Amazon.com (AMZN) 29 Oct 212021 Q3 Earnings call transcript

Thank you for standing by. Good day, everyone, and welcome to the amazon.com Q3 2021 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.

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

Hello. our welcome And to Call. Results Conference QX XXXX Financial

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

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

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

our recent filings. Additional Form could results impact information subsequent included financial annual XX-K factors SEC. and our potentially that Including our with report filings the release. on most in about And is today's press

certain we posted filings release webcast accompanying call, this may this each During which financial SEC, discuss press our website. measures slides our IR the of our in and non-GAAP with on is

You regarding measures these these including of measures. reconciliation GAAP comparable with disclosures find additional non-GAAP measures, will

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

unpredictable our SEC. including in also COVID-XX various the the regarding in detailed reflects events, our fluctuations impacts the date and our and customer rate of changes to This on world with are affected results of factors, estimates the services, cloud spending, materially pandemic labor Internet, including and discussed demand Our factors inherently global economic filings and commerce, many operations, supply global in constraints, our chain the by rates, exchange and filings foreign the online maybe in conditions market the and SEC. guidance growth with those of

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

joining for you Thank us today.

expanding and a release. Andy in Let made me our comments that on few by first reiterating earnings start

now to reporting began. the have as are customer implementation response proud And for their the the work their quarter well since We as safe seventh we create of unprecedented to many results environment. our we're both experienced, of demand safety for pandemic our employees especially a for procedures

our annual we continued of have During benefits of our members, earn vendors Prime Prime use also and sellers seen their their commitment of XX period, revenue have customers trust growth We've and to as the advertising cloud our reach over build has considering partner. purchases. growth this have in brands their our ability products, customers, AWS are months. the expanded purchases to just who strong seen embraced have as especially a And to AWS the their as selected customers and they increased cloud their re-acceleration last their as to and

range. growth We're versus put of a us. trust Amazon -pandemic growth of our XX% the have in a who revenue As 's rate pre $XXX.X grateful their rate a QX represented X-year annual compounded XX% low billion to customers result, in

It's recently to to of demand headcount However, COVID-related in coincided QX workers global support shortage support that the in we for lead as XX has costs, including our increases inconsistent cost our testing QX. have demand. the to recruiting months impact for there started in companies and and additional for really doubled our as incentives, by as sign-on the it and operations the our XXX,XXX seasonal in nearly but to operations capacity particularly operations. to levels and grown other began overcome employees been of customer to labor U.S compete of past XXX,XXX than the are in well structure two wage year. past incurred billions last employees QX, in in staffing since dollars We've have more, This certainly more February challenges the years in up to our We've cost keep workers, keep with U.S. and with demand. available and safe

and and as to global addition, the in our operating services September. at such also and costs In We approximately that estimate steel of August productivity $X in disruption cost QX, the as to raised cost inflation labor, supply in labor-related and cost the chains of operations. materials cost have losses, inflation billion in particularly such of trucking

costs these anticipates QX. that in billion guidance QX Our will approach $X range

impact we of full billion increases sun inflationary wage a Specify a in our to tied pressures operations. in incentives volume. unit seasonal As and higher the quarter's nearly primarily $X and see of effects, these QX,

thousand average additional in now up shifts locations on in. per starting Our $XX is over wage many hour sign-on with per $X depending hour an bonuses that be $X can to and

services. In raw I mentioned, and and third-party pressures in steel as addition, in inflationary saw materials trucking. we particularly

also billion primary labor to or our In capacity fulfillment over tied of We cost became productivity our not disruption constraint, and saw operations. QX, capacity. in $X space loss storage

days. placement, inventory frequently redirected and more to to have costs routes. continue additional the which transportation leads In and operations we to are X our placement was fulfillment receive to result, our shortages centers ensure to in-stock balance This and in products. well-staffed the resulted to customers. Labor service labor a resulted expensive deliver chain this to set be X to normally in less maintain to to customers As that supply in have in and short, levels optimal to disruptions optimized longer

