For the benefit of our investors joining from home and abroad, we will provide simultaneous interpretation service for the presentation and switch to consecutive interpretation for the Q&As. Good morning. I am Chon Yo Han, from the Office of Capital Market. I would like to thank the analysts and investors for joining NAVER's 2025 Q3 earnings presentation. On this call, we are joined by CEO Soo-yeon Choi and CFO Hee-Cheol Kim, and they will walk you through NAVER's business highlights and strategies and financial results, after which we will entertain your questions. Please note that the earnings results are K-IFRS based, provided for timely communications, and have not yet been audited by an independent auditor, and hence are subject to change after such review. With that, I will turn it over to our CEO to present on the business highlights.
Good morning. I am Soo-yeon Choi, the CEO.
In Q3, NAVER continued to strengthen its foundation for new growth by advancing its services and monetization through the integration of AI technology into content and data. In Search, AI Briefing has been expanded to 15% coverage, leading to a notable improvement in user satisfaction and delivery, delivering a positive user experience. At the same time, the revamped home screen, along with expanded content supply through Clip and Shopping Connect, as well as personalized recommendations, contributed to higher usability. As a result, the loyal user base strengthened both quantitatively and qualitatively during the quarter. Supported by these initiatives, together with NAVER's solid media influence and strong monetization capability, overall advertising revenue on NAVER's platform grew by 10.5% YoY. In Commerce, NAVER strengthened a personalized experience, optimized for exploration and discovery-based shopping by enhancing user benefits through services such as end delivery and membership.
As a result, user engagement within the NAVER Plus Store app increased, surpassing 10 million downloads. In Q3, Smart Store from GMV recorded accelerated growth with a full quarter reflection of the revised commission structure, serving as a key driver of overall performance. Going forward, NAVER will continue to enhance the customer experience through closer collaboration with Kurly and expanded application of AI-driven personalization. Let me begin with NAVER's differentiated AI-powered search services and the performance of the search platform. To strengthen competitiveness in informational search, AI Briefing launched in March, expanded its coverage to 15% of integrated search queries as of September end. It continues to enhance usability by providing information to reinforce with highly reliable sources and improving answer satisfaction for long-tail queries.
AI Briefing, used by more than 30 million users, offers a differentiated experience by enabling summarized information consumption as well as deeper exploration through research using related questions displayed at the bottom of the main text, thereby expanding content consumption. Since its launch, the number of clicks on related questions has increased by more than five times compared to April, the early stage of the service. This allows users to explore more topics more deeply without entering new or complex queries, while naturally engaging with the wider range of NAVER's UGC, creating a virtuous cycle of content consumption. Starting in November, NAVER will gradually test personalization in both the answer text and related question areas, in particular for shopping and local queries. The company plans to strengthen contextual connections with businesses and explore monetization opportunities.
Ultimately, NAVER aims to provide a differentiated search experience in which advertising and content are seamlessly integrated with the answer text, while also exploring revenue models for the emerging AI Agent environment. The home screen revamped in August, along with the expansion of high-quality content supply, including Clip and the enhancement of personalized content recommendation logic, led to higher feed engagement. As a result, in September, the average daily users of the home feed and Clip stabilized at 10 million users each. With improvements in the usability and recommendation areas of the home feed, user activity indicators such as content impressions and clicks continued to increase. The resulting growth in feed consumption also translated into higher advertising revenue.
The number of royal users visiting NAVER home feed more than 20 days per month increased by over two times YoY, while the proportion of such loyal users rose by five percentage points compared to the beginning of the year. This indicates that inactive users have been converted into active users, leading to the stable growth of the home feed. Also, NAVER's high-quality UGC and advertising content, together with its more advanced recommendation technology, are being effectively exposed in the right placement, thereby strengthening user engagement and lock-in. It is also expected to lead to further monetization opportunities, including advertising revenue growth. With a solid user base and stronger engagement, along with the expanded application of AI Briefing, providing a differentiated search experience, NAVER achieved a 10.5% increase in total platform advertising revenue driven by improved AI-based advertising efficiency.
In Q3, continued optimization of ad placements and services using NAVER's proprietary AI technology enabled more efficient ad exposure within the same inventory, resulting in higher advertising efficiency, steady growth across key metrics, and an expanded advertiser base. NAVER is also seeking ways to further strengthen its response to commercial queries, one of the key competitive areas of its search business, by delivering more satisfying search results for users while capturing additional advertising revenue. To this end, the company plans to expand efforts to identify new advertising services and optimize ad placements across its platforms, including commerce areas such as Plus Store and the entertainment section, which is gradually being transitioned into a feed format. The automated advertising campaign ADVoost has demonstrated proven advertising efficiency, contributing to both performance, advertiser growth, and overall advertising revenue expansion.
ADV oost Shopping, which has successfully established itself, recorded a conversion performance in September that was more than 100 percentage points higher than standard search ads. Supported by this momentum, the number of NAVER performance advertisers increased more than two times YoY. Looking ahead, NAVER is building an environment that will allow Smart Store sellers to more easily experience ADVoost within the seller center by continuing to incorporate advertiser feedback and expand exposure across various placements, including Plus Store. Furthermore, NAVER has integrated advertiser billing accounts to enable advertisers to manage campaigns under a single account and has launched a customized consulting program for advertisers that operate their campaigns directly.
Next year, NAVER plans to introduce a new business agent that will design and execute growth strategies together with advertisers and business partners and evolve it into an integrated solution that analyzes business performance and competitiveness based on NAVER's high-quality data to propose practical solutions. Next, I will discuss the key achievements of the commerce business. In Q3, commerce focused on enhancing personalized experiences to tailor for discovery and exploratory shopping, strengthening delivery competitiveness, and expanding membership benefits. As a result of these efforts, Smart Store GMV grew by 12.3% YoY. NAVER Plus Store is rapidly evolving into a structure optimized for discovery and exploratory shopping through features such as Discovery Tab, AI Shopping Guide, and Content Integration.
