Amazon.com (AMZN) 3 Feb 212020 Q4 Earnings call transcript

Thank you for standing by. Good day, everyone and welcome to the Amazon.com Q4 2020 Financial Results Teleconference. At this time, all participants are in a listen-only mode. After the presentation, we will conduct a question-and-answer session. Today’s call is being recorded.

will Relations, the Dave I Director over remarks, Investor of Fildes. opening be call turning to For Please go ahead.

Hello and call. financial results welcome to our QX XXXX conference

Olsavsky, today CFO. us to your is Joining answer Brian questions our

against today’s conference release all Please results results note the XXXX. press of our as As you as front will in listen call, encourage this and have in our you includes which comparable stated, quarter. metrics the unless comparisons period we call you, well otherwise our to financial be for on to commentary of

and Our Actual views only results February to and comments of XXXX materially. differ responses management’s your questions X, statements. may as reflect will forward-looking include today,

and factors impact filings. SEC, could potentially the about Annual is including our our information most included on that subsequent filings press and our Form XX-K recent with results Additional release Report financial in today’s

the accompanying is non-GAAP you release, During additional these and measures, our may our comparable this call, disclosures measures GAAP of will we including with with press each certain non-GAAP In IR measures. these this regarding website, webcast on measures. our SEC, financial of slides find discuss reconciliations filings posted which

the today to-date have that trends what we and believe Our we incorporates to guidance assumptions. order appropriate be seen

internet, spending, various on and economic not continuing to events, including any factors, governments, with factors dependent and the recurrence, including materially discussed exchange and individuals customer and numerous growth many the economic actions in factors highly the the that results reflects response foreign COVID-XX are Our the able or guidance measures; scope global effects in rate businesses inherently of unpredictable our commerce of operations, pandemic fluctuations also employee and workforce filings world and are impact third-party on we be estimates those areas; safety productivity; duration SEC. pandemic our regarding the suppliers, the including the as ability of services filings impact is global of of the may and the This by maybe our sellers, online as creditors and economies staffing taken cloud detailed and continue significant conditions to-date predict on the in and affected all in in and and uncertain. control, SEC to and activity, spending by our affected rates, well with in and pandemic; consumer our of to and on changes demand the pandemic, spending operations on patterns our including regional the which

among not acquisitions, Our differ and services other to don’t guidance. materially call I our conclude guidance legal also the assumes, and any actual over to things, possible settlements. or restructurings results It’s for demand our business predict now, from will that And our accurately turn we could goods therefore investments, additional Brian.

proceed joining news, some realize results to I press for about can may today. to announced but like that you you comments us Thank begin our in your and then which questions we release, would questions. with QX today on we I have the

like by pandemic. this risen world employees X.X the I’d the First, to Amazon nearly of the during customers to thanking million start around serving who challenge have

jobs at are take more people that to XXXX. We XXX,XXX proud chose than new in Amazon

U.S., as $XX logistics upskilling shopping our of benefits We health hour an We particularly and the the our Whole and Foods fulfillment pay our in customers parental remain all and stores. with stores as partners, well Market and operations insurance, employees jobs, in on safety are delivery other to providing leading including XXX(k) committed opportunities. great matching, employees focused starting the in and

approximately operating during the pay holidays. including $X include in costs, Our employee COVID-related QX results billion additional

for PPE more enhanced COVID-related new employees year headwinds our This to to continue of cleaning for brings productivity $XX.X costs our physical for separation from total We investments of in and and than training billion. the employees QX see course facilities. and spend

available hard than incremental and employees tested ramp general worked already are teams public. testing we the in globally of Our XXXX two to being to XXX built testing labs. capabilities are up now COVID-XX More hundreds COVID-XX every those sites to and in-house hour have that

are the We Market the vaccine centers AWS at earliest working essential Whole encouraging appropriate COVID-XX centers, to employees Amazon time. Food the at and country across data receive fulfillment stores

levels in state frontline Florida clinics who We are more community and also enabling employees and of in pop with pandemic, providing federal at on including vaccinations are the essential the Washington working those to throughout State way. the the up and support services the

