Coupang Inc (CPNG) 2023 Q1 法說會逐字稿

Good afternoon. My name is Ashley, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Coupang 2023 First Quarter Earnings Conference Call. (Operator Instructions)

下午好。我叫 Ashley，今天我將擔任你們的會議接線員。在此，歡迎大家參加Coupang 2023年第一季度財報電話會議。 （操作員說明）

Now I'd like to turn the call over to Mike Parker, Vice President of Investor Relations. You may begin your conference.

現在我想把電話轉給投資者關係副總裁邁克帕克。你可以開始你的會議。

Thanks, operator. Welcome, everyone, to Coupang's First Quarter 2023 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，運營商。歡迎大家參加 Coupang 2023 年第一季度收益電話會議。我很高興今天我們的創始人兼首席執行官 Bom Kim 加入了電話會議；以及我們的首席財務官 Gaurav Anand。

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，包括對您問題的答复，僅反映截至今天為止管理層的觀點。除非法律要求，否則我們不承擔更新或修改此信息的任何義務。在今天的電話會議上發表的某些聲明包括前瞻性聲明。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包含在今天的新聞稿和我們向美國證券交易委員會提交的文件中，包括我們最近的 10-K 表格年度報告和後續文件。

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 slides accompanying this webcast and our SEC filings, which are posted on the company's Investor Relations website.

在今天的電話會議中，我們可能會提出 GAAP 和非 GAAP 財務措施。有關這些非 GAAP 措施的額外披露，包括這些措施與最具可比性的 GAAP 措施的調節，包含在我們隨本網絡廣播和我們的 SEC 文件發布的收益幻燈片中，這些文件發佈在公司的投資者關係網站上。

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

現在我會把電話轉給 Bom。

Thanks, everyone, for joining us today. Before we dive in, here are 5 key takeaways from a strong start to 2023. First, we continue to deliver results because we focus on what matters most: customer experience and operational excellence. Second, we continued our trend of growing at a high multiple of the overall retail market and taking a significant portion of its growth. Third, we're reigniting active customer growth. Fourth, we continue to drive margin improvements and generated meaningful free cash flow in Q1, a significant milestone. Finally, we're rolling out a new benefit to our WOW members that will drive additional savings for our Eats customers and make WOW even harder to resist.

謝謝大家今天加入我們。在我們深入探討之前，這裡有 5 個要點，從強勁的開端到 2023 年。首先，我們繼續取得成果，因為我們專注於最重要的事情：客戶體驗和卓越運營。其次，我們繼續以整體零售市場的高倍數增長並佔據其增長的很大一部分的趨勢。第三，我們正在重新點燃積極的客戶增長。第四，我們繼續推動利潤率的提高，並在第一季度產生了可觀的自由現金流，這是一個重要的里程碑。最後，我們正在為 WOW 會員推出一項新福利，這將為我們的 Eats 優食客戶節省更多費用，並讓 WOW 變得更加難以抗拒。

Before Gaurav goes over our financial results in more detail, I wanted to frame them in the context of our continued opportunity and long-term strategy. As I mentioned, we continue to grow at a high multiple of the overall retail market. And year after year, that trend has continued to accelerate. One reason for that sustained growth is the structure of Korea's retail market, which differs dramatically from that of markets like the U.S.

在 Gaurav 更詳細地審查我們的財務結果之前，我想在我們持續的機會和長期戰略的背景下構建它們。正如我所提到的，我們繼續以整個零售市場的高倍數增長。年復一年，這種趨勢繼續加速。這種持續增長的原因之一是韓國零售市場的結構，它與美國等市場的結構截然不同。

According to one study, Korean consumers had access to less than 10% of the offline retail space per capita enjoyed by their U.S. counterparts. We continue to defy the broader slowdown in the retail market because we offer customers something very different to the limited assortment and high prices they see in offline retail. And there's immense potential to amplify that value and growth by increasing selection on Rocket Delivery.

一項研究表明，韓國消費者人均線下零售空間不到美國消費者的 10%。我們繼續應對零售市場整體放緩的影響，因為我們為客戶提供的產品與他們在線下零售中看到的有限品種和高價格截然不同。通過增加對 Rocket Delivery 的選擇，有巨大的潛力來擴大這種價值和增長。

When we started Rocket in 2014, our selection consisted primarily of consumables. As late as 2018, nonconsumables accounted for just 1/3 of total units sold. Expanding the selection in nonconsumables categories accelerated their growth. And today, they account for the majority of units and revenue on Rocket. Both groups continue to grow at a high multiple of the overall retail market, and we're still far from offering the full selection of popular brands and products across all Rocket categories. As we expand both our first-party and third-party selection on Rocket now enabled by Fulfillment and Logistics by Coupang or FLC, we expect that trend to continue for years to come.

當我們在 2014 年創立 Rocket 時，我們的選擇主要包括消耗品。直到 2018 年，非消耗品僅佔總銷量的 1/3。擴大非消耗品類別的選擇加速了它們的增長。而今天，它們佔了 Rocket 的大部分單位和收入。這兩個群體繼續以整體零售市場的高倍數增長，我們還遠未提供所有 Rocket 類別的流行品牌和產品的全部選擇。隨著我們擴大我們在 Rocket 上的第一方和第三方選擇，現在由 Coupang 或 FLC 的履行和物流支持，我們預計這種趨勢將持續數年。

Despite a rapid growth, our penetration in all categories, including consumables, remains low. We're still at a single-digit market share of a massive retail market projected to approach $550 billion in the next 3 years. It's hard to overemphasize how staggering the opportunity is before us and how early we are on this journey.

