Coupang Inc (CPNG) 2023 Q3 法說會逐字稿

Hello. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Coupang 2023 Third Quarter Earnings Conference Call. (Operator Instructions)

你好。我叫克里斯塔，今天我將擔任你們的會議操作員。此刻，我歡迎大家參加Coupang 2023年第三季財報電話會議。 （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.

現在我想將電話轉給投資者關係副總裁麥克帕克，您可以開始會議了。

Thanks, operator. Welcome, everyone, to Coupang's Third 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，接線生。歡迎大家參加 Coupang 2023 年第三季財報電話會議。我很高興今天能與我們的創辦人兼執行長 Bom Kim 一起參加電話會議。以及我們的財務長高拉夫·阿南德 (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.

以下討論（包括對您的問題的答案）僅反映了管理層截至今天的觀點。除法律要求外，我們不承擔更新或修改此資訊的任何義務。

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.

今天的電話會議中所做的某些陳述包括前瞻性陳述。實際結果可能存在重大差異。有關可能影響我們財務表現的因素的更多資​​訊包含在今天的新聞稿和我們向 SEC 提交的文件中，包括我們最新的 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. Any comparative comments we make will be on a year-over-year basis unless we state otherwise.

在今天的電話會議中，我們可能會介紹公認會計準則和非公認會計準則的財務指標。有關這些非公認會計準則衡量標準的其他揭露，包括這些衡量標準與最具可比性的公認會計準則衡量標準的調節，包含在我們的收益發布、本網絡廣播隨附的幻燈片以及我們向SEC 提交的文件中，這些文件發佈在公司的投資者關係網站上。除非另有說明，否則我們所做的任何比較評論都將逐年進行。

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. Before I turn it over to Gaurav to go through our financials in detail, I'd like to share with you 4 key takeaways from our third quarter results.

謝謝大家今天加入我們。在我將其交給 Gaurav 詳細了解我們的財務狀況之前，我想與您分享我們第三季業績的 4 個關鍵要點。

First, we continue to deliver durable growth and expanding profitability, not one at the expense of the other, because of our years of unparalleled investment and an unrelenting focus on both the customer experience and operational excellence.

首先，由於我們多年來無與倫比的投資以及對客戶體驗和卓越營運的不懈關注，我們繼續實現持久增長和不斷擴大的盈利能力，而不是以犧牲另一個為代價。

Second, our flywheel is accelerating. Our selection advantage is a critical component of that accelerating flywheel. In Q3, we expanded selection across both first and third party. Both active customer and revenue grew even faster than last quarter. Active customers grew 14% year-over-year, faster than the rate of any quarter since the pandemic level of 2021.

其次，我們的飛輪正在加速。我們的選擇優勢是加速飛輪的關鍵組成部分。在第三季度，我們擴大了第一方和第三方的選擇範圍。活躍客戶和收入的成長速度都比上季更快。活躍客戶年增 14%，增速高於 2021 年疫情爆發以來的任何季度。

We've observed that increasing selection on Rocket leads generally to increasing customer spend on Coupang. In Q3, even established categories like consumables experienced double-digit year-over-year growth that was a high multiple of the rate of the market. Newer categories like Fresh grew more than twice as fast as the overall business and also at a high multiple of the market growth rate.

我們觀察到，增加 Rocket 的選擇通常會增加客戶在 Coupang 上的支出。在第三季度，即使是消費品等既定類別也實現了兩位數的年成長，是市場成長率的高倍數。新鮮品類的成長速度是整體業務的兩倍多，而且是市場成長率的高倍數。

We're also seeing strong third-party volume growth, which is outpacing the rest of the business. That is in part due to Fulfillment and Logistics by Coupang or FLC, growing more than 3x faster than the overall business. FLC is also expanding on Rocket Delivery selection in categories like fashion where historically first-party inventory has been slower to grow.

我們也看到第三方銷售的強勁成長，超過了其他業務。這在一定程度上是由於 Coupang 或 FLC 的履行和物流業務的成長速度比整體業務快 3 倍以上。 FLC 還在時尚等類別中擴大 Rocket Delivery 的選擇，這些類別歷來第一方庫存增長較慢。

We believe we still have significant opportunity ahead in both number of active customers and spend per customer. Our active customer count is just 20 million and our single-digit share of the total retail market indicates a low share of wallet today. We believe the continued expansion of selection on Rocket, via our first-party offering and FLC, will help drive a higher share of both active customers and total retail spend.

我們相信，在活躍客戶數量和每位客戶的支出方面，我們仍然擁有巨大的機會。我們的活躍客戶數量只有 2000 萬，而我們在整個零售市場中所佔的個位數份額表明，目前的錢包份額很低。我們相信，透過我們的第一方產品和 FLC，Rocket 上的選擇不斷擴大，將有助於提高活躍客戶和總零售支出的份額。

Third, WOW membership is amplifying all the benefits of our ecosystem. When WOW members increase their engagement around one benefit, it can increase their engagement across all of Coupang's offerings. Our WOW savings program in Eats is a perfect example.