By serving as a core channel that enables a brand-experience-driven purchase journey, supported by each brand's unique data and content assets, along with their proprietary promotions and campaigns, the platform has helped brands achieve 40% or higher growth for five consecutive quarters, firmly establishing itself as a key growth driver. NAVER plans to further refine its personalized recommendations and ranking algorithms within search to ensure that brand and semi-product databases unique to NAVER are more effectively surfaced. The company will also significantly expand the application of AI personalization on the NAVER Plus Store home screen from 31% to 80%. These efforts are expected to enhance the discovery and exploration experience by connecting users with popular products and UGC, while maximizing user lock-in and improving both time spent on the platform and purchase conversion rates.
From a monetization perspective, GMV generated through AI recommendations within the Plus Store increased by 48% QoQ, supported by enhanced personalization and surface optimization. On some placements, conversion rates for personalized recommendations were more than 10x higher than those of standard format. Going forward, NAVER plans to further expand the application and coverage of AI recommendations by accurately identifying user intent, thereby driving meaningful growth in both adoption and GMV. Thanks to these efforts, the NAVER Plus Store app has surpassed 10 million downloads within six months of its launch. In-app activity also strengthened, with page views increasing by 19.4% and average session duration rising by 9.7% QoQ, reflecting higher user engagement. Membership has become a core element that not only provides shopping benefits but also connects NAVER's broader ecosystem and encourages users to stay longer on the platform.
Following the partnership with Netflix, NAVER expanded membership benefits in Q3 to include. Microsoft Game Pass, Uber Membership, and free delivery on purchases over KRW 20,000 at Kurly and Mart. As a result, the number of active membership users increased by more than 20% YoY. In particular, the partnership with Microsoft Game Pass resulted in a 23% increase in male users in their teens and 20s compared to before its introduction, broadening NAVER's overall customer base, and in addition, fresh food purchases have also risen significantly, positioning membership as a key driver of commerce growth and a catalyst for greater content engagement across platforms. Following the partnership with Nexon in September, NAVER announced a new partnership with Spotify, a global audio and subscription streaming platform, further expanding its content offerings.
Through this partnership, NAVER plans to integrate Spotify's extensive library, including 100 million songs and more than seven million podcasts across various NAVER services, enabling users to easily discover and enjoy audio content suited to their preferences and moods. NAVER will share more details on this collaboration in the near future. NAVER also continued its efforts to enhance user experience by strengthening delivery competitiveness. With the rebranding of End Delivery and the enhancement of free delivery and free return benefits for members, the purchase frequency of membership users increased by 13% YoY, while the membership purchase ratio rose by 1.3% points YoY. These results show that stronger delivery competitiveness is driving higher purchase activity among loyal customers. Following the partnership with CJ Logistics in July, NAVER introduced an early morning delivery service with Kurly in September, resulting in a significant improvement in overall delivery lead time.
In addition, the implementation of cold chain system has allowed NAVER to expand the share of low-temperature product listings, which were previously restricted, thereby strengthening its product assortment competitiveness. End Delivery GMV continued its strong growth with sellers that adopted End Delivery in the previous quarter, recording over 19% points higher QoQ GMV growth compared to those that had not. This clearly demonstrates that enhanced delivery competitiveness is driving both a stronger user lock-in and increased purchase activity. The C2C segment also delivered meaningful results. Cream and Soda achieved over 15% YoY GMV growth in Q3, driven by strong sales of exclusive brand products and growing demand for trading cards in Japan. In addition, both platforms are maximizing user experience and sales efficiency through content-driven planning and browsing enhancements aligned with evolving trends.
Poshmark is expanding its app entry points through integration with the NAVER search engine, while enhancing user experience by improving auto-complete and search result layouts to deliver more accurate and relevant search experiences. Through the introduction of a new ad format and enhancement of ranking logic, NAVER continued to achieve growth in first-party advertising revenue, while efficient marketing execution led to improvements in both platform profitability and traffic quality, resulting in double-digit growth in GMV and revenue. Regarding WalletPop, whose acquisition was announced last quarter, the transaction process is proceeding as planned, and NAVER will provide a more detailed update on the global C2C business performance following the completion of the acquisition.
In Q3, the core pillars of discovery and exploration-based app experience, brand membership, delivery, and advertising were organically connected, creating strong synergies that reinforced a virtuous cycle from traffic inflow to purchase conversion and monetization, thereby advancing the overall growth of the platform. Going forward, NAVER will continue to leverage those organic synergies across the platform to further strengthen its solid position in the commerce market. Next, I will provide an update on the fintech business. In Q3, NAVER Pay's TPV reached KRW 22.7 trillion, representing a 21.7% YoY increase. Non-captive payments, which accounted for 55% of total TPV, grew 31% YoY to reach KRW 13 trillion, driven by higher payment activity and continued merchant expansion. In addition, through the partnership with Nexon announced at the end of September, including account and payment integration, NAVER is continuing to expand its third-party ecosystem across both online and offline channels.
In the platform business, NAVER completed the acquisition of Securities Plus Unlisted in September. In line with Korea's fintech policy direction, the company aims to evolve into an integrated platform that enhances accessibility and reliability for investors in the OTC market. Next, I will discuss Webtoon's results. In September, Webtoon Entertainment signed a global content partnership with Disney, through which more than 35,000 titles from Marvel, Star Wars, Disney, Pixar, and 20th Century Studios will be introduced for the first time on a new digital platform. The development and operation of this platform will be led by Webtoon Entertainment, and it will feature not only iconic titles from Disney portfolios spanning several decades but also a selection of Webtoon original series.
The new platform represents the result of an unprecedented collaboration that combines Webtoon's product and technological expertise with Disney's unrivaled IP portfolio, allowing users to enjoy Disney's iconic content all in one place. This initiative is expected to broaden Webtoon's reach beyond its existing user base, expand engagement with new global audiences, and serve as an important stepping stone for global growth while also laying the foundation for an even deeper partnership with Disney in the future. Please note that Webtoon Entertainment is scheduled to announce its earnings on November 12, U.S. local time. For more detailed information, please refer to Webtoon's earnings release. Lastly, I will discuss the performance of the enterprise business. The B2B business within enterprise achieved new revenue generation through the monetization of GPU-as-a-service contracts secured in the first half of the year.