on comments QX some results. Now

in fourth our footprint any presented new additional always compares employees QX year QX XXX,XXX while XXXX. customer nearly welcomed part-time our far to as of full teams in operations’ QX. holiday This We growing and more XX,XXX alone. has meet This the new welcoming season been challenges time strong of year. demand, work quarter than Our our simultaneously prior employees with we for busiest and

of growing typical square to QX, out new in $XXX also add be year pulled network, to it mostly in are end buildings about year fulfill came order turns and our in by in ready guidance all we billion Revenue fulfillment when continue line our We for strong that of range the demand this XXXX. teams unlike the quarter buildings to to our billion. $XXX And place the year-over-year footage XX% capacity significant logistics as them customer $XXX.X of in for QX QX. a versus in was demand with needed in billion on the and number a out stops customer

season demand remember You then versus October We Day kicked usual in for timing holiday holiday QX. QX. that customers in its early strong off the with saw seasonal we will Prime through

to demand pandemic, member We home, growth by Our members saw engagement. early the the are as staples largely trends QX of strong across household the and of our Prime including usage podcasts of other products. categories, continue Prime’s Prime to home shop members of than QX, members we product before Video greater in Video, Prime including benefits Prime people launched seen channels. results staying hours listened across sales and began. led have continuation more frequency also also Prime podcast months Music Amazon expand of millions the reflect month. particularly each to digital with and their and categories since pandemic at September in for continue major Prime

another we continuation saw We’re new In our demand strong the reaching had offerings. reflects We more in customers largely quarter that grocery from sign-ups. with of QX. trends growth QX, member Prime strong

the volumes saw in and which days, Black significant capacity. not quarter. Prime volume good additional throughout include Friday As within the and the the We Day, Monday, had performance helped fulfillment higher-than-expected the operational good strong to season, with growth, transportation throughout network in holiday we our demand centers order remainder but strong peak of leverage achieve only sales our also quarter, even added profits. remained Cyber We as sales

also ever growing QX. stepped sellers small Third-party in in XXXX serve businesses for and up over The season as our selling the to before best customers. XX% our medium-sized holiday was sales worldwide year-over-year with never store,

ago. units sell XX XX% ever had businesses highest during represented we’ve unit on Third-party we to total the years units since invited the mix quarter, more of paid Amazon XP than

more. over the and AWS new This compute, our during Ninth free. more to time event. headlined event database, rapid We Lastly, machine virtual had registered a and features first innovate AWS’ the the storage, XXX,XXX and Conference. than Annual learning history were at was in three-weeks-long at clip, re:Invent across efforts XXX attendees by that announcing continues is services our re:Invent

new You and more name a momentum commitments Chase, also can read about Thomson migrations team customer in JPMorgan from earnings our few. and Reuters, just ViacomCBS with release. this The Twitter, announced significant to

and AWS AWS. we continuation today, revenue Jassy millions Officer this year become move Executive is of will revenue customers. now deliver Andy active announced their the growth. business, to strong We third excited AWS in leader, in usage role Founder $XX for remain all added any Bezos a visionary time. plans special Chair will and that us innovative have quarter-over-quarter QX, quarter CEO, transition Executive run-rate partners what billion a know up unprecedented we him employees extremely and this, that stepped and its supporting that Amazon our as of Those a continue meaningfully on quarter demand responsibility. Jeff grateful. understands makes to Chief And they a customer operator, to saw in he just year, and who In annualized companies are across see take to the see and AWS on Andy sellers, And growing year-over-year at more to and great is this company. He such of to history and Amazon greater of

company us the day Jeff We With retain invention a are He on excited XX culture and over that founded guided created customer. that, our and that every important we at for to has Q&A. by will years. move innovation and very he a let’s that common the bound drives obsession on focus remain has role of and also

Thank Thank you. Instructions] you. [Operator

coming your with Terry Please from is question question. first Heath Sachs. Our with Goldman proceed

Great. Thanks.

