Amazon.com (AMZN) 4 Feb 222021 Q4 Earnings call transcript

Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Q4 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.

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

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

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

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

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

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

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

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

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

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

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

for you joining today. Thank us

Let was both this their holiday acknowledging this required experience. again second safety our season world customer This pandemic, business me coordination holiday. prioritize efforts. did great a once of and and exceptional customers employees around and the for and among during the delivering and start by partners our employees for collaboration team The to job it thanking

financial let’s fourth our Now, discuss quarter results.

billion, excluding increase For foreign the the exchange. year-over-year, of $XXX.X an fourth of were XX% quarter, impact sales net

on businesses. We offering for our continue to focus customers the our best experience across

in On millions of the the Prime members the renewal consumer and while rates continuing member we across welcomed international geographies. to States see both new during high consistently side, United quarter,

XP strong from strong provided highest quarter all particular, sellers, And benefited XX% holiday one annualized billion the history, year-over-year increased seen throughout $XX base, it’s large rate billion than run added quarter a revenue run any in XX% this and third-party of mix in quarter, up $XX Even XXXX. we’ve season. the now year sales growth on its unit AWS of Our AWS revenue year-over-year. business, more sellers fourth ago. demand and a a revenue rate customer continuation saw in from usage ever. the

opened as to growth look better pandemic As XXXX, rate see the at XXXX’s Despite this compounded the the revenue sales extraordinary calls, of perspective. increase and demand customer in to also an since you remainder I’ve we up. in back prior of to lapping sales continue the growth, in mentioned put encourage during onset we growth multiyear economy revenue even the annual

million operations including to excluding the our rate consistent delivery. There two worldwide, third our doubling to assets now our this footprint adding ensure We’ve X.X with transportation rate fulfillment center growth employees compounded capacity nearly invested are period. impacts annual fast the significantly significant on-time two-year demand, years, two-year in Amazon Amazon’s in past expanding quarter. while also from in the pace exchange, QX, was For doubling XX%, foreign with keep

$X.X Our was fourth billion. quarter operating income

very As network. we we in and operations inflationary network second billion the higher is primarily cost more mentioned due and pricing by wage QX, by carriers call, disruptions This operations. and our from in productivity did last into disruption labor the third-party in of the pressures see constraints primarily relates capacity emergence costs do lower the in by the market to from challenges to to our as quarter. and for facilities well the as tight in We albeit these adjusted peak. were Loss recently in increases of XXXX earnings productivity our supporting seasonal $X than fulfillment for loss driven inflation and Omicron driven half incentives volumes labor The to expect persist fourth challenges our variant. staffing relative up more

most year-over-year and $X include lower XXXX cost running at was capacity network half leverage that fulfillment Our network. during and first our high very that results billion volumes XXXX impact approximately time. the unit XXX% negative also for of in saw from Recall fulfillment fixed this close we to of

decreases with periods. our prior the Now fulfillment comparable versus normal leverage more capacity, operating year

year-over-year of some continue XXXX. negative from this to QX to expect in We impact see

delivered optimistic growth retail fundamentals developers While AWS we AWS look and continue headwinds, navigate cloud as our to quarter and innovative a of to pipeline. and of of innovation we are business near-term a number strong critical another businesses about strong for are enterprises strong the these growth solutions.

technology hundreds new services QX, re:Invent XX% to revenue rate XXX XXth choose re:Invent rate, services hosted of welcoming because major and research provider WhatsApp and organizations. North our Fiat, We run AWS platforms as Chrysler NASDAQ Stellantis, than as company billion should and services. intelligence as great matching during Instagram acceleration. better Jeep selected migrate development. their Now selected growth their to global virtually. conference us quarter, AWS strategic to quarter and and its a be Dodge, with provider announced the in Buy of We a in-person as the XX,XXX products And quarter attendees Facebook, grew markets industries features announced where global the $XX vehicle the event in engaging preferred annualized to workforce. including highlight new accelerate spanning cloud and Meta, In speed engine. continue a up Best alone, parent year to Ram artificial inform its to long-term to cloud businesses past for opportunity their of consecutive AWS preferred to new parent infrastructure AWS it’s customers AWS provider next. cloud all partners for revenue innovation who America multiyear AWS, the of its for attended in introduce of our company accelerate partnership while fourth year-over-year more we focusing as thousands cloud the and provider revenue upskill remains selected digital to