For LINEWORKS, a number of paid IDs continue to record double-digit growth YoY despite the high base effect from the same period last year. Services integrated with LINEWORKS, such as AI Node and Roger, are also growing steadily as planned. In October, LINEWORKS launched its service in Taiwan and is now seeking to expand into global markets while leveraging its experience as the leading business chat platform in Japan. Leveraging its full-stack AI capabilities, NAVER is building a stronger track record in Korea by providing AI transformation solutions and industry-specific products tailored to both the public sector and the private sector. The company's global sovereign AI initiatives are also progressing as planned. At the end of October, NAVER signed an MOU with NVIDIA to capture physical AI opportunities which operate in real industrial environments and systems. Also, it secured an additional 60,000 latest GPUs and strengthened its AI capabilities.
NAVER has been building industry-specific references, including the financial and energy sectors, by providing Neural Cloud and customized AI services to clients such as the Bank of Korea and KGMP. In a similar vein, the company is engaging in discussions with multiple partners across the manufacturing industry, including the semiconductor, chip building, and defense, to explore further collaboration opportunities. NAVER also plans to develop specialized AI models tailored to major industries and seek diverse use cases and additional business opportunities within the private cloud market, ensuring that optimized AI technologies can be swiftly adopted across sectors. Following the launch of the new administration, large-scale national policy projects have been promoted to accelerate Korea's AI transformation, including initiatives for independent foundation model development, GPU leasing projects, and the establishment of SPCs for AI data centers, and NAVER is actively participating in key projects under these initiatives.
In Saudi Arabia, NAVER is finalizing the establishment of a joint venture with the Ministry of Housing, aiming to expand into Super App, Digital Twin, Data Center, and Cloud businesses with the goal of commencing operations next year. The company is also pursuing various global collaborations and opportunities, including the development of an AI agent for tourism and a sovereign LLM in Thailand, participation in GPU-as-a-service, and AI data center projects for Europe based in Morocco, and humanoid research collaboration with MIT to secure future robotics platforms. Any plans to share further updates as these initiatives begin to take shape? Going forward, NAVER will continue to strengthen the competitiveness of its core businesses through AI, while also adding new growth drivers, forming long-term expansion and laying the groundwork for global growth. Now, CFO Hee-Cheol Kim will discuss the financial performance.
Good morning. This is CFO Hee-Cheol Kim.
I will now walk you through Q3 financial performance. Revenue in Q3 increased 15.6% YoY to KRW 3.1381 trillion, driven by solid growth across NAVER's core businesses, including advertising, commerce, and fintech. Building on the previous quarter, AI-driven advanced enhancement of advertising efficiency continued, resulting in advertising revenue growth outpacing the market rate. The full quarter impact of the revised commission structure in the commerce business further accelerated overall revenue growth, while seasonal effects from the Chuseok holiday peak period also contributed to the increase. Operating profit increased 8.6% YoY to KRW 570.6 billion, maintaining a solid growth trend despite higher expenses related to mid- to long-term business expansion and competitiveness enhancement supported by accelerated line growth. The operating profit margin reached 18.2%, a slight increase from the previous quarter. Next, I will explain the revenue by business segment.
In Q3, search platform revenue increased 6.3% YoY to KRW 1.0602 trillion. Total NAVER platform advertising revenue, which includes search, display commerce, fintech, and Webtoon ads, grew 10.5% YoY. This reflects the combined impact of ad-based ads and service optimizations, advancements in personalized ad recommendations, and the continued expansion of the advertiser base. In Q4, although the long holidays in October may have some impact due to fewer business days, NAVER will continue to enhance advertising efficiency through AI, expand monetization of non-commercial queries, and broaden ad inventory, thereby strengthening its competitive edge in the advertising market. Commerce revenue increased 35.9% YoY to KRW 985.5 billion. The enhanced discovery and exploration experience within the NAVER Plus Store app, expanded membership benefits, and the revised commission structure all contributed positively, driving balanced YoY growth across all segments.
Commission and sales revenue grew 39.7% YoY as the enhanced discovery and exploration experience within the NAVER Plus Store app led to brand purchase growth, driving an increase in Smart Store GMV. The full quarter impact of the revised commission structure also contributed with Smart Store revenue increasing 102% YoY. Commerce advertising revenue grew 31.2% YoY, driven by advancements in AI-based recommendation ads and the full rollout of ADVoost shopping in Q3. Membership revenue increased 30.5% YoY, supported by a broader user base and higher active user numbers, following the addition of new benefits such as partnerships with Microsoft Game Pass and Uber and free delivery at Kurly and Mart. Fintech revenue increased 12.5% YoY to KRW 433.1 billion. At the end of September, NAVER launched the beta service of the Connect Terminal, which seamlessly links online and offline merchants.
This enables NAVER to provide not only payment services within its ecosystem but also data-driven customer management functions. Going forward, the company will focus on building an integrated online/offline ecosystem and creating new value for both users and merchants. Content revenue increased 10% YoY to KRW 509.3 billion. Within this, Webtoon revenue, based on NAVER's consolidated results in Korean won terms, grew 11.3% YoY. For more details, please refer to Webtoon Entertainment's earnings announcement scheduled for November 12, local time. Snow revenue increased 24.3% YoY, driven by the continued growth in paid subscribers of its camera app integrated with AI content features. Enterprise revenue increased 3.8% YoY to KRW 150 billion. The number of paid LINEWORKS IDs continued to record double-digit growth in Q3, and GPU-as-a-Service contracts secured in the first half have begun generating revenue.
The year-over-year comparison reflects the base effect from one-off revenue related to well-booked deliveries to the Chuncheon Office of Education in the same period last year. Next, I will discuss the detailed cost structure. Development and operations expenses increased 14.2% YoY, mainly due to higher headcounts from new hires, increased stock-based compensation following the rise in share price, and one-time severance payments related to post-market workforce optimization initiatives. Partner expenses increased 17% YoY, while infrastructure costs rose 22.7% YoY, driven by higher depreciation expenses from the acquisition of new assets such as GPUs. Considering model training and inference for AI integration across offices, as well as the expansion of new initiatives including government projects, NAVER expects large-scale infrastructure investments to continue. Marketing expenses increased 20.3% YoY, driven by promotional activities in the commerce, fintech, and Webtoon businesses.
