D-Market Electronic Services & Trading

Q3 2021 Earnings Conference Call


spk_0: ladies and gentlemen thank you for standing by i moved out or course go operator welcome and thank you for joining the have super rad a conference call and live webcast to present the discuss the third quarter two thousand and twenty one for announcers out or this time i'm glad return the conference over to miss kelly cilic bilic investor relations director is silly will it to me now proceed
spk_1: thank you for a suit thank you for joining us today for his brother third quarter twenty twenty one earnings call i'm pleased to be joined on the call today by i feel more of a middle and are fearful koran of the following discussions including responses to questions reflect management views as of today they say only we didn't not undertake any obligation to update or revise this information except as required by law certain segments mates on to the call or forward looking statements i saw results may differ materially from be forward looking statements the earnings release has been five with the a city on a form six case and is currently available on the city's website and only are on our investor relations website with referred to today's are usually as well as the risk factors described in the safe harbor slide of to the presentation to the press release the six k our prospects five with the is the on july first twenty twenty one and other to fighting for information about facts earth which could cause our as to results to differ materially from the forward looking statements also with a reference certain non efforts measures doing today called please refer to the appendix or supplemental cited as well as today's earnings release for representation of the most directly comparable i first measure as well as the relevance i for the money for reconciliation as a reminder a replay of his goal will be available on the relations page or pepsi brothers website with that i would melt handed over to i feel more off
spk_2: him and welcome everyone are we going to require to not do some of which we shared the north korea know with on nov twelve let me start by saying that be the hips the brother t know the concerns or the market given the head with me previously recorded on the other challenging to three and so behind or it with issue in the army and the big deal today we will shoot auction said group those shows have been demoted also we will share with you posted news on the progress the been making with that before taking over to call home for a more detailed look at our financial let me provide some context that on the third quarter these are ideal for having some said we are multiple phones in the turkish market research presented significant challenges there are three seems that particularly standout firstly following the pool lifting of comic might be restrictions on july first mobile of the agree and customer behavior began to be dramatically the change was so drastic that the quarter on quarter market growth slowed to a lot of third quarter growth rate in the past four years in turkey according to turkey sophisticated street and into ben carson to the gym in response to the slowdown be great because the would just going to simulate customer demand during that period a particular in july and august secondly the competition for do intensified in turkey as evidenced by the fundraising announcement of i mean competitor following our idea and thirdly though was the effect of the overall macro economic environment in turkey in particular the exchange rate becoming more worthwhile to september could have affected customers from some decisions in various ways in light of these mexicans has a customer just go and convert the right to detain more essential in response to the had been be increased spending on total cost them would have guns marketing and advertising as a result we continue to do a strong gdp growth despite significant has been but this game at the cost of lowering our growth contribution margin and flats revenue growth finally as you know the already informed the market with a pre announcement on nov twelve prior to this call the know want to share with you the context regarding the timing of the announcement or business has always shown a strong and go to seasonality historically the second half of the year is higher than the first part in terms of gmb and within the second half the last four months of the year generally make approximately forty percent of a new dmv duty to shopping or using such as back to school legendary november shopping month and new season taking this is going out into account be made to pay announcement after be hit for visibility own the business performances in the month of september and october despite his major head in the third quarter the also posted news regarding to progress be made in multiple phones equally as follows a scary thing i up drivers such as increase in customers order frequency merchants and selection strengthening our key differentiator such as mps performance unique service is like friction return merchant a customer experience getting our new city got the including our wallets companion had to pay and our own demand goes the delivery service had expressed and also expanding our logistics footprint
spk_3: before we moving to details on people's update please let me read precise to think firstly with a sharp and focus on tv procedures and drivers or sustainable gmb growth managing customer just guns marketing spent and tesla more efficiently we will deliver our long term value proposition secondly following i your the market conditions that taste but the attractive been supported it did not ninety percent of total retail is offline and the remaining online ten percent is expected to double it's penetration we can pull to retail by twenty twenty five off a sizable and time me market opportunities ahead
spk_2: this keys are equity story in touch and they remain fully committed to it
spk_3: now i'm like to share a few highlights from our financial and operational performance in the third quarter total number of voters in the third quarter mark an all time
