Amazon.com (AMZN) 29 Jul 222022 Q2 Earnings call transcript

Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Q2 2022 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. XX, questions July 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 non-GAAP which website, comparable press find call, reconciliations webcast and this In measures. disclosures you During our filings SEC, measures these measures. may of financial including GAAP we accompanying these our regarding IR this non-GAAP additional posted on certain the each release, measures, will discuss with our is of

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

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

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

Thanks call. today's for joining

the performance outlook comments make some get and we questions, the QX for our about Before QX. I'll

with start Let's QX.

quarter, improvement the our demand. saw key subsequent step-up metrics, and of a and During in-stock operational delivery we levels many in saw consumer in including speed

of changes For XX% increase guidance the revenue sales an was quarter, in $XXX.X net guidance. the represented range approximately end impact point foreign billion worldwide our year-over-year, exchange the of of incorporated exceeded foreign rates. we basis larger from XXX of into unfavorable and impact headwind basis points This excluding had QX top XXX our than exchange a

As between XXXX. XXXX our a May to revenue over period and the reminder, May from XX% growth growth accelerated

While demand high months in the has our this period, depressed for remained May revenue growth this lapping growth following rate year. XX ending of strong, of the

quarter year and Prime year's July occurred basis Day on QX incorporated XXX third sales growth occurred and also QX last XXXX guidance. rate. and year-over-year to in explanation. Our vaccines growth also see forward particularly the began more was and States this longer last year United require more no shopping rates Day in available, QX historical when have will of Prime normal patterns. we to contributed XXth revenue This points our become going into is event our about XXth,

we years happy customers are the served how of last we've have how they the are As normalizing, with impacts two and responded.

for a Over spend of and than their growth since Prime usage Prime growth, have members we've rate pandemic. stands by the at entertainment. the compound since higher meaningfully shopping XX%, that greater the the a seeing of and the increased benefits seen Our of start reliance prior to are members we on Amazon start pandemic. what period, pandemic, stronger annual Prime their

improve and speed experience inventory continue in stock We including to levels. delivery in QX, in improvements customer quarter-over-quarter the

levels efficiency our moved also adjust improve and have the to of our operations quickly We staffing network. significantly expanded

We align expected plans demand. better have with XXXX XXXX and to customer operations slowed expansion our

work QX. in done, still be we've made to good there's While progress

of the membership useful stores program games a valuable. XX. access exclusive Prime business, NFL membership the the X Thursday to and on includes Rings of continue starting Night Football That Our remains September The of The premier innovating key we even our Lord driver worldwide make more September Power and and to upcoming of Rings:

community seller also a had QX. strong Our

Third-party in QX while we Amazon made the range. ability We've our our helped selection income was to quarter, all sellers QX top by deleverage. the incremental billion QX, cost in quarter, to productivity, fast to partners reducing Recall several of offer guidance percentage $X.X that fulfillment stores costs. discussed represented these provides Selling sold inflationary Last the these units pressures I XXXX. on when of to business; Amazon offer solid above facing delivery. ever. compared in customers fulfillment end can XX% the expand in the and worldwide network cost sellers highest fixed $X of approximately billion costs progress costs, Operating amounted

made pressures levels were which second in with what with at we our we fuel, in line in rates, the and will QX, approximately costs QX. in For expectations into QX optimization we higher compared Inflationary remained QX rising to strides levels network. and when $X line from of These more network Staffing continue trucking, QX. We pressures incremental in at saw saw similar better QX. shipping demand, fulfillment XXXX. to fulfillment include billion quarter, ocean elevated improve our were air productivity expect to

continued density hour. per improve and side, delivery On the deliveries route package to improve transportation we've

and by second to are half see in opportunity the improve the the progress further the We encouraged during quarter of year.