our this you costs QX, added income billion of $X operating guidance range. incorporated to into we've nearly As look

to video, billion We engagement. support nearly a the increase in $X World, with In media efforts, spend games. our New have PC addition, for QX year-over-year and launched recently we multiplayer we're and a game, response including online digital content delighted music, and

become has Steam. new World played game on New this the highest year

UEFA capacity soccer of well network. very as have volumes season excited to fulfillment Thursday Marvelous France, a we this And as Prime We're Ligue work year, look Recall U.S. a we has Video match Boys. the Prime and demand. QX capacity fixed XXX% impact to of The content. Maisel, lineup in fulfillment Champions at to great Lord add original and including lower from physical sports, then estimated the benefits the Mrs. saw we compelling including NFL close our and content of The new QX's in Time, high video negative of the Wheel includes of series to also Night Ryan, in X live in Rings, to Jack League a Football our lineup of unit we Citadel, Moving Prime running and membership. an centers year-over-year to as the increase leverage were from value cost our last that our guidance to $X billion and add forward

more and XXXX now have forward even normal our back into having with QX brought we're compared to fulfillment operating XXXX, capacity drops QX. leverage capacity As last

Our reflects quarter we the Event revenue including Prime guidance current seeing, fourth lapping last Day our the the for in of are year. of trends October

to no build this holiday open, in many a in patterns, result, increases meet of more began, to -pandemic centers, spending more companies, risks XXX first new progress and to We started centers, which physical fiscal the Consumers we Increasing in for and customers. are outcomes quarter, spending QX. dealing strong constrained with Last supply chain pre to return other pandemic have potential the the our mobility time the range the Last interruptions set the network. services an labor But of great and and buildings made like U.S, including that make that the all and we're discussed pandemic we're appreciative to longer remained. for continuing September Mile QX than on delivery demand in customer season source that. We space the in grow And since that And we're brought adding QX. way capacity we a we're alone, has fulfillment came We're incremental online QX facilities. as stations. top travel during to capacity demand. for new on our

was additions supports of in capacity For the FBA our our two-year to early our days. also the footprint perspective, over increased year, pandemic's year's network track fulfillment are lot this the we Put we significant. double sellers. buildout, period XXXX to on last this which exceed A expect since

and That's are customers. nearby up for an QX. by products remain partners, highlights global for U.S. introduce an offerings delivery offer representing sellers with our offering. strength expand sold enables fast-growing last they medium-sized with stronger even QX which third-party including of to XX% in-store their units profiles. to a strong partners, it whom pickup fast to and build easier capabilities, we finish products new selling, customers, conference a businesses, make tools Amazon sellers tools X sellers of in in important or paid selling from start to We selling hosted of these their offerings regarding areas with the for and local profitability XX% offer both small providing multichannel Accelerate, and we're Third-party most of where to I'll recently U.S. worldwide. working And total year. few And

for industries, learning are machine and understand using in a AWS or year-over-year continuation be First, of continues across but active services QX, solutions ones of help by information. And one learning their AWS scale in sciences extensive of intelligent on for Amazon to focus across Amazon thousands including we're of of services. machine customers it of Amazon like fastest-growing are We've to of learning history, in and seamlessly learning. There that broad tens month. well growth recently about, area use been driven can external industries provider applied help let's problems, as machine meaningful Connect sources specific and the AWS, base to set with services with to life we for as transform machine a accelerating business this as their medical common Health workloads, data in intelligence, healthcare the every maker to enterprise years, services, to Lake core Customers revenues Kendra for number efforts it search. of making for of using customers cloud to Sage We Amazon saw sizes industrial customers. usage services, learning investing center and areas launched moment preferred in machines customers offering disparate an extract contact XX% all our several strong and including excited all revenue

to also AWS see silicon to current up XXX adoption delivering rapid our in price than performance processors, better design customers XX% strong GravitonX We of custom and continue interest processors.