spk_2: quarterly high as thirty point eight million with this strong seventy two percent order growth be generated a fifty percent gmb growth in the third quarter compared to the same piece of that year considering the song baseline effect last year or two you take the growth rate was ages four percent while increasing i acted customer base the also noted that we had successfully a our customers in terms of young people active customer across the platform as it grew by thirty three percent you don't year compared to the same period last year on the other hand the fifty percent gdp growth in more costly than the as debate is given the market head when i briefly mentioned in the third quarter game more customer discounting total and spend more advertising to stimulate demand and also cope with the intensified competitive environment this is visible in did jay to the post on the dmv reaching a negative tone point two percent in the third quarter compared to save a ton of that year taking you to theater negative five point seven percent of the and be in the nine month community spirit into eighty to eighty one corner with our with our partners who performed in more depth in his direction let's move to the next flight that i would like to discuss our performance in t growth drivers raising our drivers of sustainable dmv go with an important focus area for us did mean the a continuously to attract more customers drive further order frequency and add more merchants and reach our selection oh the past year we continue to progress in these drivers or investments in growth brand marketplace and customer experience paid off given the song momentum and are active customer base ordered frequency active merchant base and selection let know shit if you did the boys here active customer base grew by twenty six percent reaching ten point seven million in the third quarter order frequency grew by twenty one percent reaching for point four in the two three
spk_3: active merchant they grew by eighty seven percent reaching sixty seven thousand in the third quarter
spk_2: the in the number of merchants hesitate a wider selection with improved of a double gross monkey products and services as a result or total number of is to use more than doubled by reaching seventy seven million at the end of the third quarter these robots trends in i t growth drivers give us confidence for our task ahead
spk_3: let's move to the flight that i would like to highlight hobby continue to will our and benefit from our key differentiator the other run name in turkey with ninety nine percent total way that we had welcomed two hundred fourteen million cash in on a monthly average in the third quarter
spk_2: in september based on the study conducted for our company or you get performance marks the highest in the turkish economist market at sixty five percent discourse discourse shows are still your customers do but also underlined or robot logistics capabilities as
spk_3: he depreciation in customer experience of return service that gravity got returns from customers source as they prefer schedule across the country is unique to have a brother in this sector
spk_2: with this service he got to watch it with the golden award at international business awards in the best user experience gallery in october
spk_3: with his coverage of eighty one cities and eighteen hundreds years has to pay is so you have subject is highly focused on increasing it's delivery fee
spk_2: in the third quarter has the jets delivered seventy five percent of one key orders on the next day in addition has to jet expanded his tv coverage for it too many cargo heavenly service called had to be just a slight and began offering gauge of return pick up for such oversized products as well offering a high quality and reliable service in that particular segment has to get x large has made a significant difference in customer experience and a cheap over ninety seven percent customers infection score in september according to our internal reporting why did the are encouraged by the strong progress no got drivers we will certainly keep on differentiating with our best in class customers gives you powered by our robot logistics reaching over hundred ninety thousand square meters at this point another important opportunity for us to so to differentiate is the merchant experience he got a merchant as i've long term partners as such he percy i constructed approach with are valid proposition which has helped us to significantly grow the number of active merchants let me share some data points that will shed light on the level of integrated offering in the third quarter or last mile delivery service has to judge delivered around fifty three percent of i total marketplace parcels this corresponds to the largest share in delaware parses volume when a quarterly basis by it suggests it is autistic or fulfillment service has increased it's focus on dating is logging for merchant on our platform it has significant room for growth and is running it's operations and are six fulfillment centers advertising service has been increasing in popularity
spk_3: nearly twelve thousand merchants use are sponsored as through are retiring platform has the add a third glider
spk_2: the bidding you are susie collaboration with facebook and google on advertising technology and solution will contribute to the growth of the business moreover to be continued i merchant training to accelerate charity grayson on our platform as such in the first nine months of twins with one and on thirty nine thousand training sessions were completed on our training portal at the academy now a laptop update you on our new strategic assets in particular have to pay an extra expressed
spk_3: let me begin with had to pay fors
spk_2: since his debut in june twenty twenty one has to pay has made song progress reaching two point seven million have to pay well the face as of the end of october two point four billion turkish lira gm be passed through have to pay wallet with his license to operate as an open one it had to pay aspires to evolve into best interest payments companion enabling fiction of experience because table money transfers and other incremental vintage capabilities the growth online and offline roads
spk_3: according be in november had to pay agreed with taste that which is authentic subsidiary of turkey leading telecom operators to south to enable direct to your billing capability as have to pay wallet
spk_2: by being so to sell customers will be able to shop at had a brother without a credit or debit card
spk_3: we have to pay the are extremely excited about the future reported to the head across online and offline another asset the are excited about his has expressed as expressed desire on demand grocery delivery service with instant and sort of delivery options
spk_2: we regard to expressed as it's are teaching us as as the believe it is does positions to drive so or the frequency and new customer acquisition for the platform