You businesses. release $XX.X of can largest was more Adidas, earnings as Rivian more the Overall such fourth examples find billion to and Pfizer, Goldman how in net are quarter. our Sachs, the companies transform their income in AWS world’s using

pretax our focus valuation that common November. in out operating offering in comments Rivian normally a net we which point includes stock our income this its While to billion income, initial Automotive, investment related completed gain I’d of $XX.X public on

related to Before there items I’ll are disclosures. to mention three additional our Q&A, we move

services presentation as included other revenue of now by and we updated supplemental earnings services. separating from First, are of revenue information groups our in our provided disclosures release. similar in advertising the part products revenue This is financial

areas in sponsored continue like and innovating to We’re excited streaming ads, measurement. video

customers we Of works outcomes experiences, so course, it we create for when useful great brands. customer Amazon advertising only we deliver for better make

in life we’re updating servers our and January. Second, prospectively the of equipment, networking useful beginning

lives our assets in basis and to our of long depreciable assets practice, the sure review going are estimate we be As make our operations. regular on financial to of how best the statements useful a monitor that used reflect a

We are years. network years life for increasing servers from years five to equipment four to from six years and useful five the

result, guidance our an a includes billion depreciation lower expense. quarter approximate first $X As of

of decrease We quarterly change the to year. expect impact the throughout this

assets last this stress on reflects continue of by change to lowers then we use more as support useful run the the our our hardware. efficiently refine support businesses. life, to scale in an the in for a Prime QX. on that accounting team hardware out the equipment we to at well over AWS’ price the calling tremendous our external to customers for own Amazon both years, will United We’ve And operating and This we’re make used here, network software increase longer. XX Although extends AWS the to finally, we server States and internal those and really effort as been

the September, free unlimited Amazon as of has of anticipated and release part entertainment, more movies, books. prescription better. free Football XXXX have added Originals. an over than Video and And exclusive metropolitan like and XX. the Prime We highly Night of also billions dollars and music more members XX selection National we’ve number deals product XXXX, shipping on Since available TV, from tripled fast become as for recent home days. available the It’s In increased of Football of of same-day for more availability continue members to XX-year in years, with Video Thursday free Power have Prime Gaming. savings Pharmacy the make Rings Rings: The Prime Since the has and discounts, well exclusive Amazon areas high-quality as The continually Lord historic this delivery agreement Prime new Reading And will benefits Prime including U.S., the and to expanded League. Items of more Prime shipping, fast program with XX%. Amazon and delivery saved the Prime top on shopping growing from Music catalog all of Prime

With our the States benefits, membership from transportation monthly the $XX.XX the Amazon and to a $XX.XX going XXXX. will as and increase since price of wages increased of we’ve the the member Prime and with price Prime that annual expansion member rise usage is $XXX. United in going the well seen the price membership This from $XXX costs, first to in increase continued as

on members, will the go into effect For XXth. February Prime price new change

For XXth next let’s new to members, on the date current Q&A. on Prime March apply will their after the move With renewal. price that, of

from first coming Goldman is Sheridan Our Eric Instructions] with question [Operator Sachs.

you’re much. by talk the Thanks come you Andy in Can investments of ahead much same-day either mile against you release how comments competitors? Thanks delivery delivery dynamic the and omnichannel Company consumers might by to same-day respect little to the competitive on those sets delivery. elements last I back many seeing up so and versus how you of the to with for bit versus respect be behavior a the that like so with of consumption about to want taking behind question.

Hi sure Eric, thing.

ultrafast, from to about here So, again, on shipping there’s to X levels feel in X-day and are. is grocery X same-day, and essentially same hours X-day we multiple less, our which day Prime. fast good of business then and where We

to We’re build to those capacity that enables us hit cutoffs. continuing

I more to more think levels pre-pandemic improving were around his us getting upon comments then that same-day areas. getting back X-day and and delivery to more our for and metropolitan