Through the end of the year, NAVER plans to efficiently execute various marketing initiatives aimed at enhancing competitiveness across business units and strengthening the foundation for top-line growth, including content expansion to boost engagement with the NAVER app ecosystem, and promotions for Kurly and Mart launched in September. Next, I will explain NAVER's operating profit by business segment. First, the integrated search platform and commerce segment maintained a stable profit margin of over 30% despite a slight year-over-year decline due to AI integration within services and shopping promotions, while continuing to deliver solid top-line growth. In the fintech business, despite continued growth in payment revenue, profitability declined slightly YoY due to delayed purchase confirmations caused by summer vacation seasonality and expanded promotional activity. In content, operating losses widened due to increased production costs related to Webtoon IP development and higher marketing expenses to strengthen global competitiveness.
In the enterprise business, losses also expanded, driven by increased infrastructure investments for AI model training and inference. Going forward, NAVER plans to continue investing to secure future growth drivers, including investment in global platform development for Webtoon, expanded infrastructure investment in the enterprise business to support project acquisition. In the mid- to long term, however, the company will work to narrow operating losses. Q3 consolidated net income increased 38.6% YoY to KRW 734.7 billion, driven by higher. The overall increase in investment gains of affiliated companies, including higher equity method gains from A Holdings following the consolidation of NineMand into LYC. Operating cash flow remained on a stable growth trend, while Q3 free cash flow decreased by KRW 185.2 billion YoY to KRW 201.9 billion due to increased infrastructure investments.
Going forward, we will continue to make capital expenditures to strengthen the competitiveness of each business unit while maintaining financial soundness through stable operating cash flow driven by top-line growth and disciplined debt management. This concludes the overview of our Q3 financial results. We will now move on to the Q&A session. Before we begin the Q&A session, let me make a brief announcement. Tomorrow, NAVER will unveil its detailed strategic direction at the 25th Intergrid conference through both on-site participation and live online streaming. We invite everyone to join and tune in.
지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 *와 1번을 누르시기 바랍니다. 질문을 취소하시려면 *와 2번을 누르시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다.
We will now begin the Q&A session. To ask a question, please press star and number one on your phone.
To withdraw your question, please press star and number two. In consideration of all participants, we kindly request that you limit your questions to two per person.
처음으로 질문해 주실 분은 JP Morgan의 Stanley Yang입니다.
The first question will be provided by Stanley Yang from JP Morgan. Please go ahead with your question.
네, 안녕하세요. 질문 기회 감사합니다. 두 가지 질문 드리겠습니다. 첫 번째 질문은 GPU CapEx에 대한 질문인데요. 이제 올해 GPU CapEx가 많이 증가하는 걸로 저희가 알고 있는데. 올해 또는 올해 및 내년에. GPU의 CapEx가 어느 정도 되고 전체 또 CapEx가 어느 정도 이렇게 되는지 궁금하고요. 그다음에 이제 NVIDIA 협업 관련돼서 6만 장에 대한 투자가 이제 있을 텐데 그것도 이제 포함이 되는지 궁금합니다. 그리고 이제 이 GPU가 아무래도 많이 이제 쓰이면 감가상각비가 증가해서 마진 프레셔가 있을 텐데요. 그에 대한 매니지먼트에 어떤 생각을 공유해 주시면 감사하겠습니다. 두 번째 질문은 그 앞서에서도 말씀을 해 주셨는데요.
그 AI 전략, Vertical AI 전략을 지금 계속 다양하게 펼치고 계신데. 광고 쇼핑 이런 주요 B2C 영역에서 Vertical AI 적용이 이제 어느 정도 지금 이루어지고 있는지, 그다음에 이제 매출 기여 효과가 아직 초기라고 판단되는데 어느 정도 지금 현재 수준이고 향후 얼마만큼 이게 증가할 거라고 기대하고 계신지에 대해서 말씀해 주시면 감사하겠습니다. 이상입니다.
I have two questions. Number one is related mostly to CapEx. So I understand that GPU CapEx will be increasing this year, and so I'm curious about any guidance on GPU CapEx for this year and next year, and also a guidance on the total CapEx that you forecast. And also I'm curious whether the 60,000 GPUs in the partnership with NVIDIA is included in this GPU CapEx. And along these lines also, I'm curious about management's thoughts on the potential pressure on net margin that the increased depreciation expenses can bring about.
My number two question is largely about the vertical AIs. I'm sure that you are engaging in a myriad of different strategies in terms of your AI verticals, especially on the B2C side in ads and shopping. I'm curious about how the extent to which AI is integrated into your services, and also along that line, the revenue contribution. I know it's early days right now, but what do you expect for this year and in the future?
네, 그 첫 번째 질문 답변 드리면요. 저희가 그 AI Briefing이나 뭐 ADVoost 등과 같은 저희 AI를 그 서비스나 수익화에 활용하는 그 온서비스의 전략이 굉장히 유의미한 성과가 나타나고 있습니다. 그래서 이러한 그 저희의 서비스의 경쟁력 제고를 위해서 이런 과정에서 AI에 대한 확대, 그다음에 인프라 관련 CapEx 투자가 확대될 수 있다는 점을 시장에 이미 저희가 커뮤니케이션한 바 있습니다.
And I would answer your first question.
Our AI integration efforts have resulted in very fruitful and meaningful outcomes in terms of boosting our revenue and monetization strategies with our AI Briefing and also ADVoost amongst other commitments and efforts. We have also communicated to investors and markets our commitment to keep on investing in the infrastructure and therefore CapEx in terms of increasing the competitiveness of our services.
제가 아주 정확한 수치를 좀 오픈하기는 좀 어렵겠으나 저희가 올해 이미 GPU를 포함한 전체 인프라 투자가 약 1조 단위로 이미 이제 예상이 되고 있고요. 26년 이후로는 저희가 이런 피지컬 AI 공략 등 뭐 어떤 신규 사업 확대를 감안했을 때 GPU에만 1조 이상의 투자가 필요할 것으로 예상을 하고 있습니다.
And although I can't speak to the exact figures right now, as of this year, we expect our GPU CapEx to, including GPU CapEx, our entire CapEx to stand around the KRW 1 trillion range. And from 2026 and onwards, considering our new business expansion strategies and plans, we expect about KRW 1 trillion in CapEx to go into GPU investments alone.
다만 이런 그 GPU의 투자에는 저희가 미래를 위한 그런 선제적인 투자 외에도 저희가 공공기관이나 민간 기업을 상대로 한 GPU 애저 서비스 등 저희가 수익과 직접 연동되는 투자도 상당 부분 있을 것으로 예상되기 때문에 이를 종합적으로 좀 저희가 감안해서 재무적인 여력이 허용되는 선에서는 적극적인 투자 기조를 이어갈 예정이고요. 뭐 엔비디아하고 얘기했던 그런 6만 장에 대한 활용 역시 뭐 이 범주 내에서 저희가 고려할 예정입니다.
