Coupang Inc (CPNG) 2022 Q1 法說會逐字稿

Good afternoon. My name is Josh, 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)

午安.我叫喬什，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Coupang 收益電話會議。 （操作員說明）

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

謝謝。現在我想將電話轉給投資者關係副總裁 Mike Parker。您可以開始您的會議了。

Thanks, operator. Welcome, everyone, to Coupang Inc.'s quarterly earnings conference call for the first quarter ended March 31, 2022. I'm pleased to be joined on our 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 Inc. 截至 2022 年 3 月 31 日的第一季季度財報電話會議。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. Certain statements made on today's call include forward-looking statements. You should not place undue reliance on forward-looking statements. Actual results may differ materially. Please refer to today's earnings release as well as the risks and uncertainties described in our most recent annual report on Form 10-K filed with the SEC on March 3, 2022, and in other filings made with the SEC for information about factors, which could cause our actual results to differ materially from those forward-looking statements.

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，我們不承擔任何更新或修改此資訊的義務。今天的電話會議中所做的某些陳述包括前瞻性陳述。您不應過度依賴前瞻性陳述。實際結果可能存在重大差異。請參閱今天的收益發布以及我們於2022 年3 月3 日向SEC 提交的10-K 表格最新年度報告以及向SEC 提交的其他文件中所述的風險和不確定性，以了解可能導致風險和不確定性的因素。

During today's call, we will present both GAAP and non-GAAP financial measures. As a reminder, these numbers are unaudited and may be subject to change. Additional disclosures regarding these non-GAAP measures, including reconciliations of non-GAAP 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 at ir.aboutcoupang.com.

在今天的電話會議中，我們將介紹公認會計準則和非公認會計準則的財務指標。提醒一下，這些數字未經審計，可能會有所變動。有關這些非GAAP 衡量標準的其他揭露，包括非GAAP 衡量標準與最具可比性GAAP 衡量標準的調節，均包含在我們的收益發布和SEC 文件中，這些文件發佈在公司投資者關係網站ir.aboutcoupang .com 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. Let me begin with a few highlights from our first quarter operating results. On a consolidated basis, Q1 constant currency revenues grew 3% quarter-over-quarter and 32% year-over-year. Our Q1 growth rate continues to be multiples of the e-commerce segment, and we're confident that we'll continue to grow significantly faster than the segment for years to come. Our active customers grew to over 18 million, an increase of 13% year-over-year and our unmatched customer experience is driving even deeper engagement. All of our cohorts, even our oldest are still compounding at a fast rate, and our oldest active customers are spending on Coupang over 60% of their total estimated online spend today.

謝謝大家今天加入我們。首先讓我介紹一下我們第一季營運表現的一些亮點。綜合來看，第一季以固定匯率計算的營收季增 3%，年增 32%。我們第一季的成長率仍然是電子商務細分市場的倍數，我們有信心在未來幾年內我們的成長速度將繼續顯著高於該細分市場。我們的活躍客戶數量已超過 1800 萬，年成長 13%，我們無與倫比的客戶體驗正在推動更深層次的參與。我們所有的客戶群，甚至是最年長的客戶，仍在快速成長，而我們最年長的活躍客戶在 Coupang 上的支出佔其今天線上總支出的 60% 以上。

We're excited about our significant growth potential in what is projected to be the third largest e-commerce opportunity in the world, exceeding $290 billion by 2025. In the first quarter, we also recorded the highest gross profit and gross margin in the history of the company, generating over $1 billion in gross profit and exceeding 20% in gross margin. That represents a 42% improvement in gross profit year-over-year and an over 450 basis point improvement in margin quarter-over-quarter, driven largely by initiatives around process improvement, automation and supply chain optimization. As a result, our consolidated adjusted EBITDA recorded an improvement of $194 million from Q4 of 2021.

我們對我們的巨大成長潛力感到興奮，預計到 2025 年，我們將成為全球第三大電子商務機會，價值將超過 2900 億美元。毛利超過10億美元，毛利率超過20%。這意味著毛利年增 42%，利潤率較上季提高超過 450 個基點，這主要是由流程改善、自動化和供應鏈優化措施所推動的。因此，我們的綜合調整後 EBITDA 較 2021 年第四季增加了 1.94 億美元。

As we previewed in our last earnings call, we began reporting our operating results this quarter in 2 segments: one, Product Commerce, which represents our core e-commerce and fresh offerings; and two, Developing Offerings, which represents our more nascent initiatives like Eats, video, fintech and international expansion. First, on Product Commerce. We provided guidance in our last call that Product Commerce would be adjusted EBITDA profitable in late 2022. We're pleased to report that in the first quarter, we were adjusted EBITDA profitable, a $72 million improvement year-over-year and a $128 million improvement quarter-over-quarter. Product Commerce gross profit grew 42% year-over-year, and gross profit margin increased approximately 330 basis points from Q4 to reach 22% in Q1, our highest ever.

