Naver Corp Q1 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Minuh Cha - Goldman Sachs Group, Inc., Research Division - Analyst : I would like to first congratulate the new management team for taking office and would also like to thank you for providing more disclosure. That is quite helpful. I will be asking 2 questions. One long term, the other short term. A couple of days ago, the company shared with us your 5-year guidance, and you also talked about the company's new business initiatives. You mentioned KRW 15 trillion as your long-term objective. What is the mix of the new business contribution to that figure? And from a short-term perspective, considering the higher level of fixed cost, what is your projection for operating profit margin going forward? And also, I would like to understand what management's view is in regards to striking a balance from a short-term perspective between top line revenue and profit.

Question: Stanley Yang - JPMorgan Chase & Co, Research Division - Analyst : I would also like to congratulate the new management team, CEO, Choi and CFO Kim. I also have some questions relating to your mid- to long-term revenue guidance. So you will be doubling your revenue in 5 years' time, can you provide the split between domestic and global business? And in terms of your global revenue growth projections, you've mentioned Yahoo ! Shopping Search and potential monetization from these other markets. What is the revenue share scheme look like? Would like to get some color as to the size and the scale at which you would be able to benefit from such global top line growth. And what is the, I guess, contribution from inorganic or M&A in that KRW 15 trillion target? Second question relates to your e-commerce strategy. The overall e-commerce market growth has slowed and the competition has become much more fierce of late. I understand your model is asset-light. You enter into partnerships and alliances. Do you plan to carry on with this strategy? Or would you be changing that? I asked this question because your delivery capabilities are improving. But in terms of quick delivery, how in scale would you be able to grow? You have partnerships with CJ Logistics. But compared to your competitive peers, there seems to be still some gap in terms of your delivery, I guess, capabilities. And so I would like to understand whether you're considering investment as well.

Question: Dong Hwan Oh - Samsung Securities Co. Ltd., Research Division - Analyst : My question relates to your short term, maybe 1 year time frame growth. Your advertisement and commerce business, in terms of the revenue growth, had largely slowed. Is this a temporary phenomenon? Or do you think this is structural? And when do you think the rebound could come? And for next question is for the advertisement, performance ad had actually driven quite significant growth. I would like to understand what other products are currently in the lineup for you to bring additional growth from advertisement and commerce.