We’re resonates a with customers. doing that. think that of that cost generally or me, we it offers we or our it is. -- levels product And combination excuse goal shipping new can to different -- how that And But structure really this but on there’s well, basis. commensurate we that of on free globally make do really at product for lot price a is line, money hard for as a free excuse well speed with know fast do as and and me, our

the adding, That And Logistics made Amazon years. our what over the comes we’ve and all doubled customer in the to capability faster. It’s few that’s been in, as the the capacity to we progress like being closer work years. So, handle two we’ve difficult we’ve the is mentioned, today’s also handle developing last ship to able where network we’ve to but last just getting over volume. not the

is bright our on So, we’ve the we service. We like where improving the progress think lately, work like in but do making that we to been dimension. know customer future we there’s stand. We

is question Stanley. Brian next with Our from Nowak Morgan

investments of or of the the the lot the a we required ad within lot investment profitability innovation of I’d has view about post you retail profitability mile better new teams more there’s same-day, of I one, understand an size business, one. because retail to more on in first more engineers working first projects, higher changed Brian, last in Amazon. be Curious that are the grocery, that sort pre-pandemic, business. two. post-pandemic the for the as can have disclosure long-term that’s about you the the the how -- second fallen think about long-term hear, flow Then retail at you about are a cash of you Thanks. of any the pandemic like or investments that early-stage segment, disclosure, sort your about you all more think of curious sort one, around other is number talked the of nonrevenue-generating

Sure.

On history into bets revenue see customers, fall the which a of for second other out up have we’ve separated revenue, small some and those short-term into roll you small generally very They’ll making we one, long-term of as after advertising. very businesses.

So, that think a the to continue is the our we’ll lot in profitability disclosure. it our disclosure you But that and I shown do see of segment do at revenue generally. revenue with level,

model. business You asked about the

two And things. are years, a I question. good as the a think lot of we reflect we -- last by encouraged we are it’s over

the over there, to You acceleration making mention off major time the of sets to to period, time us lot ticked with capacity of future. for how and to that’s going ability Logistics fulfillment use benefits, this strides dealing a And customers, double during been not them that -- of our we’ve the also our well grocery disruption the but cloud. including digital The valuable period. become of adoption companies the in up Amazon

XXX,XXX early and add employees And it volume availability, over United handle at last look then, labor to the handling to the disruption think without it. added the was especially capacity was was to So, the the quickly it, turn of catch-up. a scrambled States, year. half year, you last in in at But had We I starting took as We’ve really playing and wave over successful been we’ve if labor prior improve, that workers. XXX,XXX. of

basic contribution XP services added So, only is there’s the and of is well. just about -- back, there’s that’s as feel for a we again, certainly and good only There’s profitability. if if There’s going we vendors successful in has and fees step contributors network. the make on procurement And the few of lot works it expansion mentioned we sellers last working in with customer over you good some Prime, and a margin of up. layer as cases, Advertising But experience. going years. that a been

lower part better of working really our selection becomes to that more do we’re ability So, to hard offer and that. And convenience. a prices,

and really to areas get those, strengthening It’s is the efficiency take operational -- those you if So, in onus are all of back our stable areas. all our of cost.

a We people. capacity. lot We’ve lot have, again, of built hired a of

are effort. battling be quarters, people lot out those our our where -- do are coming to to of now. over better teams Some going that’s the and number getting the a and here see going of sun right still of next put Omicron all we’re we But,

Our next question Doug Anmuth is JP Morgan. from with

in years. spending network is past of Amazon big terms Brian, believe you in two cycle? Where into and this this I from the this a slowdown investment investment headcount Can doubled that about see fulfillment your over investment you’re year? you X.X years your cycle. also emerging

Yes.

little talk which finance about this I’m bit to going our assets. is lease we sometimes a residual of with do that the And expenditures. Let’s equipment on the inclusion infrastructure leases, capital

We’re doing now, we less some of done do it it historically. have and still but

for about which -- proportions, they’ve About initially you So, years, transportation only, XX% under XX% -- of those of when as just into XX% most it’s few before CapEx of are areas. our areas. to capacity and I numbers up. focus and coming over the that still is also to adding very a exceeds through going feeding the the shown see AWS, going network, of grown just as and and under And capacity XXXX, I’m the ourselves fast-growing transportation. But last look I’ll we’ve still sure how infrastructure, future, is The We so usage AMZL that customer give we’re for through well fulfillment warehouse we out business. at growing is is you capital plans just under things it’s not have globally, directly capacity CapEx regions some then building not and build We but still If those and principally XX% this Amazon bit. AWS. we’re X% main business certainly, the growth in revenue structure small is but look warehouses that offices and other infrastructure is a our stores working into or like that or large a three building remaining handle globally.