And in terms of our GPU investments, although it is of course a proactive move on our part, this also includes our endeavors into increasing profitability as well as it includes GPU as a service provided to the government, also public sectors as well.
So with the purview that we have, we will continue to actively invest in GPU and with our CapEx, and also this figure will include the 60,000 NVIDIA GPUs that you mentioned.
네, 두 번째 질문에 대해서는 제가 답변 드리겠습니다. 저희가 올해 AI Briefing을 초기에 도입할 때 연내에 한 10% 수준의 그 커버리지를 예상했다가 저희가 적용을 하면서 발견하게 된 것은 이것이 저희 충성 사용자의 증대와 그리고 오히려 기존 검색 비즈니스를 더 강화하는 측면으로 작용한다는 것을 더 발견하게 되면서 오히려 그 커버리지를 20% 수준으로 확대하고 있고 그 속도도 더욱 높이고 있습니다.
And to address your second question, when we first released the AI Briefing service earlier this year, our initial goal for coverage was in the 10% range within the year closing out.
However, as the business has progressed, we've come to realize that this has actually been very effective in boosting not only our loyal user base but also our existing search business as well, and therefore we'll be accelerating our efforts to bring this figure up to the 20% range.
네, 저희를 뭐 글로벌 플랫폼과 좀 비교해 보시면 잘 아시겠지만 저희는 우선은 사용자에 대해서 굉장히 입체적인 이해도를 가지고 있고 또한 내부 생태계 내에 검색 외에도 쇼핑이나 결제, 예약 등 다양한 버티컬 서비스를 가지고 있기 때문에 굉장히 유기적으로 에이전트가 작용할 수 있는 그런 환경도 갖추고 있다고 생각하고 있습니다.
And you'll know if you compare with our global platform competitors that we at NAVER have an all-around and comprehensive understanding of our users, which we will lean into in terms of providing numerous vertical services including payment services, reservations, shopping, so on and so forth, which will make sure that we can be a lot more flexible in terms of the AI agent services that we provide.
구체적인 시기나 피처는 내일 있을 단에서 이제 공개할 예정인데요. 우선 저희가 생각하고 있는 것은 내년 봄에 쇼핑 AI 에이전트 출시를 시작으로 해서 이제 검색의 전면적인 생성형 검색 경험을 주는 AI 탭, 그리고 네이버의 여러 가지 서비스, 그리고 외부 생태계와도 연결하는 통합 에이전트까지 순차적으로 선보일 계획이 있습니다.
You'll be able to hear more announcements about the exact timing and features at tomorrow's Dan event.
However, by spring of next year, we plan on rolling out our AI shopping agent as well as the AI tab and integrated AI services that will be providing a lot more integrated approach to what we provide in terms of our services.
이러한 저희 통합 에이전트와 또 서비스 적용에 전면적으로 적용하는 이런 온서비스 전략이 이미 저희가 가지고 있는 검색 광고라든지 커머스, 그리고 로컬과 관련된 매출 향상에도 오히려 적극적인 도움을 주고 있다는 것을 저희가 발견하고 있는 단계이기 때문에 말씀 주신 대로 매출은 아직 초기 단계라고 생각하고 있고 이는 저희의 수익화에도 매우 긍정적으로 작용할 것으로 예상합니다.
The integrated AI agent is part of our on-the-service strategies, and we've begun to come to the realization that this has a significant boost in our revenue with search ads, commerce, and also the local business side as well.
And so, as you've mentioned, it is still early days in terms of revenue contribution, but we expect strong contributions to monetization and revenue moving forward.
다음 질문 받겠습니다.
다음으로 질문해 주실 분은 HSBC의 김준현 님입니다.
The following question will be presented by Junhyun Kim from HSBC. Please go ahead with your question.
네, 질문 기회 감사드립니다. 저 두 가지 질문이 있는데요. 첫 번째는. 그 엔터프라이즈 관련해서 지금까지는 뭐 웍스나 메일북 같은 특정 이벤트마다 좀 변동성이 있었는데 저희가 이제 GPU 애저 서비스 사업 확장이나 그다음 최근에 디지털 트윈, 뭐 AI 등 상업화 부서도 좀 셋업하신 걸로 보이는데 좀 더 중장기적인 관점에서는 매출 성장이 좀 우상향할 수 있는 그런. 아웃룩이 가능할지가 좀 궁금합니다. 최근에 뭐 피지컬 AI나 뭐 로봇 쪽으로 강조되는 걸로 보이는데 저희가 생각하는 좀 모니타이제이션 포텐셜이 좀 어떤 부분에 있을지 저희의 전략을 설명해 주시면 감사하겠습니다. 그리고 두 번째로는 비용 쪽인데.
커머스 마케팅 비용, 좀 집행 지속 기간과 그다음에 아까 앞선 질문도 있었지만 GPU 인프라 구축을 하게 됐을 때 저희 매출 잠재력까지 고려를 했을 때 좀 마진이 플러스로 가능한 시기는 언제로 보고 계신지 뭐 아무래도 초기 매출은 좀 낮을 것 같은데 이 부분에 대해서 코멘트해 주시면 감사하겠습니다.
So I have two questions for you. Number one is about the enterprise side. I know that there has been some variability until now with Works and so on and so forth. However, it seems that you are really doubling down on your commercialization efforts with the commercial divisions for GPU-as-a-Service, AI, and also digital twins on the move. So I'm curious about how you expect revenue to pan out moving forward. It seems that physical AI and robots are one of your focus areas. What will be some of the major key monetization pillars moving forward?
And number two, speaking to the commerce marketing expense, when can we expect these expenses to start going down? Until when do you think we will expect these expenses to be executed? And also on the GPU side, we talked about the GPU CapEx investments that will be going into infrastructure. When do you think that the GPU business will begin to turn a plus margin?
