is Ashley, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coupang Earnings Conference Call. (Operator Instructions) After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) Now I'd like to turn the call over to Mike Parker, Vice President of Investor Relations. You may begin your conference.

午安.我叫Ashley，今天將擔任你們的電話會議主持人。現在，我歡迎大家參加Coupang財報電話會議。 （接線生指示）演講嘉賓致詞後，將進入問答環節。 （接線生指示）現在，我想將電話交給投資者關係副總裁Mike Parker。各位可以開始會議了。

Thanks, operator. Welcome, everyone, to Coupang's Fourth Quarter 2022 Earnings Conference Call. I'm pleased to be joined on the call today by our Founder and CEO, Bom Kim; and our CFO, Gaurav Anand.

謝謝接線生。歡迎大家參加Coupang 2022年第四季財報電話會議。我很高興今天能與我們的創辦人兼執行長Bom Kim和財務長Gaurav Anand一起參加電話會議。

The following discussion, including responses to your questions, reflects management's views as of today's date only. We do not undertake any obligation to update or revise this information except as required by law. Certain statements made on today's call include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and in our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings.

以下討論（包括對您問題的回應）僅反映截至今日管理層的觀點。除法律要求外，我們不承擔更新或修改此資訊的任何義務。今天電話會議上的某些陳述包含前瞻性陳述。實際結果可能存在重大差異。有關可能影響我們財務業績的因素的更多信息，請參閱今天的新聞稿以及我們向美國證券交易委員會 (SEC) 提交的文件，包括我們最新的 10-K 表格年度報告及後續文件。

During today's call, we may present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including reconciliations of these measures to the most comparable GAAP measures are included in our earnings release and our SEC filings, which are posted on the company's Investor Relations website.

在今天的電話會議上，我們可能會同時公佈 GAAP 和非 GAAP 財務指標。有關這些非 GAAP 指標的更多揭露，包括這些指標與最具可比性的 GAAP 指標的調整表，已包含在我們的收益報告和美國證券交易委員會 (SEC) 文件中，這些文件已發佈在公司的投資者關係網站上。

And now I'll turn the call over to Bom.

現在我將把電話轉給 Bom。

Thanks, everyone, for joining us today. A year ago, we were emerging from a challenging period of COVID-related disruptions. We shared our outlook that 2022 would be an important year to demonstrate our ability to march towards long-term profitability targets while still compounding at a multiple of the overall retail market. We also shared that we would renew our focus on operational improvements, as it was increasingly clear that COVID is winding down, and we would report our results under 2 segments: product commerce and developing offerings to provide increased visibility on our continued progress.

感謝各位今天與我們共度時光。一年前，我們正從新冠疫情帶來的挑戰性衝擊中走出來。我們展望未來，2022年將是重要的一年，我們將藉此展現我們有能力在維持整體零售市場倍數複合成長的同時，向長期獲利目標邁進。我們也表示，隨著新冠疫情逐漸消退，我們將重新關注營運改進，並將業績報告分為兩個部分：產品商務和產品開發，以更好地展現我們持續取得的進展。

We ended Q4 of 2021 with a gross profit margin of around 16% and an adjusted EBITDA loss of $285 million. A year later, 2022 Q4 concluded with a gross profit margin of 24%, an improvement of over 800 basis points. We recorded over $200 million in adjusted EBITDA for the quarter, an improvement of nearly $500 million year-over-year. Adjusted EBITDA margin was 4%; an increase of over 900 basis points year-over-year and a net income of $100 million in Q4 represents an improvement of over $500 million versus the prior year. We delivered these results while growing revenues by over 20% year-over-year on an FX-neutral basis.

2021年第四季，我們的毛利率約為16%，調整後EBITDA虧損2.85億美元。一年後，2022年第四季，我們的毛利率達到24%，提升了800多個基點。本季度，我們的調整後EBITDA超過2億美元，年增近5億美元。調整後EBITDA利潤率為4%，年成長超過900個基點。第四季淨利為1億美元，比上年同期成長了5億美元以上。在取得這些績效的同時，剔除匯率因素，我們的營收年增超過20%。

The results or the outcome of focused execution and innovation by many teams with most of the gains coming from operational improvements, such as technology, infrastructure, supply chain optimization and process improvement, including automation.