儘管增長迅速，但我們在包括耗材在內的所有類別中的滲透率仍然很低。在未來 3 年預計將接近 5500 億美元的龐大零售市場中，我們的市場份額仍處於個位數。很難過分強調我們面前的機會是多麼驚人，我們在這段旅程中有多早。

We're also confident that we can expand margins to our target of 10% or higher adjusted EBITDA, thanks to the long runway we see for operational improvements. The majority of the nearly 600 bps improvement in profit margin this quarter came from operational improvements in Product Commerce, not benefits from advertising, Eats or WOW membership. It was also not driven by onetime cost-cutting measures like layoffs. And more importantly, we achieved these profit improvements without sacrificing the customer experience. In other words, without raising prices to increase margins, rolling back benefits or compromising service levels.

我們也有信心將利潤率擴大到 10% 或更高的調整後 EBITDA 目標，這要歸功於我們看到的運營改進的漫長道路。本季度利潤率近 600 個基點的改善主要來自產品商務的運營改善，而不是來自廣告、Eats 或 WOW 會員的好處。它也不是由裁員等一次性成本削減措施推動的。更重要的是，我們在不犧牲客戶體驗的情況下實現了這些利潤提升。換句話說，無需通過提高價格來增加利潤、降低收益或降低服務水平。

To illustrate, while some online grocery services rolled back free shipping programs and increased free shipping thresholds to as high as $150 to reduce losses, we achieved profitable economics in our fresh offering while sticking to our low prices and free shipping offer for all orders above just $11. This is the best free shipping program for online grocery that we know of in the world. We did this by streamlining operations and reducing waste, all while expanding selection and delivering nearly all fresh orders via dawn and same-day delivery.

例如，雖然一些在線雜貨服務取消了免費送貨計劃並將免費送貨門檻提高到高達 150 美元以減少損失，但我們在新鮮產品中實現了盈利經濟，同時堅持對以上所有訂單提供低價和免費送貨優惠11 美元。這是我們所知道的世界上最好的在線雜貨免費送貨計劃。我們通過簡化運營和減少浪費來做到這一點，同時擴大選擇範圍並通過黎明和當天交貨交付幾乎所有新鮮訂單。

Another example of our operational improvements is our effort to increase recovery rates on returned items, which led to a 30% year-over-year decrease in loss per unit sold. Such efforts to minimize waste enable us to improve margins amidst inflationary headwinds and offer market-leading benefits like 30-day free returns on all Rocket orders for our WOW members. And this quarter, we fulfilled our commitment to deliver positive free cash flow for the entire business.

我們改進運營的另一個例子是我們努力提高退回物品的回收率，這導致每售出單位的損失同比減少 30%。這種盡量減少浪費的努力使我們能夠在通貨膨脹的逆風中提高利潤率，並為我們的 WOW 會員提供市場領先的福利，例如所有 Rocket 訂單的 30 天免費退貨。本季度，我們履行了為整個業務提供正自由現金流的承諾。

Our sustained focus on operational excellence allowed us to achieve this milestone even as we continue to invest hundreds of millions of dollars in CapEx and hundreds of millions more in Developing Offerings over the past year. Because we take the long view, we don't expect every initiative to bear fruit immediately or evenly every quarter. Instead, we trust in our ability to drive significant operational improvements over time, enabling us to continue lowering prices for customers and expanding margins for the business for many years to come. That, along with the opportunity to scale other margin-accretive offerings and automation, gives us confidence that we have a lot of upside in margin expansion.

我們對卓越運營的持續關注使我們能夠實現這一里程碑，即使我們在過去一年繼續投資數億美元的資本支出和數億美元的開發產品。因為我們著眼長遠，我們並不期望每一項舉措都能立即或每個季度均勻地產生成果。相反，我們相信我們有能力隨著時間的推移推動顯著的運營改進，使我們能夠在未來許多年內繼續為客戶降低價格並擴大業務利潤。這一點，連同擴大其他利潤增長產品和自動化的機會，讓我們相信我們在利潤擴張方面有很大的上升空間。

On Developing Offerings, we believe our actions reflect both the enterprising and disciplined aspects of our strategy. Everything we do at Coupang revolves around wowing our customers, and creating new moments of WOW is hard to do. Building truly differentiated offerings requires bold and unconventional thinking as well as investment of time and capital, but we employ a disciplined investment approach. We start with small bets, then test rigorously and invest more capital over time, but only into the opportunities we feel strongest about. It's the same proven disciplined approach we use to build our earlier offerings.

在開發產品方面，我們相信我們的行動反映了我們戰略的進取和紀律方面。我們在 Coupang 所做的一切都圍繞著讓我們的客戶驚嘆不已，而創造令人驚嘆的新時刻是很難做到的。構建真正差異化的產品需要大膽和非常規的思維以及時間和資本的投資，但我們採用有紀律的投資方法。我們從小賭注開始，然後進行嚴格的測試，並隨著時間的推移投入更多資金，但只投資於我們最看重的機會。這與我們用於構建早期產品的行之有效的嚴格方法相同。

In our International initiatives, we shuttered our operations in Japan, where we weren't producing the returns we'd hoped for. In contrast, we like what we've been seeing in Taiwan, which is showing the same signs of transformative potential that we saw in Korea when we launched Rocket Delivery. While it's still early and will remain disciplined capital allocators, investing more only if the underlying metrics validate our convictions, we're excited about the potential we're seeing.