네, 첫 번째 질문에 대해서 답변 드리겠습니다. 먼저 좀 더 디지털 트윈이나 로봇과 관련한 저희 R&D 부분에 대해서 설명드리고 싶은데요. 잘 아시겠지만 저희는 이제 피지컬 AI라는 개념이 사실 나오기 전인 한 2017년부터 네이버 랩스를 설립해서 이런 피지컬 AI를 위한 기술을 선행 연구를 해왔습니다.
So I'll answer your first question first and speak a little bit more about the color on the R&D that we have for digital twins and robots.
You'll know that in 2017, which was quite a while before the terminology or concept of physical AI really began to come to the fore, we established NAVER Labs to that end.
당연히 저희의 핵심 경쟁력은 하드웨어 경쟁력보다는 소프트웨어 경쟁력이라고 저희는 판단을 해서 저희의 핵심 역량인 먼저 아크하고 얼라이크라는 소프트웨어를 개발하는 데 집중을 해왔는데요. 아크는 그 로봇들을 저희 뭐 다양한 제조사의 로봇들을 좀 통합 관리할 수 있는 표준화된 OS 플랫폼이고. 로봇계에서는 뭐 윈도우나 안드로이드의 역할을 할 수 있는 것을 지향을 하고 있습니다. 또한 얼라이크는 초정밀 3D 디지털 트윈 기술로 GPS가 이제 닿지 않는 그런 실내에서도 로봇이 정확한 위치를 인식할 수 있게 하는 소프트웨어라고 볼 수 있습니다.
And our core competitive, of course, we assess lies in not hardware but on the software side. So our focus has really been on developing our softwares, ARC and Alike.
ARC will be providing management services in an integrated and comprehensive manner that can bring together robots that are from various different manufacturers playing a role like Windows or Android of sorts. And Alike will be able to provide accurate location services.
이런 선택과 집중을 해온 결과 저희의 해당 기술들은 지금 글로벌 최고 수준으로 자부를 하고 있고 이미 특히 저희가 본사 건물인 1784를 설립한 3, 4년 전에 실제 환경에서 테스트 베드로 활용하면서 로봇이 디지털 트윈을 기반으로 자율 이동하고 또 이를 네이버 클라우드에서 실시간 제어되는 환경을 구축하면서 이제 레퍼런스를 글로벌 레퍼런스를 확보하는 단계에 이르고 있습니다.
And we have continued to make endeavors to make sure that if you look at our technology through our efforts in R&D, our technology competitiveness and capabilities, competencies are truly global number one and at the top.
Three or four years ago when we began the test bed at the 1784 headquarters of NAVER, we were able to make sure that we can go ahead with more speed and also make sure that we can use and accelerate, compile more global references with those efforts.
해당 시장이 굉장히 초기이기 때문에 사실 뭐 시장 규모를 말씀드리기에는 매우 좀 조심스러운 단계인 것 같지만 저희는 전 세계 로보틱스 시장의 약 한 30% 이상을 차지하지 않을까 조심스럽게 예측을 하고 있고 앞으로 이 기술을 통해서 그 좀 더 새로운 신성장 동력을 확보할 수 있을 것으로 기대합니다.
Although it is still early days to really speak to the entire global market size that we can forecast, as per our expectations, we expect that our market share in terms of global robots will stand at about at least 30% in the international arena, and we are making sure that this can serve as our next growth driver moving forward.
네, 그리고 저희가 이런 핵심 기술들을 이미 내재화하고 있다는 점과 또 클라우드 서비스를 통해서 그 풀스택 AI 기반을 가지고 있다는 점이 특히 한국의 그 여러 제조업들에게 이제 맞춤형 그 프라이빗 클라우드 시장을 좀 여는 데 작용을 할 수 있다고 생각을 하고 있고요. 이 부분 역시 아주 초기 단계이지만 포텐셜이 큰 영역이라고 판단합니다.
And we are continuously working to make sure that we can create these technologies in-house and internalize these core competencies in terms of the technology that we have, and especially given that we are a full-stack AI service provider based on our cloud competencies, we are working to make sure that the potential that we see in opening up new markets in Korea for tailored and customized cloud to manufacturers can really serve as a growth driver moving forward, and we will continue to focus our efforts in this area.
현재 한국 은행이나 뭐 한국 수력 원자력 발전소 그 외에도 다양한 한국의 제조 기업들과 함께 이런 맞춤형 그 프라이빗 클라우드 도입에 대해서 실질적인 단계에서 협의를 진행을 하고 있고 이런 것들이 좀 구체화되면은 또 공유드릴 수 있도록 하겠습니다.
With the Bank of Korea and also Korea Hydro & Nuclear Power (KHNP), we are continuously in negotiations about these types of customized private cloud services that we can provide, and we will be coming to you with more details and color once we can provide them to you.
두 번째 질문 같은 경우에 그 커머스 같은 경우는 저희가 이제 아시다시피 수수료율 인상을 했었고요. 그런 상황에서 커머스 자체의 그 수익성이 굉장히 좀 증가를 했습니다. 그래서 이에 따른 투자 여력이 생겼기 때문에 뭐 이를 적극적으로 좀 활용할 그 재원은 있는 상황입니다.
Speaking to your second question on commerce, you'll know that we've revamped our commission structure, and we are planning on fully leaning into the changes that we have made.
다만 뭐 저희가 단순히 이런 마케팅을 그 거래액만을 높이기 위한 일회성에 이제 그치는 것이 아니고 궁극적으로 네이버 커머스에 대한 뭐 고객 엔게이지먼트나 로열티를 강화하는 목적에 충실할 수 있는 그런 성과 연동한 마케팅 플랜이 집행될 수 있도록 뭐 경쟁 관점에서 계속 생기면서 집행해 나갈 예정입니다.
However, our focus on marketing in this arena is not just as a one-off initiative in order to boost GMV. It will be an all-around comprehensive strategy that focuses on increasing loyalty as well as other aspects, and management will continue to focus on this aspect.
GPU 같은 경우는 앞서 이제 인프라 CapEx 말씀드릴 때랑 뭐 비슷한 얘기일 것 같은데요. 저희가 뭐 공격적인 플랜을 예정을 하고 있지만 뭐 저희의 매출 뭐 광고 중심으로 매출에 대한 상승도 이어지고 있기 때문에 이런 매출 상승의 재원을 감안해서 이런 투자에 대한 규모를 좀 결정을 하고 있습니다.