許多團隊集中執行和創新的結果或成果，大部分收益來自營運改進，例如技術、基礎設施、供應鏈優化和流程改進，包括自動化。

The results are also a reflection of the underlying strength of our flywheel in product commerce. Active customers and product commerce increased 5% year-over-year, and a spend of every cohort, including our oldest continue to compound at a fast rate, and our newer cohorts are starting their journey at higher levels of spend and growing faster than earlier cohorts.

這些業績也反映了我們在產品商務領域中飛輪效應的潛在優勢。活躍客戶和產品商務年增了5%，包括舊用戶在內的所有用戶群的支出都持續快速成長，而新用戶群的支出水平更高，增長速度也比老用戶群更快。

Over the past year, we also added nearly 2 million more customers as paid WOW members whose spend and frequency are many times higher than that of their non-WOW counterparts. Enduring customer loyalty is driven by breaking the trade-offs between and delivering on all 3 levers of commerce, service, price and selection. Much of our significant investment over the years has been devoted to delivering on the hardest 2 legs, building the best experience and the most efficient operations so that we can deliver the best experience at the best price to our customers.

在過去的一年裡，我們也新增了近200萬名付費WOW會員，他們的消費額和頻率比非WOW會員高出許多倍。持久的顧客忠誠度源自於打破商業、服務、價格和選擇這三個層面之間的取捨，並同時滿足所有需求。多年來，我們投入了大量資金，致力於打造最佳體驗和最高效的運營，從而能夠以最優的價格為客戶提供最佳體驗。

We've begun to see the power of delivering on the first 2 levers, service and price, and our superior cohort behavior and WOW membership adoption. We expect that momentum to continue in 2023 and the years ahead as we'll strive to improve our customer experience every day.

我們已開始看到前兩個槓桿——服務和價格——的威力，以及我們卓越的用戶群行為和WOW會員採用率。我們預計這種勢頭將在2023年及未來幾年繼續保持，因為我們將致力於每天提升客戶體驗。

Expanding selection is the third lever that will amplify our differentiation and service and price for customers. Consequently, we believe selection will be a critical driver going forward of even higher levels of customer engagement and loyalty, which in turn will unlock more growth and profitability over the long term.

擴大選擇範圍是第三個槓桿，它將增強我們的差異化，並提升我們為客戶提供的服務和價格。因此，我們相信，選擇範圍將成為未來進一步提升客戶參與度和忠誠度的關鍵驅動力，而這反過來又將在長期內釋放更多成長和獲利能力。

Currently, only 20% of active customers have purchased 9 or more of the over 20 categories that we offer. These customers purchased more than 2.5x the amount of the average customer. We expect that engagement within and across categories will accelerate with wider selection on Rocket.

目前，只有 20% 的活躍顧客購買了我們提供的 20 多個品類中的 9 個或更多。這些顧客的購買量是平均顧客的 2.5 倍以上。我們預計，隨著 Rocket 上商品選擇的豐富，品類內和品類間的互動將會加速。

Our oldest cohorts, while spending nearly twice the amount of our newer ones are still growing in spend each year as they experience new selection categories on Rocket. Just 1/3 of active customers in Q4 where customers are fresh, where we will also invest in enriching assortment. More than 20 million customers online have yet to join WOW, but the program's value proposition will become harder to resist with every new item added to Rocket.

我們最老的顧客群雖然消費幾乎是新顧客群的兩倍，但隨著他們在 Rocket 上體驗到新的商品類別，他們的消費額每年仍在增長。第四季度，只有三分之一的活躍顧客是新顧客，我們也將投資豐富這些顧客的商品種類。目前有超過 2000 萬在線顧客尚未加入 WOW，但隨著 Rocket 上每增加一個新商品，該計劃的價值主張將變得越來越難以抗拒。

While rocket selection has grown to millions of items, it pales in comparison to the much larger number of products that have yet to be included. 1P will target the vast catalog of popular products that are yet to be available on Rocket. Fulfillment and logistics by Coupang or FLC, shares with our sellers, the benefits of the billions we've invested in our infrastructure and technology. Over 2/3 of our merchants are SMEs, small and medium enterprises with less than $2.5 million in annual revenues. FLC wields the potential to expand selection exponentially for customers and in parallel, generate unprecedented growth for our merchants, including SMEs.