material into acceleration housekeeping any? specific acceleration? just mind then sort drove if pandemic help the where backlog dig aside, And has obviously, international regions, been that just you a business you and question, to that wanted any Just wondering in there business, on the could through what to drivers we the a that, math of change the the more of bit AWS of the us pieces of stands incredible of breakdown the level deeper drove that initiatives bit in going saw specific would extent

international Sure. on segment Thank Heath. I you, start would results.

growth less growth QX to it timing was Day, America the of QX. in the is sequential from it sequential was XX% in yes, North Part in XX% U.S. segment. Prime pronounced, but the So that in jump XX% XX% of was to

going and Europe. that the would in there to really especially something So, the and government in UK else international actions saw, attribute QX. we on in was it I lockdowns

but I think on quarter economy, unfortunately drive our the sales increased for the site. it during that did higher

Prime impact We but also ramping in Day it’s a strong just moving QX performance. QX very because more larger international up, from it’s nascent little there, to probably saw still of a

this Dave. is Yes, Heath,

On year, backlog number, it’s about the the the about up that’s end the year-over-year. at of billion XX% and at balance $XX

growth strong business. there, of revenue and are doing AWS course is all seeing strong the that’s usage that component annualized work So great very of $XX one run-rate some billion and continued growth, you

So, it’s are the as with It’s rate the coming and at well. we are out conference innovation larger on seeing touched engagement lot to of out pleased absolute as the continuing just good than there a a and others Brian really we of re:Invent growth grow dollar there. meaningfully opening,

UBS. from question Eric next with Please comes Sheridan with question. proceed Our your

question. much for the taking Thanks so

tease have could against logistics go between the for in make some saw fulfillment that how up a than there be ‘XX, constraints level do be lapping where dynamics up know saw we of investment the you investments side to surge long-term? so the side the on in and going means the as as and to of you we you in to tougher opening in you want up of to of should Just comments, demand medium on. will of versus And are goes levels to comments about of the following service into will ‘XX wanted your look are and are get you think mix on the of ‘XX? the to demand sort in a and we needed you about you the going that as made side delivery ‘XX. what year middle out impact thinking where what customer competence lot the the Brian, Thanks comp on that be much. demand over sort if And capacity those release go year obviously, of it’s we where that different very investments as opened ‘XX between and How

on year-over-year. Sure, I large investment we $XX a including – and Eric. been would capacity, believe transportation billion yes. CapEx, Obviously, year, had fulfillment it’s it’s crew I last XX% say that

are working still XXXX. plans our through for We

use who gloves hand people XXXX in home lasting there lights is with But the in engage outcomes of of sometimes certainly there also etcetera. in COVID a things added that XXXX, benefits, XXXX, I offices. the that conditions we there of against is copying people the continuation strongly for monitors impact lot they of are lot computer like case Prime or with a for sales, wouldn’t as and complexity number think that digital sold there setup of probably is that repeat was to and purchased their and of will think purchase here some amount benefits range frequency, but things have more are the question definitely we prior even the year

capacity for And have in build quickly. it’s going to are world, hard this multiple probably to FC we to So, on that turn scenarios.

overbuild means is generally transportation, not in customer you the that work transportation it our So, we may made On experience. large to done XXXX have network yet. to investments protect in

continued We of have lot expansion. a

So, now some the And XXXX. am definitely a we right as will quantify QX of through infrastructure we see healthy are through remain some that through our only can’t well. still giving right time plans of we as I now. over I this then – investment working part only it the of do year. And guidance

in business and growing supporting in are usage revenue. that an AWS We clip rapid a both is at

to that with plans the area We are regions on globally transition a expanding cloud. in have of upside their customers talking and lot

of do definitely to do work and not want we capacity out run we So, to that. not

could risk through as due the there we in will to year. spend move be forward we uncertainty, of as a but XXXX the So, see

question Anmuth Please next your JPMorgan. proceed Please proceed with is question. Doug Our line your Doug, from your open. with comes question. with

do the of about during more importance we apologize. could the hoping Logistics season. Amazon holiday talk Sorry, you Brian, AMZL

there? COVID just it can of XQ costs, $X how more with puts year then a the percentage more you you and comment on fulfillment your then full billion the basis packages go where about from shipped coming on mentioned talk you of curious quick And about and perhaps be a If also this in some could takes years? can think Thanks. centers in