正如我們在上次財報電話會議中預覽的那樣，我們開始在兩個部分報告本季度的營運業績：一是產品商務，代表我們的核心電子商務和生鮮產品；二是產品商務，代表我們的核心電子商務與生鮮產品；第二，開發產品，它代表了我們較新的舉措，如外帶、視訊、金融科技和國際擴張。首先，關於產品商務。我們在上次電話會議中提供了指導，產品商務將在 2022 年末調整後 EBITDA 實現盈利。環比改善。產品商務毛利年增 42%，毛利率較第四季成長約 330 個基點，第一季達到 22%，創歷史最高水準。

Both core and fresh improvements powered these gains even as both experienced significant year-over-year and quarter-over-quarter growth. While we saw some headwinds from inflation and supply chain disruptions in the past quarter, our results were net positive due to improvements around process and technology, utilization of capacity, supply chain optimization and continued scaling of advertising among other areas. Most are part of continuous improvement programs that were launched before 2022. The progress of some were obscured in past quarters by short-term disruptions and timing of investments, others accelerated as we directed resources that were previously supporting the explosive growth and operational challenges brought on by the pandemic. Some headwinds will likely persist, but we'll continue to strive for operational excellence, and we remain confident in our ability to drive the inputs that we control in our business.

儘管核心和新的改進都經歷了顯著的同比和環比增長，但兩者都推動了這些收益。儘管我們在過去一個季度看到了通貨膨脹和供應鏈中斷帶來的一些不利因素，但由於流程和技術、產能利用率、供應鏈優化以及其他領域的廣告規模的持續擴大，我們的業績仍然是淨積極的。大多數都是2022 年之前啟動的持續改進計劃的一部分。於支持爆炸性成長和營運挑戰的資源。一些不利因素可能會持續存在，但我們將繼續努力實現卓越運營，並且我們對推動我們在業務中控制的投入的能力仍然充滿信心。

We communicated in our prior earnings call that the trajectory towards our long-term adjusted EBITDA target would become more evident in our progress this year. Looking forward, we expect Product Commerce to remain profitable and for adjusted EBITDA to continue its march upwards over time. However, the rate of improvement will not always be as dramatic as the results produced by these programs will materialize unevenly each quarter. We believe continued improvements in operational efficiency, supply chain optimization and scaling of merchant services, among other drivers will expand our consolidated adjusted EBITDA margins to at least 7% and potentially higher than 10% over the long term.

我們在先前的財報電話會議中表示，我們今年的進展將更加明顯，實現長期調整後 EBITDA 目標的軌跡將更加明顯。展望未來，我們預計產品商務將保持獲利，調整後的 EBITDA 將隨著時間的推移而繼續上升。然而，改進的速度並不總是那麼顯著，因為這些計劃產生的結果每季的實現並不均勻。我們相信，營運效率、供應鏈優化和商業服務規模的持續提高等驅動因素將使我們的綜合調整後 EBITDA 利潤率從長期來看至少達到 7%，並可能高於 10%。

On Growth, our flywheel and product commerce continues to build momentum. Product Commerce revenues grew at 30% year-over-year on a constant currency basis and 2% quarter-over-quarter, in spite of the product e-commerce segment in Korea growing 8% year-over-year and negative 5% quarter-over-quarter. Our share of product e-commerce growth increased every quarter in 2021, and that share was even higher in the first quarter of this year. Active customers grew over 36% over the past 2 years, but the number of customers buying 6 or more categories increased over 70% in the same time period. And the percentage of active customers using 3 or more Coupang offerings nearly tripled over last year.

在成長方面，我們的飛輪和產品貿易持續發展勢頭。儘管韓國的產品電子商務部門同比增長 8%，季度下降 5%，但以固定匯率計算，產品商務收入同比增長 30%，環比增長 2% -超過季度。 2021 年每個季度我們的產品電子商務成長份額都在增加，今年第一季這一份額甚至更高。過去 2 年，活躍客戶成長了 36% 以上，但同期購買 6 個或更多品類的客戶數量增加了 70% 以上。使用 3 種或更多 Coupang 產品的活躍客戶比例比去年幾乎增加了兩倍。

One of our fastest-growing offerings is Rocket Fresh, the largest national online grocery service in the market. Rocket Fresh offers customers what we believe is the largest selection of fresh groceries in Korea delivered to their doors within hours of purchase via same day or dawn delivery, enabled by a national network of cold chain fulfillment centers and proprietary delivery logistics. Just 3 full years of operation removed from launch, Rocket Fresh delivers billions of dollars in orders on an annualized basis, and the number of customers using Rocket Fresh increased 50% year-over-year in Q1. However, just 35% of Coupang's total active customers used the offering in Q1, which highlights the significant opportunity ahead.

我們成長最快的產品之一是 Rocket Fresh，它是市場上最大的全國性線上雜貨服務。 Rocket Fresh 為客戶提供我們認為是韓國最齊全的生鮮雜貨選擇，透過全國冷鏈履行中心網絡和專有配送物流，透過當日或黎明送貨，在購買後數小時內送貨上門。自推出以來僅 3 年時間，Rocket Fresh 的年度訂單量就達到了數十億美元，第一季使用 Rocket Fresh 的客戶數量比去年同期成長了 50%。然而，第一季 Coupang 活躍客戶總數中只有 35% 使用了該產品，這凸顯了未來的重大機會。

While membership also continues to attract more members and deepen their engagement with Coupang, we estimate that WOW is by far the largest paid subscription service in the market with 3 or 4x the number of paid members as the next largest e-commerce or retail membership program. We've added 7 new services and benefits to the program since it's launched 3 years ago and more on the way. We're on a journey to make WOW an indispensable part of our customers' lives. Just as offerings like Rocket Fresh and WOW have delivered more value to customers on the foundation of our Rocket Delivery network, fulfillment and logistics by coupon, FLC promises to compound the value of Rocket Delivery for customers by increasing the selection available on the network exponentially.