雖然 Rocket 的商品選擇已增至數百萬種，但與尚未上架的大量產品相比，仍顯得微不足道。 1P 將瞄準 Rocket 尚未上架的大量熱門產品。 Coupang 或 FLC 的配送和物流，與我們的賣家分享我們在基礎設施和技術上數十億美元投資的成果。我們超過三分之二的商家是中小企業，也就是年收入低於 250 萬美元的中小型企業。 FLC 擁有為客戶倍增選擇範圍的潛力，同時為包括中小企業在內的商家帶來前所未有的成長。

Early results show that merchants who move their inventory to FLC saw sales increase by over 65% on average. This helped to drive seller adoption that exceeded our expectations last year, and FLC is already driving a significant share of seller sales and higher growth. In Q4, the combined growth of FLC and marketplace outpaced that of 1P.

初步結果顯示，將庫存轉移至FLC的商家銷售額平均成長超過65%。這有助於推動賣家採用FLC，其成長速度超出了我們去年的預期。 FLC已顯著提升了賣家銷售額，並帶來了更高的成長。第四季度，FLC和平台的合併成長速度超過了1P。

We're still in the early days of expanding selection on Rocket. Accordingly, our penetration in the overall retail market remains low in the single digits, but we're excited about the significant opportunity ahead.

Rocket 的商品選擇擴展仍處於初期階段。因此，我們在整個零售市場的滲透率仍然很低，僅為個位數，但我們對未來的巨大機會感到興奮。

Now on profitability. There are numerous efforts across the company to increase efficiency that will allow us to improve profitability and invest in better selection, service and price for customers. As an example, automation in the form of both software and hardware will yield more savings in the years to come.

現在談談獲利能力。公司上下正在大力提升效率，這將使我們能夠提高獲利能力，並投資於為客戶提供更優質的產品、服務和價格。例如，軟體和硬體形式的自動化將在未來幾年帶來更多成本節約。

One target of continuous improvement is our fulfillment network where we see that our most automated FCs have demonstrated more than twice the efficiency of the rest of the network. We will continue to increase the efficiency of the network as we drive higher levels of automation. While the rate of improvement will be variable, we remain encouraged by our potential to continuously improve operational excellence and drive meaningful profit growth.

我們的訂單履行網絡是我們持續改進的目標之一。我們發現，我們自動化程度最高的訂單履行網路的效率是其他網路的兩倍以上。隨著自動化等級的提升，我們將持續提升網路效率。雖然改進的速度會有所不同，但我們對持續提升卓越營運和實現可觀利潤成長的潛力充滿信心。

We're also excited by the potential we see in each of our developing offerings where we'll continue to challenge trade-offs customers take for granted. We'll continue to test and invest in initiatives like Eats, Play, Fintech and international among other initiatives. Only initiatives that demonstrate the potential for meaningful cash flows in the future will earn their way to more significant investment. And each of the major initiatives has the potential to generate significant externalities as part of our ecosystem that will produce outsized value for customers and for shareholders alike.

我們也對每一項正在開發的產品中蘊藏的潛力感到興奮，我們將繼續挑戰客戶習以為常的權衡取捨。我們將繼續測試和投資諸如 Eats、Play、金融科技和國際化等計劃。只有那些在未來展現出可觀現金流潛力的計畫才能獲得更大規模的投資。作為我們生態系統的一部分，每項重大計畫都有潛力產生顯著的外部效應，從而為客戶和股東創造超額價值。

We start 2023 even more confident and excited about the opportunities ahead. As always, we'll take the long view and attack the biggest trade-offs for customers, make bold decision and disciplined investments and build sustainable long-term value for customers and shareholders, striving to create a world where everyone wonders how did I ever live without Coupang?

2023年伊始，我們對未來的機會充滿信心，也感到興奮。我們將一如既往地放眼長遠，為客戶著想，做出大膽的決策和嚴謹的投資，為客戶和股東創造可持續的長期價值，努力創造一個讓每個人都驚嘆「如果沒有Coupang，我該如何生活」的世界。

Now I'll turn the call over to Gaurav to review the financials in more detail.

現在我將把電話轉給 Gaurav，讓他更詳細地審查財務狀況。

Thanks, Bom. Our demand continued to remain strong even amidst macroeconomic pressure. We continue to grow at a multiple of the market with total dollar net revenue growth of 5% year-over-year and constant currency growth of 21% year-over-year and 6% quarter-over-quarter.

謝謝，Bom。即使在宏觀經濟壓力下，我們的需求依然強勁。我們持續以市場倍數成長，美元淨收入年增5%，以固定匯率計算年增21%，季增6%。

Our revenue growth continues to be driven by the increase in our active customers and revenue per active customer. Total active customers grew 1% year-over-year. This was negatively impacted by our each offering as our active customers in product commerce grew at 5% year-over-year. Our net revenue per active customer increased 19% year-over-year and 5% quarter-over-quarter on a constant currency basis as we continue to see even deeper engagement from our customers.