spk_3: at it's express the our focus on enhancing our customers to you selection and ecosystem synergies accordingly these people have a new cross service search capabilities this allow customers to discover products and compare prices among different stores in a frictionless way which is an essential part of the multi multistory model
spk_2: further have expressed began accepting payments were did cards with enlarged addressable all these in addition to eternal developments have sex spread expanded over fifty retailer graham and roughly nineteen hundred fifty stores including regional retailers as well as nation movie retailers such as car for and shock and just didn't month had sex with made a new partnership deal with negroes a leading nations the retailer we can't wait to welcome the negroes shop on our platform moving forward
spk_3: before i finish let me reiterate a few key area
spk_2: ninety percent of total retail is still line and that remaining online ten percent is expected to double penetration with told the retail by twenty twenty five i'll bring a sizable and time me market opportunities
spk_3: i want to wrap up here by rationing you that we are strong customer and merchant base our hybrid one pm sleepy model
spk_2: i've differentiated services for customers and merchants our robots to logistic network i continued invested in technology and get a sign alongside with the talents and our cities it out this emerging from our ecosystem such as have to pay have the express had seen jet and had the at the i run position to capture the bit of the poor
spk_4: to the ahead
spk_2: the belief that are equity stories in intact and the remain fully committed to it regarding twenty and one in light of current market conditions the are forecasting a four year twenty three one be to be around twenty four years into the sea route as previously disclosed with this i'd like to thank you for listening and live diplo to i fear for koran
spk_5: ten camera
spk_6: and outcome ever been
spk_5: as rough as a race has in his success or valid proposition for our customers has been instrumental in driving a truck drivers echoes the number of active customers twenty six percent growth or history considered to act about percent growth act as much as eighty seven percent growth and number of
spk_7: sk use it more that hundred percent growth
spk_5: according to death with at seventy two percent your the autographs be generated around sixty percent jambi growth in that are quarters
spk_7: it's performance as a cheap against and all that itself pays off last days on a tree at compounded basis hard rock momentum crunching it in the third quarter had eighty four percent on the next flight i would like to discuss have such as success in fact that our financial performance there are sectors that he has a d the me to discuss in that to better understand the dynamics affecting our revenue and cross contribution margin in the third quarters let me start by commenting on that commission days are commiserate that the charge to are no chance on the marketplace remained at that aren't the same level kinda third quarter compared to the same period last year
spk_5: our average concentrate that the are able to charge time merchants is in the high single digits
spk_7: and other factors his the lucky they paid me that certain percentage points year on year to ambitious shift from detail to marketplace in the third quarter resulted in over seven years and yes this is that in line with the crunching an expression of i've noticed states has selection and other two this case has already discussed by rats that third quarters the impacted by major habits or response to this new environment bus to increase total customer discounts significantly in particularly care july and august starting from september onwards these it gradually lower such customers discounts and in october should be continued on generating official seize on our total spending with some encouraging results have a bush to for is not the best quarters to realize the full impact on efficiencies to take distance of peak occasions such as the legend the date november shopping month as the lead the new year's season overall these though the most instrumental fact this to our performance of nearly flat seven years at around one point seven billion turkish lira and four point three percent growth contribution margin in the third quarters it is worth mentioning that are gross contribution margin is not a direct reflection of the commission based but it just are marketplace commission that of customers discounts on the next life i would like to discuss reading a performance further along with girls contribution performance people photos discussing gross contribution i would like to give some color on i've read any breakdown compared to the same quarter of that this revenue generated from retail operations to remain flat live marketplace and any as declined eighty percent mainly due to hire customer discounts as i have touched upon meanwhile hard to limited service setting increased by did three percent taken on by the rise in the number of for this and higher delivery service said i knew from services provided so so parties in the first nine months total revenues grew by her aunt she's been percent compared to the first nine months of twenty twenty novelty gross contribution level are gross contribution was two hundred eighteen you can see else as a third quarters this is reflected as at four point five percentage points decline in gross contribution margin compared to the third quarter of last ditch in the first nine months gross contribution grew by around eleven percent compared to the first nine months of twenty twenty with at seven point one percent gross contribution much now let's have a look at our operating expenses in the next less on net operating expenses as a potent percentage of and reach fourteen point five percent in the third quarters up from eight point six percent a year ago around five point nine percentage points rights was mainly due to three point nine percentage points rise in advertising expenses as the continued to invest in our growth drives these advertising expenses unfortunately became more costly on the intensified competitive environment in the third quarters one point three percentage points rise in our dna expenses due to rise in the number of full time and outsource employees along with the impact of any old said it is as the impact of sheriff as payment expenses book think to twenty twenty one was zero point eight percentage points bit in the total
spk_8: increase
