Financial Data and Key Metrics Changes - Consolidated revenue grew 16% year over year or 19% in constant currency to $8.5 billion [6][16] - Adjusted EBITDA reached $428 million, growing margins by over 50 basis points [6][20] - Consolidated gross profit margin improved to 30%, up 79 basis points year over year [18] - Operating income was $149 million, representing a growth of 55% over last year [20] - Net income attributable to stockholders was $32 million, resulting in $0.02 diluted earnings per share [20] Business Line Data and Key Metrics Changes - Product Commerce segment revenues grew 14% year over year or 17% in constant currency [17] - Developing Offerings segment revenues increased by 33% year over year [17] - Product Commerce gross profit was $2.4 billion, growing 23% or 26% in constant currency [18] - Fresh category revenues grew 25% in constant currency year over year [10] Market Data and Key Metrics Changes - Taiwan's revenue surged 54% quarter over quarter, with year-over-year growth in triple digits [12][13] - Active customer additions in Product Commerce accelerated, with significant revenue per active customer increases [9] Company Strategy and Development Direction - The company is focused on transforming commerce and enhancing customer engagement through improved selection, price, and service [7] - Investments in automation and AI are expected to drive operational excellence and enhance customer experience [11][29] - The company aims to broaden selection and improve inventory availability, particularly in Taiwan [12] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term potential in Taiwan, drawing parallels to early growth in Korea [13][38] - The company expects to continue outpacing retail market growth through enhanced customer experience [48] - A temporarily high effective tax rate is anticipated due to losses in early-stage operations in Taiwan [24] Other Important Information - The company is making significant investments in developing offerings, particularly in Taiwan, with expected adjusted EBITDA losses for the full year between $900 million and $950 million [21][22] - The effective income tax rate for the quarter was 84%, driven by early-stage losses [24] Q&A Session Summary Question: Margin expectations and AI strategies - Management expects further product commerce margin improvement in the second half, leveraging technology and AI [27][31] - AI has been integral to operations, with applications in customer experience and operational efficiency [28][29] Question: Developing offerings investment outlook - Investments in developing offerings are managed as a pool, with no specific guidance on future levels beyond this year [40][41] Question: Taiwan's gross profit margin and unit economics - Management is confident in Taiwan's growth trajectory, with repeat customers driving the majority of growth [38] Question: Government project involvement and consumer growth trends - The company is developing its own AI computing infrastructure and exploring external enterprise opportunities [46] - Growth outlook remains aligned with previous guidance, driven by deepening customer engagement [48] Question: Last mile delivery initiatives and gross margin drivers - Investments in Taiwan are at various stages, with a focus on customer experience and operational excellence [55] - Gross profit margin expansion is attributed to increased efficiency and margin-accretive offerings [57]