我們的收入成長持續受到活躍客戶數量和每活躍客戶收入成長的推動。總活躍客戶較去年同期成長1%。這受到我們每項服務的負面影響，因為我們在產品商務領域的活躍客戶年增了5%。由於我們持續看到客戶參與度的提升，以固定匯率計算，我們的每活躍客戶淨收入年增19%，季增5%。

Our investments into our WOW membership program and the compounding value of WOW helped drive record membership growth in Q4, ending the year with 11 million WOW members. We are encouraged by the adoption we continue to see with our WOW membership program.

我們對WOW會員計畫的投入以及WOW的複合價值，推動了第四季會員數創紀錄的成長，截至年底，WOW會員數已達1,100萬人。 WOW會員計畫的持續普及令我們倍受鼓舞。

We generated over $1.3 billion of gross profit in the fourth quarter, a nearly 60% year-over-year improvement. Our gross profit margin was 24%, an increase of over 800 bps year-over-year. Product commerce saw gross profit margin expansion of over 600 bps year-over-year, ending the quarter at 24.4%. This is 20 bps lower quarter-over-quarter, primarily because of product mix change. The driver of this year-over-year improvement remain consistent with those that we have highlighted throughout this year.

第四季度，我們的毛利超過13億美元，年增近60%。我們的毛利率為24%，年增超過800個基點。產品商務毛利率年增超過600個基點，本季末達到24.4%。環比下降20個基點，主要原因是產品結構變化。同比成長的驅動因素與我們今年以來一直強調的驅動因素保持一致。

Benefit from investment in technology, infrastructure, supply chain optimization, scaling margin-accretive offerings and process improvement, including automation. The vast majority of the gains in 2022 was generated by operational improvements outside of ad. We are seeing the result of many ongoing initiatives, most of which have been in process for some time. We expect these efforts to continue driving further margin expansion in the future. Though we may not always see meaningful improvement each quarter or the same rate of improvement as the past few quarters. Continuing the trend we saw in the last quarter, we again improved OG&A over 120 bps year-over-year and over 20 bps quarter-over-quarter in spite of our continued investments for growth.

受益於對技術、基礎設施、供應鏈優化、擴大利潤加值產品規模以及包括自動化在內的流程改善的投資。 2022 年的絕大部分收益來自廣告以外的營運改善。我們正在見證許多正在進行的舉措的成果，其中大多數已經進行了一段時間。我們預計這些努力將在未來繼續推動利潤率的進一步提升。儘管我們可能並非每季都能看到顯著的改善，或保持與過去幾季相同的改善速度。延續上一季的趨勢，儘管我們持續投資以促進成長，但我們的 OG&A 成本仍同比增長超過 120 個基點，環比增長超過 20 個基點。

We delivered a record $211 million of adjusted EBITDA for a margin of 4%. Product Commerce generated adjusted EBITDA of $266 million or 5.1% of revenue, continuing our improvements through each of the quarters this year, while developing offerings recorded adjusted EBITDA of minus $55 million to $105 million year-over-year improvement. We continue to focus on improving the profitability foundation of our Eats offering.

我們實現了創紀錄的2.11億美元調整後息稅折舊攤提前利潤，利潤率為4%。產品商務部門的調整後息稅折舊攤銷前利潤為2.66億美元，佔營收的5.1%，今年每季持續改善。同時，產品開發部門的調整後息稅折舊攤提前利潤年減5,500萬美元至1.05億美元。我們將繼續專注於提升外送業務的獲利基礎。

Included in the developing offerings, results are our investments into our more nascent offerings like Coupon play, Fintech and international. The amount of these investments for the full year was consistent with the $200 million amount that we forecasted at the start of the year. For the full year 2022, we reported minus $246 million of free cash flow, an improvement of over $830 million from the prior year. This includes opportunistic investments in the procurement of strategic land and building assets of $227 million.

業績包括在發展中產品線中，我們對Coupon Play、金融科技和國際化等新興產品的投資。這些投資金額全年與我們年初預測的2億美元一致。 2022年全年，我們的自由現金流為負2.46億美元，較前一年增加8.3億美元以上。這其中包括在策略性土地和建築資產採購方面的機會性投資，金額達2.27億美元。

Our next milestone is achieving positive free cash flow on a trailing 12-month cumulative basis. We are confident in the potential of the business to generate meaningful free cash flows, as indicated by our adjusted EBITDA profitability. As we look back on 2022, we are proud of the way our teams executed each quarter. This was a year of many milestones. We had positive adjusted EBITDA for product commerce in Q1 achieved positive adjusted EBITDA for the consolidated business in Q2 delivered a positive net income of $91 million for the consolidated business in Q3 and delivered a record gross profit, adjusted EBITDA and net income in Q4. We have consistently grown at multiples of the retail market, and we are confident in our ability to continue that trend in 2023.