第三，WOW 會員資格正在放大我們生態系統的所有優勢。當 WOW 會員增加圍繞一項福利的參與度時，就可以增加他們對 Coupang 所有產品的參與度。我們在 Eats 中的 WOW 儲蓄計劃就是一個完美的例子。

Since we launched the Eats WOW membership savings program in early Q2, we've seen a surge of customer and order growth. WOW members participating in Eats has increased 90% since launch, and transaction gain has more than doubled in over 75% of the regions where we've launched the program. We expect Eats to be at approximately 20% market segment share by the end of the year, nearly twice the level it was at the launch of the program. And setting aside onetime investments such as new merchant acquisition costs, Eats is unit economics positive. This is a permanent program for our WOW membership, and with roughly only 20% of WOW members purchasing Eats in Q3, we see vast opportunity for growth ahead.

自從我們在第二季初推出 Eats WOW 會員儲蓄計劃以來，我們看到了客戶和訂單的激增。自推出以來，參與 Eats 的 WOW 會員增加了 90%，在我們推出該計劃的超過 75% 的地區，交易收益增加了一倍多。我們預計到今年年底，Eats 的市佔率將達到約 20%，幾乎是該計畫啟動時水準的兩倍。撇開新商戶收購成本等一次性投資，Eats 的單位經濟效益是正面的。這是我們的 WOW 會員的永久性計劃，大約只有 20% 的 WOW 會員在第三季度購買 Eats，我們看到了未來巨大的成長機會。

But the impact of the program extends beyond Eats. Engagement on Eats helps drive higher levels of member acquisition and retention on WOW membership. As we've noted before, WOW members purchase with significantly higher frequency and across more categories and offerings than non-WOW members. WOW members who purchase Eats spend considerably more on product commerce. And in the regions where we've launched the program, we've observed that they spend twice as much overall as WOW members who don't purchase Eats.

但該計劃的影響超出了 Eats 的範圍。 Eats 的參與度有助於提高 WOW 會員的取得和保留水準。正如我們之前指出的，WOW 會員的購買頻率明顯高於非 WOW 會員，涉及的類別和產品也更多。購買 Eats 的 WOW 會員在產品商務上的花費要高得多。在我們推出該計劃的地區，我們觀察到他們的總體支出是不購買 Eats 的 WOW 會員的兩倍。

Fundamentally, Coupang is not a consumer goods company, or a delivery company or a retail company. Coupang is, at its essence, a company that breaks trade-offs to deliver wow in customers' daily lives. WOW membership is at the heart of that broader mission, and we're determined to make WOW the best value on the planet for customers.

從根本上來說，Coupang 不是一家消費品公司，也不是一家快遞公司或零售公司。從本質上講，Coupang 是一家打破權衡、為客戶的日常生活帶來驚喜的公司。 WOW 會員資格是這項更廣泛使命的核心，我們決心讓 WOW 為客戶提供全球最佳價值。

Finally, our conviction about the long-term potential in Taiwan continues to strengthen. We launched Rocket Delivery in Taiwan in October of 2022, and the offering in Taiwan has scaled much faster in its first year of operation than it did in its first year in Korea. And our app is on pace to be the most downloaded app in the market for all of 2023. We're off to a promising start.

最後，我們對台灣長期潛能的信心不斷增強。我們於 2022 年 10 月在台灣推出了 Rocket Delivery，在台灣的服務在運營第一年的規模比在韓國的第一年要快得多。我們的應用程式有望成為 2023 年全年市場上下載次數最多的應用程式。

Our growth in Taiwan is also opening doors of opportunity for our merchants and suppliers in Korea. Small and medium enterprises, for example, have historically had challenges reaching customers outside of their domestic market. In just 1 year, we've helped over 12,000 SMEs export their products to Taiwan. It's a reminder that the trade-offs we break have the potential to benefit all in the value chain by generating moments of wow for customers, opportunities for suppliers and merchants and value for our shareholders.

我們在台灣的發展也為我們在韓國的商人和供應商打開了機會之門。例如，中小型企業歷來在接觸國內市場以外的客戶方面面臨挑戰。短短一年時間，我們已幫助超過12,000家中小企業將產品出口到台灣。這提醒我們，我們打破的權衡有可能使價值鏈中的所有人受益，為客戶創造驚喜時刻，為供應商和商家創造機會，為我們的股東創造價值。

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

現在我將把電話轉給 Gaurav。

Thanks, Bom. This quarter was a clear demonstration of the power of the Coupang flywheel. We again delivered record active customers, revenue, gross profit and cash flows, while also generating even greater value for our customers.

謝謝，鮑姆。本季度清楚地展示了 Coupang 飛輪的力量。我們再次創造了創紀錄的活躍客戶、收入、毛利和現金流，同時也為我們的客戶創造了更大的價值。

We continue to see an accelerating growth rate in our active customers, growing at 5% in Q1, 10% in Q2 and 14% in Q3. We now have 20.4 million active customers, adding 2.3 million customers so far this year.

我們持續看到活躍客戶的成長速度加快，第一季成長 5%，第二季成長 10%，第三季成長 14%。我們現在擁有 2,040 萬活躍客戶，今年迄今新增了 230 萬客戶。

Total net revenues grew 21% year-over-year this quarter or 18% in constant currency. As we communicated last quarter, in Q2, we began implementing certain contract changes within our FLP program that resulted in accounting changes on FLC revenue going forward, which changed from a gross to a net basis.