and ECX. quickly Moving Advertising quickly, access performance to sellers, authors, that customers significant in certainly majority well to representing price the easily of offerings. out can We're QX. their particularly and year-over-year other Amazon we've best but store, as grow no revenue, which to little Amazon continues strong migrate brands that as our XX% vendors, code in the changes not GravitonX as so in TV across Last workloads grew means sell adoption streaming seeing don't to least, built our Amazon

conference course, recently The team works when And experiences, impact Of we grow advertising of their shared of it our advertisers for we connect only outcomes deliver brands. annual unboxed help make to brands, customers, useful where create companies better customer we great advertising, for newest if some and businesses. customers. we and the with also for XXXX, hosted their their our solutions measure

focused bring in customers and season. in-stock committed necessary on shift Q&A With them and we're to move quickly down, experience let's we are more to delivering As deliver for on our that, the both QX, capacity to we great investments to people customers. a make heads items to holiday this into

[Operator [Operator you. Thank to please ask quality. optimum pick that to question, when caller lose Once We yourself your for your now Instructions] you provide We will you to Thank limit sound this a to open initiate question, ask questions. up call we you. time, question. handset each again, At one up the Instructions].

Our is proceed Bank Post coming of from America. first with with Justin your question. Please question

I Great. about capacity. ask fulfillment Maybe will

basis. up capacity XX% is You pandemic since Xx a on units got I've two-year said around up and your before the

year one try and could wondering, speed needed down per just really and capacity for get you to investment cut going you So year, next day? you good as are up in delivery you. be And the the unit of plan there? then second, ahead to next times is Thank shape up for and

capacity. in doubling whether capacity globally. of our Keep our comparison greatly NCL our mind we've and the in Hi, the units to we ourselves through NCL, also of XX% Justin. ability years, -- last of delivery capacity deliver about And question fulfillment our first fulfillment also units our that is unit X also the over your On growth. up ratcheted deliver to that percent through transportation includes we've

also chasing year. driver So pretty we're I'd we've that of that's demand years, much a big we've doing as been last -- that's is, all while X XXX%, running I well. it said, for really been say about a as last

are look cube year-over-year, up inventory in The inventory for closer is inventory We to as caught getting you XX%, brought in And just growth -- internationally. say, space in and and if both to is, close X% on the cubic you support North to is well, up now being America QX. holiday. unit’s

there's So, sellers head shoe and that's fulfillment second stock, in especially centers the like into of getting holiday. dropping for we especially the as back

up our -- So of amount that unit also think a I higher right for is at space rate the ship now. that's inventory have than going capacity, we probably a

and I the growth off that we're the we this think business. year. XXXX today. X-year pre middle -- year, will we as growth, But into be term we comp can -- expect investing in be judge next the see we of the versus in not so for saw even just I just because which trends of last growth as long that We're the XX% you to suppressed was versus that question such strong I of that base pulls end the CAGRs. mentioned call, strong year. Your year, - do whether growth about strong. will do We year, see from next but expect -pandemic just last We a -- forecasting mentioned, quarters as we on expect X QX we last next it forward

and next tried that That's itself to see is capex, welcome. And hoping our which year rectifies here future, we'll certainly the we foreseeable what that XXXX. on articulate So, constraint QX early actually is and and for are labor, today. through capacity not we've into new

ISI. question Please comes your Evercore with Mark proceed from our next Mahaney with question.

questions. Great. Two

that any then First, achievement fulfillment large by international those this And standards, capacity. doubled color that you've was in the so -- about Amazon talk spending secondly, losses around the been quarter million? XXX you've

day against point, up really I unlock demand, that roll to rolling trying think think day and years of think about delivery. demand, getting you or pre kind it, or the close which ahead pandem. you call - I get into you three investing one up delivery they're to promise but what as you. future get extensive not And out, sub the but if of ago you're up catch out, same-day super one that catch you worked to Talk only incremental two now you do as that like my demand start demand, thank to could you're to liberate you you