are about was consistent the main leverage. fixed negative cost Lastly, drivers when There of impact talking two year-over-year cost leverage with fixed QX. relatively

the normal comparison first in of peak XXXX. saw half step is we unfavorable second the in down level off holiday QX utilization that the that in XXXX. is high of of volumes rates half saw very And First first to our we

first On ended comp this have the we point, challenging expect QX. will year-over-year in

the leverage as point, On half second capacity also expect steps network the additions. we We've the our second of in future into continue we fixed year grow improve slow capacity. taken to to to cost

the a and early continues to engagement and and behalf We net adoption believe of make investments an fast to pace, represented grow AWS. opportunity to of sales customers. great rate in continue and cloud. we AWS, stages public on another still to We enterprise of turn $XX are run at billion in the sector innovation we see AWS nearly Let's now year-over-year, of were customer QX, where quarter XX% saw AWS $XX.X sales billion. strong in up annualized of

to British existing We continue in all AWS services. of choose Services. regions, operating Investment few meet to and Riot at from organizations expanding Air to and by Delta QX. service and AWS. new Developers launches enhance to billion invest new and services thoughtfully governments agreements Games, Telecom, Amazon not-for-profits Web start-ups to enterprises, like infrastructure Bank while income name was a $X.X capacity new sizes, AWS supported iterating quickly Lines, in Companies to continue to developing Jefferies' announced new and needs,

inflation as high a technology increasing long-term a a to in results portion compensation our investment wage greater other areas, in AWS stock-based infrastructure tech support this demand engineers costs, As reflecting step-up including includes growth. reminder, mix seasonal include as QX well and these of of expense. workers

capital Now let's talk about investments.

worldwide the XXXX, CapEx our primarily combination in as $XX XX% equipment as will we is AWS well that we approximately As usual, capital infrastructure, comprised of About incurred finance of discuss supporting stores billion plus leases. investments. In of technology business.

was for XX% Another the comprised and $XX of less of remaining than transportation, physical X% was was things corporate fulfillment and like stores. capacity billion a space XX% little

year, proportion businesses. than capital shifts of For expect capital do the among we more full-year on but spend XXXX, slightly our to spending investments last

expect We to spend are growth infrastructure seeing innovation primarily the with grow year-over-year, to in we technology support rapid AWS.

capital more bit a in half XXXX. represent than investments total to infrastructure expect of our We

worldwide stores the better business, continued expectations to to For align demand. moderate our customer build with we've

We XXXX prior projects to in on versus lower dollars spent be capital and expect the the fulfillment year. transportation

in quarter, a included U.S., Rivian across $X.X in making is of an we non-operating in customer from rollout the is the more we Automotive. this by using than second the pretax This our common U.S. highlight valuation on that $X the primarily XXXX. year vehicles. stock out which we've We XXX,XXX a delivery the I'd started point vehicles to additional In Finally, billion and start of electric investment loss be XXX includes few income, by the deliveries end focus net comments expect expense I net EDVs overall reported operating items. the the what billion, in Rivian our while of year loss of cities loss of thousands

been retroactively split, effective to XXth. our information XX-for-X of Additionally, included our share the in financial May has and share which note per materials all stock reflect was on that adjusted

Again, also that reminder financial our XXXX. and on occurred our in part in guidance a this incorporated quarter occurred XXth release. guidance. as is QX into sales year, XXth, provided our July Prime event We third and quarter third Prime Day Day our of earnings

significant. For an operating rates. is XXX of revenue, impact note that exchange basis impact in year-over-year to approximately FX not from estimated points our The includes income guidance estimated unfavorable change foreign

expect our Our quarter-over-quarter guidance billion improvement operating largely be will approximately of compares in operations, income This offset range assumes, investments for billion. quarter members. billion. which see third QX content to This network we in fulfillment Prime additional $X.X cost AWS quarter we to guidance third income digital operating in zero $X.X by is $X.X and sequential

by support asset customer quarter-over-quarter fixed larger are For increases AWS, this primarily including to growth, investments continued a infrastructure strong depreciation growing on base. higher driven

new Power. primarily your energy operating content digital you. around to on data Night expect continue increased questions. and including the as volatility to and We Lord Thank content let's utility And The of Quarter-over-quarter now Thursday also QX, AWS Video move Football in centers. relates increase world the The in of Rings to costs we Rings: in prices our Prime see