本季總淨收入年增 21%，以固定匯率計算成長 18%。正如我們在上個季度第二季度所傳達的那樣，我們開始在 FLP 計劃中實施某些合約變更，導致未來 FLC 收入的會計變更，從總額變為淨額。

The FLC accounting change had no impact on FLC's underlying economics or gross profits. While almost all of the FLC merchants converted to the new contracts by end of Q2, the accounting change will continue to adversely affect our reported revenue growth rates for the next several quarters due to the different accounting treatment in the comparative quarters.

FLC 會計變更對 FLC 的基本經濟狀況或毛利沒有影響。雖然幾乎所有 FLC 商家在第二季末都轉用了新合同，但由於比較季度的會計處理不同，會計變更將繼續對我們報告的未來幾個季度的收入增長率產生不利影響。

Using the same accounting treatment in place in Q1 prior to the change, our consolidated Q3 total net revenue growth rate would have been an estimated 630 basis points higher than the 18% constant currency growth rate.

使用變更前第一季相同的會計處理方法，我們的第三季綜合淨收入成長率預計將比 18% 的恆定貨幣成長率高出 630 個基點。

Product Commerce segment revenues grew 21% on a reported basis and 18% in constant currency. We are making exciting progress in Developing Offerings where segment revenues grew 41% on a reported basis and 40% in constant currency. The momentum of our key investment initiatives from Eats to Taiwan is becoming increasingly evident.

產品商務部門營收以報告計算成長 21%，以固定匯率計算成長 18%。我們在開發產品方面取得了令人興奮的進展，按報告計算，分部收入成長了 41%，以固定匯率計算，成長了 40%。我們從外賣到台灣的主要投資舉措的勢頭越來越明顯。

With the overall retail market in Korea growing an estimated 1.3% year-over-year, this quarter continued our years-long trend of growing at a high multiple of the overall retail market. We see that customers increasingly come to Coupang for the best prices, broadest assortment and fastest delivery experience.

韓國整體零售市場預計將年增 1.3%，本季延續了多年來整體零售市場高倍數成長的趨勢。我們看到越來越多的客戶來到 Coupang 尋求最優惠的價格、最廣泛的品種和最快的交付體驗。

Fueled by the strong top line growth across our business this quarter, we generated record gross profit of $1.6 billion, growing 27% over the last year. Our gross profit margin for the third quarter was 25.3%, growing over 110 basis points year-over-year and decreasing nearly 80 basis points quarter-over-quarter. This was driven by improved margin within Product Commerce, primarily offset by the increased investments in Developing Offerings that we mentioned in our call last quarter.

在本季我們業務收入強勁成長的推動下，我們創造了創紀錄的 16 億美元毛利，比去年成長 27%。第三季毛利率為25.3%，年增超過110個基點，季減近80個基點。這是由於產品商務利潤率的提高所推動的，這主要被我們在上季度電話會議中提到的開發產品投資的增加所抵消。

Within our Product Commerce segment, gross profit margin improved 250 basis points year-over-year where we continue to generate further improvements through supply chain optimization, operational efficiencies and scaling of newer offerings like Ads. The FLC accounting change positively impacted the Q3 gross profit margin by an estimated 150 basis points. The improvements were offset this quarter by short-term factors such as lower margin originating from new inventory selection added.

在我們的產品商務部門，毛利率年增了 250 個基點，我們繼續透過供應鏈優化、營運效率和廣告等新產品的擴展來進一步提高毛利率。 FLC 會計變更對第三季毛利率產生了約 150 個基點的正面影響。本季的改善被短期因素所抵消，例如由於新庫存選擇而導致的利潤率下降。

As we have demonstrated in the past, we expect to generate higher margins over time with optimization. Expanding our selection in both third and first party has been critical to our durable growth and margin trajectory. We continue to expand our selection with confidence in the long-term impact on customer growth, customer spend and margin expansion.

正如我們過去所證明的那樣，我們期望透過優化隨著時間的推移產生更高的利潤。擴大我們在第三方和第一方的選擇對於我們的持久成長和利潤軌跡至關重要。我們繼續擴大我們的選擇，對客戶成長、客戶支出和利潤擴張的長期影響充滿信心。

OG&A expense as a percentage of revenue in Q3 increased over 120 basis points year-over-year, negatively impacted by an estimated 120 basis points from the FLC accounting change.

第三季 OG&A 費用佔營收的百分比年增超過 120 個基點，受到 FLC 會計變更估計 120 個基點的負面影響。

This quarter, we delivered net income of $91 million and earnings per share of $0.05. This includes $25 million of income tax expense, with an effective tax rate of 21.7% and a year-to-date tax rate of 20.5%.

本季度，我們實現淨利潤 9,100 萬美元，每股收益 0.05 美元。其中包括 2,500 萬美元的所得稅費用，有效稅率為 21.7%，年初至今稅率為 20.5%。

Our Product Commerce segment generated $399 million in adjusted EBITDA with a margin of 6.7% and an improvement of nearly 190 basis points year-over-year and a decrease of approximately 50 basis points quarter-over-quarter. This was driven by our operational improvements, optimization, and scaling of margin-accretive offerings, offset by factors including short-term inefficiencies around selection expansion.