雖然會員資格也繼續吸引更多會員並加深他們與Coupang 的互動，但我們估計WOW 是迄今為止市場上最大的付費訂閱服務，其付費會員數量是第二大電子商務或零售會員計劃的3 或4倍。自 3 年前推出以來，我們已在該計劃中添加了 7 項新服務和福利，並且還將推出更多服務和福利。我們正在努力讓 WOW 成為客戶生活中不可或缺的一部分。正如Rocket Fresh 和WOW 等產品在我們的Rocket Delivery 網路、優惠券履行和物流的基礎上為客戶提供了更多價值一樣，FLC 承諾透過倍增網路上的可用選擇，為客戶增加Rocket Delivery 的價值。

Our 3P merchant spend also continues to grow at a multiple of the overall e-commerce segment, and we see an opportunity to accelerate penetration by improving our merchant-facing tools and services. We're excited about the potential impact of scaling our merchant services, including FLC in the years to come.

我們的 3P 商家支出也持續以整個電子商務領域的倍數成長，我們看到了透過改善面向商家的工具和服務來加速滲透的機會。我們對未來幾年擴大我們的商業服務（包括 FLC）的潛在影響感到興奮。

Second, on Developing Offerings. Revenues from our Developing Offerings segment increased 79% year-over-year on a constant currency basis, driven chiefly by our Eats offering. As we mentioned in our last earnings call, our primary focus in Eats is on improving profitability meaningfully to position us to be more efficient in our next phase of expansion. The progress of related efforts were reflected in the adjusted EBITDA for the segment, which improved $66 million quarter-over-quarter. We expect Eats to continue to make improvements and losses in Developing Offerings to decrease further. While our focus in Eats this past quarter has been primarily on improving operating leverage, we're also encouraged by the underlying strength of customer engagement in the offering.

第二，關於開發產品。我們的開發產品部門的收入以固定匯率計算年增 79%，這主要是由我們的 Eats 產品推動的。正如我們在上次財報電話會議中提到的，我們在 Eats 的主要重點是有意義地提高盈利能力，以使我們在下一階段的擴張中更加高效。相關努力的進展反映在該部門調整後的 EBITDA 中，環比增加了 6,600 萬美元。我們預計 Eats 將繼續做出改進，並且在開發產品方面的損失將進一步減少。雖然上個季度我們在 Eats 上的重點主要是提高營運槓桿，但我們也對該產品的客戶參與度的潛在優勢感到鼓舞。

Our newer Eats customers are increasing their order frequency in line with our more mature customers whose order frequency levels we believe are exceeding those of leading global peers. We're also exploring synergies between Eats and our other offerings to amplify these unmatched levels of engagement. Developing Offerings includes initiatives outside of Eats that have the potential to expand our opportunity beyond the e-commerce segment, beyond the $290 billion projected by 2025. Specifically, we're investing in initiatives to capture additional spend in areas like video, fintech and international. We will continue to execute in all of these areas in line with our operating tenants, which we previously shared in the second quarter of last year.

我們的新 Eats 客戶正在增加他們的訂單頻率，與我們更成熟的客戶保持一致，我們認為這些客戶的訂單頻率水平超過了全球領先的同行。我們也正在探索 Eats 和其他產品之間的協同效應，以擴大這些無與倫比的參與度。開發產品包括Eats 以外的舉措，這些舉措有可能將我們的機會擴大到電子商務領域之外，預計到2025 年將達到2900 億美元。和國際等領域的額外支出。我們將繼續根據我們的營運租戶在所有這些領域執行，我們之前在去年第二季分享過這一點。

One, we exist to deliver new moments of wow for customers. Two, we don't start with what looks easy. We work backwards from imagining jaw dropping customer experiences. And we embrace the hard work required to challenge trade-offs that customers take for granted. Three, we will employ technology, process innovation and economies of scale to create amazing customer experiences and drive operating leverage and significant cash flows over time. Four, we always prioritize growth in long-term cash flows. And five, we are disciplined capital allocators. We start with small investments, then test and iterate rigorously. We invest more capital over time in opportunities that have the best long-term cash flow potential.

第一，我們的存在是為了為客戶帶來令人驚嘆的新時刻。第二，我們不會從看起來容易的事情開始。我們從想像令人瞠目結舌的客戶體驗開始倒退。我們願意付出艱苦的努力來挑戰客戶認為理所當然的權衡。第三，我們將利用技術、流程創新和規模經濟來創造令人驚嘆的客戶體驗，並隨著時間的推移提高營運槓桿和大量現金流。第四，我們始終優先考慮長期現金流的成長。第五，我們是紀律嚴明的資本配置者。我們從小額投資開始，然後嚴格測試和迭代。隨著時間的推移，我們會在具有最佳長期現金流潛力的機會上投入更多資本。

2022 is off to a good start. The momentum in our business is becoming clear with each passing quarter, and we expect our investments in both customer offerings as well as in operational excellence to continue to create new moments of wow and improve our operating leverage.