Yes.

escalated yes, the billion closer to in compares QX $XXX last year, to that step with pandemic We cost XXXX, a spend QX. and cost $X for was started react in obviously, billion $X the gross this for And of are a billion in QX QX. So we $XX.X again our started that full as March. million in and just see QX down we to

are core are productivity better drags all So, gets all we if that, right, new exasperated productivity also time. of many that because so and we physical is having over bit QX, components the there XXX,XXX That brought that from the look why at hiring new gets we to – hires the That’s lot a employees. reasons QX that of least that be growing will new see full down in of for transparent on are will the that operating it’s employees was It of volume-related fact in separation. gets moderate. mix people the XX% we everybody. fronts of of April, QX, is arguably things to the are That again to its say would try not the counterbalance we specifically not I that to COVID, happening And neutral some running been if top these costs. of that versus pretty while of bit very employees. basis have seeing, the out that, there on on a around positive volume or physical costs XXXX. definitely but of XXXX, we there which since separation some in be created that grew XX% training counteract and May, hopefully helpful After should everyone have versus normalcy. also that, step the we return that it’s a continuation of we one and and in vaccine has new be going, FX we going an see very vaccinated a own the on line efficiencies and the And as

here. a parts of is moving there So lot in

billion in ways reach for excuse We about and travel me found was shutdown customers. transportation are teams XXXX sales year as save able universally, costs this to in to new $X our all –

to some as how definitely when demand. in healthy QX issues invest probably in We fruitful existing more to hitting develops wasn’t it although it lower trouble through that was time. work having marketing Marketing, customer got QX QX levels we and will are you back over see and in capacity

AMZL can transparent COVID So, as about on parts are that absolute QX there billion be we Dave question. as seeing be costs. of I quarter And lot a is take the $X can are of and during this and the I will try again moving

Yes.

talk last right, that a where mile middle our under are control. Amazon of AMZL, we mile about of lot the it’s terms and elements Just management as you facilities, the that in think Logistics, about that’s and

centers are middle last And talking mile. delivery you mile station about so the the at to

square basis on year talked have We a footage big was XXXX build a us. for

mix of Our from that higher footprint the you grew than about what It’s than the adds is see that us a footage XX%, half around past. square higher what a AMZL transportation which incremental side of any mix you into of incremental have in year. sort being seen of in XX:XX fit equation,

of there this pre-pandemic much of on because for a items the A one year, the both that moved a gives little it through have point That So, being members. Prime bit also desire point capabilities focus we increase B. delivery to lot certainty or to as us able from on to day get more more

here U.S. a half going So are both and and now of where packages, we through than worldwide more AMZL our work into that. finished handled lot

is will and we that of part continue help to to are past, have delivery partners, so, said that an delivery out they as there, important oversees up expand that continue look carriers as it up independent better. our we on and us are and offerings. the offering with build build USPS well, our in will But And that partners to scale and AMZL certainly that the make

with Cowen. proceed next Please your with question. question Our John from comes Blackledge

you. Two Thank Great. questions.

fourth you rolled on the significant X performing on out was First, in you we on are talk XQ, curious saw that broader quarter? And for secondly the stores, grocery grocery and XXXX advertiser acceleration in color expect just how further other in I Amazon the can about and should some driver Amazon just general communities mentioned grocery Fresh the release, think rollout? provide a or thoughts if in big a revenue saw then you line demand they

Sure, John.