我們的下一個里程碑是實現過去12個月累積正的自由現金流。我們對業務產生可觀自由現金流的潛力充滿信心，這一點從我們調整後的EBITDA獲利能力可以看出。回顧2022年，我們為團隊每季的出色表現感到自豪。這一年是充滿里程碑的一年。第一季度，我們的產品商務業務實現了正的調整後EBITDA；第二季度，合併業務實現了正的調整後EBITDA；第三季度，合併業務實現了9100萬美元的正淨利潤；第四季度，我們的毛利潤、調整後EBITDA和淨利潤均創歷史新高。我們的成長速度始終是零售市場的數倍，我們有信心在2023年延續這一趨勢。

In the past, we have shared our long-term adjusted EBITDA guidance of 7% to 10% or higher. In light of the progress we have demonstrated over the past year, we are now updating our long-term guidance to 10% or higher. We expect product commerce in 2023 to continue its march towards this long-term adjusted EBITDA target, though again won't be consistent each quarter. For developing offerings, we will continue to be opportunistic and disciplined in our investments in these nascent long-term opportunity. We invest in these opportunities because we are excited about the potential to expand the TAM and generate meaningful additional cash flows over the long term. We expect these losses for 2023 to be consistent with the amount we saw in 2022.

過去，我們曾分享長期調整後EBITDA（息稅折舊攤提前利潤）的預期，即7%至10%或更高。鑑於過去一年的進展，我們現在將長期預期更新至10%或更高。我們預計2023年的產品商務將繼續朝著這項長期調整後EBITDA目標邁進，儘管每季的預期不會保持一致。在產品開發方面，我們將繼續掌握機遇，並嚴格遵守投資這些新興長期機會的紀律。我們投資這些機會，是因為我們對擴大TAM（總市場規模）並在長期內產生可觀的額外現金流的潛力感到興奮。我們預計2023年的這些虧損將與2022年的水準保持一致。

Operator, we are now ready to begin the Q&A.

接線員，我們現在可以開始問答了。

(Operator Instructions) Please limit your questions to 2 per person. We'll pause for just a moment to compile the Q&A roster. Your first question comes from the line of Eric Cha with Goldman Sachs.

（操作員指示）請將每人提問限制在2個以內。我們將暫停一會兒，整理問答名單。您的第一個問題來自高盛的Eric Cha。

I have 2 questions. First is that we noticed that there weren't any full year 2023 guidance given in your disclosure, I assume that this is because of the macro uncertainty, but would like to hear your thought process around this. And also, more importantly, as the months of January and February are now behind us, it would be really helpful if you could share your thoughts around the first quarter trends. Any guidance or color would be really helpful.

我有兩個問題。首先，我們注意到你們的揭露中沒有提供2023年全年的業績指引，我認為這是因為宏觀經濟的不確定性，但我想聽聽你們對此的看法。更重要的是，一月和二月已經過去，如果您能分享對第一季趨勢的看法，那將非常有幫助。任何指引或展望都將非常有幫助。

Second question is, as you just mentioned, you've raised your long-term target for adjusted EBITDA margin. It would be great if you could walk us through what were the key drivers that you to raise this target? Was it mostly gross profit margin? Or do you guys now see more operating leverage on the SG&A side or a bit of both? Any color around this would be appreciated.

第二個問題是，正如您剛才提到的，您已經提高了調整後EBITDA利潤率的長期目標。請問您能否解釋一下，您提高這目標的關鍵驅動因素是什麼？主要是毛利率嗎？還是說，您現在認為銷售、一般及行政費用（SG&A）方面的營運槓桿增加，或兩者兼具？如有任何進一步說明，我們將不勝感激。

Eric, thanks for the questions. We've historically not given top line guidance. But as we've demonstrated quarter after quarter, we're confident that in any scenario, we'll continue to grow at a multiple of the market. In the first 2 months of Q1, we've seen growth at a similar rate to what we saw in Q4. And while the short term, it is hard to predict, we're really confident about our ability to continue to compound and grow at a faster rate over the long term.