2022 年有一個良好的開始。我們業務的勢頭在每個季度都變得越來越明顯，我們預計我們對客戶產品和卓越營運的投資將繼續創造新的驚喜時刻並提高我們的營運槓桿。

Now I'll turn the call over to Gaurav to go through the quarter and our outlook in more detail.

現在我將把電話轉給 Gaurav，更詳細地介紹本季和我們的前景。

Thanks, Bom. Our demand was strong even as conditions surrounding COVID started to normalize. In the first quarter, we grew 32% year-over-year in constant currency, which with foreign currency impact is 22% year-over-year on a reported basis. We are currently at an annualized run rate of over $20 billion in revenue. Our unparalleled customer offerings continue to attract new customers and drive strong customer retention. Net revenue per customer increased 8% year-over-year on a reported basis and 16% on a constant currency basis as more customers continue to be more engaged across all categories and offerings.

謝謝，鮑姆。即使圍繞新冠疫情的情況開始正常化，我們的需求仍然強勁。第一季度，以固定匯率計算，我們年增 32%，以報告計算，受外匯影響，年增 22%。目前，我們的年收入超過 200 億美元。我們無與倫比的客戶服務不斷吸引新客戶並提高客戶保留率。隨著越來越多的客戶繼續更多地參與所有類別和產品，按報告計算，每個客戶的淨收入同比增長 8%，按固定匯率計算增長 16%。

Q1 gross profit increased to a record high of over $1 billion, a 42% increase year-over-year. This represents the best performance in the company's history. This has drive the improvement in adjusted EBITDA losses to $91 million and a minus 1.8% EBITDA margin for the quarter. These results have come in part through our focus on driving efficiencies throughout operations. As an example, this includes enhanced utilization of machine learning to better estimate delivery times and create more efficient route assignments as well as increased investments in automation, including robotics, within our fulfillment network.

第一季毛利創歷史新高，超過 10 億美元，較去年同期成長 42%。這代表了公司史上最好的業績。這使得本季調整後 EBITDA 虧損改善至 9,100 萬美元，EBITDA 利潤率為負 1.8%。這些成果部分歸功於我們對提高整個營運效率的關注。例如，這包括加強機器學習的利用，以更好地估計交貨時間並創建更有效率的路線分配，以及在我們的履行網路中增加對自動化（包括機器人技術）的投資。

As we look forward to the remainder of 2022, we expect to continue our momentum in driving meaningful profit improvements. We guided in our last earnings call that we expect an adjusted EBITDA loss in 2022 of no more than $400 million. In light of the trends in the business, including our first quarter performance, we are confident in our ability to exceed that adjusted EBITDA target this year. We believe our Product Commerce profitability will continue to improve. However, the cadence and sequencing of our efforts will result in potentially disproportionate benefit quarter-to-quarter.

展望 2022 年剩餘時間，我們預計將繼續保持推動利潤顯著改善的勢頭。我們在上次財報電話會議中表示，預計 2022 年調整後 EBITDA 損失不超過 4 億美元。鑑於業務趨勢，包括我們第一季的業績，我們有信心今年有能力超越調整後的 EBITDA 目標。我們相信我們的產品商務獲利能力將持續提高。然而，我們努力的節奏和順序可能會導致季度與季度之間潛在的不成比例的效益。

As Bom mentioned, we will maintain a disciplined investment approach with our Developing Offerings like Eats, video, international and fintech. We are optimistic about our ability to continue our strong trend of growing at multiples of the Korean e-commerce segment, but we also recognize that there are unpredictable variables in the near term, such as the impact of ongoing reopening here in Korea and the pent-up demand for travel. We are more excited than ever about our opportunity to create long-term enterprise value. Our early results in 2022 support our journey towards long-term adjusted EBITDA margins of 7% to 10% or higher that we have previously guided to.

正如 Bom 所提到的，我們將在餐飲、視訊、國際和金融科技等開發產品中保持嚴格的投資方式。我們對韓國電子商務領域繼續保持強勁增長勢頭的能力持樂觀態度，但我們也認識到，短期內存在不可預測的變量，例如韓國持續重新開放的影響以及出行需求上升。我們對創造長期企業價值的機會比以往任何時候都更加興奮。我們 2022 年的早期業績支持我們實現先前指導的 7% 至 10% 或更高的長期調整後 EBITDA 利潤率。

We believe our already strong position in the market will only continue to strengthen and drive our top line revenue potential, which in turn will generate more opportunities to expand our operating leverage. Moreover, much of our revenue opportunities ahead are concentrated in higher margin categories and offerings. We have the opportunity to add significant selection in less penetrated categories that are more profitable. Greater scale increases our fixed cost leverage and enables us to capture more efficiency through technology and automation. Additionally, scaling merchant services, including advertising offerings should also continue to drive higher margin growth.