[Operator this open the questions. call you. we'll now up for Instructions] At time, Thank

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

two. my taking Thanks have questions. for I

from you're guide I a XQ going to little just sounds a The up to have revenue about bridge little talk wanted first nicely. XQ bit to like one, It bit. Brian, the EBIT

slowed of transportation you plans. kind gone – about the your XXXX think we through ahead you and quarter have into Thanks. back How you've operations expansion sort the months? associated into about fulfillment the nine any CapEx of comment for XXXX grow some other looking You the of call it, about is far the one one. year? and step-ups efficiencies areas that would you're $X.X cetera. with of And content, Where discounting? first more investing of investments are be the or margin the et talked of to in quarter-over-quarter the and the is and merchandise in of billion sort That fourth second where to should next build incremental how going this How last,

Sure. Thanks, Brian.

second Let start with me question. your

in we any capital, year warehouses when of opening support is and of being That it, portion year up beyond. and be capacity. estimate XXXX So about in or effective particular will transportation this spending we're a in good spent XX%

– So to there's the always pre-spend keep moving. again, a pipeline the

the the is you expectations adjustments moved what XXXX. out you just the in as We'll make quarter-to-quarter to our might we time when So just to posted on go have things as those horizon, we we in we have expect are. keep and impact down capital areas year as mentioned. on Again, great coming is

is again, – that a increased items, that as QX, we On we to in three of out ops you AWS, to $X.X QX depreciation. see so mentioned bridge costs have and billion the improvement offsetting build the

space; customer We engineers, support. to continuing also are that people product add in adding – salespeople,

that more keep and adoption there. and confidence companies have in for and with And going we customers know not responded investing the AWS mind we governments. a is that huge days Speaking early in to with to curve broadly, invest we're opportunity

seeing Your of seeing the are that we're pressures on other discounting, not comment now. people some right

are issues inflation that. on on principally pretty and transparent macroeconomic Our

that. I thing gas data is in you've quarter think on up rates natural the energy, prices, additional the seen centers ramp new our if in this because electricity pressure the of

significantly coming down So information and new Well, principally of cost They're factors. still them some employees. a pressures on other cost slightly. are probably penalty are the year-over-year. Other that's of then inflationary our the

technical quarter-over-quarter, If don't but as QX. where comp that as wage up is points for you from pattern QX basis our we look that's to a a every at up our our see of we that revenue, inflation percent We it's see magnitude of stepped stock-based year, and lot gone particularly XXX employees.

So potentially. always hit this there's difficult of we not in a very conservatism directly. because certain amount are Again, macroeconomic our a businesses into built seeing we're state it

that cognizant sales through strong fact, But could we'll things see that's QX. In how in set monitor growth forward the we guidance. in seeing quarter our and change we're we're and quickly and

from your comes Doug question. next with Please JPMorgan. proceed Our with Anmuth question

questions. Thanks ask to Brian, for the taking about wanted I AWS.

slowdown take cloud of deal peers work booking and have the in Some longer just in your some through to duration. rates about space talked terms as customers

So when for forward XX% you AWS then that Thanks. comment should think XQ, of on think is takes decreasing AWS in whether if XQ seeing some and you we also about the margins, XX% And could benefits life tougher going to dynamics? the are and macro going server similar what puts environment? about just given in

Sure, Doug. I'll question. start with second

growth to the that commitments, margin and comes on good as of that yes, by contracts, can a this be, base, really offset you like issues rate gains the sequentially. adoption business business the and the but with pattern going and our is we so and the dropping new the quarter-to-quarter, is cloud, see. infrastructure longer some in that investment as is that a efficiency really AWS, revenue lot strength and be extend that sales in rate. bit the can force right very we seen cloud. happy fluctuate revenue credits now. and margins new to and The them mentioned committing their to Pricing the progress customer of on with to a cloud we've conversion longer margin infrastructure the with make of things always to capacity fluctuate We're help of regions factor We're So going see happy quite with

that As when help hit our this but that, And rough the again, lessons think hard notice patch business saw time potential in time economy, the you're we was cloud it’s draw back the I in it a getting have you to the for own to because to data your XXXX-ish. new last at to we cloud a data did product from and capital and buying moving essentially shows yourself with building and computing infrastructure launch and value. building service it its you center a capacity, cloud the trying or incremental face center or really did