that here, Let to The done period. lot is main I advertising me in both them great for year want sellers, the primarily Day advertising. new start value saw strength of – spend into we XX% in Prime and for products. that principle Yes, fact advertising. in highlight that a eyeballs a time XX% carries are would That’s an QX and been adding the that things we to as as is and discover QX partners advertising and efficiency has fluidly recovery, and it But XX% vendors, for There progressed. this lot team. impact clicks and there authors, a with QX of help work the tools, add customers other into revenue Their them to other the in as because publishers the of navigate I find and again use our QX possible, our some moved and being is QX and say by revenue to versus grew question. get and customers majority see different it. in has of

now using deep learning a products more success that. sponsored and are We model show with relevant to had

seen and the it and experience also with and All the more ads creative seller well. both of product the involved these Amazon checkup of vendor of the video the detail the help productive We makes we customer And have sponsored the pages all improving for on conversion as rapid brands. format relevancy for time. things are the adoption shown for or productivity advertising

there as technology off John, a I yes, think got we of locations. on the the formats, Go interest those has that those as a couple different good locations of have and offer well the lot Fresh and of point, to Amazon open a the in couple Grocery start, is grocery

is is I XX there in about tangents at open, part of stores, at and about are the important around half food. come that Go there we open of of X other that, those. that is the So of and locations There out that locations more neighborhood to footprints of kind dozen think also so are on those confirmed are on

talked we grocery cool grocery being really with Walk offerings branching some online the convenience, we of and implement Foods some it’s the able are self-checkout innovative offer bit us doing are that Out being you think technology are of a with to qualities physical and store able Just past Whole is and Fresh, So, some and see capabilities like which locations that to in but this about some of resonating we footprint that and some these from that interesting offer also physical out have Go areas some have the pretty other customers.

times that physical able the have efficiently just appreciate think just maybe the store excited a of even more not environment, but retail with in so more would they in check of out wanting move than front. contact to that, convenience throughout being I beyond not everyone that general in you do to otherwise store, traditional the and on to

comes Brian proceed question next Stanley. Our from with Please Nowak with question. your Morgan

I two. Thanks for questions. taking have my

product business earlier forward, talk of day or the bit? to make this later be now going in about had you one-day making, you a I investments about world one users investments XXXX? you of in these one-day. when of are first to not are and ensure the the curious how e-commerce slows a learnings little putting the back you overall when place in international throughout able deployed you ‘XX about part from get the perspective be these one, us and to understanding or to Are about assets in normalizes down right just retain in in one little you’ve are year many to a a these comments, Brian, of second sort bit the they maybe beyond of could the from types strength think gained and The as investments would XXXX hear as any And business to you wallets ‘XX that

Brian. Sure,

your with international Let me start question.

we of volume and I – good time think it essentially growth saw. There rate doubling going in learning a XXXX. the the the into for rate leverage kind versus XXXX, biggest what can probably XXXX is we of it’s us for was if creates move that

of restrictions and in with the model that and very we’re seeing Now what overcame Prime again, keeping that you benefits. on was that COVID because the more else, think issues our but that everything was of very saw workforce high fixed volume some a safe workforce, hard some the I costs leverage our

pre-invested, as discussed we of we America. the probably So added and video have things starting past, to have benefits have And grocery, the Prime in seen of like offering, see. you Prime ahead elements would North other now we those you’re devices in and the curve that in

always or Brazil, a bit of Turkey, that over that investments has that Australia, well most new Netherlands a in in income, last like in years operating as the drag the East, we’ve So XXXX. Sweden the the in places the are as created two India, recently, geographies, that investment three and Middle made on investment

North the have we’ll with lot XXXX challenges may over-time. advertising frequency adoption one-time America digital Prime have Prime in parts it, expect in So in volumes the nature see we that in is race accelerating we’re higher and things purchase moving benefit membership that we the a members’ perhaps there’s have to well year-over-year segment. benefits. versus expected between purchases, the a lapping of the see of to same been going rate And going and as But starting international see higher of we’ll and that and growth to you’re

many looks North all issues in the in around to that the same that teams in countries hats XXXX, America. we in like with dealing the what off really world performance and very the So with who XXXX were we are happy see will

worth the to from that customers in AWS AWS And know great well. like growth I located in world MercadoLibre and I for but we’ve us. is of a listed and just but number bit it’s fits international we’re strong business, customers others are continuing around it that an this as there the a think is of mentioning there see Zalando And out there offshoot,