我們相信，我們在市場上已經強大的地位只會繼續加強和推動我們的收入潛力，這反過來又會產生更多機會來擴大我們的營運槓桿。此外，我們未來大部分的收入機會都集中在利潤率較高的類別和產品中。我們有機會在滲透率較低但利潤較高的類別中增加重要的選擇。更大的規模增加了我們的固定成本槓桿，並使我們能夠透過技術和自動化獲得更高的效率。此外，擴大商業服務（包括廣告服務）也應繼續推動更高的利潤成長。

In closing, we are excited about the momentum we have built in the first quarter but are even more excited about what is in front of us. The drivers we highlighted for substantial revenue and profit growth continue to give us confidence in our long-term growth and adjusted EBITDA margin potential.

最後，我們對第一季建立的勢頭感到興奮，但對我們面前的事情更加興奮。我們強調的營收和利潤大幅成長的驅動因素繼續讓我們對長期成長和調整後 EBITDA 利潤率潛力充滿信心。

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 to ask. Firstly, on gross profit margin and EBITDA trend. First quarter, obviously, very strong. How do you anticipate the upcoming quarter's trend for the 2 this year? You briefly, I think, mentioned on the drivers, but more detailed elaboration would be helpful. Second, I realize that you've not changed your guidance. Can you confirm this for us, please? And if so, any chance during the year whether there could be change in guidance? Or maybe put it in a different way, any changes in your investment plans into video, fintech and international? And if I may add, can you also share this quarter's COVID impact as well?

我有兩個問題要問。首先，關於毛利率和EBITDA趨勢。顯然，第一季非常強勁。您如何預測今年 2 季的趨勢？我認為您簡要地提到了驅動程序，但更詳細的闡述會有所幫助。其次，我意識到你沒有改變你的指導。您能為我們確認一下嗎？如果是這樣，今年指導方針是否有可能改變？或者換句話說，您在視訊、金融科技和國際方面的投資計畫有什麼變化嗎？如果我可以補充一下，您能否也分享一下本季的新冠疫情影響嗎？

Sure. Thanks, Eric. So we had a strong first quarter. And in light of this first quarter performance and the current trends, Eric, we are very confident in our ability to exceed this adjusted EBITDA target that we gave this year. The Product Commerce profitability, we will continue to improve through the year, though the benefits that you see quarter-over-quarter may be disproportionate. And versus our plan in the developing services, we don't intend to increase investments versus the plan. So overall, we are confident in our ability to exceed the adjusted EBITDA that we gave.

當然。謝謝，埃里克。所以我們第一季表現強勁。鑑於第一季的業績和當前趨勢，埃里克，我們對超越今年設定的調整後 EBITDA 目標非常有信心。產品商務獲利能力，我們將在今年繼續提高，儘管您看到的季度環比收益可能不成比例。與我們在開發服務方面的計劃相比，我們不打算根據計劃增加投資。因此，總的來說，我們有信心有能力超過我們給出的調整後 EBITDA。

On the improvement side, most of the 450 bps improvement came from continuous improvement programs. As I mentioned, that were launched before this year around process and technology, around supply chain optimization among other drivers. And some of these efforts, as I've mentioned in the past, were happening in the backdrop. They were obscured by short-term disruptions or timing of investments. And some of these accelerated this past quarter as more resources were directed towards them that had previously been dedicated to dealing with pandemic-related challenges.

在改進方面，450 bps 的改進大部分來自持續改進計劃。正如我所提到的，這些是在今年之前圍繞流程和技術、供應鏈優化以及其他驅動因素推出的。正如我過去提到的，其中一些努力是在幕後發生的。它們被短期幹擾或投資時機所掩蓋。其中一些工作在上個季度加速了，因為更多的資源被投入到這些工作中，而這些資源原本是專門用於應對與流行病相關的挑戰的。

These -- as Gaurav just mentioned, we expect Product Commerce segment to remain profitable. We're in to continue to show improvement over time. Of course, the impact won't be equal every quarter. But we do expect to see benefits continue to come from greater economies of scale, improved operational excellence from these projects that I mentioned, a growth of higher-margin categories and services. These are the same drivers that drove the record improvement, our highest gross margin in the company's history this past quarter. And they are the same drivers that give us confidence in our ability to achieve 7% to 10% or higher adjusted EBITDA margins in the long run.

正如 Gaurav 剛才提到的，我們預計產品商務部門將保持獲利。隨著時間的推移，我們將繼續取得進步。當然，每季的影響不會相同。但我們確實期望看到效益繼續來自更大的規模經濟、我提到的這些項目的卓越營運、高利潤類別和服務的成長。正是這些因素推動了創紀錄的改善，也就是上個季度我們公司史上最高的毛利率。正是這些因素讓我們對長期達到 7% 至 10% 或更高的調整後 EBITDA 利潤率充滿信心。

And I think on COVID, I don't have the exact number. There is some COVID costs still, of course, that in Q1, but those are decreasing over time.