spk_7: zero point seven percentage points rise in shipping and pecking expenses driven by the seventy two percent increase in number of orders and around twenty two percent rise in unit price is applied by our the apartments let's move to tpp a margin judge on the next flight as a function of have for medicine drivers he did the a in the third quarter about negative five hundred six hundred fifty nine point four million to have compared to positive a point nine million yeah seemed to three twenty twenty this corresponds to a negative ten point two percent cbp a as a percentage of gmb into the twenty one and negative five point seven percent he beat the a to the percent of to for before the nine months to legit as of to three twenty one the increase of driven by four point five percentage points decreasing gross contribution margin due to customers these guns three point nine percentage points rise in advertising expenses one point two percentage points rights and payroll and outsourced that expenses and zero point eight percentage points rise in other or picks item excluding the cost of him and sea salt and depreciation and amortization deeds is of indicate that cost of growth but hi years primarily do them by the increasing customer comes advertising span and unit cost of marketing final i would like to say achievers on our cash flow dynamics net cash used in operating activities increase from negative forty seven point eight me when he out into t twenty twenty two negative five hundred eighty two point four million shares in include see twenty twenty one which is mainly driven by the increase in net loss for the p features floor was negative six hundred thirty nine million vs mainly driven by the decreasing cash flow from breaking activities and it's a man did you to six hundred ninety eight point eight million see an increase in on netflix for period he continued to operate the negative networking capital which reached two point one billion t out has of two three twenty one increasingly by twenty three point four million t as in chewed through two to twenty twenty one cutbacks love fifty seven million field in the third quarter of twenty twenty one out he met mr mann the for the product development across half that size and mobile platforms given our growing corporations and few posts of property and equipment before i and my presentation i would like to highlight that the feel comfortable with did buckwheat it is currently have and therefore we have no plans to go to the capital markets to raise enough funds in the next eighteen months with this i and our presentation thanked her for litany operators please open the floor for christmas
spk_0: the first question comes for line of tyrants is our with bank of america please go ahead
spk_9: yes hi good morning or good afternoon everyone he sees or former former cop thanks so much for the our presentation to call and the opportunity to to ask questions i have four questions if that's okay on the first one on would really be on the yeah competition and probably for can explain it to be more how does it impact on the business being specific boasts about online and offline players and given that trend your capital raise was nonsense or two to twenty one did you meet you react and you would be to the like to decide incremental competition and that's why we're seeing this incremental spanned in that into three times the first question on second question on what is your what was your sweeping a crate in three you and how much was it down sequentially third question you seem to have stimulated gym be gross a much larger than expected advertising stand in the quarter what do you sing happens when you reduce advertising spanned or are you planning on keeping advertising to to deep to dmv or tom i single digits mark going forward and then on the divorce question are relate to your comments on not on the quality and no need to raise capital are in the next stop eighteen months or is that is that only that it for the next eighteen months so hot should i consider that the yeah but the cash burn of the company could be similar to to to two to three are going for award for the next couple of quarters thank you so much
spk_3: thanks so much for the question
spk_2: pursuit of were to determine his route to the go in total to competition and they should a hobby react to treat i do with unfair to to say my the city are you were worried group of hundred after are by to you that was intense welcome come with the black giving the market and also over
spk_3: god is also the departed said we because of the mud slow loading the groceries and other macro dynamics is not the only combined be needed to stimulate the customer demand to address
spk_2: challenges which means they should be able to use custom with guns then you'll also increase the amount of exercising to ensure he also get a fair to say or voice and more access to customers and also finally unit cost of marketing also got impact because of his don't work can be detected or those the dosage to the are increase the total meet do so constructor fleet in other words be able to use custom with going to smooth the demand is my decrease the amount of my dream to try to be used but also the unit costs of my to the new the time because also went off you the combination of the city's like to surf to recruit who terms of the completely different hobbies up to the wide was including the cause of martin
spk_3: limited shipped to the second question i get caught identically was afraid to say yes thank you for your question
spk_10: are take rates are the commission's that the are able to charge time noticed so it seemed to have to two and to two days though significant change you not have commission's that be charged armor just what is your questions first the girls contribution margin is done by four point three percent and
spk_7: as i explained this is mainly driven by the him discussed that are given to us the customers head during the intensive competition pew and for a deed hi advertising spence i am i can say
spk_11: during and
spk_5: in both during september's has dimensions the portuguese these it used as yet that spending said argument to our customers and be continued just have deduction during october and these see some
spk_7: encouraging results during october's have evers to for is not the rights periods had to make this hit assessment because it's be heavily discount period so how do you will be continued this reduction starting from next year old with and be believe the book says something crunching results going forward