I world before, So really around sponsorships. re:Invent, it and bring together folks just sales but to the to a from And of great globally. for that recorded ticket typically, we’re And a support working from virtually and and was looking revenue lot this way re:Invent free. we’ve that mentioned the those on

If growth, for anomaly being at you account of to this for the the if fourth free, quarter. actually and you this that third look it from year-over-year revenue AWS it, accelerated year virtual COVID quarter adjusting

innovation to coming out excited about. that innovation, more with talk we’re of that event lot a So of fun customers good

I And it question one-day. and Yes, establishing with whether better. levels and And higher our of been will one-day, on the it’s believe then your that investments year consistent higher we’ve getting been was throughout be doing definitely.

right examples we of gifts. on the holiday In had for the fact, a lot of deliveries States up to United XX last in minute December

and then a shortened the around the was So getting in time to the period. issues one-day essentially it’s hit better, has XXXX volume capacity been getting able and and – being things at door and

itself, were get the to slowing was shipment we and handle warehouse down the that demand. time or So it the it delaying through of taken wasn’t backlog

even pre-pandemic. think more as our are and dust and for back that. you’re way the levels their I issues that settles better. do areas shipments. we they that can open up more have and forecast better. and generally some We saw better or may you’ll particularly I’m when Prime year probably the backlogs progressed, percentages whatever working greater other did see out are you you I wherever cities this notice you. But get not quantifying are, geography get to for So realize that one-day will it But see still one-day as and volume issues. greater of capacity, better we Other that dynamic are,

proceed of with Justin your next question. America. Post Please with Our Bank comes question from

Alright, couple. thank you. A

quite First, obviously, important. announcement the Jeff Bezos is

Can if to and really taking Amazon, margins you. how pricing Clark retiring. bit little you The talk remaining cloud secondly, deals, Wilke XX%. how a should strong margins about And backlog bit also in is to Is about in little that. that? obviously, retail. is And Thank is then quarter-over-quarter? down Talk then robust is Jeff think you AWS, up I XX%. any the expect changes a came you bit maybe bit Dave any we the down a reason think the little talk segment? over Can about a the did come quarter-over-quarter little it

Justin. Sure,

comments me transition CEO on and Consumer with your Let start the CEO then transition. the

team on I processes expanding what takes succession plans, Board structure number the we And of the The at set discussion CEO think etcetera. up more probably S as they’re Consumer Amazon. of very both see was you highly and that seriously. annual AWS. where effective key of Jassy two-CEO that of of the are Jeff executives, as development CEO key of Wilke examples was executives, obviously expand It of often is we, Directors the Andy byproduct years an ago, and planning succession X

single-thread Video, on Amazon Amazon have – leaders We Studios, Advertising. strong including or devices,

So but in there’s Amazon lot the do especially strength our I and try local decisions and we of consistently think down as internationally recognize generally, scale, try we push as the and within bench in a globally, do things organization we model. differences

the is fulfillment the expansion was our developing pursue Company, fundamental he right. had The the the last years, charged our lot been things our having our creation He of the delivery great the leaders. announced capacity, Dave consumer center has had XX grocery very been super layers X Wilke, over succession really So other of who goals all plan, fall been But to has, other in saw had said you was Jeff grocery of and super plus some stepping things. with example them important. some the for years, Jeff of Dave of one with business, that his and been own leader that, of in network, And planning a of Clark, down he culture, interest development development transportation expansion layers here outside Amazon. and our over pivotal of in that and

Dave and excuse to Wilke when And So when that in retire – natural to Dave fall, things me, Clark. or, a Jeff in transition month. was they’re decided occurred up just wrapping in next the it the January,

here of success He’s be Same and is to Amazon, multiple a things active not been succession super is Andy world. example has thing of And and So got strong of going the that’s track businesses operator most and a Board, least a AWS, in of that will I which new not has important The Board is reiterate transition. Chair is visionary job. Bezos’ XXXX. Jeff He He is for is the the Amazon’s important I and and story. planning role. which a company said leaving. record only important as super the not getting is He within he role Jeff in since successful developing leader. technology great a arguably Executive a profitable, successful

