Overview and Conclusion This quarter's results were dragged down by a data security incident, but the core business recovery trend is strong and largely in line with expectations. The core reason lies in the rapid return of WOW members and a temporary misalignment in operational efficiency.

Key Data Product commerce revenue $720 million, YoY +4%; WOW member churn has recovered 80%; Combined adjusted EBITDA margin 0.3%, down 450 basis points YoY.

Business Progress The vast majority of WOW members did not churn; those who did quickly returned and restored their previous spending levels. New member registrations and churn rates have returned to historical normal levels. The Taiwan business achieved ultra-high growth, with the self-operated next-day delivery network covering most orders, and customer retention rates similar to the early stages in Korea. Japan Eats and Rocket Now maintained high growth. Management emphasized that they will not cut built capacity due to short-term disruptions, but instead absorb temporary underutilization.

Guidance and Outlook Q2 combined constant currency revenue growth is expected to be 9%-10%, but adjusted EBITDA margin will decline 300-400 basis points YoY, mainly due to a temporary decline in capacity utilization. Management expects to resume annual margin expansion next year.

Risk/Positive Signals Positive signals: Management is confident in long-term margin potential, with an additional $1 billion buyback plan; Negative signals: fixed cost mismatch due to the short-term data incident, high effective tax rate (75%-80%), and continued pressure on Q2 margins.