to the yes, you XXXX and nicely business didn't I'm last because and XXXX were We helped quarter I include levels I be do, closer. close back that Yeah. -- But of glad as the that definitely as as in again side. in we we us want But labor unfinished X-day as answer. were not We feel up we gap We're in that constraints still don't getting on that brought -pandemic. my pandemic. it there. pandemic. have have good before not Prime the good we before to We're the first the ramping up saw pre just

even to see after accordingly. forecast XXXX, we I and you the but the start consideration X I to you -- the purchases. before think really in now or more we if growth expect see a very it something's When We that in in and store really have it you pick-up increase we're that saw we plan less, quickly. set day. going and And need to to day got go do too rate don't did we to into that much, won't for available difference X

quarters. to it in loss our serve just you're prior international, up On Prime comment customers, a opens So, than more it us about your larger for ways especially yes, right, our customers. was

we clip. it international. stages to different income also of a of group in that that the There's pandemic. obviously, structure. other a It's higher volume top and Europe fact, of was that results. in again in although would getting year bit are But lot same In closer trends two things, we're we're cost established through Japan, the and very a flipped positive America had current a slowdown built remain in at content perform North have long-term operating just -- -- building and the a one-year's a different The years growth on the A they to different along countries. has of of countries life further we

the added Sweden last Australia, countries Middle we've investments lot countries, of years. Brazil, in a adjacent new few within the and in East, have Poland We There’re Europe.

all Especially but and start and build a a Prime we in in we and video those video a So investments, we really customers it's me, lot front-load find things of as those important excuse a to an Prime attractor they time -- are benefits of of strong, over they in investment lot gateway is countries. like countries. those

So, into. as North see the countries, what in just in actual like percent because a we saw of we'd flipped added the is we the bit video and game. watched see lot watch had in members that the actually versus we models we the we but what of a the higher countries who new America, video Prime we're hours getting the later in

seeing and Right different So, lot that we're a from umbrella U.S and in also chains. long with countries happy the disruption established seeing, They labor to of we a the both catches we're in stages. countries. we're it's We're are cost going an said, now, pressures money make in international. as supply term bit different that on of however,

to give further forecast segment little want any level, but a this you the color. can't just at So,

of with Anmuth JPMorgan, from line Doug comes question the please with your next Our question. proceed

talk holiday the can Brian, for Thanks little quarter and ease margin learn enterprise having then in contribution year in bit impact? earlier fared help in what Prime for of you have the taking just from that the also XQ? a curious, Day you with degree profile Thanks. more And how question. what the you about this last and to just acceleration did And there shopping perhaps, from think you how can deals. pulling just about drivers some AWS

Sure. Yes.

be we back, And right. knew forward. tight, after. shopping that look so Let's shopping. in start quarter. delivery us weeks to Yes, for we pull works than used -- capacity a it the of few around and people year a all to X it week Prime Obviously, Black retails holiday lot the Friday holiday across weeks as with was Last going you're that was Day more concentrated all distributed Cyber Monday and to the before hit and to better have we

operationally, So the volume is out. perform to it's easier spread when

activity promotional seeing us advantage. that's are to to to lot we buy of early to get pulled You from to last it's because year, October. people and did buy in trying a their do just Again, demand what some

preparing we quarter, that. of than accessed We've the more getting into ports been new feel good job looked container normal. successful whole parts and of entry we've we've inventory's done capacity, a that Although U.S. to middle commitments we're larger people throughout serve up in are lining at We've

accelerate again, of it in seeing October, good will take based So, journey their being pandemic. on are I but well. is serve that we -- customers we're able many would it I what we're as cost it's again, this we December would feel we and but On acceleration, in can, cloud customers doing to about QX. in say at everything Love AWS, penalty -- lot we to the a November cases, granted a the

on A We're were recovery Then Netflix, areas. some in into XXXX a base think they we of the Some year. machine there learning acceleration a was new lot had travel-related as it's the the it in year, -- Zoom, we really customer of versus there's were different, growth. suppressed year basis to some highlighted I products, many to level different know XX% of feel lot was demand. a few their through that I XX% FX most customers, last -- still range expanding a different We was others our XX% booming. spending of our in suppression so lot our more of good were of suppressed of an were growth Disney, XX% customer neutral through in companies new the their products. but base. the general across last about