feel about those good investments. we So, making

about now of We our fulfillment XX% and years. probably businesses. the that see side, the moderating On underlying growth two the that last spend of in that’s center match will

tick footage. I be that expansion that the think different FBA can there’s cube expansion than not of things like up always of maybe our that things growth business, rate, square

a have business because that in there’s -- to delivery want So, and we healthy FBA have delivery fuels same-day capacity X-day to delivery. X-day and prime retail and

year. important. transportation. that’s moderating in third of We see that levels in And then So, investment is additional we piece But the this see FC XXXX. the very piece likely still

you hopefully, -- approach wrap you up, how I a give what exact that we gives on expect little more but increase we it. you year-over-year. dynamic if equipment leases can’t CapEx So, including to it the percentage, finance

Mark ISI. with Our next is from question Mahaney Evercore

you were lay all quarter. expecting You costs December out of in to the these that see

are Just real talk to any surprises to whether you. there

fixed improvement little like sun -- mean we about is the in operating And then think greater you you to go that looks surprise should December the where how through absorb that temporized than the said So, get out. leverage some thought. nice coming a those the we’re about us So, just of that talk get to you had help going have of the it as the you And kind use bit costs was what a does think about to Financially, and margins we you may that some of think have the we I terms as those go quarter, $X for forward? more billion? year costs laid in of out those costs? as out temporary playing

Mark. Okay,

Just remember that in sitting I’m Seattle.

coming So, back We little of you as We my to costs. in -- improving. do would But we transportation that QX. view of we billion said where well is that of out are. inefficiencies slightly do as let’s differentials see perhaps step had labor the $X things over to costs different the than We a about have came and and of shift rates billion. labor external premiums that cause due additional shortages just and $X sun increased

I think could excuse transportation. we the was a we of staff, things staffing, QX to have increase people, But, overtime. me, higher There some we XXX,XXX quarter, as the net-net about in additional all-in-all, are year. we of the XXX,XXX third-party went could cover was We say that had have of hiring people but there I the to the -- done add expected. or strong, more in raise the had costs was better. second would so in on wanted challenge more. added or -- and to half XXX,XXX said We lot

can the into who term their and positive except where different a people fellow as XXXX, of have better on there’s you and are work have lot COVID get now and leave into on page workforce about they So, issue of test labor, back -- to has we up, workers. kicked a the Omicron and absences short as labor of turn protect a type good feel you

leave, shift for you’re paying is hour So, who’s you’re paying over X the also same you’re potentially paying for the or time. where on and there’s covering times if them on someone labor someone instances twice

QX. there’s So, in cost pressure

and great is good challenge QX QX as the news labor QX the that as think, in it in not is is QX. I --

we’re on hopeful So, that.

lot have beating We speeds work more our a transportation our staffing pre-pandemic up. And make going of now get into we effort operations and to to efficient levels. increasing we’re levels to our our as plow

working challenges has lot different been there’s for on down a heads of years now. So, two The right now. going over team

that confidence get need will through they So, and the will a have as we great team, -- got year. we we things -- we’ve improve

question. hopefully, your So answers that

Our with from question is next Baird. Colin Sebastian

ask of where I about acceleration. highlighted about think there. the expansion revenues release, nice Is driver to enough you contribute maybe maybe globally. and the wanted specifically And acceleration also incrementally in AWS, you’re seeing in that now more large could infrastructure I layer to if talk that the Wondering application growth? you

of some to think put add you AWS I context or around North if of interesting outside be that. it around scale distribution some might Thank the the business you. context America, internationally could

questions. Sure, Colin. for Thanks your

adding rate, over different it’s of early There a in starting off. the experience, some some that people companies -- On and the floor. to last spending went roof, is in their pay sales volumes through been marketing We’ve and resources cutback the was I combination the growth few the volumes years, lapping in things. think parts we’re their COVID of went through XXXX some as have that different

And help that. for professionals there help, we a very understood things thing strong think of journey the that the advisors. better hard of is a have we’re and well and make one as as and technical a the go the of team stabilized, So marketing their that time cloud, to accelerated sales to as successful commitment to and benefits working to people lasting probably we’re internal lines lot have made to I that

with So in business we’re that the we’re quarters. the the pleased what and four acceleration is last seeing,

useful we’re actually not is I We we’re seeing life. of in with efficiency life see the an -- on pleased investment, that also will accounting real mentioned, the proof you basis as have expansion it’s infrastructure -- done unless it of the

in indicators AWS. positive very So,

here. it’s Dave Colin,

their of part considerable customers It’s different on see AWS mean we moving overall the Just to the are to U.S., at -- phases. are point, following of what international continuing momentum workloads really seeing we’re I over growth, the around strong that we outside as up world.