spk_10: on the liquidity for the next eighteen months yes he not in our initial plans we are b see that are liquidity sufficient enough and be don't need any liquidity for the next eighteen months and we have a plan for the next twenty four months and by the end of this year's the might need to revise those plans because of the much economic get my money to keep have it worse
spk_7: it is not so easy to make us plan about twenty four months for the time being but for the next twenty four months people comfortable in terms of the degree to and i did see really old are you just to make sure you're not missing of me
spk_12: questions and answers to the you also referred was will happen right and few degrees as regards by muslim and to have a good job so much more the up on on the car on the on the sticky mess of consumer six across exactly i get visibility was no good luck swimsuit gallery the tend to be some action
spk_2: the to them succeed need to increasing muffle of not didn't know you might notice but also let me remind you you know she didn't she doesn't stronghold we are not to rely on martinez you know all the for coupons of our groups worms are good movie you saw the numbers customers frequency merchants and selection because really healthy dynamic in terms of the growth and doesn't happen so the when i refer to are other areas that are supporting our group i would emphasize facts like the i also granny my my to some to the arena the only movie i don't you want me to strong hybrid model one pm three be be suitable for you so i don't wanna repeat it but the customer and merchant differences experiences and weekend got more definite grow soon as you know that decreases return to do to us and minimal serves the for customers and many more unique services for merchants that we will present it's and then vr is so leading in terms of mps which is a great city acid for us know the difference is going to be you and of course on nice you might to about loses this coupled with our assets like pay grossly on demand it's express as the get and advertising and so on the few be have many accidents levers to drive the growth across the platoon but not of marketing and also be definitely gonna into the more efficiency as the go forwards
spk_9: and to someone who are helpful
spk_0: it so much
spk_13: the next question comes my line of at the some miriam with morgan stanley please go ahead good afternoon everyone asks are taking like a sense that he smoked salmon ancestor just another question on on competition upsetting to mention the lava that discounting and in september and october is that because that the market is becoming slightly less competitive is and more you're just focusing on profitability and and getting better efficiency if you could comment on what you're saying in the last couple of weeks that which would be great and then i'll settled on competition as well are you seen that it's mainly just competition around marketing spend and than also discounting that ot other any other cats that you have that's emerged in terms of proposition that his peers aside from just the discounting and and hi marketing spend and and then funny he could just comment on on the customer behavior that you're seeing at the moment intended for free
spk_2: quincy a basically the cohorts that you've acquired as a covert holidays come some parents to your pi cohorts thank you thanks so much meme meme i don't start from the
spk_3: maybe not gruesome first which is different because we believe in terms of that good for the frequency i guess if i'm not mistaken
spk_2: so basically in terms of the the the drivers over a customer dynamic you don't see both the customer numbers acted customer numbers and the order frequency increase and didn't come to me how to read and also you don't see the need to puff little surprising that has exceeded the way to see to terms of a little dynamically because the gm he broke up with an increased by thirty three percent
spk_14: is this or in the numbers you know you and also going back to the customers
spk_15: you in designing besides know
spk_16: actually
spk_3: right now
spk_2: okay but this girl and i don't i want to be question first yet because you that ask about the crowd good make me i want to make sure i get older you just the other krysiak to the i was moving discounting sixty are we getting better decisions when i was one of them he totally customers in july and august actually be so have a very drastic slowdown it visually the mountain biking the other a difficult as you can see from the public data from be the into the card center and to thirty students the institute
spk_3: there was a drastic drop in these two three easier to you so visited
spk_2: moving on with the seasonal t v i expect that the customer behavior you get as a normal life hobby were given the macro economy had been also you want to be cautious about it in the first appeared so far it is up to this point we can see the be initially also and lucky you know that deficiencies in know and marketing practice go practice and and a song across the board which is actually really encouraging how you wanna be also remain very cautious unrealistic given these major macro economy had we believe do closely monitored the coffin behavior move forward and his current thirty four is kind of a bit explore the money quarters with multiple shopping or juju and long period of time be but also coupled with is not cool comic has be good is ready to be time for us to see so far your motor vehicle and the second party out there was a city are you any other area urgency is just between us and competition i do
spk_17: the good news is we are seeing that the arctic city is leading the abuse course
spk_2: the army
spk_12: because you can differences in many areas like free food or is pieces like have suggests that the next day delivery or three shoes return as you know it's unique we don't pick up your return at your door is your peter schedule of know this movie across the country know what i don't do it would have seizures a large navigenics is not opening the
spk_2: two men have car the service and as you saw the are seem like very strong numbers like ninety seven plus i'm stunned customs assertions course and other words which city be admitting significant progress in areas that of your diversity from customer disorder bpd actually gap between us and others that the are you are
spk_3: favorite and mostly athletes like to have to pay you saw the numbers the are making a strong progress along with other of it's like adams the on the i to city to make sure he remained the procedure and get more division and marc emery forward as he can see the outmoded is taking the action to make sure the wrong and managed or