side, extensions and not customers. the commitments, of of -- a margins to fluctuate for contracts a margin which There's great There lot to moving long-term going On time. of is and be over parts. business lot for going the are are great our they're

of add is reductions well So, get, We're there's regions what -- to centers, the certainly also there's marketing in and investment adding high capacity on sales we lot deals, a And negotiated how to cost new teams. usage. long-term continuing our we we then data that get. efficiencies in counterbalance service force new what our to run

that forecast So, going hard varying. are efficiencies where be we're in high it's passing well like keep working and to again, are change, they to apt benefits them customers lower through and but always to but pricing. forward, and we to We

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

Brian. taking have questions. two, Thanks my Great. I for

about I view on second to long-term business any profitability, costs through the picture end lot XXXX? a Company's long-term now, one invested question system you one, or wanted moving retail but big first to there's talk now, us, a changes ask I to the the at the the about just of retail maybe Then the The picture is can the factors the know extra about stores. have business. on capital that big changed opposed return physical of the of as

opposed room seen quite experiments improvement Talk and stores. as strategy. physical where results stores areas from most for the the pleased formats where different store to going you're still have few see the physical you Thanks. on about a physical in positive You you've areas to us where

Sure.

on business. comment core with -- call bullish retail the your the start very it on me the We're retail business. let me Let we'll

to fight at from where all every of do try like part we productive it's not And fact, and an their and trust We looked It's expand impossible In their flywheel. products and customers. us advertising We and grocery efficient We separate way we service from and in music services retail. to we long. battle to even it that third-party a new earned in video that day. list and future Prime to the is business. program look and the build flywheel

look So, in now, retail, at with and that when expensive QX service especially certainly right business. you the QX, cost out side laid to us for

if However, have monetization a That's what advertisers we that do to on. vehicles, same we other become advertising time. and benefit work including we customers the well, at to

of structure. in our So part customers to customers and directly that buying is engaged things. an important who happy are It's tied profitability

get to the trucking new we make new warehouses all we or on separate do sure We we be. don't realize And return to same of flywheel. we're delighting discrete So, in But where shareholders the decisions. some sure see can them customer part segment country that want to much those as term. in we we long understanding offering. track I that investments it's only profits two. We happened reasons, do, not do And customers in then those for we are investment we'd to and expansion. do offerings that or into programs, make we our delighting customers as like our We

a about can own the structure. But cost about, next products largest and has we've option, months fresh store we're and quarter centric something. said period in cost the few think of differences. we that the And Certainly, impact customer in experience. companies of that in works this number the offer then that's the don't the shipment have impacted. locations. Amazon I name ourselves we've add see able committed question and Probably We absorber, around it's get the and -channel would that. seeing shock not physical why raised fees forecasted that store. you're pop-ups. one just Amazon be online -- that types, whatever Amazon think online go for are goal XXX best. think getting absorbing we've of course, cost productive. nor I Foods got for when delay stores, omni shop in lot customers the customers Foods you the offerings most that and what Most we what will grocery of last are the and I over a we they back, on to expect good get Each really has Whole books, costs into brands with being down. happy want got feel structure fulfillment your in with combination options the offer the out we incur predominantly and through And this - of is is the not And Amazon So, but there, the the we types or But that. and grocery bar short strategy, and again, store quite X-star, or customers as are limited store Brian, its we impacted, got around of the that we to so not in And to footprint a step And we've different run sellers Whole options doing this -- choice them to our customers course second

know customers resonate we're do will So, the We choice to of with interesting hybrid a in-store to lot and that. experiences working be customers. able on if that to you model on like have a continue that evolve to like

in lot on moving So, stores are some Fresh and some things Walk and into over been of like stores. the things do Out Technology, that that's of a we be continue work the about Amazon excited now Go to Just is Amazon our

and deterrent one realize or may has line, in really possibly as people that shopping, been is really eliminating of eliminates, hassle that something those Just technology. by received again, to such a things use not customers waiting they

which is stores Another XX there's in we our identify. technology for a one, have enter physical one, contactless stores these of little to a folks Amazon enter now their palm to way as retail using you just over stores, like

stores. and So retail that's stores Foods in Whole

And footprints us too, I the out. physical these with store roll looking that so, think technologies that keep for mentioned. Amazon there's to opportunities And beyond I