great of some migrated preferred that infrastructure provider. Stellantis companies its to the you different expand really to amongst the release, different in diverse at There’s of been selected list companies, What’s this its of AWS examples AWS, Adidas Netherlands, of as as things we’re doing to environments continuing big good number announcements, at many cloud migration. so, And really support stages seeing. important the to in footprint look momentum other things SAP us, Germany is a a our global there’s

the just Pacific And in region So, and year got opened the to over it or quarter we or region last Jakarta. we’ve for Canada Asia this in perhaps Calgary announcements fourth next the quarter, plans XXXX launch XXXX. in

So, of AWS now. But couple a map, lot of the momentum. forward-looking world a have are those XX will examples. we just more Those has right just the where a of few in in around lot to years. regions, work be announced And availability and next and more in XX here sit terms road XX -- we regions X of now, it’s in zones the launch zones

question with next from is Our Oppenheimer. Jason Helfstein

Thanks.

to dig services. want there third-party little just a even bit I a stack. two-year So, seller into The slowed on growth

that? think you about talked if be of that why weighing grow, AWS, Thank but either having there is factors maybe related? bottlenecks good some that chain the on you. any or laid color of do very mean, you’re a seeing? you this to kind of the just still then, some supply some you comps, bottlenecks Is quarter I to growth any with to could talk and could And you employee out there. So on about

your is Jason, question on second AWS? Sorry.

Yes, on AWS.

Yes, sorry.

our customers to time capacity or their probably with in limiter the side Let -- No, with to accelerate is bottlenecks work see business the lines. me start don’t ability that. on that we

that. So, investing hard we’re do working and to

last decreasing So like the -- you’re to much On we I -- capacity, in as earlier, increase a we’re revenue. maintaining. as capital growth we year-over-year in capital on growth a still dealing high XXXX. with I think but XXXX. continue XX% QX mentioned it’s that XX% seeing XP, XXXX the period of basis, QX add two-year on expect but of rest XP it was the discussion, business, of seeing the I operationally, Granted section rate, But mentioned, services what the compounded -- in you’re that and is seller was the through very growth quarter, from annual to

in the was sellers definitely of a think record are up is XP. XX% bigger percentage I for The to QX. point big that winners units

We see They’re of and lot help continue their purchases. to to sellers as to to selection successful -- and a because advertising invest big be -- enable brands use consumer make it our site. they make on sellers add build a well customers their

very for businesses, again, ways happy help third-party sellers looking the we’re with be seller So services and to successful.

Our next of Justin question Post from Bank America. is with

might been Maybe services. What decided already? talk haven’t much factor how -- out, if about break I’ll us Great. then, why And Prime to tell you advertising you it maybe Day have a penetration in the that GMV deceleration? on that? than you much Thank growth? bigger where have on But we bigger about picture, grow line to are how room do you. does How think

Yes.

And where the out that that. we been we the I that a proportion quarter of Let revenue. advertising that every it certain should pretty And size majority for why mentioning me much that other point of a at got and -- was we had the half revenue start feel item split advertising it line services. at to of other looked is with we broke We’ve it out. and break

the good we So, and things those year, impetus end really And every that for time was year change. it the at was of start look as XXXX. to we a do

obviously. in Prime Prime carries a you, lot. can’t Day, but I Prime the helpful the to time. XX% rate first XX% growth it you it without revenue. year. from QX of was lot scale Day from having Day And had QX tied other to there’s year a of last understand for it The last So to that’s in for rate down growth hopefully, impute quarter obviously of the for in advertising

quarters, we and moves on that bit XXXX when period that -- Prime So We impact have QX a lapping, saw that was the the when XXXX lapping a in in have has did QX year Prime this run of it generally didn’t an rates. it Day was Day it.