spk_2: to be span customer discounting test will have more episodes the so this school might be busy the i agree to she and
spk_13: increase the gap in our favor when you get all these parameters are discussed
spk_18: great thanks to the and such as the car and competition point say is it that you're you're not seeing competition let up in the last couple of weeks or you are
spk_19: part two competing to see
spk_3: to load the discounts
spk_2: oh thank you for a month i see the competition didn't i am a vicious the be the i it is about this the internet companies have lifted remain as it's peak into for advance and as you can imagine the a quarter that is not the time you described like have a city major should all these quotes replacing little to hear that word from of my on nine august food to expect increased competition is disclosure but despite that we are both delivering and trying to get more efficient and also i tried to depression died due to proceed disability the are trying to not just
spk_20: the pursuit of also get more efficient and a increase the gap between us and competition in our favorite oldest in at the same time and the competition is amazing conflict
spk_0: great gotta thank you
spk_21: did you the next question comes from a line of will not same with goldman sachs please go ahead hi are they grow much for the for the fish and so i had a book that the first one is related to the fourth quarter and how they operate number of cards god's given that the guy them in the kids on eighty per cent your your graph in the fourth quarters and also what is your your thoughts on the girl samples to them to the as a competitive environment like to two hundred twenty two when chavez said martin in was last to first carter into it the most of the top quark you're in the next year or you will reduce or jeremy shockey large needed in the coming years and the my second question or is also related to the first one i do you see in a slow down due to wallets i'll touch their environment and hobbies been affecting the merchants and a price and capability on the product they say obviously wallet titled or towards the i can affect you negatively march that is often or slow down due to lack of availability and finally my sword question and am i to question it relates to the market share of fix to grow that so even if from as as equal most data system in turkey at least a non year on year growth numbers are in first have to in one for the ecommerce marketing turkey on a your your base is that the market will bite seventy five per cent you're on your interests of while hipster brother jamie brought love that it's the boat sank you on your endeavors period
spk_2: we know that this is not an i'll address the markets address with mark the for had two brothers it's includes many other parts like sports that lottery gaming cross borders but we have any in your market share either lead you to they go in the first thought that this or that are what was the growth of the addressable mark
spk_3: in the first house as when one on the you on your baiter that is and very much
spk_2: they do damage is refusing to let me start injury from the last person and go or the rounds you do so much as usually we share your concerns in terms of the lack of resources as in my gym and i should be lovely to use because they do not be and only public company to smoke good woman has disclosed publicly this number
spk_3: this little so hard to get real time access to market competition i can with invested in that sense so the odds kind of also speaking the same chosen to discuss have ever decide to refer to public sources to kind of get on an excerpt some he thought maybe what we don't shoot you is to rip according to the latest trend or is this again to be too yeah nectar into the car centers public data is to that this was the city also shared in the dead when you to do it this to similar adjustable sectors reported by and be to i'm and in terms of online card turns out
spk_2: two volume and if you did those numbers from two three overs you to perspective it looks like the most thrilling sectors in the gym
spk_3: do only seven percent to on do and if you would get our gm be again do nothing that you have to step up but trying to just fine a insight you said or gmbh you want to use the almost kind of a ten percent plus counters and estate growth which means his estate looking at seven percent vs or ten percent it might give us some signals regarding the accused three trump have ever again i'm a decided if it is not drugs marcus's measurements
spk_2: was the radio to try to understand that part in the market in terms of the other question of the slogan or will to the and is logged on it's equally to do they should a very tough question and good hard to a study hard to understand design couture does margaret
spk_3: could it could be affecting the cotton vv two different ways one could be that people they should to see this time it took shopping season is an opportunity and affordable dissolution an opportunity for them and they they can also see he come with desert and the term friends platform the or price comparison solution could be you and so they can we should increase their own
spk_2: nine behavior is good the option one option to could be the seemed is also to they can also add it is that little consumption so again he's under two extremes of the rated potential ten and the are closely monitoring what is gonna be the case for to put it is too early and often of greek your first question today it is too it's amazing what if you would get our to trading is of this month is this return i measure some highly cited you guys to make sure you understand so basically just as a shopping cart in this season but there's also the head with if you disgust and the market when we see i see so far the truth dynamic we can say was be trying to achieve in november dose of a big issue to resonate with my family lives our customers what we are doing to also publicly visible be very focused on affordability solutions as you know visit some other for some sort of by now pay later solution with leading back and thirty two people don't purchase now and painting january and also be emphasized our customers season convenient with original sources that prisons return and of them side others like of his guts and also the over try to differences in our approach to social commerce be to this is why does shopping with that pretty regular people the time to go outside of the week mothers' for this kind of dining seems to resonate right based on the only high level observations be have even indy eleven's devon i should i just be recorded like the all time high did orders image over half a million orders to set for you guys are this is the turvy see in terms of the first part of november but yet to see the big time the the month into the legendary friday part of the month for it's gonna be