Eric，謝謝你的提問。我們過去從未發布過營收指引。但正如我們逐季展現的，我們相信，在任何情況下，我們都將繼續保持市場數倍的成長。在第一季的前兩個月，我們的成長速度與第四季相似。雖然短期內難以預測，但我們對長期內持續維持複合成長和更快成長的能力充滿信心。

We're still in the single-digit share of overall market opportunity. The overwhelming majority of the retail market is offline, high prices and limited selection. We're excited about the opportunity to allow customers with wider selection, lower prices and exceptional service to continue to capture significant growth.

我們在整個市場機會中所佔份額仍只有個位數。零售市場絕大多數是線下，價格高昂，選擇有限。我們很高興有機會為客戶提供更廣泛的選擇、更低的價格和卓越的服務，從而繼續實現顯著增長。

On your second question about our profit guidance and future expansion potential. The drivers -- we're continually encouraged by the improvement we see and the progress we're making on the drivers of margin improvement, which are efforts and continuous improvement programs that leverage years of investment in technology, infrastructure, supply chain optimization and new services, among others, process improvements, including automation, as I mentioned, will also contribute to efficiency gains in the future, and we're increasingly confident about our long-term margin opportunity. And we believe we're investing in the right drivers that will get us there, though the gains may not be as dramatic as last year will be realized every quarter.

關於您的第二個問題，關於我們的利潤預期和未來擴張潛力。驅動因素－我們看到的改進以及我們在利潤率提升方面取得的進展，這讓我們感到鼓舞。這些改進和持續改進計劃充分利用了多年來在技術、基礎設施、供應鏈優化和新服務等方面的投資。正如我所提到的，包括自動化在內的流程改善也將有助於未來提高效率，我們對長期利潤機會也越來越有信心。我們相信，我們正在投資正確的驅動因素，這將幫助我們實現目標，儘管收益可能不會像去年那樣顯著，但每季都會實現。

We'll take our next question from Mr. Seyon Park with Morgan Stanley.

我們將回答摩根士丹利的 Seyon Park 先生提出的下一個問題。

I have 2 questions. The first is on FLC. Can you get a little bit of color on how much of -- or what percentage of your GMV is now coming from FLC. And then given, I guess, there are some concerns about the overall market growth in the near term. Can you maybe talk a little bit about how Coupang can utilize FLC to maybe increase the overall utilization of your distribution capacity, whether that is something that is already being actively considered or is being utilized would be very helpful to us.

我有兩個問題。第一個是關於FLC（現金流）。您能否稍微介紹一下，目前你們的GMV（商品交易總額）中有多少或多少比例來自FLC？考慮到大家對短期內整體市場成長的擔憂，您能否談談Coupang如何利用FLC來提高你們分銷能力的整體利用率？無論您是已經在積極考慮還是正在利用FLC，這對我們來說都非常有幫助。

The second question is on Coupang Eats. I know you're in the stage where management is reassessing the options. And I think it's been about 2, 3 quarters since you've done that. Can you kind of give us maybe some color on how that is progressing and when some kind of a conclusion on your stance could be reached.

第二個問題是關於Coupang Eats的。我知道你們管理階層正在重新評估各種選擇。我想你們這樣做已經有兩三個季度了。能否請您稍微透露一下進展情況，以及您何時能就此下結論？

Thanks for the question. On your first topic of FLC, as we mentioned in the call, FLC exceeded our expectations in 2022 and is already starting to scale. It of course, leverages our end-to-end integrated network, allows us to share the speed and efficiency with merchants to help them capture growth and savings; in parallel, of course, allows us to gain even better economies of scale, efficiency gains there as well, helps customers gain access to even wider selection with the experience of Rocket that we believe will ultimately unlock considerable growth over the long term.

謝謝你的提問。關於你第一個主題——FLC，正如我們在電話會議中提到的，FLC 在 2022 年的表現超出了我們的預期，並且已經開始擴張。當然，它利用了我們端到端的整合網絡，使我們能夠與商家共享速度和效率，幫助他們實現成長並節省開支；與此同時，它當然也使我們能夠獲得更好的規模經濟效益和效率提升，並藉助 Rocket 的經驗幫助客戶獲得更廣泛的選擇，我們相信這最終將在長期內帶來可觀的增長。

We mentioned the adoption rates for merchants and customers alike are strong on FLC. So far, early results show that merchants who moved their inventory to FLC saw sales increase by over 65% on average. Like any new initiative, there is a lead-time to perfect the tools and technology, processes and infrastructure to scale FLC to its full potential, but we're very excited about the long-term opportunity here.