在我們的國際計劃中，我們關閉了在日本的業務，在那裡我們沒有產生我們希望的回報。相比之下，我們喜歡在台灣看到的情況，它顯示出與我們在推出 Rocket Delivery 時在韓國看到的相同的變革潛力跡象。雖然現在還為時過早，並且將保持紀律嚴明的資本分配者，只有在基本指標驗證我們的信念時才會進行更多投資，但我們對我們看到的潛力感到興奮。

Another such area is our Eats offering. We promised last year that we would focus on streamlining efforts that would improve profitability and explore synergies with other offerings. The structural changes we made over the past years have enabled Eats to become self-funding. And we've built a foundation that positions it to scale with higher efficiencies.

另一個這樣的領域是我們的 Eats 產品。我們去年承諾，我們將專注於精簡工作，以提高盈利能力並探索與其他產品的協同效應。我們在過去幾年進行的結構性變革使 Eats 能夠實現自籌資金。我們已經建立了一個基礎，使其能夠以更高的效率進行擴展。

In April, we began rolling out a 5% to 10% discount on all orders for WOW members on Eats, the latest major benefit added to our membership program. We've observed that customers who purchase Eats, much like fresh, have higher levels of spend and engagement on general merchandise offerings. And while members who purchased Eats spend over twice as much as WOW members who don't, we believe this benefit will generate savings for customers, growth for merchants, higher engagement for Rocket and increased membership in our WOW program. This benefit has the potential to be another major catalyst that compounds value across our e-commerce and membership offerings and accelerates our entire flywheel.

4 月，我們開始為 WOW 會員在 Eats 上的所有訂單推出 5% 到 10% 的折扣，這是我們會員計劃中新增的最新主要福利。我們觀察到，購買 Eats 優食的顧客，就像購買新鮮食品一樣，在一般商品上的支出和參與度更高。雖然購買 Eats 的會員的消費是未購買 Eats 的 WOW 會員的兩倍多，但我們相信這一好處將為客戶節省開支、為商家帶來增長、提高 Rocket 的參與度並增加我們 WOW 計劃的會員人數。這種好處有可能成為另一個主要催化劑，使我們的電子商務和會員產品的價值複合起來，並加速我們的整個飛輪。

In summary, we're excited about all that's in motion in 2023. In keeping with our operating tenets that we're sharing again in our presentation this quarter, we'll bring our operational rigor to all of our initiatives, investing more capital over time only in opportunities that have the best long-term cash flow potential. There's a lot to be excited about what's happening here at Coupang, and we look forward to updating you on our progress in the upcoming quarters.

總而言之，我們對 2023 年發生的所有事情感到興奮。為了與我們在本季度的演示中再次分享的經營宗旨保持一致，我們將把我們的經營嚴謹性帶到我們的所有計劃中，投入更多資金只在具有最佳長期現金流潛力的機會上花時間。 Coupang 正在發生的事情令人興奮不已，我們期待著在接下來的幾個季度向您通報我們的最新進展。

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

現在我將把電話轉給 Gaurav。

Thanks, Bom. This quarter, we continued our trend of strong revenue growth as our teams work diligently to deliver on our exceptional customer promise that fuels our demand. We grew total net revenue 13% year-over-year on a reported basis or 20% in constant currency. Product Commerce revenue grew 21% on an FX-neutral basis, growing at the same rate as in Q4. Active customers grew 5% year-over-year in Q1, exceeding the 1% growth in Q4. And we reaccelerated active customer growth in Product Commerce, which grew faster at 8% year-over-year in Q1 to exceed the 5% growth in Q4.

謝謝，阿姆。本季度，我們繼續保持強勁的收入增長趨勢，因為我們的團隊努力工作以兌現我們對客戶的卓越承諾，從而推動我們的需求。在報告的基礎上，我們的總淨收入同比增長 13%，按固定匯率計算增長 20%。在外匯中性的基礎上，產品商務收入增長了 21%，與第四季度的增長率相同。第一季度活躍客戶同比增長 5%，超過第四季度 1% 的增幅。我們重新加速了產品商務的活躍客戶增長，第一季度同比增長 8%，超過了第四季度的 5%。

Overall, our Q1 results demonstrated robust growth amidst challenging retail conditions. With the Korean retail market growing at 4% in the first quarter, we continued our trend of growing at multiples of the overall market. Our 1P offering remains a key driver of that growth. Customers continue turning to Rocket for its low prices, unparalleled delivery experience and its vast selection that continue to expand rapidly. And with FLC, as another key driver, there is fuel to accelerate that selection expansion on Rocket even more.

總體而言，我們的第一季度業績顯示在充滿挑戰的零售環境中實現了強勁增長。隨著韓國零售市場在第一季度以 4% 的速度增長，我們繼續以整體市場的倍數增長。我們的 1P 產品仍然是這一增長的關鍵驅動力。客戶繼續轉向 Rocket 是因為其低廉的價格、無與倫比的交付體驗以及繼續快速擴展的廣泛選擇。有了 FLC，作為另一個關鍵驅動因素，就有了進一步加速 Rocket 的選擇擴展的動力。

In Q1, FLC units sold increased nearly 90% from a year ago. It continues to scale rapidly, reaching 7% of our revenue and 4% of total units sold this quarter. We are also constantly improving the merchant experience, including by reducing average onboarding time by a third, simplifying inventory inbounding and changing the contracts to clarify the value proposition. And as FLC remains a very small portion of our overall transactions, our runway for growth in FLC and thus across our entire business, remains massive.