我認為關於新冠疫​​情，我沒有確切的數字。當然，第一季仍然存在一些新冠疫情成本，但隨著時間的推移，這些成本正在減少。

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。

Great. I have 2 here. With COVID cases start to come down, can you guys talk about any changes in consumer behavior? Are you seeing any sort of shift to offline shopping or even to like services industry like travel similar to what we see in the U.S.? And if so, which category are you seeing most impact? Which category do you think is more resilient? And second question is for Gaurav. I noticed quite a bit of outperformance in COGS. Revenue is kind of flattish quarter-over-quarter, but costs came down quite a bit. Can you parse that out for us for both the core product and developing business?

偉大的。我這裡有2個。隨著新冠病例開始下降，你們能談談消費者行為有什麼改變嗎？您是否看到了向線下購物甚至類似旅遊等服務業的轉變，類似於我們在美國看到的情況？如果是這樣，您認為哪個類別影響最大？您認為哪個類別更有彈性？第二個問題是問高拉夫的。我注意到銷貨成本有相當多的表現優異。收入環比持平，但成本卻大幅下降。您能為我們解析一下核心產品和開發業務嗎？

On the COVID impact. I mean, there is, of course, a lot of variables at work here related to the reopening around COVID. We're seeing internally a lot of evidence that the consumer behavior changes and the engagement level increases in COVID. We're not temporary, but for the long term. And we're at a stage right now where our growth across all categories is still at a -- still relatively strong compared to broader conditions. Our demand, for example, in Q1 was strong even as conditions around COVID started to normalize. The product e-commerce segment in Korea, for example, -- the broader segment in constant currency was down, was negative quarter-over-quarter. We were up.

關於新冠疫​​情的影響。我的意思是，當然，與新冠疫情相關的重新開放存在著許多變數。我們在內部看到大量證據表明，在新冠疫情期間，消費者行為發生了變化，參與度也有所提高。我們不是暫時的，而是長期的。我們現在正處於一個階段，與更廣泛的條件相比，我們所有類別的成長仍然相對強勁。例如，即使新冠疫情的情況開始正常化，我們在第一季的需求仍然強勁。例如，韓國的產品電子商務領域——以固定匯率計算，更廣泛的領域下降了，環比呈負值。我們起來了。

Year-over-year, the product e-commerce segment was up only 8% in the broader e-commerce segment in Korea, 8% up year-over-year. Our Product Commerce growth rate was nearly 4x of that at 30%. So there continues to be lots of unpredictable variables related to the opening in the short term. But the long-term trajectory is very clear to us that in any scenario, we'll continue to grow significantly faster e-commerce segment and continue to gain share across all of our categories. We're on pace to gain significant share. In an e-commerce market segment, that's expected to approach nearly $300 billion in sales by 2025 and become the third largest e-commerce opportunity in the world after only the U.S. and China.

在韓國更廣泛的電子商務領域中，產品電子商務領域年增 8%，年增 8%。我們的產品商務成長率接近 4 倍，達到 30%。因此，短期內開業仍存在許多不可預測的變數。但長期軌跡對我們來說非常清楚，在任何情況下，我們都將繼續以更快的速度成長電子商務領域，並繼續在所有類別中獲得份額。我們正在努力獲得可觀的份額。在電子商務細分市場中，預計到 2025 年銷售額將接近 3,000 億美元，成為僅次於美國和中國的全球第三大電子商務機會。

Gaurav, do you want to take the second question? Yes.

Gaurav，你想回答第二個問題嗎？是的。

Yes. James, on the second question, we did give out the split between Product Commerce, margin improvement and Developing Services margin improvement. And as Bom highlighted earlier, the overall margin improvement was 450 bps. On the Product Commerce side, most of it came from operational excellence, supply chain improvements, process improvements that we had seeded earlier in the quarter. On Developing Services, the improvements came in -- a large part of it came in from Eats while we continue to build on the other initiatives that we have. I hope that answers your question.

是的。詹姆斯，關於第二個問題，我們確實給出了產品商務、利潤率提高和開發服務利潤率提高之間的差異。正如 Bom 之前所強調的那樣，整體利潤率提高了 450 個基點。在產品商務方面，大部分來自我們在本季早些時候播種的卓越營運、供應鏈改進和流程改進。在開發服務方面，改進已經到來——其中很大一部分來自 Eats，同時我們繼續在我們現有的其他舉措的基礎上繼續發展。我希望這能回答你的問題。

(Operator Instructions) Your next question comes from the line of Peter Milliken with Deutsche Bank.

（操作員說明）您的下一個問題來自德意志銀行的 Peter Milliken。

My question is your share price is down close to 3 quarters since the IPO. Look, that's happened to a lot of companies in that period of time. But does that change what invested the demand of you in terms of your mandates, right? Initially, with the land grab, get dominant and then build the adjacencies. Are they -- do you feel like they're still completely on side with that? Or is there more of a balance that they're after to also focus on getting to breakeven more quickly perhaps than you would like to target right now?

我的問題是，自首次公開募股以來，你們的股價已下跌近三個季度。看，那段時期很多公司都發生過這種情況。但這是否會改變您對任務的要求，對嗎？最初，透過搶奪土地，獲得主導地位，然後建立鄰接關係。他們——你覺得他們仍然完全支持這一點嗎？或者他們追求更多的平衡，同時專注於比您現在想要的目標更快地實現收支平衡？

James, I didn't hear that question as clearly. I don't know if it was just on my end. But I think your question was around has our mandate, has our strategy changed, given the changes in the stock market environment. Sorry. Was it Peter, sorry, Peter. Peter, was that the question probably?