我們提到，商家和消費者對 FLC 的採用率都非常高。到目前為止，早期結果顯示，將庫存遷移至 FLC 的商家銷售額平均成長了 65% 以上。與任何新舉措一樣，需要一定的時間來完善工具、技術、流程和基礎設施，以充分發揮 FLC 的潛力，但我們對 FLC 的長期發展前景感到非常興奮。

On Eats. We made significant progress in Eats. The $110 million year-over-year gross profit improvement in developing offerings was primarily driven by improvements in Eats. We're also working relentlessly and have many efforts and many initiatives to improve aspects of a customer experience on Eats. Eats is a strategically important offering for us now and in the future. Among other benefits, like our fresh offering, Eats helps deepen our customer engagement across many services. And there's a lot more to do, but we're excited about the strong profitable foundation we're building for Eats. And we're excited about driving the next phase of growth on that stronger foundation at the right time.

關於 Eats。我們在 Eats 方面取得了重大進展。產品開發毛利年增 1.1 億美元，這主要得益於 Eats 的改進。我們也不懈努力，並採取了許多措施來改善 Eats 的客戶體驗。 Eats 對我們現在和未來都具有重要的戰略意義。除了其他優勢（例如我們推出的新產品），Eats 還有助於深化我們在許多服務中的客戶互動。雖然還有很多工作要做，但我們對 Eats 正在建立的強大盈利基礎感到興奮。我們也很高興能夠在適當的時機，在這個更強大的基礎上推動下一階段的成長。

And we will take our next question from James Lee with Mizuho Securities.

我們將回答瑞穗證券的詹姆斯李的下一個問題。

2 here, please. First, on consumer demand. With South Korea right now facing some inflationary pressure, are you seeing any of the mix shift to maybe services very similar to U.S. or maybe trade downs by consumers? And second, and maybe can we get a sense maybe some puts and takes on developing offering for 2023? What segments do you feel like you need to double down? And maybe what segment do you look to be more rational? Any commentary regarding the $200 million losses that you incurred this year, how should we think about 2023 on that?

請回答兩個問題。首先，關於消費者需求。由於韓國目前面臨一些通膨壓力，您是否看到產品組合轉向與美國非常相似的服務業，或者消費者的消費意願下降？其次，我們能否了解一下，在開發2023年的產品時，可能會面臨哪些挑戰？您覺得哪些細分市場需要加倍投入？您認為哪些細分市場較為理性？關於今年2億美元的虧損，您有何評論？我們該如何看待2023年的虧損？

OKAY. James, thanks for your question. I think on consumer demand, I think that was your first question. There are economic uncertainties globally that affect all of us. But as you've seen, we continue to grow much faster than the market, continue to grow at a robust pace. We're at different stages of selection acquisition across categories, but we're early in the selection acquisition for nearly every category. You see that in our customer corporate behavior.

好的。詹姆斯，謝謝你的提問。我想關於消費者需求，我想這是你的第一個問題。全球經濟的不確定性影響著我們所有人。但正如你所看到的，我們的成長速度遠超市場，並持續保持強勁成長。我們在各個品類的選擇性收購方面處於不同的階段，但幾乎在每個品類中，我們都處於早期階段。你可以從我們的客戶企業行為中看到這一點。

The spend of our customer cohorts, even our oldest continues to compound at a fast rate. We're seeing strong growth across all categories, even our largest maybe perhaps because of the stage that we're at selection acquisition; it's hard to isolate the macroeconomic impact at a category level. And seeing our oldest -- all of our cohorts continue to compound all of our categories continue to grow we still don't know what our full potential spend is for our customers in any category. But it's very clear that customers want low prices, fast delivery and selection in all categories. And those are the 3 levers that we'll continue to focus on. We have not yet seen an exception to the simple truth. And we believe that our growth in the future will be driven by these 3 levers.