And we did touch upon this topic when we were talking about GPU CapEx guidances, but we will continue to make sure that our investments are very active and aggressive on the GPU side, and this will also lead into revenue contributions and growth as well. So we will be taking into consideration the growth and revenue as well as we decide upon our investment plans in GPU.
아무래도 이제 인프라 투자라고 하는 게 뭐 단 뭐 직접 매출하고 연관되는 그런 부분도 일부 있겠지만 상당 부분은 또 미래를 위한 투자일 수밖에 없기 때문에 일시적인 어떤 손익에 대한 영향은 있을 수 있음을 감안하고는 있겠습니다만 뭐 장기적 긍정적으로는 플러스 잠재력이 충분하다고 보고 있습니다.
And as is with all infrastructure investments, the direct revenue contribution in the early stages especially is quite minimal. So this really is in the term of a long-term view with a long-term lens.
And so maybe in the temporary time there might be a slight dip in revenue because of this. However, in the mid to long term, we are more than certain that this will be able to turn a plus.
네, 그 다음 질문 넘어가기 전에 하나 그 clarify 좀 하면요. 그 robotics 시장. 에서 저희 market share 39% 얘기가. 영어로 잘못 통역된 것 같은데요. 그거는 NAVER가 지향하는 로봇 OS 및 제어 플랫폼 시장이 전 세계 robotics 시장의 약 39% 정도 차지할 거라는 얘기였습니다.
Sorry, just a revision about one of the interpretations that was provided. The market share of 39% when speaking about NAVER's robot initiatives wasn't NAVER's market share. It is the OS control platform market within the robot market that is expected to account for about 39% of the global market moving forward.
다음 질문 받겠습니다.
다음으로 질문해 주실 분은 Goldman Sachs의 Eric Cha 님입니다.
The following question will be presented by Eric Cha from Goldman Sachs. Please go ahead with your question.
네, 질문 기회 감사합니다. 두 가지 질문이 있는데요. 그 AI Briefing에 대해서 어 여쭙고 싶은데, 그 물론 지금은 뭐 monetization을 적극적으로 아직은 시작은 안 한 걸로 알고 있지만, 어 그래도 뭐 이거를 출시하고 나서 이제 user behavior가 어떤 변화가 있었는지, 그리고 또 조금 더 detailed 성과나 지표에 대해서 좀 알려주셨으면 좋겠습니다. 어 그리고 두 번째는 commerce 관련인데요. 그 올해는 아무래도 테이크 웨이 씨 올라가면서 이제 매출 성장률이 상당히 이제 높게 나오고 있는데, 어 내년에도 저희가 그 테이크 웨이 씨 뭐 의미 있게 조금 올라갈 수 있는 여지가 있는 건지에 대해서 좀 궁금하고, 또 어 최근에 그 컬리 파트너십에 의한 뭔가 변화나 뭐 임팩트가 있었는지 그것도 설명 좀 부탁드리겠습니다. 감사합니다.
So I have two questions for you. Number one is about AI Briefing.
I know that you aren't into really pushing full monetization strategies yet with AI Briefing, but I'm curious about the. User behavior or pattern changes that you've seen after the release, and also any updates on the performance or results in a more detailed manner would be very much appreciated. And question number two is about the commerce side. I know that the uptake and take rate has really pushed up revenue this year. What do you expect for take rate next year and moving forward? Will there be some meaningful growth in take rate continuing on moving forward? And also, if you can provide us a little bit more update about any recent changes or any results regarding the Kurly partnership.
네, 저희가 AI 브리핑을 도입하면서 가장 기대했었던 것은 사실 수익화보다는 저희가 그동안 약점으로 상대적인 약점으로 지적받았던 정보성 쿼리에 대해서 품질 높은 답변을 제공할 수 있다는 점이었는데요.
First of all, to answer your question about AI Briefing, when we launched AI Briefing service, it really wasn't geared towards the monetization side. It was more towards really ramping up our weaker side comparatively compared to our competitors that was pointed out in terms of the information seeking queries in order to increase the quality.
따라서 초기에는 저희가 흔히 말하는 이제 정보성 지식 쿼리와 또 굉장히 긴 15글자 이상의 롱테일 쿼리를 중심으로 커버리지를 제공을 했었고, 그때 저희가 발견했던 성과는 이용자들이 그 검색 결과에 굉장히 만족하면서 최상단의 체류 시간이 안정적으로 유지되고, 또한 롱테일의 UGC가 이제 YoY 한 70% 성장하는 효과를 발견을 했습니다.
And in the initial stages, we were able to find that with the coverage on information seeking queries as well as long-tail queries, which comprise 15 words or more, that the user satisfaction was very high, and we found that the time spent was going up as well as YoY increase in UGC.
네, 검색 사업자 입장에서는 이용자들이 검색 결과에 만족하면서도 새로운 연관 검색어를 얼마나 계속해서 탐색하는 그런 경험을 주는지 저희가 어 매우 세심하게 보고 있는데, 특히 이제 그 AI 브리핑 하단에 저희가 그 제시하고 있는 연관 질문의 재검색 그 수도 어. 그 구체적으로 뭐 출시 초기 시점 대비하면 한 5배 이상 확대되는 등 이용자들이 이제 탐색을 하면서 또 다양한 콘텐츠를 계속해서 소비하는 그런 선순환 구조를 만들어내고 있다고 생각합니다.
And the search result satisfaction is, of course, important, but also tying that in with the relevant information or relevant questions is extremely important, something that we continue to monitor.
And if you compare the relevant questions that people click on at the bottom of the AI Briefing service, compared to the initial launch days, it has expanded to about 5-fold. So that is one of the changes that we have seen, and the fact that it's creating a virtuous cycle where it really is encouraging users to use the search results, but also explore upon their search results and to build upon that, and also to consume content as well.
그리고 또 하나, 지금 3분기에 아까 세션에서 제가 좀 잠깐 언급하긴 했지만, 또 이제 점차 저희가 커버리지를 넓히면서 이제 저희의 이제 핵심 사업과 연관되어 있는 비즈니스성 쿼리에서도 AI Briefing을 적용을 하면서 이 부분이 저희의 수익과 어떻게 연결되는지도 세심하게 관찰을 하고 있는데요. 가장 긍정적인 것은 이런 것들이 또 저희의 사업자들의 성과로도 이어진다는 점입니다.