it a works. So flavor that’s the how insight on just on

both We’re perspectives. and see Andy very to get new happy Jeff

Board. in things. other the of issues, things Chairman into be important acquisitions, many and He one-way Executive things decisions, the be involved say, the is So like take He will Jeff Andy grocery Amazon more going his will as and we to like doors, vision large going Amazon. level. that next a will the certainly invention the and and through is put chance imprint and the to carry factory has the on to culture one-way-door meaning that strategies

time and So Jeff’s always around have the that’s his in Andy to all we or his on on role, QX. in ability excited to keep strong his with will to he transition focused focused where a time see will new keep – so involved very been that,

today that AWS Bezos. for more now, be and working role on will backfilling future, we Jeff Andy about will the is We and the talk in but about

strong. AWS be in talked AWS just And Justin, your mentioned in I’ve point, the we’ve play. to continue before, I factors about mean, on The rate past growth like is

to discrete we the We’re fluctuate those to the extent our seeing. factors regions and investing are that depending cost reduced investing, A new margins on the price quarter-to-quarter going other are reflect the we’re in the elements. reductions, servers. balance the from meet the of few results driving planning some new More improving the efficiencies that and the just infrastructure the in broadly, change probably to driver useful of life things call out, the growth to between needs, aren’t impact but given capacity

we so year. server the X you broader the recall, useful some we amended beginning the to the benefit years, to margins look at diminish does As in total. When throughout impact the year margins AWS and and at from we life this that, saw X the of

million. beginning down the from increased That’s million benefit was we $XXX when January, in from it change about in So this QX in $XXX QX.

to total to always One AWS allocated So dollars. it, to coming local for bit to are in The that you, the FX for impact’s significance of of unfavorable I segments, there billings so around work to be a just happens power about that into example though, XXXX. that’s impact. $XX us that That’s this for there. bit down centers because of hit primarily be And time assets taper figures the do there. impact of and foreign difference and some the down. bigger. a currency U.S. time people other another FX, of That’s AWS a little the going AWS costs going some of think for many amount there’s just are customer is element relate it’s out if an amongst going about gives just in over And and going the around this those but so We sense margin to degree, but what denominated majority build-out server that you call you data again, point the exchange cost, the gave time saw to of that to to continue million QX to have segment.

large AWS, I tech amongst backlog, You speeding just look many at think by to as as well enterprise that’s provider adoption AWS Look, continuing and is up innovations. one too. but do you mentioned business point they we’re the as are a general I encouraged really think choosing data

list to long XX we companies the excited really of a announced so build past continue that many have to the arrangements saw days, onto that. You within

Ross question Barclays. your comes question. final Our with proceed from with Please Sandler

faster to that just that’s lines the Dave, Logistics of orders do other guys. worldwide. are half Hey, over expect of a rate that mentioned kind and When increasing And cost you the the This back few going costs. variable of kind one Amazon is than Yes, topic little of shipping the fixed bit you inflation. now going through in Any thanks out starting where you a there? have in UK of to to efforts? your comments inflation places that? where over own of see order half on like cost you last-mile look London, well bit curve the little these – because the at if or a And per lot. And you leverage delivery, level are on

Yes. – this On that Dave. is

mix won’t not kind guidance it’s give a levels-off I think like. forward – that or what I of

with the there, should Some QX. unit I you’re a factors. think growth gap, few be the of disparity in QX. year was rates or new I said. in it so of is the that piece. costs More in and did seeing a arm that say, transportation lot the It But later as there’s add to would and cost We step-up versus bigger into associated kind that trans capacity this of I came of that on on the going costs

that. So we onto that’s is a on that one focus challenges and gone with But to try ours, to can terms to to factors, the unit that’s get where have improving varies of one-day mix fact that year. that build were we’re all the region we region goal this the of to to one-day. with back continuing continue of COVID along on where kind And of of in

to an as eye something that’ll XXXX. keep be on move So we into

us the interest replay joining We again be we website X your months. on for on next quarter. for today our at and look in least questions. to forward call with your A for and Relations talking will Amazon, available Thanks you Investor appreciate