我們客戶群的支出，即使是最老的客戶群，也持續快速成長。我們看到所有品類都呈現強勁成長，即使是我們最大的品類也同樣如此，這或許是因為我們正處於產品線拓展的階段；很難將宏觀經濟的影響孤立地體現在品類層面。我們看到所有最老的客戶群——所有品類——的支出都在持續成長，我們仍然無法確定客戶在各個品類中的全部潛在支出。但很明顯，顧客希望在所有品類中都能享受到低價、快速配送和豐富的選擇。而這三個槓桿是我們將持續關注的。我們至今尚未發現任何例外。我們相信，我們未來的成長將由這三個槓桿驅動。

On developing offerings, we remain excited about the potential to unlock significant gains in these new areas of growth. We believe the benefits of which will be amplified by our broader ecosystem. We'll continue to be disciplined and intelligent in the way that we've approached developing offerings. And you'll see that our developing offering losses for 2023 will be consistent, as Gaurav mentioned, with the amount of investment we made in 2022.

在開發產品方面，我們仍然對在這些新的成長領域釋放巨大收益的潛力感到興奮。我們相信，這些收益將透過我們更廣泛的生態系統得到放大。我們將繼續以嚴謹和智慧的方式開發產品。正如Gaurav所提到的，您會發現，我們2023年開發產品的虧損將與我們2022年的投資金額保持一致。

(Operator Instructions) And we'll take our next question from Jan Zhao with Barclays.

（操作員指示）我們將回答巴克萊銀行的 Jan Zhao 提出的下一個問題。

I have 2 as well. The first question is about your fresh. I was just wondering are you able to provide a little bit additional color about the GMV contribution where you are in terms of the profitability. Any kind of outlook when that business may be profitable at some point in a somewhat near future. Anything you can provide would be very helpful.

我也有兩個問題。第一個問題是關於你的新鮮事。我想知道你能否提供一些關於GMV貢獻的更多信息，以及你的盈利能力。你對這項業務在不久的將來何時可能盈利有任何預測嗎？任何你能提供的幫助都將非常有幫助。

Second question is about the developing offering as well. As some of your peers, global peers seem to have had a very good success in the Fintech area. But every country, whether or not it's Brazil or Southeast Asia, they have different off-line banking system. With that as a backdrop of the off-line banking system or financial services industry in Korea, could you elaborate a bit on the sort of the specific products you are contemplating or already launched to get additional growth for your business in the financial services of Fintech area.

第二個問題也與正在開發的產品有關。正如您的一些同行，全球同行似乎在金融科技領域取得了巨大的成功。但每個國家，無論是巴西或東南亞，都有不同的線下銀行系統。以韓國線下銀行系統或金融服務業為例，您能否詳細介紹您正在考慮或已經推出哪些具體產品，以促進您在金融科技領域金融服務業務的進一步成長？

Thanks, Jon, for the question. On fresh, as we've mentioned before, we have a structural advantage of combining fresh and general merchandise in the same logistics and network that allows us, enables us to provide customers with the best experience at the lowest cost. Fresh has positive unit economics. We expect profitability to continue to improve with economies of scale and continued efforts to improve our technology and operations. We still also have a significant growth opportunity in fresh. Just 1/3 of active customers in Q4 or customers are fresh. We'll continue to expand assortment and focus on providing high quality and low prices -- high-quality products and low prices to customers there.

感謝喬恩的提問。關於生鮮，正如我們之前提到的，我們將生鮮商品和日用百貨商品整合在同一物流和網路中，這使我們能夠以最低的成本為客戶提供最佳體驗。生鮮商品的單位經濟效益良好。我們預計，隨著規模經濟效應以及我們持續改善技術和運營，獲利能力將持續提升。生鮮商品領域仍有巨大的成長機會。第四季度，只有三分之一的活躍客戶來自生鮮。我們將繼續擴大商品種類，並專注於為生鮮商品的客戶提供優質低價——高品質的產品和低價格。

On developing offerings in Fintech, I think, again, generally, we will continue to be opportunistic and disciplined here. We do see lots of opportunities. We're still in the learning phase in some of those areas. Our approach has always been to test, learn, iterate, discipline and opportunistic there. And I think you'll see us continue to take that approach there. I think at the right time, we'll share more information, but we're still very early in the journey on many of the initiatives that we are pursuing on developing offerings.

關於金融科技領域的產品開發，我認為，總的來說，我們將繼續保持機會主義和嚴謹的態度。我們確實看到了很多機會。但在其中一些領域，我們仍處於學習階段。我們一直以來的做法是測試、學習、迭代、嚴謹和把握機會。我相信你會看到我們繼續採取這種方法。我認為在合適的時機，我們會分享更多信息，但我們正在推進的許多產品開發計劃仍處於起步階段。

(Operator Instructions) It does appear that we have no further questions at this time. And this will conclude today's conference call.

（接線生指示）看來我們目前沒有其他問題了。今天的電話會議到此結束。