第一季度，FLC 銷量同比增長近 90%。它繼續迅速擴大，本季度達到我們收入的 7% 和總銷量的 4%。我們還在不斷改善商家體驗，包括將平均入職時間減少三分之一、簡化庫存入庫以及更改合同以闡明價值主張。由於 FLC 仍然只占我們整體交易的一小部分，我們在 FLC 以及整個業務中的增長跑道仍然很大。

Starting in Q2, the contract changes will impact how the related FLC revenue is reported on a gross versus net basis due to the accounting rules. That will also affect our calculation of revenue growth and gross profit margin rates. For example, counting net FLC in Q1 2023 and gross FLC in Q1 2022, the Q1 revenue growth in constant currency would be 540 bps lower and gross profit margin would be 120 bps higher. We expect this accounting change will be fully reflected in our reporting by Q4 as merchants gradually transition to the new contract. As this change has no impact on FLC's economics or gross profits, we see gross profit dollar as a more meaningful indicator of the underlying growth and profit potential of our business going forward.

從第二季度開始，根據會計規則，合同變更將影響相關 FLC 收入在毛額和淨額基礎上的報告方式。這也會影響我們對收入增長率和毛利率的計算。例如，計算 2023 年第一季度的淨 FLC 和 2022 年第一季度的總 FLC，按固定匯率計算的第一季度收入增長將降低 540 個基點，毛利率將提高 120 個基點。隨著商家逐漸過渡到新合同，我們預計這一會計變化將在第四季度充分反映在我們的報告中。由於這一變化對 FLC 的經濟或毛利潤沒有影響，我們認為毛利潤美元是我們業務未來潛在增長和利潤潛力的更有意義的指標。

We continue to work on initiatives to drive higher levels of profit without sacrificing price, selection or service quality. In the first quarter, we delivered record gross profit of over $1.4 billion with a gross profit margin of 24.5%. This represents a 36% year-over-year improvement in gross profit dollars and a margin increase of over 400 bps year-over-year and 50 bps quarter-over-quarter. So this profit expansion is being driven by our Product Commerce segment where gross profit margin grew to 24.7%, an increase of over 300 bps year-over-year and over 30 bps quarter-over-quarter.

我們繼續致力於在不犧牲價格、選擇或服務質量的情況下推動更高水平的利潤。第一季度，我們實現了創紀錄的毛利潤超過 14 億美元，毛利率為 24.5%。這意味著毛利潤同比增長 36%，利潤率同比增長超過 400 個基點，環比增長 50 個基點。因此，這種利潤增長是由我們的產品商務部門推動的，該部門的毛利率增長至 24.7%，同比增長超過 300 個基點，環比增長超過 30 個基點。

We believe the improvements we are delivering, which are a continuation of the improvements we highlighted throughout 2022, are structural and sustainable. We fundamentally improved our operational processes and scale automation. We continued investing in technology and infrastructure. We optimize our supply chain, and we are scaling our higher-margin products and offerings. There remains significant potential for further profit expansion from each of these levers in the long term.

我們相信，我們正在提供的改進是結構性和可持續的，是我們在整個 2022 年強調的改進的延續。我們從根本上改進了我們的運營流程和規模自動化。我們繼續投資於技術和基礎設施。我們優化我們的供應鏈，我們正在擴大我們的高利潤產品和服務。從長遠來看，這些槓桿中的每一個都有進一步擴大利潤的巨大潛力。

As our business continues to scale, we remain focused on maintaining discipline in our operational spend. This quarter, we delivered a year-over-year improvement of nearly 180 bps in OG&A expenses as a percentage of revenue, despite the headwind from the annual increases in labor rates. Net income for the quarter was $91 million, an improvement of $300 million over last year. We also continue to maintain a very low overall equity dilution rate. Over the past 12 months, our dilution rate was only 1.2%, all from equity compensation awards to our employees. We also had another record quarter for adjusted EBITDA, hitting $241 million for a margin of 4.2%. This represents an improvement of 600 bps year-over-year and 20 bps quarter-over-quarter.

隨著我們的業務不斷擴大，我們仍然專注於維持運營支出的紀律。本季度，我們的 OG&A 費用佔收入的百分比同比提高了近 180 個基點，儘管勞動力價格每年上漲帶來不利影響。本季度淨收入為 9100 萬美元，比去年同期增加 3 億美元。我們還繼續保持非常低的整體股權稀釋率。在過去的 12 個月中，我們的稀釋率僅為 1.2%，全部來自對員工的股權補償獎勵。我們的調整後 EBITDA 也創下了另一個創紀錄的季度，達到 2.41 億美元，利潤率為 4.2%。這表示同比增長 600 個基點，環比增長 20 個基點。

Broken down by segment, Product Commerce generated a record $288 million adjusted EBITDA or 5.1% margin. We remain confident in our ability to achieve our long-term margin target of 10% or higher. Developing Offerings recorded minus $47 million in adjusted EBITDA, representing a $46 million improvement over the last year. Revenue declined 17% year-over-year on a constant currency basis. This was largely due to a contraction in Eats, which was affected by 11% year-over-year decline in the overall food delivery segment. But we are pleased with the structural improvements in profitability we have made in Eats and excited about the new benefits launch in Q2, which we expect to strengthen the WOW membership program and drive more growth in Product Commerce over time.

按細分市場細分，產品商務產生了創紀錄的 2.88 億美元調整後 EBITDA 或 5.1% 的利潤率。我們對實現 10% 或更高的長期利潤率目標的能力充滿信心。開發產品的調整後 EBITDA 為負 4700 萬美元，比去年增加了 4600 萬美元。按固定匯率計算，收入同比下降 17%。這主要是由於 Eats 業務收縮，受整體外賣業務同比下降 11% 的影響。但我們對 Eats 盈利能力的結構性改善感到高興，並對第二季度推出的新福利感到興奮，我們預計這將加強 WOW 會員計劃，並隨著時間的推移推動產品商務的更多增長。

We are also encouraged by the long-term opportunities we are seeing in Taiwan. We will continue to be disciplined. But when we see signals that merit more investment, we won't be shy about leaning in. 2022 was a year of significant milestones, and we began 2023 with another major achievement. For the first quarter since the launch of Rocket, we generated positive free cash flow of $451 million for the trailing 12 months. This represents an improvement of $1.5 billion year-over-year, driven by $1.1 billion in operating cash flow.