我們的產品商務部門調整後 EBITDA 為 3.99 億美元，利潤率為 6.7%，較去年同期提高近 190 個基點，較上季下降約 50 個基點。這是由我們的營運改善、優化和利潤增值產品的擴展所推動的，但被選擇擴展的短期效率低下等因素所抵消。

Our consolidated business generated $239 million of adjusted EBITDA this quarter and $991 million over the trailing 12 months. The adjusted EBITDA margin of 3.9% for Q3 was essentially flat year-over-year and down nearly 130 basis points quarter-over-quarter. This was driven by our Product Commerce segment as well as increased investments in Developing Offerings this quarter.

我們的合併業務本季調整後 EBITDA 為 2.39 億美元，過去 12 個月為 9.91 億美元。第三季調整後 EBITDA 利潤率為 3.9%，年比基本持平，季減近 130 個基點。這是由我們的產品商務部門以及本季對開發產品的投資增加所推動的。

We are still early in our margin expansion journey and believe there are significant opportunities in front of us to drive higher margin levels through supply chain optimization, operational improvement, scaling of newer offerings like ads and merchant services, and automation. While there may not always be quarterly improvements, we expect to continue generating meaningful improvements in consolidated adjusted EBITDA dollars and margin on a fuller basis while investing into our nascent growth opportunities in Developing Offerings. We are confident in our ability to achieve our entitlement adjusted EBITDA margins of over 10%.

我們仍處於利潤擴張之旅的早期階段，相信我們面前有重大機會，可以透過供應鏈優化、營運改進、廣告和商業服務等新產品的擴展以及自動化來推動更高的利潤水平。雖然可能不會總是出現季度改善，但我們預計將繼續在綜合調整後 EBITDA 美元和利潤率方面產生有意義的改善，同時投資於我們在開發產品中的新生成長機會。我們對實現 10% 以上的權益調整後 EBITDA 利潤率充滿信心。

Our Developing Offerings segment adjusted EBITDA loss was $161 million this quarter, an increase of $117 million year-over-year. This was driven by our increased level of investment into these nascent opportunities, as we had communicated last quarter. We anticipate the losses for Developing Offerings in the fourth quarter will be lower than the level of losses we saw this quarter.

本季我們的開發產品部門調整後的 EBITDA 虧損為 1.61 億美元，年增 1.17 億美元。正如我們上季度所傳達的那樣，這是由於我們對這些新興機會的投資水準增加所致。我們預計第四季度開發產品的損失將低於本季的損失水準。

As Bom noted, we are seeing exciting momentum in these early-stage initiatives and are growing increasingly confident in their ability to compound value across our ecosystem and to accelerate the entire flywheel. We remain committed to investing with discipline and managing our business in line with our operating tenets.

正如 Bom 所指出的那樣，我們看到這些早期計劃的令人興奮的勢頭，並且對它們在整個生態系統中復合價值和加速整個飛輪的能力越來越有信心。我們仍然致力於嚴格投資並按照我們的經營宗旨管理我們的業務。

We continue delivering record levels of cash flow. This quarter, we generated $2.6 billion in operating cash flow and $1.9 billion of free cash flow on a trailing 12-month basis. This is significantly higher than the trailing 12-month adjusted EBITDA due to some onetime and seasonal working capital benefits, among other factors. Generally, we expect that free cash flow on a TTM basis will be closer to the levels of adjusted EBITDA generated. As we continue to achieve even higher levels of cash flow generation, we remain committed to prioritize our capital allocation to those opportunities we believe will generate the highest level of long-term shareholder value.

我們繼續創造創紀錄的現金流水準。本季度，我們過去 12 個月的營運現金流量為 26 億美元，自由現金流量為 19 億美元。由於一些一次性和季節性營運資本利得等因素，這明顯高於過去 12 個月調整後 EBITDA。一般來說，我們預期以 TTM 計算的自由現金流量將更接近產生的調整後 EBITDA 的水準。隨著我們繼續實現更高水準的現金流生成，我們仍然致力於將資本配置優先於我們認為將產生最高水準的長期股東價值的機會。

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) Your first question comes from the line of Eric Cha with Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的Eric Cha。

I have two questions. First, is on Product Commerce margin, GP margin. Would you be able to elaborate why Product Commerce gross profit margin declined sequentially adjusting for the accounting? I think you mentioned headwind from the new inventory selection expansion, but can you elaborate on what this exactly means? Is the shift in GMV due to this inventory expansion the main reasons for the decline? And should we anticipate this headwind for some time, especially the coming fourth quarter as well? So that was my first question.

我有兩個問題。首先是產品商務利潤、GP 利潤。能否詳細說明為何產品商務毛利率在會計調整後會持續下降？我想你提到了新的庫存選擇擴張帶來的逆風，但你能詳細說明這到底意味著什麼嗎？庫存擴張帶來的GMV變化是下降的主要原因嗎？我們是否應該在一段時間內預期這種逆風，尤其是即將到來的第四季？這是我的第一個問題。

And the second question is on Developing Offerings. The cumulative adjusted EBITDA loss is now, I think, $360 million. I know you mentioned the fourth quarter loss will come down. Are you still comfortable in meeting the guidance for the year, keeping it under $400 million? Simply looking at the numbers, there has to be quite a bit of a reduction in loss to meet that, so I was just wondering what that.