詹姆斯，我沒聽清楚這個問題。我不知道這是否只是我的問題。但我認為你的問題是考慮到股市環境的變化，我們的任務是否改變，我們的策略是否改變。對不起。是彼得嗎，抱歉，彼得。彼得，這可能是個問題嗎？

Yes, that's the question.

是的，這就是問題所在。

Yes. One of the things we wanted to point out, we have laid out our 5 operating tenants about a year ago, well before any changes in the market. And we laid out exactly what we were -- we're focused on investing for the long term, creating customer wow, really breaking trade-offs and also operational excellence. We have a culture -- I mean it's really core in our DNA, operational excellence. We want to create the best customer experience with the least -- with the highest efficiency. And I think we laid out the disciplined way in which we were going to allocate capital, the rigorous way in which we were going to test and iterate and improve operational excellence.

是的。我們想指出的一件事是，大約一年前，早在市場發生任何變化之前，我們就已經佈置了 5 個營運租戶。我們準確地闡述了我們的定位——我們專注於長期投資、創造客戶驚喜、真正打破權衡以及卓越營運。我們有一種文化——我的意思是它是我們 DNA 的核心，即卓越運作。我們希望以最少的成本、最高的效率創造最佳的客戶體驗。我認為我們制定了嚴格的資本分配方式，以及測試、迭代和改進卓越營運的嚴格方式。

And as we mentioned, a lot of these program that you're seeing, you're seeing the fruits of a lot of these more evidently in Q1, but they were happening -- they were first -- yes, they were being produced by programs that started -- many of them well before Q1. Some were bearing fruit that was being obscured by a lot of short-term disruptions, lots of pandemic-related disruptions that we had shared earlier. So for us, our culture, our strategy remains consistent. We're disciplined. We're rigorous, and we're also unafraid to take on hard challenges to create customer wow and operating leverage. So we hope to show that and continue to show that and continue to demonstrate our progress on both fronts in the quarters ahead.

正如我們所提到的，你看到的許多這樣的計劃，你在第一季更明顯地看到了很多這些計劃的成果，但它們正在發生——它們是第一個——是的，它們是由已經開始的計劃——其中許多早在第一季之前就開始了。有些正在結出碩果，但被許多短期幹擾所掩蓋，這些幹擾是我們之前分享過的許多與疫情相關的干擾。因此，對我們來說，我們的文化、我們的策略保持一致。我們很有紀律。我們嚴謹，並且不害怕接受艱鉅的挑戰，以創造客戶讚譽和營運槓桿。因此，我們希望展示這一點，並繼續展示這一點，並在未來幾季繼續展示我們在這兩方面的進展。

That's very clear. And just a quick follow-up on that. So on the core and the sort of developing businesses, I can see that you're still moving ahead in the same way. On the more massive businesses like say the media side, is that still the case as well? Or do you feel like there's a higher bid that you need to before you start putting more resources into something like that?

這非常清楚。對此進行快速跟進。因此，在核心業務和發展業務方面，我可以看到你們仍在以同樣的方式前進。對於像媒體這樣的大型企業來說，情況仍然如此嗎？或者您覺得在開始將更多資源投入此類專案之前需要更高的出價？

Yes. We have always had a -- we've outlined in our operating tenants how we test and invest. And it's early in the international, fintech play. I think those are the services you mentioned. It was a little -- I couldn't quite make it out.

是的。我們一直在我們的營運租戶中概述了我們如何測試和投資。國際金融科技領域仍處於早期階段。我想這些就是你提到的服務。有點——我不太明白。

Yes, something like that. Yes.

是的，類似的事情。是的。

Yes, yes. Again, we have a capped budget. We test within that. We get proof of concept. We nail it before we scale it. And that continues to be our operating framework in many of these areas. Look, in cases like fintech, it's an evergreen opportunity for us. It continues to -- it's a -- these are areas with a vast potential. But as our ecosystem builds -- as our ecosystem grows, that opportunity continues to grow. And so we're patient, and we're patient and we'll continue to -- with a very -- in a very disciplined way, test, iterate and learn.

是的，是的。再次強調，我們的預算是有上限的。我們在其中進行測試。我們得到了概念證明。我們在規模化之前先確定它。這仍然是我們在許多這些領域的營運框架。看，在金融科技這樣的情況下，這對我們來說是一個常青的機會。這些領域仍然具有巨大的潛力。但隨著我們的生態系統的建立，隨著我們的生態系統的發展，這種機會會不斷增加。所以我們很有耐心，我們很有耐心，我們將繼續以非常嚴格的方式進行測試、迭代和學習。

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 2 questions. Can you share about the second quarter operation momentum in terms of the top line growth and the Q-o-Q margin trend? And what will be the additional drivers of the margin improvement going into the second quarter or second half? Do you expect the temporary setback of the GP margin in case of full reopening in second half? And my next question is about the labor supply issue. So tight labor supply has been one of the key constraint of your margin side. Do you see any reserve of this supply issue in the first quarter? And going forward, this will be additional room of the growth? And -- or do you expect any structural headwinds on this regard? And what are the major initiatives to drive labor cost savings or labor efficiency increases? That's 2 -- those are 2 questions.