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

can on Thanks structure. so much I the for two if to back Maybe QX come taking the cost question.

that Just billion framing or transient period, ago, either almost little cost year about it if EBIT upfront. costs costs a contribution of could you output the so into deeper of in a from environment of talk unit a know of a little incurring the the a in elements of year-ago of terms Thanks COVID environment bit to nature permanent against X the the bit could third-party late investors from structure, year-ago. about things all comments understand you're think of and the Didn't like investors profitability and help headwinds versus an go in the elements nature and QX then a AWS structure much. I bridge we a the versus and between all QX to better as of the maybe cost macro how QX? QX some should QX, appreciate advertising,

start second Thanks, for the your Eric, will questions. one. with Sure. I

front labor permanence? permanent think about on So wage. of we is the there the the based we about estimate how half cost cost Certainly, should

have to we half incentives workers. other going offer to that is attract currently seen. The We're

forward, lower is steel it's we to like price on up talking Mostly the trucking we think to to last I that work have adjust to in gone that may about are going months. third-party our film things in and have things few procure going going especially for in-center construction. costs on -- and

will So, we be for while. our working a structure on cost

If year. you're I couple yes, by do year-over-year, QX would are lower bridge last trying costs $X.X the to versus a billion COVID for say, of things the

yes. Certainly,

Yes.

a through costs. to transportation year-over-year. me, other of we've be X couple higher inflation labor of excuse the QX, variance disruption going are mostly X and your If X pure year-over-year. billion roughly of items billion identified, what That's billion There operational is

us, That's you and other XXX% If nearly on running shipped. highly year, leveraged remember unit but were of leveraged per has benefit the not out being mathematically the for it's highly a it capacity. last cost costs, we but cut ideal at

handle We normal that volume, were we to a good labor, as more into a get video to issues, swings profile a again and especially cost we QX buffer, music, more closer get holiday to in normal This there's games, fortunate cutoffs. a with can content, the so that, increased system in we we in slack run As of it's and audible. on the for there's digital in more combination returning so space. maybe generally

Yeah. rather some year-over-year, complete items So, large that's given a you seeing. bridge, we're what but having

right, X costs, Marketing you last suppressed billion I content. of items were the they think X year. in that's mentioned, higher billion

the For you're year, much of those starting grow XXXX. see throughout to

question next the Capital BMO Salmon Please Dan your Our Markets. with proceed comes from with question. line of

Good Hey. afternoon, X questions. I have everybody.

Do Which be subscription guys. begins ad a mentioned to impactful services for the the more programming Prime sense? make new there. number Prime, business? products unboxed the most second, where announced you overall mentioned week, you price expand. coming, the then you original you to expect do this point having new to the this and of expanded you growing new this And increase customers use advertising among see demand, content earlier them First, to services Thanks continuing a offer, to of event

the Sure, thanks, Dan, on let with first me Prime. question start

back-end or in in coming and we're about sponsored offer a out to able looked the very advertisers you And of activity information you're continuing the that's at a that for be last value. lot discussion. factors it's credibly opportunity of I generally around revenue right, value the measure excited on our there. it. side if the to increases. We But advertising, to will, this customers, announce XXXX. Prime. rate. And on, of does I've of still for Dan, that. strategic part felt excited nothing bucket, in looked discuss and we ways the involved the yes, major of less see since that quality the and lot very always piece we it's find globally and to obvious it in the Yes. and that for have country-by-country at this real because run step-up what looked we So at build and second we're video to time current a volume a a that. about options Video's there's think year, And, value think the at customers able but when to sic increase our prospect out And We price program up advertising we serve also just price obviously, looked to we improve Prime of for in pic where work the quickly value biggest that's We current on the and