第二個問題是關於開發產品。我認為，調整後的 EBITDA 累計損失目前為 3.6 億美元。我知道你提到第四季虧損將會下降。您是否仍願意滿足今年的指導目標，並將其保持在 4 億美元以下？簡單地看一下數字，就必須大幅減少損失才能滿足這項要求，所以我只是想知道那是什麼。

Eric, thanks for the questions. Just as a reminder, over the past 12 months, we've generated nearly $1 billion in adjusted EBITDA, increasing margins by nearly 500 basis points. Product Commerce trailing 12 months adjusted EBITDA went from just over $200 million to $1.4 billion last quarter. Margin in Product Commerce also went up 500 bps.

艾瑞克，謝謝你的提問。提醒一下，在過去 12 個月裡，我們的調整後 EBITDA 已達到近 10 億美元，利潤率增加了近 500 個基點。上季度，過去 12 個月的產品商務調整後 EBITDA 從剛超過 2 億美元增加到 14 億美元。產品商務利潤率也上升了 500 個基點。

As we've stated in the past, margins may be uneven quarter-to-quarter, but you will continue to see our profit margin continue its march upwards over time. There are some onetime expenses such as investment in new selection or merchant acquisition that might affect a quarterly snapshot of margins. But the underlying drivers of margin are strong. The underlying trends in margin are strong and have a lot of room for expansion. We remain very confident in our long-term guidance of over 10% adjusted EBITDA and corresponding free cash flows.

正如我們過去所說，每個季度的利潤率可能不平衡，但您將繼續看到我們的利潤率隨著時間的推移而繼續上升。有一些一次性費用，例如新選擇的投資或商家收購，可能會影響季度利潤率。但利潤率的根本驅動因素是強大的。利潤率的基本趨勢強勁，並且有很大的擴張空間。我們對超過 10% 的調整後 EBITDA 和相應的自由現金流的長期指導仍然非常有信心。

On Developing Offerings, we expect our investment in Developing Offerings to decline in Q4 versus Q3. And we project total investment for the year to be roughly in line, potentially a little more than the $400 million estimate we mentioned previously. We remain encouraged by the momentum we're seeing. We remain encouraged by the underlying economics that we're seeing, the potential economics that we continue to see in our Developing Offerings initiatives. And in the past, we've demonstrated that the only efforts that continue to confirm potential and meaningfully differentiated customer experience and significant future cash flows are underway to more significant investments. And we'll continue to apply that discipline as we make investments in promising initiatives.

在開發產品方面，我們預計第四季對開發產品的投資將比第三季下降。我們預計今年的總投資大致符合預期，可能略高於我們先前提到的 4 億美元的估計值。我們仍然對所看到的勢頭感到鼓舞。我們仍然對我們所看到的潛在經濟效益感到鼓舞，我們在開發產品計劃中繼續看到潛在的經濟效益。過去，我們已經證明，持續確認潛在且有意義的差異化客戶體驗和大量未來現金流的唯一努力正在進行中，以進行更重大的投資。當我們對有前途的舉措進行投資時，我們將繼續應用這項原則。

Your next question comes from the line of Stanley Yang with JPMorgan.

你的下一個問題來自摩根大通的楊斯坦利。

I have one question, on your Product Commerce EBITDA margin dynamic. Second quarter Product Commerce margin was a substantial hit but third quarter was well below the expectation. What are the major operational changes to explain this divergent margin direction between the 2 quarters? Are they coming from your strategic focus on the top line with increased discount and promotions? Or are they coming from the competition factor? Lastly, any Product Commerce EBITDA margin outlook, guidance, in the fourth quarter? That should be very helpful.

我有一個關於你們的產品商務 EBITDA 利潤動態的問題。第二季產品商務利潤率受到大幅打擊，但第三季遠低於預期。有哪些主要的營運變化可以解釋這兩個季度之間不同的利潤方向？它們是否來自您對收入的策略重點以及增加的折扣和促銷活動？還是來自競爭因素？最後，第四季產品商務 EBITDA 利潤率前景、指導有哪些嗎？這應該很有幫助。

Stanley, thanks for the questions. So to be clear, there was no change in our pricing or pricing policies. We have, as we've mentioned, onetime expenses associated with new selection and merchant acquisition costs. For example, FLC is margin-accretive if you exclude new merchant acquisition costs. As we've noted before, we reinvest in efforts to -- onetime investments to help merchants discover the benefits of FLC through a free trial, for example. And we've seen strong adoption from both consumers and merchants in FLC, as a case in point. And when you have strong adoption, you also have, for example, more free trials. These are onetime investments to really help both parties discover the benefits.

史丹利，謝謝你的提問。需要明確的是，我們的定價或定價政策沒有改變。正如我們所提到的，我們有與新選擇和商家收購成本相關的一次性費用。例如，如果排除新商家獲取成本，FLC 會增加利潤。正如我們之前所指出的，我們會進行再投資，例如透過免費試用來幫助商家發現 FLC 的好處。作為一個很好的例子，我們已經看到消費者和商家都大力採用 FLC。當您的採用率很高時，您還可以獲得更多的免費試用機會。這些都是一次性投資，可以真正幫助雙方發現好處。

And as FLC scales, and FLC has scaled more than 3x the rate of growth of our overall business this last quarter, merchants capture growth in savings by gaining access to billions of dollars of investments we made in infrastructure and technology that they couldn't have built on their own. We're seeing strong adoption and retention with merchants. And customers enjoy more services, more selection on Rocket services like Dawn and Rocket Returns, which we believe unlocks considerable growth for merchants and attracts even more selection and merchants to FLC, which in turn expands the value of FLC for customers, for example, accelerating the flywheel.