我有 2 個問題。您能否分享一下第二季營收成長和環比利潤率趨勢的營運動能？第二季或下半年利潤率改善的其他驅動因素是什麼？如果下半年全面重新開放，您預計毛利率會暫時回落嗎？我的下一個問題是關於勞動供給問題。所以勞動力供應緊張一直是你的利潤面的關鍵限制因素之一。您認為第一季的供應問題有儲備嗎？展望未來，這將是額外的成長空間嗎？或者您預期這方面會出現結構性阻力嗎？推動勞動成本節約或勞動效率提升的主要措施有哪些？這是 2 個問題——這是 2 個問題。

Yes, Stanley. So I think on upcoming quarter, there were lots of -- on growth, there are lots of unpredictable variables in the short term, as we mentioned. But what's clear in Q1, what we continue to see is that we are and we will continue to grow significantly faster than the e-commerce segment. That part is -- that trajectory is becoming clearer and clearer to us every day. And in fact, as we mentioned, we grew -- our share of growth grew every quarter of last year. That was even higher in Q1. So I think while we can't speak and predict with precision in the near term, I think we're very confident in the long term that in any scenario, we'll continue to gain significant share and continue to grow significantly faster than the market for -- in the e-commerce segment for years to come.

是的，史丹利。因此，我認為在即將到來的季度，正如我們所提到的，在成長方面，短期內有很多不可預測的變數。但在第一季度，我們繼續看到的是，我們現在並將繼續以明顯快於電子商務領域的速度成長。這部分是──我們的軌跡每天都變得越來越清晰。事實上，正如我們所提到的，我們正在成長——去年每個季度我們的成長份額都在成長。第一季這一數字甚至更高。因此，我認為，雖然我們在短期內無法準確地表達和預測，但我認為從長遠來看，我們非常有信心，在任何情況下，我們都將繼續獲得顯著的份額，並繼續以比競爭對手更快的速度成長。

You mentioned drivers for margin improvement. As we mentioned, there were process improvements, technology and automation improvements. There were supply chain optimization. There were also continued scaling of various services. What's exciting for us is that as we get bigger, it's becoming -- we're seeing more benefits coming from economies of scale, from -- it increases -- more scale increases our ability to invest either in software and hardware automation and efficiency projects. Also our -- some of our biggest opportunities for growth are in higher-margin categories and services. So for us, growth in the future should be higher margin. And that's what looks, it's really exciting about the growth in margin in the future.

您提到了利潤率改善的驅動因素。正如我們所提到的，有流程改進、技術和自動化改進。有供應鏈優化。各種服務也持續擴展。讓我們興奮的是，隨著我們變得更大，我們看到更多的好處來自規模經濟，更多的規模增加了我們投資軟體和硬體自動化和效率專案的能力。此外，我們的一些最大的成長機會是在利潤率較高的類別和服務中。所以對我們來說，未來的成長應該是更高的利潤率。看起來，未來利潤率的成長確實令人興奮。

I think going forward, the impact or the improvement -- the scale of improvement won't be as dramatic every quarter. But we do expect to show steady improvement over time. And as Gaurav mentioned, you will continue to see Product Commerce remain profitable, show improvement. You will see Developing Offerings also continue to make improvements quarter-over-quarter. You mentioned labor supply. We're not seeing any structural constraint in labors capacity. Of course, there was -- there are always challenges related to -- we had record capacity in Q1 so far. And we've been -- our investments in process improvements and technology improvements, among other things have really helped us manage -- there are, of course, variables we don't control.

我認為展望未來，影響或改進——改進的規模不會每個季度都那麼引人注目。但我們確實希望隨著時間的推移，情況會穩定改善。正如高拉夫所提到的，你將繼續看到產品商務保持獲利，並表現出改善。您將看到開發產品也持續逐季取得改進。你提到了勞動供給。我們沒有看到勞動力能力受到任何結構性限制。當然，到目前為止，我們在第一季的產能創下了紀錄。我們在流程改善和技術改進等方面的投資確實幫助我們進行了管理，當然，有些變數是我們無法控制的。

We mentioned in our earlier statement that we did see some headwinds from inflation and supply chain disruption, but we were able to offset a lot of that because of the improvements we're making on the drivers that we control. And that's what continues to be the anchor of our optimism going forward is that we are very confident in our ability to drive the inputs that we control. And we believe that they will continue to drive our ability to achieve the 7% to 10% or higher in adjusted EBITDA margins over the long term.

我們在先前的聲明中提到，我們確實看到了通貨膨脹和供應鏈中斷帶來的一些不利因素，但由於我們對我們控制的驅動因素進行了改進，我們能夠抵消掉許多不利因素。這仍然是我們對未來樂觀的支柱，我們對推動我們控制的投入的能力非常有信心。我們相信，從長遠來看，它們將繼續推動我們實現 7% 至 10% 或更高的調整後 EBITDA 利潤率。

(Operator Instructions) There are no further questions. This does conclude today's conference call. Thank you for joining. You may now disconnect.

（操作員說明）沒有其他問題。今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。