spk_10: interesting time for us together to closely monitored a vr see you soon as it seems to resonate with our customers
spk_22: answers to your first question now going to the dmv unprofitable thing twenty three to i refer to core us take a breath and
spk_7: with as a mess as they have a plan force as tried to tried to have ever seen different and loss of into as at caveats for us and november december eighth day a main shopping season so people trying to say the closure of november and december tomdispatch need to make similar just bought in atlanta and people come back
spk_10: you be the either
spk_7: these are too far and also saw as you can expect that guy does in there in the next yet first quarter or and of the scottish
spk_21: how about i'd like to add one thing on the profitability yes hair and the are taking certain precautions to improve our cross contribution margin we have done at certain has to have october but at november and december not that time but the police going forward
spk_0: or from to run on the state will be able to provide us contribution much as which will help us for are profitable the test us i have for the guidance for the all tend to try to have people come back to a beach to vote and us thank you
spk_23: okay thank you very much smarter than conglomerate i get any to the next question comes on line of as a day when taking more can go ahead as a colony thanks for the presentation at i have some follow up questions and send me a question and at so slung is about charcoal traits are your a presence at attacks at that shall stable take on that a to the average perspective as such a lovely thought the her thoughts on the to change and can be a pathetic are category because am trying to understand that i'm not i also cutting calculate tell category on at the sustainable me because of a shifting the charity and the second one is about your inventory levels a as a little bumpy nhl action
spk_21: touch crack air but is not as substantial such a share procession add to the have any and traded that you may benefit on the much insight into fought collector and and they're taught question is about
spk_10: topics cycle a bit don't see much increasing the topic so far for as i think about it tactically in trying to trying to to as and final it's about your actions that in protocols contribution added i mean to you please let our felt about this i mean i mean trying to actual so what are you planning to of allies of pledging protocols contribution xps as
spk_7: and maybe the final question is i don't want that effect of the country all daughter frequency because the of sorts of sorts of a promising daughter for concept a to save on that ship i said incredible country spending all your i also think i mean customize are buying more on other categories as that thank as other for the questions let the stuff that the person about the texas yes compared to last year said can hit or take it means are commission race that they are charging tosh merchants does that taste significant place that has been an investment period during to watch your to but those are in full that the back to our origin of a conscious level of on their hands on this ship in the gmb i can say our share of marketplace is seventy percent and bumped it is totally percent in terms of electronic sales
spk_24: that your it was sixty five percent electronics and twenty five percent on electronics and it's used to see his sixty two percent electronics and to the eight percent
spk_25: in a month electronics have a others that has been some shit from our wanted to three days of between last year and these years and and thirteen percentage points which affects it's as ours
spk_10: cause jesus for be
spk_7: in those categories on the left to their vote
spk_10: as a starting point i can say yes he has enough eventually to benefits from the price increases the parts that are on board him many as immensely strong september bomblets that is one of the reasons that a on nigga that talking capital of could have been higher but only improved around thirty forty million to of
spk_7: for the truth the closing that is to reason that the have purchased many menzies airport the at them as for to force however at the same time he somehow case it did shortage a payment terms or even be made some advanced payments to secure those products as to be to make them available for to for are not need to be enjoying available to those products in terms of cutbacks guess it hasn't increased
spk_26: significantly in twenty one because we have seen some operational efficiency and we spend less on the air
spk_5: i proper to plant and equipment hovers going forward especially here for the next year's the are missing a plan and between three hundred fifty to four hundred new gun
spk_27: don't use the spending on the effect size of is as foreign exchange increases oh we need to make her a detailed plan for those purchases others the initial plan is something and on the hundred sixty two four hundred new church
spk_3: on on the excess our about the
spk_7: gross contribution margin improvement yes we are not happy to growth contribution margin and the believe he definitely need to include the margin of the have we have to mean during two three the had to increase the customer discounts to to market dynamics as he explained as diverse as intense fights competition in the market and the markets
spk_2: growth of small town so we have to make those customers discuss easier life that those are not sustainable and the made the decision to sharpen our focus on our group contribution margin to defend shooters and drivers of sustainable gmb growth while optimizing our our customers discounts marketing spent and test both more efficiently we believe it will be able to improve ours the margins going forward roth's who just like percent over forty years before i go there see on the other one as well as an issue or them to clone answers were to close to your most gruesome money to do with the meant to live with my when i don't the fact that view to the rule video rear of the global of my children's his mother's love you want to disarm it is that prepared no reason for the multiple not used to chloe moguls with of to to the ruble to learn the military monkey with you know in one piece to be using our one piece with the through not who are doing period of time with by to global supply to jump juice and also losing him