隨著FLC 的規模不斷擴大，上個季度FLC 的規模增長了我們整體業務增長率的3 倍以上，商戶可以透過我們在基礎設施和技術方面進行的數十億美元的投資來實現儲蓄增長，而這是他們無法獲得的自己建造的。我們看到商家的廣泛採用和保留。客戶在Dawn 和Rocket Returns 等Rocket 服務上享受到更多的服務和更多的選擇，我們相信這將為商家帶來可觀的增長，並吸引更多的選擇和商家來到FLC，從而擴大FLC 為顧客帶來的價值，例如，加速飛輪。

But there's a lot of long-term benefits that we will continue to see, and seeing any quarterly snapshot of margins is really a blend of these initiatives. Some of it is affected by expenses that are onetime in nature associated with new merchant acquisition or new selection.

但我們將繼續看到許多長期效益，並且看到任何季度利潤率快照實際上都是這些舉措的結合。其中一些受到與新商家收購或新選擇相關的一次性費用的影響。

Your next question comes from the line of Seyon Park with Morgan Stanley.

你的下一個問題來自 Seyon Park 與摩根士丹利的對話。

My question is on Developing Offerings. We've clearly seen a meaningful increase in revenues on a quarter-on-quarter basis. Can you maybe provide us with a little bit of a breakdown of what led to that increase? And then I think, Bom, you mentioned that the unit economics for Coupang Eats is positive, in which case, if Coupang Eats did see meaning growth, then theoretically, that should lead to, I guess, lowered losses for Developing Offerings. So if you can just help us kind of reconcile that. If it is the case that Eats is actually -- or the losses are narrowing for Eats, but maybe it's been Taiwan or maybe on the Play side that has led to the larger losses, if that is the case. Or if my logic is wrong here, you can correct me, that would be great.

我的問題是關於開發產品。我們清楚地看到收入環比顯著增長。您能否向我們提供一些導致這種增長的原因的詳細資訊？然後我想，Bom，你提到Coupang Eats 的單位經濟效益是積極的，在這種情況下，如果Coupang Eats 確實看到了有意義的增長，那麼從理論上講，我想這應該會導致開發產品的損失降低。因此，如果您能幫助我們協調這一點。如果 Eats 的情況確實如此，或者 Eats 的損失正在縮小，但如果是這樣的話，可能是台灣或 Play 方面導致了更大的損失。或者如果我的邏輯錯了，你可以糾正我，那就太好了。

Seyon, thanks for all the questions. As we've noted, we are seeing strong momentum in both Taiwan and Eats. I'll start with Taiwan. It's only been a year in Taiwan since we've launched Rocket Delivery. But our growth in that first year has been faster in Taiwan than it was in Korea. And as you know, we remain very confident in the overall model of Rocket Delivery. We've been delighted by the customer response so far. We still have a lot of work to do to not only build the kind of customer experience we want there but also the operational experience, the excellence, that we've set our sights on. And as you continue to see us improve customer experience and improve operational excellence, you should see us able to capture growth and profits, not one at the expense of each other, as we've demonstrated in our first market, Korea.

Seyon，謝謝你提出的所有問題。正如我們所指出的，我們看到台灣和外送業務的強勁勢頭。我先從台灣說起。我們在台灣推出火箭遞送服務才一年。但我們第一年在台灣的成長速度比在韓國還要快。如您所知，我們對火箭交付的整體模型仍然非常有信心。到目前為止，我們對客戶的反應感到非常高興。我們還有很多工作要做，不僅要打造我們想要的客戶體驗，還要打造我們所追求的營運體驗和卓越品質。當您繼續看到我們改善客戶體驗並提高卓越營運時，您應該會看到我們能夠實現成長和利潤，而不是以犧牲彼此為代價，正如我們在第一個市場韓國所證明的那樣。

On Eats, our Eats savings program on WOW is yielding strong results to date. As we mentioned, transaction volumes have doubled in the majority of regions where we've launched the program. WOW members purchasing on Eats has also increased 90%. The number of regions where we're the #1 food delivery service has also increased. And just 20% of all our members are purchasing Eats in Q3, so we have a long runway for growth ahead.

在 Eats 上，我們在 WOW 上的 Eats 優惠計劃迄今已取得了良好的成果。正如我們所提到的，在我們推出該計劃的大多數地區，交易量都增加了一倍。 WOW 會員在 Eats 上的購買量也增加了 90%。我們排名第一的送餐服務地區數量也有所增加。第三季度，我們所有會員中只有 20% 購買 Eats，因此我們的成長還有很長的路要走。

And of course, the impact of Eats extends also to our broader WOW membership program and Product Commerce offerings. Higher engagement on Eats expands our customer engagement across all services in our ecosystem, increasing acquisition retention and reducing attrition of WOW members. WOW members spend significantly higher than non-WOW members. We've observed WOW members who purchase Eats spend twice as much overall as WOW members who don't purchase Eats in the regions where we've launched this program. So there's a lot of beneficial accretive things to the overall ecosystem that we've seen with Eats.