But to So last we're help scaling that… are costs and support, of in and optimize continue. showing few help prepared any where new industries force slowdown their are the is investments including government customers happy customers – down. been other that. again, just we'll that we who agencies and our them the – we your sales new question to look over like you if also, the benefits, and continue to and XXXX, it find when And will sales and starting On sorry, prepared with growth expect was, years it's our our is to your again, –

trends about of in booking Just rates… current terms

into blended answer. Got it. I one

blended you Yes, that.

about. Yes. Hopefully asking that you’re what covered

Yes, does. it

with talked too. Doug, I just now XX availability just pile that term mean, right I mean, think to to – the on just zones. to longer I vision probably here, I we're about

of Israel, XX a spots. regions. eight Switzerland, that's Spain, this Canada, Australia, availability – So India, is got launch New those for so we've UAE, Zealand, more different And or geographic XX lot and of plans to regions, across zones

on those building XX% about And longer – a grow. average working the commitments, year-over-year customers, commitments so talking disclosed really commitments about that. on backlog our important that continuing the long-term life continues building it's to in past filings, remaining up we're that quarter-over-quarter out on are longer discussed or XX% we've weighted the quarterly and to focus here basis making that making and on figure that and to of And that finding point, to just customers to pipeline is

average So years basis. about weighted X.X it's at life a remaining on

a Brian and about, lot talked hard facets serve to working to there many still make of in to come, lot opportunity in of as good good good folks. So that we're we're and out sure work, investing again, a in position

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

away of about and for relative versus the at North services of growth us advertising. America need your where advertising, the North part this about from an the e-commerce strength. you point to driven be of second on of you're going you saw advertising give how Is wider international Thanks America the advertising the programmatic much make the feeling e-commerce, business, two-parter from and increasing taking are products? is it to to forward think you continuing line rates way Maybe exposure and things array update around a investments international? questions. where advertising you between the by Thanks. And levels any there to continued would and how and e-commerce-driven TV investment How advertising parts positioning in like and the the outside make like looks Connected of greater

array for Thanks making geographic broken the revenue on as split, Twitch consumer of The well. as out. are do we Eric. we're Hi, from mentioned, And that, you second having take in part you our North I in international said video is America, we and of that? Great. advertising Dave, the want also, our say strides others. would expanding to that websites products great to of opportunities, questions. but your haven't majority advertising

Yes.

it experiences. a Eric, question priorities one building relevant think of engaging it of – got and is – kind was mean, interactive around work. our was we've I ad I main

well And ads video for for ad ads. we content, We've of year like Amazon audio things course, Freevee. got so, supported last Music streaming interactive as tier introduced as

streaming So engage easily customers opportunities with like looking that, for while brands where more content. can

traditional using great, and there's space, viewing early viewers. I content as and ad- shifted the reach those still really coming have supported for more some are behaviors of mentioned, that a kind traditional in mainstream then advertising, viewing lot cable away our of it's So opportunity video of good from but what's to think or that, you advertisers increasingly it's

around excited obviously around with work going partners we're and of streaming Amazon these Football of Twitch, ongoing to that our out. course, then to things we're So work Night things some about technology ads and capabilities are we've kind keep talked and that it. building Thursday Freevee, to capabilities TV about with continue own

probably Eric, now, advertising and positive growth. for for – be little the potential because that I'd advertising you're the a on a more macroeconomic still about it's for got Again, strong softness again softness Right just we see add customer wondering both or brand. in factors.

are credit I people we to their when looking, And point purchase. have have highly streamline their think the products compete regard. advertising measurable. where also advertising. efficient and our are that It's our is are think optimize People we to customers are very out in companies make that advantage cards at a or potentially ready advertising well spend, very looking

like In to building front selection of maybe addition to brand bear and term brings things longer new in customers.