customers. So, that and around is product having with bit. think success and the bigger But for sellers story here a we’re making a that I will vendors, the move useful

just tools, loops more better. think relevancy add with insight learn opportunities improved at and as to with we to mentioned, better customers experiences. again, results we and the build making better Justin, level, more there’s advertising have I Brian hear That advertisers, better engaging can the that from in them the usability. are a building to great tool it’s feedback that And high and keep priorities -- measurement, better and to the interact customers, can more give them analytic mean and We that, the performance. in building understand And provide with

the a NFL serving And a in ad well, it’s again, we’ve and overseas delivering giving of as properties, have got Twitch, great going on certainly space, excited this to TV, kind the And year when and turn, that. really And customers but focused great folks. to but they’re number on that, sports have this live of of information brands. recommendations advertising decisions Fire as around well really we’ve helpful talked a advertisers both and been purchase in a here in them to helps the their in exciting is that like of the about properties with things result. video work in So, live IMDb opportunity. making sports, U.S., and And is come good course, certainly as TV, about in sponsored the lot

refine work always and Amazon think do. again, I on term, something Longer continuing focus we customer is about. as DSP that platform the opportunities area excited we’re So, that’s demand-side and on we’re that one with to

with question Cowen. next from Blackledge John is Our

Two questions.

XQ supply the affected how think the in question you Prime -- second could be, increase then, And in chain the do markets? Thank you discuss perhaps would and about supply you. XQ, to supply non-U.S. business expect in we and First, how chain impacts ‘XX for pricing should year? from the issues

you Thank for John. Hi, your question.

valuable States was price the the for evaluate alone We we’re especially raise United since after today it’s we much to the was XXXX time let XXXX. more the think not And raising in at Prime right the XXXX, that First in a versus it. program We on and it than the to country that creating each question. the We that customers. the differently. and look usage price customer felt, cost to supply value our relative

chain, announce So, to supply saw a else supply in earlier, we’ll nothing other paid But QX in work chain capital working year is chain QX. to countries, bottled We waiting all every had things cases, product We secure lot as think far combat I we for to that see concerned, which anticipated now. where as the ahead. in we impact. Amazon we right supply some early, issues we’re vendors or specific to the continue a inventory evaluate there’s products. did in with On and

channels of also input hard the to We port vessel existing channels up or worked into it whether -- capacity. open of was country, capacity very

And did say we So, ‘XX, think to it a customers I for be challenges issue get far to to QX. trying worked everything. in that, we’ve we wouldn’t how as it We passed QX as market. big knew a don’t remain in we constrained but capacity more as in expect totally our in

with Our final Capital question BMO from Dan Markets. is Salmon

see important, and one mentioned the that point see stage? any this an advertising a up kind qualitative one to sports new dynamic a that to you there’s price the follow return space at the higher as Prime. level color of the element a world. of Maybe as And to the versus importance balance performance business. for the is and that of of you a just Thursday you the supporting Football one it sort numbers, reasons on great. advertising we could for in incredibly is increase be say, is that wanted could if bit add, Brian, versus Anything First, exclusive Dave, taking mentioned advertising business the rest little of of rough maybe you brand video you add could live is then, I just that Night just of new broadcast advertising, U.S. second,

Sure.

Let me second start with that question.

with, more one United and as well going highest team, Manchester Prime members sorry. you to want I the I that up the investing leave I the there’s sports, to new been that the -- rated any an Prime So, believe, I’m as great raised to because is we’ve membership just in prices use valuable games international the we as we in that of football. for example of didn’t mix impression had QX with content make

don’t I know. Arsenal,

will But, to that the so valuable -- embarrass on be getting beneficial won’t I properties sports Yes, again, we’ve been and myself. offering. working prime

that. the with and Premier work properties Soccer, with We’re obviously other still Night leagues early Thursday also the League as in marquee success We’ve around soccer world, Football. on had probably the the on Tennis probably NFL

today. Dan, the the on of ad before, up the majority products and revenue make in advertising terms we’ve side, they of just sponsored break out, said I think brands, as the

the haven’t efforts, of on suffice a say, we’ve these it’s video, a with world of a and lot we that opportunities basis. and talked We and for the advertising term. and geographic presence building those of brand sponsored on the and so the and lot split make a But to in about, sponsored long can around customers whether the kind Brian constantly replicated tools brand inroads products -- given efforts, with are the out learning services better over features

Premier hanging, Arsenal want the don’t was you And the service viewership most million. estimated game because an ever to in of watched with on Dan, soccer I and leave League Manchester X our match December United

be that So, League. Boxing a we interesting with and Premier we’ve continue think the had to of lot because for is Day good increasingly each I valuable games, had actually relationship a partner other. We’ve pretty

Amazon on look appreciate that, call today on website quarter. questions. your next replay in you and With A IR for again months. joining us to be thanks least interest We with your three for at for speaking available the will forward and our