當然，Eats 的影響也延伸到我們更廣泛的 WOW 會員計畫和產品商務產品。提高 Eats 的參與度可以擴大我們生態系統中所有服務的客戶參與度，從而提高獲客保留率並減少 WOW 會員的流失。 WOW 會員的支出明顯高於非 WOW 會員。我們觀察到，在我們推出此計劃的地區，購買 Eats 的 WOW 會員的總體支出是未購買 Eats 的 WOW 會員的兩倍。因此，我們在 Eats 上看到了對整個生態系統有許多有益的增值作用。

But even as a stand-alone offering, as we mentioned, Eats is unit economics positive. There are onetime setup costs like newer merchant acquisition, and we've been onboarding -- one of the less talked about aspects of Eats is that we've onboarded a lot of new merchants and lots of new selection and expanded the value of Eats beyond the savings program for our customers. But the unit economic trends that we continue to see give us more confidence about the potential of Eats. And the customer response, which we've been delighted by, makes us even more committed and excited to make the Eats savings program a permanent benefit of WOW membership.

但正如我們所提到的，即使作為一個獨立的產品，Eats 的單位經濟效益也是正面的。存在一次性設置成本，例如收購新商家，而且我們一直在入職——Eats 鮮為人知的方面之一是，我們已經入職了許多新商家和許多新選擇，並將 Eats 的價值擴展到了其他領域。為我們的客戶提供的儲蓄計劃。但我們持續看到的單位經濟趨勢讓我們對 Eats 的潛力更有信心。客戶的回應讓我們感到非常高興，這讓我們更加堅定和興奮，讓 Eats 優惠計劃成為 WOW 會員的永久福利。

Your next question comes from the line of James Lee with Mizuho.

你的下一個問題來自詹姆斯李和瑞穗的對話。

I got several follow-up questions on Taiwan. And I was wondering, can you talk about some of the learnings you have had so far? And also, if you can speak to some of the investments you are making, including maybe suppliers, customers, last-mile delivery. And also, can you also, lastly, speak to some of the competitive responses you're seeing given your elevated level of investment in that region?

我收到了幾個關於台灣的後續問題。我想知道，你能談談你迄今為止學到的一些東西嗎？另外，如果您能談談您正在進行的一些投資，可能包括供應商、客戶、最後一哩交付。最後，鑑於您在該地區的投資水平不斷提高，您能否談談您所看到的一些競爭反應？

James, I think it's very early. We have a lot of work ahead. We've been pleased with the response that we've gotten from customers. Our service, as we started it, is resonating with customers. We always believe that there are meaningful trade-offs we can break and the trade-offs we break will resonate with customers in many markets. And we've been delighted by the customer response so far. But as I mentioned, we have a lot of work ahead and are excited about the progress that we can make or we can look forward to in improving customer experience and operational excellence. And we care about both of those pillars.

詹姆斯，我認為現在還很早。我們還有很多工作要做。我們對客戶的回應感到滿意。我們的服務一開始就引起了客戶的共鳴。我們始終相信，我們可以打破一些有意義的權衡，而我們打破的權衡將引起許多市場客戶的共鳴。到目前為止，我們對客戶的反應感到非常高興。但正如我所提到的，我們還有很多工作要做，並且對我們在改善客戶體驗和卓越營運方面可以取得的進展或我們可以期待的進展感到興奮。我們關心這兩個支柱。

As always, we'll continue to be disciplined and opportunistic. As we've demonstrated in the past, we'll be rigorous in our analysis and invest only in opportunities that we believe will create both a meaningful differentiation of experience for customers and have meaningful return for our shareholders. In general, we do, of course, pay attention to competition, but we tend to spend our energy obsessing about the things that we control. And we continue to be obsessed about improving customer experience and improving operational excellence. Those are the two fronts that we'll spend all of our energy on.

一如既往，我們將繼續保持紀律和機會主義。正如我們過去所證明的那樣，我們將嚴格分析，只投資於我們認為既能為客戶創造有意義的差異化體驗，又能為股東帶來有意義回報的機會。一般來說，我們當然會關注競爭，但我們傾向於將精力花在沉迷於我們控制的事情上。我們持續致力於改善客戶體驗和提高卓越營運。這是我們將花費所有精力的兩個方面。

(Operator Instructions) We will now take our last question from the line of Jiong Shao with Barclays.

（操作員指示）我們現在將接受巴克萊銀行邵炯的最後一個問題。

My first question is on competition, but in Korea. As you know, some of the Chinese cross-border guys are getting a bit more aggressive in Korea now. Tmall entered the country a few months ago. AliExpress appears to be getting more aggressive in the country. Could you please talk about what do you see in terms of the competition from these guys in kind of product category overlap or not overlap? Any thoughts will be appreciated.

我的第一個問題是關於競爭，但在韓國。如你所知，一些中國跨境人現在在韓國變得更加咄咄逼人。天貓幾個月前進入該國。全球速賣通在該國似乎變得更加積極。您能否談談您對這些公司在產品類別重疊或不重疊方面的競爭有何看法？任何想法將不勝感激。

And the second question is tied to Taiwan. I was wondering if there are metrics you can share with us in terms of either GMV, revenue, number of orders anything like that or any kind of KPI metrics you are watching very closely for you to decide sort of the feasibility study, whether or not Taiwan is so strategic, they are here for the long term, not unlike you put out with Japan, I think, a few months back.