我們也對在台灣看到的長期機遇感到鼓舞。我們將繼續遵守紀律。但是，當我們看到值得更多投資的信號時，我們會毫不猶豫地採取行動。2022 年是具有重要里程碑意義的一年，我們以另一項重大成就開啟了 2023 年。自 Rocket 推出以來的第一季度，我們在過去 12 個月內產生了 4.51 億美元的正自由現金流。在 11 億美元的運營現金流的推動下，這意味著同比增長 15 億美元。

We anticipate that this trend of meaningful free cash flow will continue, and that the free cash flow generated and adjusted EBITDA will continue to converge. Regarding our expectations for future top line revenue growth, we anticipate that we will continue to see strong demand drive our growth at multiples of the broader retail market, capturing a significant portion of market growth each quarter.

我們預計這種有意義的自由現金流趨勢將繼續下去，產生的自由現金流和調整後的 EBITDA 將繼續趨同。關於我們對未來收入增長的預期，我們預計我們將繼續看到強勁的需求推動我們在更廣泛的零售市場的倍數增長，每個季度佔據市場增長的很大一部分。

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

接線員，我們現在準備開始問答。

(Operator Instructions)

（操作員說明）

We'll take our first question from Eric Cha with Goldman Sachs.

我們將從高盛的 Eric Cha 那裡回答我們的第一個問題。

Appreciate the extra color on FLC. My first question is during the opening remarks, I think Gaurav mentioned that FLC on a unit sold basis grew by 90% year-over-year. Can we safely say that the GMV growth is also similar to the unit sold basis growth?

欣賞 FLC 上的額外顏色。我的第一個問題是在開場白中，我認為 Gaurav 提到 FLC 按單位銷售量同比增長 90%。我們可以肯定地說 GMV 增長也類似於單位銷售基礎增長嗎？

My second question is, can you maybe talk about the relative profitability of FLC, whether its rise in the GMV mix should be accretive to the bottom line margin?

我的第二個問題是，您能否談談 FLC 的相對盈利能力，它在 GMV 組合中的上升是否應該增加底線利潤率？

Thanks for the question. FLC is scaling, roughly in line with the unit growth that we mentioned. I do want to emphasize that despite its high growth, FLC represents just 4% of total units sold, and the opportunity before us is massive. More selection on Rocket has historically driven greater growth. And we're of the same conviction that expansion of selection through FLC will continue to drive greater growth for the entire business over the long term.

謝謝你的問題。 FLC 正在擴展，大致與我們提到的單位增長一致。我想強調的是，儘管 FLC 增長很快，但它只佔總銷量的 4%，擺在我們面前的機會是巨大的。從歷史上看，Rocket 的更多選擇推動了更大的增長。我們堅信，通過 FLC 擴大選擇範圍將繼續推動整個業務的長期增長。

From a margin perspective, FLC is margin accretive. However, we are reinvesting some of that to market the service and drive adoption at this very early stage.

從利潤率的角度來看，FLC 可以增加利潤率。但是，我們正在對其中的一部分進行再投資，以在這個非常早期的階段推銷服務並推動採用。

(Operator Instructions) We will take our next question from Stanley Yang with JPMorgan.

（操作員說明）我們將從摩根大通的斯坦利楊那裡回答下一個問題。

So congratulation on a good result. First question for me is, so what is the key rationale and strategy behind the recent discount offering for each business? Is competitor that means a stronger countermeasure, i.e., bigger discounts, not a concern to you? Is there any chance of other price competition going forward?

所以祝賀你取得了好成績。我的第一個問題是，最近為每個企業提供折扣的關鍵理由和策略是什麼？競爭對手意味著更強的反制措施，即更大的折扣，您不關心嗎？未來是否有其他價格競爭的機會？

My second question is the Coupang's growth remains significantly superior to the industry growth. Can you please share the growth momentum of each category? How it's tracking in apparel and electronics category specifically?

我的第二個問題是 Coupang 的增長仍然明顯優於行業增長。能否分享一下每個品類的增長勢頭？它在服裝和電子產品類別中的具體跟踪情況如何？

Thanks for the questions. Our Eats benefit is the tenth and latest benefit we've added on WOW for customers since launch, and we're still looking to add more. As we mentioned, we're finding the ROI of this benefit in our e-commerce offerings and WOW membership, any growth to Eats would be a bonus rising. There are tens of millions of shoppers online who have yet to join WOW. And from our perspective, WOW members get the best experience in the world at the best price, but our focus continues to be on creating even more value surplus for our members. Our strategy here is in service of that goal. Our goal is to make WOW the best deal on the planet for customers.