Jason comes question. Oppenheimer. proceed Our with Please next question from Helfstein with your

Thanks. If can two. ask I

and So of kind how on secondly, then of was that increase into about Thank to mix FX-driven? XP sequentially just you focus being mix called a highest maybe how out And fits international, margin you. the the for efficiency? in improved XP weakness plans level, the to talk your the much

first Let me your start on one.

the incenting about bit mix, that is there how sorry, your I believe So premise question. challenge a little is interpreted I

We to be. happens two eligible selection. to in days first-party and as helps when XP being or indifferent to with help convenience. Prime ship are or particularly We're And part all whatever obviously as product also buys the more Prime available some third-party selection customer from about offer can is us and us. price FBA it's relatively of one, a whether And

our happy with that And tools made we've we've the sellers products selection proud of we're you build that percentage well. base. also to the the it's in Sellers be investment And We're see. helps well customers site. new it's and think to shows sellers. that of to mix that as our vendors them allow advertising and advertising that a partnership added on from great larger So really selection third-party some I and customer – and helps are surface successful worked our

stronger. partnership Prime Day had they And also very our month. I you'll think a part see and in that been earlier it's it's getting a So big very this strong

billion reported for segment there's your million included to the Jason, that about a with and in foreign the the exchange there's income, there profitability Yes. exposure quarter. there, question on included operating in second the of $X.X $XXX that on impact related loss international unfavorable to that there segment

work Prime us particularly can or remember opportunities with in profitability continue that Just for the local engage language with meaningful and of resonates I those be with course, had renew. Prime the expect And serve content many operating in-country are and convenience of of And price and amount looking commercial Germany, our and considerably UK, seeing do many to a we've across emerging flagship video important places people expansion. program, shorter investment we're and the we've reason push for that in improve for our the countries, to payment customers out the cases Internet we're it's Japan, the even of and customer in business here locations, also emerging – recent investments locations, on also what's vendors third-party East, and selection broadly kind of of continue infrastructure. investing not to cases, where out in the a on through as the regions international time, in cost of whether going of the that, more speaking established we competition given to is early in infrastructure In markets countries, to that's kind terms. it's and build been some investments, there of and seen business the in and of of strong in the depending Video, the losses key we've that continued like Middle [indiscernible], healthy the tenure services, our launch telecom sourced the others methods, our you've are than drive shows transportation U.S., local structure these established folks. done but India, some U.S. think lot on that there's the the over driving there building well, and with that course, we In international in many we've how sign-up stronger on and working we just that, at our A relationships it's some Brazil, as improvements pillars to but of

So in investing that create with others. It's successful. a infrastructure and be we're ways playing us role not enable to along to just

challenges to in in we're where kind So in of invest to there. you about the we of continue the serve out in The customers of countries think and – other out with those that But in are some continue history are U.S. more some but hurdles important international that those in of regulatory spinning opportunities and complexities, not and efficient the think what the U.S., ways. that learn we and from also versus done there to these are network course, we've it's just what are many flywheel and differences opportunities keep there.

Our with Squali with your comes Securities. next Youssef Please Truist question. from proceed question

implications but Prime, it just being rollout business this FBA that on the of using from today Amazon – by and broader I merchants the initiative invitation Great. And merchants, fees, with implications cetera, you cetera, Thank price do all on et the you on Prime, only can see to how the know during you. that's kind action I to have that – do retention we're and from merchant of on Thank took the the two you on et date? you enough pressure seeing inflationary Buy questions. feel then had the One, to offset on impact, you. initiative? quarter, it's to discuss early,

you, Thank Youssef. Sure.

at the a time. take one on first them let's – So

we're on Prime results and the is in happy increase the program. strong. Prime the So we're fee in with retention seeing membership year, still Prime the earlier