第二個問題與台灣有關。我想知道您是否可以與我們分享 GMV、收入、訂單數量等方面的指標，或者您正在密切關注的任何類型的 KPI 指標，以便您決定可行性研究的類型，無論是否台灣是如此具有戰略意義，他們是為了長期存在而存在的，我想，這與幾個月前對日本的攻擊沒什麼不同。

Jiong, thanks for your questions. As you can see, in Korea, we continue to show strong growth in both revenue and active customers. That's what we see. And our growth, actually, there has been accelerating. For 3 consecutive quarters, it's been accelerating. Active customers, as we mentioned, is growing faster than at any point since the pandemic levels. So we continue to see at least strong indications internally with all the internal metrics that we see, very strong metrics. We think it's a reflection of the unmatched investments that we've made in what we believe is the best experience at the best cost. We'll continue to make efforts and invest to expand selection. As we've mentioned, we continue to make those investments to expand selection, lower price and raise the bar for exceptional customer service experience for customers.

炅，謝謝你的提問。正如您所看到的，在韓國，我們的收入和活躍客戶繼續強勁成長。這就是我們所看到的。事實上，我們的成長一直在加速。連續三個季度都在加速成長。正如我們所提到的，活躍客戶的成長速度比大流行以來的任何時候都快。因此，我們繼續在內部看到至少強而有力的跡象，我們看到的所有內部指標都是非常強大的指標。我們認為這反映了我們在我們認為以最佳成本提供最佳體驗方面所做的無與倫比的投資。我們將繼續努力並投資以擴大選擇。正如我們所提到的，我們將繼續進行這些投資，以擴大選擇、降低價格並提高客戶卓越客戶服務體驗的標準。

But it's also a reflection, we think. Our strong growth or accelerating growth is a reminder of just how early we are. We're just at single-digit share of a massive retail market that's projected to exceed $550 billion in just 3 short years. We continue to believe that given our stage of growth, given our stage of share of the overall retail spend, our success will be determined by our execution. And we continue to be laser-focused on execution on both customer experience and operational excellence.

但這也是一種反思，我們認為。我們的強勁成長或加速成長提醒我們還處於起步階段。我們在龐大的零售市場中所佔的份額僅為個位數，而該市場預計在短短 3 年內將超過 5,500 億美元。我們仍然相信，考慮到我們的成長階段，考慮到我們在整體零售支出中所佔的份額，我們的成功將取決於我們的執行力。我們將繼續專注於客戶體驗和卓越營運的執行。

And your second question was around Taiwan. I think generally, we can say that we're drawn to opportunities where we can break trade-offs and provide the best customer experience at the lowest cost. That's how we've been able to capture both rapid growth -- over the past 12 months, we've demonstrated that growth did not come at the cost of profitability or free cash flow. We've generated, as I mentioned, nearly $1 billion in adjusted EBITDA, increasing margins by 500 bps with accelerating growth. And that comes from investments we make to break trade-offs fundamentally at an operational level to build the best customer experience at the lowest cost. That is our strategy in any initiative, any market that we enter. And of these opportunities, we invest only in those that we believe will generate significant free cash flows in the future.

你的第二個問題是關於台灣的。我認為總的來說，我們可以說我們被能夠打破權衡並以最低成本提供最佳客戶體驗的機會所吸引。這就是我們能夠實現快速成長的方式——在過去的 12 個月裡，我們已經證明，成長並不是以犧牲獲利能力或自由現金流為代價的。正如我所提到的，我們已經產生了近 10 億美元的調整後 EBITDA，隨著成長的加速，利潤率提高了 500 個基點。這來自於我們為從根本上打破營運層面的權衡而進行的投資，以最低的成本打造最佳的客戶體驗。這就是我們在任何舉措、我們進入的任何市場中的策略。在這些機會中，我們只投資那些我們認為未來會產生大量自由現金流的機會。

Efforts that demonstrate potential to achieve both a meaningful customer experience and significant free cash flow in the future earn their way to more significant investments. And as you point out, we've also unflinchingly discontinued investments that have not demonstrated the potential to achieve these objectives in the past.

那些表現出在未來實現有意義的客戶體驗和大量自由現金流的潛力的努力將贏得更重大的投資。正如您所指出的，我們也毫不猶豫地停止了過去未顯示出實現這些目標潛力的投資。

What we've seen so far in Taiwan strengthens our confidence and reinforces our hypothesis. We'll continue to test, iterate and learn, but we will maintain this framework. And we'll continue to operate by the tenets that we shared shortly after we went public, we published these every quarter, the same tenets, that framework of rigor and discipline will remain unchanged as we pursue opportunities in different markets and different initiative areas.

迄今為止我們在台灣所看到的一切增強了我們的信心並強化了我們的假設。我們將繼續測試、迭代和學習，但我們將維護這個框架。我們將繼續按照我們在上市後不久共享的原則進行運營，我們每個季度都會發布這些原則，同樣的原則，當我們在不同的市場和不同的倡議領域尋求機會時，嚴格和紀律的框架將保持不變。

There are no further questions. This concludes today's conference call. Thank you, and you may now disconnect.

沒有其他問題了。今天的電話會議到此結束。謝謝，您現在可以斷開連接了。