With the increase in query coverage, I also mentioned about how we will be integrating more and more AI into the business queries as well, the commercial queries, and we're continuing to monitor very closely how this impacts our monetization strategies and also how this will impact the merchants and businesses as well.
예를 들면 그 식당이나 맛집 같은 것을 노출하는 저희의 NAVER Place 정보에 지금 AI Briefing이 적용되고 있는데, 도입 전후에 이제 CTR이 한 2.3배 증가하고, 또한 그런 방문 전환율, 즉 뭐 예약의 주문 건수가 15% 정도 증가하는 등 저희 NAVER Place 성과에도 긍정적인 영향이 확인되어서 더욱 적극적으로 이 부분을 확장해도 되겠다는 발견을 저희는 했다고 생각하고, 이것들이 저희 내년에 이어질 AI Tab이라든지 다양한 그 AI Agent 도입에 긍정적인 영향을 줄 것이라 생각합니다.
At NAVER Place, which comprises restaurants and other places to go out and eat, we've integrated AI services, and as a result, we've seen our CTR go up 2.3-fold and conversion rates increase 15%. These are some of the positives that we've seen throughout the release that has made us really have a much more stronger confidence in expanding these services moving forward, and these will be really panning out in our AI agent services that we will be rolling out, such as AI Tab and so on and so forth next year.
네, 다음으로 쇼핑 질문에 대해서 답변드리면, 올해 저희의 쇼핑 매출에 사실 유의미한 증가는 잘 아시는 대로 그 Plus Store 앱 출시 이후에 쇼핑 거래액의 유의미한 성장에 따른 매출 확대와 어떤 쇼핑 수수료 개편에 따른 확대가 있을 수 있을 것 같습니다.
In terms of the shopping side, as you will know, the big boost to our revenue in terms of the shopping side has really been twofold. Number one is the increased shopping revenue that came after the release of Plus Store and also the increase after we've integrated our services with AI.
거래액 측면에서 보면은 그 브랜드 스토어, 특히 이제 브랜드들의 매출 확대가 있었고, 또한 이제 엠베송을 통한 거래액 견인이 있었는데요. 이 부분들은 사실 저희의 그 쇼핑 수수료 외에도 다양한 버티컬 수수료로 테이크 레이스를 의미 있게 상승시키는 그 레버로 작용을 하고 있기 때문에 저희의 그 쇼핑 수수료 인상이 그 기저 효과가 반영되는 이후에도 저희의 테이크 레이스의 상승에 긍정적인 기여를 할 것으로 생각합니다.
With the change in our commission structure as well, that has been a big boost to our revenue.
We can look on the GMV side where it's been a big boost for brand stores on shopping as well as end delivery. And we will be leaning to these AI verticals and looking at the commission structure revamp. We are very certain that this will be a boost in terms of increasing take rate moving forward as well.
저희가 이제 플러스 스토어 출시 이후에 다양한 버티컬 쇼핑 지면들과 함께 그런 상품들을 그. 저희 브랜드 막 그 제조사들과 이야기를 하고 있고, 이 부분들은 또 다양한 상품들이기 때문에 그 부분도 의미 있게 기여할 것이라고 생각을 하고 있습니다.
And since the launch of the NAVER Plus Store app, we've been in talks with manufacturers about the ad inventory and placements for stores that we have, and this will also be a meaningful contribution to revenue monetization as well.
네, 다음으로 컬리에 대해서는 저희가 그 저희의 뭐 쇼핑 전략은 핵심을 말씀드리면 저희가 잘 하는 AI. 기술과 또 다양한 쇼핑 DB의 그 커버리지를 활용한 개인화 추천에 더욱더 집중하는 한편, 또 약점으로 지적받았던 그런 물류에 대해서도 강화하는 그런 부분들이 있었는데요. 특히 컬리 파트너십이 이 부분에 핵심 경쟁력으로 작용할 것으로 생각을 하고 있습니다.
And next, speaking to the Kurly side, our shopping strategy has really been in leveraging the lead and edge we have in AI technology and also the shopping product listings that we have in order to provide more personalized recommendations, boosting this side as well as making sure that we make improvements onto the logistics side, which has been pointed out as one of our weaknesses. And in this area, Kurly will be able to provide more comprehensive.
네, 아직 오픈한 지 얼마 지나지 않아서 그 규모를 지금 의미 있게 말씀드리기는 어렵지만 저희가.
목표했던 수준으로 지속적으로 잘 증가하고 있다고 생각을 하고 있습니다.
It is their early days, so we can't talk to the exact figures. However, it is on par, progressing well as we have initially planned.
네, 다음 질문자 한 명 받겠습니다. 시간 관계상 다음 질문자는 질문 하나만 해주시면 감사하겠습니다.
마지막으로 질문해 주실 분은 Bernstein의 강민주 님입니다.
The last question will be presented by Min-Joo Kang from Bernstein. Please go ahead with your question.
안녕하세요. 앞서 다른 분들이 질문 주셨는데, 추가로 커머스 매출 및 마케팅비 관련 질문입니다. 커머스 부문의 매출 성장세가 고무적인데요. 마케팅비 전년 동기 증가분에서 커머스 부문에 어느 정도. 추가로 집행되는지 알려 주시면 감사하겠습니다.
My question is related to the commerce side, especially the marketing expense. I'm curious about the incremental increase on commerce that accounts for the YoY increase in marketing expense.
네, 저희가 전년 작년 대비 마케팅비 한 KRW 85 billion 정도 증가 올해 3분기에 했고요.
그중에서 한 절반 정도가 커머스에 할당이 되었습니다.
On a YoY basis as of Q3, our marketing expense has increased KRW 85 billion, and about half of that is commerce.
커머스에 할당된 부분 중에 그중에 또 절반은 저희가 기본적으로 수수료가 증가하고 거래액이 늘면서 거래액이 늘면서 그에 발생하는 적립금이 증가된 부분에 따른 마케팅비 증가고요. 나머지의 절반이 저희가 어떤 전략적인 프로모션을 위한 마케팅비 집행분이었습니다.
And from that commerce marketing expense, which is half of KRW 85 billion, half of that again is from the increase in the provisions that came from the increase in GMV as on the backdrop of the increase in commissions as per the structure revamp. And another half will go to the strategic promotions that will be provided.