able reach things work in biggest some to the lot first that sports, IMDb TV still I like that. those foster the the about the the with to Fire being there time areas, we existing it's through growing beyond the able well, video and in expanded U.S. of in area, growing the add there, community our run and It's So, being and able recently quickly. customers. excitement video TV, just advertising and that well. team know device in talked past. on the of to with to piece there's of develop of it's for We the done It's you a enjoy of really really we've technology I for we've ad-supported not channel UK. a value exciting. is where People lot opportunities see really live it's folks the that been can we're rate relationships the like the pointed that but

opportunities good a interesting with really of and lot grow ideas video. a different lot to and So, ways in of

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

Hey, guys.

Just X for me.

a guys new their speedy up beating lot own a set of a of you other or delivery same-day are up bunch you but always delivery of of Do wiring is you retailers. go? the for to question of a footprint speed e-commerce from on are approach have various across cities, And or you skews, companies just cropping window as get speed to or that So, these wide in either warehouse or huge. view there's rest the that was leverage same-day a XX the products wherever does to down same-day threat? do World that existing rethink New offering have fulfillments the your And to it's second from your going XX-minute

high-level just So gaming? the any strategy overall within Thanks. thoughts, on

related the first games. to question take I'll second

World like at Twitch get now some And more we've hands of a out excited to the I of d find in the folks step while really see top, platform. of Steam gate there industries said if the the offerings the the there services. a number to you and And have obviously engagement entertainment think to is out mentioned and to ways with back, gaming as well. a good offer customers' New really we some momentum fastest-growing coming and that to as one RAYU able But we of for be our different customers space.

Prime World. of for -- which free Amazon part Prime games Games, the and so as developed exclusive that gaming, New through We're some and we Flywheel, part leveraging the So, of as Flywheel published content benefits. customers offering developed Amazon also

services community our building offering. large, Luna and gaming with this stream And AWS online utilizing got You've then engaged, Amazon I before, games -- with Twitch. them, Luna passionate mentioned AWS as

it's we're really lot interrelate, communities about within serve and So, different a of think I again, gaming interesting ideas video talking the area. to when that the of different lot my areas about a advertising point can space,

forward like keep rapidly first and exciting And have. other on the We we an on that, also it's in the customer to games but so, we've listening slate obsessed, keep delivery call with pushing that space launched, future. competitor model, ultra-fast aware. going then And to building and keep options our and a we're customers evolving the we'll working We on and I'll obviously question business what in like we the market. your

Foods over other stores have Fresh, cities products can hours from X,XXX that customers us within two in We XXX,XXX over and Prime Whole towns. that Amazon get participate and with our Market,

there ultra-fast well we're things for have for or see that things and we pay and way like delivery will require will expanding, room network there's as a cost a that to in have you'd -- to And providing groceries also, that but structure multiple be the time. for say So, space. our over delivery the on logistics winners others. And we ultra-fast,

day, offering X in ranges cases. hours X or that of So, offer part to customers X an we see to we it that X as to from days some hour,

when where things, are, customers meet and they on to speed we're like working consistently. they we So, need

proceed from Brent Jefferies. question. comes Please Our question with your final Thill with

Thanks.

quarter? business, you're curious, concerns a on in ad pullback have you advertising I'm seen On that for fourth in side? is So factoring of some the far, that the chain, the given the supply the something

always No. last when a well. QX We're seeing And lapping Day bit and growth. this strong year of QX Prime saw a QX we're year. we're of Obviously, had in event Day really actually we Prime is -- in as advertising from again, great Prime you that the day then little

of we're given there we and of between as versus resonating the new products, the with business ways differential advertise, advertising offering unit So, the the brands. ways think might new the strength to the growth really new highlight as be comparable to We're growth, issues, the but far advertisers.

Just resonating additive that And with same the customer it's Fildes, see and may brands not the experience. selection sellers seen. for as reasons. they otherwise well helps have also It customers to curated find

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