感謝您的提問。我們的 Eats 優惠是自推出以來我們在 WOW 上為客戶添加的第十項也是最新的一項優惠，我們仍在尋求增加更多。正如我們所提到的，我們正在我們的電子商務產品和 WOW 會員中發現這種好處的投資回報率，Eats 的任何增長都將是一种红利增長。有數以千萬計的在線購物者尚未加入 WOW。從我們的角度來看，WOW 會員以最優惠的價格獲得了世界上最好的體驗，但我們的重點仍然是為我們的會員創造更多的價值盈餘。我們這裡的戰略是為了實現這一目標。我們的目標是讓 WOW 成為全球客戶的最佳交易。

And regarding growth, as you know, we're in the single-digit share of the overall market opportunity. Overwhelming majority of the retail market is offline with high prices and limited selection. We're growing at a multiple of the market because we're providing something much better through Rocket Delivery, wide selection, low prices, convenience and speed. WOW membership, as I just mentioned, is still in its early stages with tens of millions of shoppers who have yet to join. Active customers growth has reaccelerated. Because of that, all of our categories are growing, a testament to how early a stage we're at and how low the penetration is.

關於增長，如你所知，我們在整個市場機會中所佔份額為個位數。絕大多數零售市場都是線下的，價格高，選擇有限。我們在多個市場上不斷成長，因為我們通過 Rocket Delivery、廣泛的選擇、低廉的價格、便利性和速度提供更好的東西。正如我剛才提到的，WOW 會員資格仍處於早期階段，還有數千萬購物者尚未加入。活躍客戶增長重新加速。正因為如此，我們所有的類別都在增長，這證明了我們所處的階段有多早，滲透率有多低。

And being a tiny share of that $550 billion retail market production in just the next 3 years, we expect that trend to continue. But we're confident, as we've demonstrated quarter after quarter, that we'll continue to grow at a multiple of the market in any scenario.

在未來 3 年內，作為 5500 億美元零售市場生產的一小部分，我們預計這一趨勢將繼續下去。但我們有信心，正如我們一個季度又一個季度所展示的那樣，我們將在任何情況下繼續以市場倍數增長。

(Operator Instructions) We will take our next question from James Lee with Mizuho Securities.

（操作員說明）我們將與瑞穗證券一起接受 James Lee 的下一個問題。

Two here. Can you guys maybe give us an update what the trend looks like in 2Q so far maybe in March and maybe, I think the 1Q margin maybe into April, how are we looking in terms of revenue growth in 2Q? And also secondly, in terms of CapEx expectations for FY '23, can we get some color on that?

這裡有兩個。你們能不能給我們更新一下到目前為止第二季度的趨勢，也許是三月份，也許，我認為第一季度的利潤率可能會持續到四月份，我們如何看待第二季度的收入增長？其次，就 23 財年的資本支出預期而言，我們能否對此有所了解？

And in terms of looking at fulfillment center investment, is that level of investment still shifting towards owned versus leased?

就履行中心投資而言，這種投資水平是否仍在轉向自有與租賃？

James, I'll take the guidance and the growth question. We've historically not given top line guidance. We're not focused on sharing month-to-month updates because the variability can often be high within a quarter. If we see anything that is meaningfully different from recent quarters, we'll let you know.

詹姆斯，我會接受指導和增長問題。我們歷來沒有給出頂線指導。我們並不專注於分享每月的更新，因為一個季度內的可變性通常很高。如果我們發現與最近幾個季度有明顯不同的任何內容，我們會通知您。

On the CapEx question that you asked, James, we continue to invest in our CapEx in a disciplined way, and we don't expect material big changes in the CapEx behavior over time. And our focus is that our trailing 12-month free cash flow will start converging with our adjusted EBITDA over time. So we'll continue to invest in a disciplined manner as we continue to scale.

關於你問的資本支出問題，詹姆斯，我們繼續以有紀律的方式投資我們的資本支出，我們預計資本支出行為不會隨著時間的推移發生重大變化。我們的重點是，隨著時間的推移，我們過去 12 個月的自由現金流將開始與我們調整後的 EBITDA 趨同。因此，隨著我們繼續擴大規模，我們將繼續以有紀律的方式進行投資。

Okay. If I can squeeze one more question here. Maybe Bom, how should we think about maybe gen AI, how that would improve your business? And maybe give us a sense how do you plan to implement the technology.

好的。如果我可以在這裡再提一個問題。也許 Bom，我們應該如何考慮 gen AI，這將如何改善您的業務？也許讓我們了解您打算如何實施該技術。

We've been working with machine learning models across all aspects, virtually all aspects of our business. I think generative AI is exciting. Like all these new technologies, we will continue to invest and look at all the tools that we can furnish to deliver a better customer experience and to drive operational excellence.

我們一直在各個方面使用機器學習模型，幾乎是我們業務的各個方面。我認為生成式 AI 令人興奮。與所有這些新技術一樣，我們將繼續投資並研究我們可以提供的所有工具，以提供更好的客戶體驗並推動卓越運營。

(Operator Instructions) We will go next to Jiong Shao with Barclays.

（操作員說明）我們將與 Barclays 一起去 Jiong Shao 旁邊。

I have two as well. First question is about, I think you -- I heard you mentioned there was some accounting changes for your contracts that sort of artificially depressed your growth. Is that about the net other revenue line is why the growth was 6% year-over-year vis-à-vis 14% for the net retail sales? And could you please repeat the magnitude of that accounting change on the revenue?

我也有兩個。第一個問題是，我想你 - 我聽說你提到你的合同有一些會計變化，這有點人為地抑制了你的增長。關於淨其他收入線是為什麼淨零售額同比增長 6% 而淨零售額增長 14% 的原因嗎？您能否重複一下會計變更對收入的影響程度？

My second question is about the Eats. It's great you're offering 5% to 10% discount to your WOW members. I was just wondering, as you're offering additional benefits to your WOW members, are you expanding your sort of coverage in your Eats network? I know you have done restructuring in that business last year also. Just want to see where you are in terms of that footprint build-out.