I in-stocks never And to expectations program think mentioned the higher, increasing. I is been our that of better the positively. think and I better. get change benefit has continues been speed And as delivery above

mention side So the a fall. content, to will be new in not the that coming lot especially video the of on

feel and upon. very build to the program we turmoil. base rough about state years think good of the after Prime we couple good And a So the of it's pandemic members

to that came the for fee in the those fee covering pressures don't fee close that to grudgingly of costs. again, either seeing. inflationary idea the added May So seller you compensate increases of want on we're to we I our some give

results, in that our some and of the and – groups. we on external are lot out in – in they're a second QX, see we And saw of seller condition can in are the a mentioned that to factors are at external year, on good progress to got it's from operating mix. strength we that it's not work of it’s passing making You expect the our related, through we internal we've XXX% QX results to way pressing keep in the percentage half the as of but but

So I think, an customer in seller business integral part our of offering. remain strong

sellers you of helping a lot merchants. merchants and Prime had of of We've as what experience, may have brand. to history they But free that with Youssef, sell U.S.-based along we that's expect on and that's their the it's I and of directly or with right expect support Amazon it's come and Dave. an And fast empowering is sell that. and opportunity interested course, that that not things mean, year with allowing who we've we'll merchants checkout trust think merchants, the to learning the the this I and they using choices On may have us your capabilities, opportunity capabilities invested invitation-only the the working just products now, now you to Prime Buy FBA in And yes, invite for but their eligible. for merchants and expanding. think tools their obviously about seamless online lot mentioned, available, free kind products. to FBA. with, the members returns that already also on a where it, are known as shop to this in and scale in sellers question, stores. long We're program. from delivery delivery with merchants the going more participate tools all go online and expand extend build the And be Right it'll throughout they're to a program And as on with orders good are business is FBA and they and that and

think I of to and so this about, year be the sellers And able course, last I’m over months progresses. the program few to launch as really getting excited up it for more dialing

Ju question with comes Credit your question. Suisse. with Stephen final proceed Please Our from

you. Thank Okay.

happened think was Brian, for headcount, which by long on what but I just decline design won't be before gearing you quarter, a So you are reported holidays. quarter-on-quarter up too the it after last

to compensation you fair do how for to the you And going is came for also stock-based environment in second think below, guided the So had the quarter. headcount? adding where you be

So a not hitting of technical environment hoping do talent the the engineering hiring Thanks. were is for, up hiring for little goals of you bit? or think a the losing is you matter this and

Sure, Stephen. Thank you.

yes, think workers in you by give last – it the we excuse a we QX, was On XX,XXX. me, we headcount, headcount reduced to mentioned – in more flavor last as year XX,XXX for quarter we year net our it, – I added QX, added had prior

by we’re we of fact lot in – QX hired adjusting subsided variant, resolved for Omicron the through had or left of down were May. attrition luckily normal of come has early coverage variant we with was that a that about April So position our the much hiring people and the end pretty headcount and higher of and part levels a pretty transparent the that

the note and into headcount XXXX. up early XXX,XXX headcount. So in of what I dominating still double would we're the we nearly that quarter-over-quarter heading the pandemic had that reduction is year-over-year in

maybe more a hiring be as adjustments there we good rates. holiday move stabilization we now, So see to level you're right, that demand. the into forward in workforce, we Right see will

second And in was last it of arrived a didn't very remember, quickly so kind as of of period labor out half year, nowhere. the and you difficult I think there

that diligent certainly and will good making we're that workplace have an we employees. and on So sure environment a attract

step-up And Stephen or always you on we stock mode primary And of we – of in in around. impacted course, second SBC step-up last And number remind from it inflation this some we annual of a mentioned, you, the hiring employee overall on about quarter. stock-based occur also to the to your RSU Brian is hire our saw headcount. comp, grown We've areas you QX restricted your just The do years. there's line result, see a question RSU typically the talked compensation. our over as we a continued equity tech in time do as to the as grants utilize units workforce to retain and QX including employees the as the as other And expense by workers, and and as few engineers, wage on look the in of continue component of business, there. growth

driven vesting we five $X awards stock the over In awards the stock-based driver main we’re than me, fewer coming fewer excuse in for terms comp, at there billion was vested QX by in – the primarily little employee of employees stock – expected.

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

Thank call. conference all you today's for your This concludes participation.