spk_3: i'm from our know nothings to upload suit and we were able to to do go to do you see them with are meant to be a monkey who did was who took to me to me i read that kosovo go the cuckoo's my wouldn't normally she was the goose contusion learn to be groomed for to to the work because farthing
spk_2: two people are also one at the other side of the story money city as you normally do move forward with three be getting stronger we've got to love you observed right you will use the restroom the one who really know which which is also in the congo detours the comparison was actually move forward be repeat so do remains as like you could always assumed part of our platform and is this happen the i also expect you to continue to see more long to prove that or the a more long emerges from droplets be to be my major was a hospital room me me and margin of the plot from other two or three my when also emphasizes how are value proposition with customers and virtues with also have both improve our profitable to move forward to for the group time briefly mentioned move as you remember our his digit now the city crews fifty percent like not fifty three percent of markedly without did it with the minute we just into graduate degree of you know this this mean a city know it or not mandatory service the on making a difference when i moved to be good legit which is actually different position to move forward or to do so do remember those are going to have a new to save time and money and was the greasy cost me and also tied the did briefly mesa some numbers with the recent enough as i am sure you saw with google and facebook we are making a movie to take two's have been on me and also with training and potentially with also there's merchant financing to stick to stuff like that you're trying to make sure we become the most people platform for i moved to do not eat and also the second part of the sort of to their customers he also try to be the ultimate toy right that's why the are also see ago that of a city room for that we from with as up with our strong brand with our uni services that which we discuss exclusions return mix they didn't really an exploit the degrees and services on with our ecosystem and which i'm going of tough on to short the oldest coming together he also bpd that are more to improve ability to improve over time because i should be going to be a function of multiple
spk_3: improvements know i'm going to adjust your had to express and question has sixty four of his visits are difficult to your question it improves and how to improve both frequency and also customers roof because the not be hits the cruises agreed to to bring a new customers with a different purpose
spk_2: demographics and also triggers frequency because of the nature of the product and as you know it's also for seafood and flooded and navi of negroes is i may simply be treated section of the gold navi i was media of the we knew smoked the players like to show negroes know immediately we do players know navi of almost more than fifty grams so the solution is getting larger to be a top of the why this election with our service and with multiple options that uses and slaughtered and was the finally the only bring our own be like me to go to the seems like you will have move on our app hold it together i also want do you may be one going to be to some have yard seem to be with the i'm very overly focused on the customary be the solution and advantage of the most of them or do this why u t austin way forward
spk_28: onwards because it is this is the early face is used to be missing that isn't but move forward with the are more focusing on of the most of the model advance and also be on video and totally focus on city perfect orders such as ratio so does the sheer number admit to be watching monitor which means they put out that is the order
spk_3: that is no the day no return and know be exhibition solution because of a dip we take it very seriously because the noise the i a bit return of result would cost me three and right now be our sins of the an idea and i like sixty percent
spk_23: perfect for the ratio which is a very strong so the i agree to hopefully it will focus on the move would be more gradually improve your phone number audience are numbered ahead
spk_2: maybe it was
spk_3: of new yorkers he didn't know more
spk_2: yeah thank you very much an outrage at regarding chemicals are boarding a it's it's exclusive to has to brothel off a girl saw presenting themselves something other platforms
spk_3: the elysee does it does make of the partnership she doesn't a city force and he could of you decide because as you know already proved issue this is slightly unique we believe the gonna grow be targeted partners together i didn't download with much more included
spk_2: the than other movies you know the are not running ducks dorsey rupees or retailers a kind of he does is an incremental growth opportunities with our partners because of partners dark forbidden negroes music not good yes it is nothing i do know it to the most but these believe because of our kind of the few you going over on our platform and because you know hopefully going to deliver a strong
spk_29: mitchell incremental groups were both sides going to be kind of her
spk_0: sustainable long term partnership with both sides and because it is also an area of the geography meet our partners not just them of other things that the also work with our partners have the can improve in his hands on experience and pissy or the together
spk_2: be much i do shit this point and other subject
spk_15: i think they're much would you
spk_2: ladies and gentlemen there are no further questions of this time i will not tend to come for sober to see your mr more at and regard for any clothes comment thank you be so much superman or before the end the call or want to reiterate that you know what's your concerns and take them is to see remain confident know much opportunity and long term value proposition because you know the opportunity and the fundamental to do you mean as strong
spk_3: and actually pulling right your like competition a new to market conditions have become more challenging to things have not changed

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