我的第二個問題是關於 Eats。很高興您為您的 WOW 會員提供 5% 到 10% 的折扣。我只是想知道，當您為您的 WOW 會員提供額外福利時，您是否正在擴大您在 Eats 網絡中的覆蓋範圍？我知道你去年也對該業務進行了重組。只是想看看您在足跡擴展方面的位置。

Thanks for your questions. On the accounting change, as Gaurav mentioned, it's exactly that, just an accounting change, and it doesn't reflect the underlying growth or profitability of the business. And the accounting change doesn't mean we're simply removing FLC revenues from our calculations.

感謝您的提問。關於會計變更，正如 Gaurav 提到的那樣，只是會計變更，它並不反映業務的潛在增長或盈利能力。會計變更並不意味著我們只是從我們的計算中刪除 FLC 收入。

To clarify, adjusting the net FLC revenues in both 2022 and 2023, our constant currency growth rate in Q1 would have been about 18% year-over-year or 200 basis points lower. However, if we were to calculate our Q1 numbers with the accounting change that starts in Q2, we would calculate with FLC's net revenue in 2023 and FLC's gross revenue in 2022, resulting in a 540 basis point impact on our 20% constant currency growth revenue rate or the revenue growth rate in Q1, and gross margins would be 120 basis points higher. Again, this is simply an accounting change that doesn't reflect our underlying growth or profitability.

澄清一下，調整 2022 年和 2023 年的淨 FLC 收入，我們第一季度的固定貨幣增長率將同比增長約 18% 或降低 200 個基點。但是，如果我們用從第二季度開始的會計變更來計算第一季度的數字，我們將使用 FLC 2023 年的淨收入和 FLC 2022 年的總收入進行計算，從而對我們 20% 的恆定貨幣增長收入產生 540 個基點的影響第一季度的增長率或收入增長率，毛利率將高出 120 個基點。同樣，這只是一項會計變更，並未反映我們的潛在增長或盈利能力。

And to clarify, it has not taken -- it's not in effect yet. It starts in Q2. And I'm illustrating the impact of it with our Q1 numbers. I think the second question you mentioned was about our Eats coverage. With this benefit, we're rolling it out right now in Seoul. Of course, we intend to keep rolling it out to the rest of the country in the coming months and quarters. And we are pleased with the investment we made over the last year to build a strong foundation for both better customer experience and higher efficiencies. We believe we're poised now to provide the best customer experience at the best cost and best price for customers.

需要澄清的是，它還沒有——它還沒有生效。它從第二季度開始。我正在用我們的第一季度數據來說明它的影響。我想你提到的第二個問題是關於我們的 Eats 報導。有了這個好處，我們現在正在首爾推出它。當然，我們打算在未來幾個月和幾個季度繼續將其推廣到該國其他地區。我們對去年為打造更好的客戶體驗和更高效率的堅實基礎所做的投資感到高興。我們相信，我們現在已準備好以最優惠的成本和最優惠的價格為客戶提供最佳的客戶體驗。

(Operator Instructions) We will go next to John Yu with Citi.

（操作員說明）我們將與 Citi 一起去 John Yu。

I have two questions regarding Coupang Eats. The first question is about recent discount promotion. As you said, Eats began to offer 5% to 10% discount to Rocket WOW subscribers in certain regions. And so regarding the initial user feedback, do you see an increase of order volume or market share in those selected regions in April or May? Could you please share more color on this? And when would you expand the promotion coverage to more major regions like Gangnam or Gyeonggi?

我有兩個關於 Coupang Eats 的問題。第一個問題是關於最近的打折活動。正如您所說，Eats 開始向某些地區的 Rocket WOW 訂戶提供 5% 到 10% 的折扣。那麼關於最初的用戶反饋，您是否看到 4 月或 5 月在這些選定區域的訂單量或市場份額有所增加？你能分享更多關於這個的顏色嗎？什麼時候將推廣範圍擴大到江南或京畿等更多主要地區？

My second question is regarding competitive landscape. So if you assume competitors replicate similar strategies with some more aggressive discount promotions or making subscription programs in the following days, would there be sort of changes in the current strategy of Coupang Eats?

我的第二個問題是關於競爭格局。因此，如果您假設競爭對手在接下來的幾天內通過一些更積極的折扣促銷或製定訂閱計劃來複製類似的策略，那麼 Coupang Eats 當前的策略是否會發生某種變化？

Thanks for your question. As I mentioned, our strategy here is really in service of our goal to make WOW an amazing program, providing even more value surplus for our customers. We continue to see customers respond well. But again, the goal of this -- I think it would be icing to have some growth in Eats, but the primary objective here is to generate ROI across our e-commerce offerings and in our WOW membership program. As you live in Gyeonggi, in the suburb of Seoul, you're seeing our benefits expansion reach our neighborhood soon. We're rolling out to the rest of Seoul, rest of Gyeonggi and rest of the country in the coming months and quarters. I think that was your second question as well. Yes, I hope I covered it all.

謝謝你的問題。正如我所提到的，我們這裡的戰略實際上是為了實現我們的目標，即讓 WOW 成為一個了不起的項目，為我們的客戶提供更多的價值盈餘。我們繼續看到客戶反應良好。但同樣，這個目標——我認為 Eats 有一些增長會錦上添花，但這裡的主要目標是在我們的電子商務產品和我們的 WOW 會員計劃中產生投資回報率。當您住在首爾郊區的京畿道時，您會發現我們的福利很快就會擴展到我們的社區。在接下來的幾個月和幾個季度裡，我們將推廣到首爾其他地區、京畿其他地區和全國其他地區。我想這也是你的第二個問題。是的，我希望我涵蓋了所有內容。

(Operator Instructions) We will take our next question from Soyun Shin with Credit Suisse.

（操作員說明）我們將與瑞士信貸一起接受 Soyun Shin 的下一個問題。

I have two questions. So for the Taiwan, can you elaborate more on your strategy in that market? And is it going to change the impact on our guidance, the EBITDA guidance of like developing operation on the division?

我有兩個問題。那麼對於台灣，您能否詳細說明您在該市場的戰略？它是否會改變對我們的指導的影響，比如在該部門開展業務的 EBITDA 指導？

My second question is that the -- thanks for your colors on the FLC in terms of the percentage of the total unit. So can you provide more color like the long-term colors, like the target penetration rate and the merchant expansion plan? Are the fashion and the merchants are using this service more than the other categories and et cetera?

我的第二個問題是——感謝您在 FLC 上使用佔總單位百分比的顏色。那麼你能提供更多的顏色，比如長期顏色，比如目標滲透率和商家擴張計劃嗎？時尚界和商家是否比其他類別等更多地使用這項服務？

Thanks for your question. I think regarding Taiwan, as I mentioned, we are seeing -- we're encouraged by the response we're getting. We believe the opportunity to break trade-offs, the same transformative potential that we saw in our early days in Korea, we're starting to see some signs of that. We'll, of course, test and learn at this stage.

謝謝你的問題。我認為關於台灣，正如我所提到的，我們正在看到——我們對我們得到的回應感到鼓舞。我們相信打破取捨的機會，我們在韓國早期看到的同樣的變革潛力，我們開始看到一些跡象。當然，我們將在此階段進行測試和學習。

And your question about whether -- about developing offerings guidance, our investment level so far within what we anticipated at the beginning of the year. But we're delighted by what we've seen in not only our EATS benefits rollout, but also in Taiwan. And while we're rigorous, we will analyze all the results and the data rigorously, we will take advantage of opportunities where we feel strongest about our ability to generate meaningful returns. And if there are -- or if and when there are any changes in our expected levels of spend, we intend to update the guidance.

你的問題是——關於製定產品指南，我們的投資水平到目前為止是否在我們年初的預期範圍內。但令我們欣喜的是，我們不僅看到了 EATS 福利的推出，而且在台灣也看到了。在我們嚴謹的同時，我們將嚴格分析所有結果和數據，我們將利用我們最有能力產生有意義回報的機會。如果有——或者如果我們的預期支出水平發生任何變化，我們打算更新指南。

And on FLC target penetration and categories, we've been pleased to see our selection expansion on Rocket has generally been a growth driver across all categories. We have yet to see an exception to the rule that customers want wide selection, low prices and exceptional service. And we're particularly pleased to see the progress we're making in fact in consumer electronics, categories that are quite -- even earlier in their journey than other categories. All categories are growing, but fashion and consumer electronics grew faster than our overall business in Q1.

在 FLC 目標滲透和類別方面，我們很高興看到我們在 Rocket 上的選擇擴展通常是所有類別的增長動力。我們還沒有看到客戶想要廣泛的選擇、低廉的價格和卓越的服務這一規則的例外情況。我們特別高興地看到我們在消費電子產品方面取得的進展，這些類別甚至比其他類別更早。所有類別都在增長，但時尚和消費電子產品在第一季度的增長速度超過了我們整體業務的增長速度。

And in FLC, both categories grew even faster than the fast growth rate of FLC overall. So we are excited about the progress we're making there, and our aim is to keep expanding selection in all categories, including fashion and consumer electronics in the years ahead.

而在 FLC 中，這兩個類別的增長速度甚至超過了 FLC 整體的快速增長速度。因此，我們對我們在這方面取得的進展感到興奮，我們的目標是在未來幾年繼續擴大所有類別的選擇，包括時尚和消費電子產品。

Again, we're still at an early, early stage with low penetration across all our categories, overall penetration still in the single digits of the entire retail market, and then FLC also comprising a very small percentage of our overall volume within our business. So we expect both of those numbers to -- both of those penetration levels to go up over time as we focus on expanding selection across all of our categories.

同樣，我們仍處於早期階段，我們所有類別的滲透率都很低，整體滲透率仍處於整個零售市場的個位數，然後 FLC 也占我們業務總量的很小一部分。因此，我們希望這兩個數字——隨著我們專注於擴大所有類別的選擇，這兩個滲透水平都會隨著時間的推移而上升。

And we will take our last question from Eric Cha with Goldman Sachs.

我們將接受 Eric Cha 和高盛的最後一個問題。

Just one last question. So in some of the new sale, we've been hearing some noises regarding between the brands and Coupang. Just wanted to see if there were any impacts from that.

最後一個問題。所以在一些新的銷售中，我們聽到了一些關於品牌和 Coupang 之間的聲音。只是想看看這是否有任何影響。

Yes, Eric, I'll take that one. So as a retailer, we on a daily, weekly, monthly basis, continue to optimize our assortment for our customers. So at any given point, we are buying some products and not others. And this is a continuous and ongoing process for any retailer in the world. I hope that answers the question.

是的，埃里克，我要那個。因此，作為零售商，我們每天、每週、每月繼續為我們的客戶優化我們的商品分類。所以在任何時候，我們都會購買一些產品而不是其他產品。對於世界上的任何零售商來說，這都是一個持續不斷的過程。我希望這能回答這個問題。

Yes. I don't think -- I think we remain on our trajectory on all fronts.

是的。我不認為 - 我認為我們在所有方面都保持在我們的軌道上。

There are no further questions at this time, and this does conclude this conference call. You may now disconnect.

目前沒有其他問題，本次電話會議到此結束。您現在可以斷開連接。