Amazon.com (AMZN) 2 Feb 232022 Q4 Earnings call transcript

Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Quarter 4 2022 Financial Results Teleconference. [Operator Instructions].

And for opening remarks, I will be turning the call over to the Vice President of Investor Relations, Dave Fildes. Thank you, sir. ahead. go Please

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

questions to our Jassy, today us is CFO. answer Olsavsky, Joining Brian your Andy and our CEO;

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

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

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

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

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

including the fears, detailed world commerce of our recessionary online various inflation, economic regional by the global market constraints, growth inherently and may are rates; and SEC. with fluctuations events, geopolitical pandemic; unpredictable impacts and cloud the in of Our the impact results of COVID-XX in of including be chain conditions; many demand rates, factors services materially filings and uncertainty affected factors, and the global the exchange spending, and rate regarding labor and in changes customer foreign interest the supply Internet,

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

the over turn call I'll to And now Brian.

joining Thank for call. today's you

As earlier, I'm today by joined our Andy Dave Jassy, mentioned CEO.

I Before will our we results. QX questions, move about comments some your make on to take

start Let's with revenue.

sales rates end an year-over-year, quarter, For exchange impact points in net changes above foreign basis excluding the from the of guidance that consumers choose worldwide they $XXX.X of fourth and increase spend unfavorable billion, economic how are range. top approximately money. QX where XX% our periods and they were their XXX of of seen representing careful their during We've very resources uncertainty, allocate about to

holiday to Throughout to these. our found like customer we Amazon's fast in came bolstered selection, to partners optimize delivery the sell Amazon opportunities great on to by costs million AWS for Enterprise on thoughtfully times This multi-decade that season, who with focus past identify have history, customers our us to the customers apart helps their nearly continued cloud third-party X seller work. their set teams widest-ever while Amazon. our and working closely and deals, shift reduce

and cautious shift We categories in worldwide items like In the behavior. spend with with brands to of ongoing coupled value uncertainty, lower-priced their inflationary economic our business, categories spending on less them pressures, remain customers saw the stores about continuation and discretionary electronics.

them saw such also and beauty We softlines. to everyday as spend on consumables, continue essentials,

Cyber and our QX, our offer customers hard sales expectations customers first-ever of the for global low October These growing millions responded events deals holiday Sale and selection. across to including secure Access deals prices in traditional Monday to Early outperformed more worked teams of millions in Prime to weekend. Our our as Thanksgiving

that key contributor a selection. expanding remain to sellers Third-party

budgets. competitive even customers required advertising the macro their capabilities own to to sellers in them continue In of to as always comprised season, holiday scrutinize XX% environment record vendors QX, overall unit to look sales. marketing brands a Sellers, and reach Amazon's the

excluding year-over-year, growth benefits to is foreign impact and to delivery of competitive Prime customers, good saw our of seen XX% members Along selection speed, be improving a pricing, expanding a with investment the QX, we've up part our value exchange. faster revenues and great our entertainment We respond in Prime for membership continuous offerings. advertising continues broad Prime our in strategy.

quarter, season XXX The worldwide previous reaching the The content. during Power, launch we every viewers the Prime window sign-ups Rings: driving original million than Prime most any Rings of Video Lord During the completed of region first of our the in Amazon watched more and world, of its series over

XXXX by hard-to-reach any XX- our since as finished the Football, last exclusive to also reaching broadcast increasing audience of inaugural the Night NFL from season viewership XX-year-olds. XX% Thursday age home of We and package median among youngest year

we aggregate, licensed Amazon third-party across Prime. video billion up sports Originals, XXXX in $X and approximately from with included In about live invested XXXX. content $X billion That's in

by proven acquisition. digital has costs a As to content We a statement. member strong engagement what as evaluate see, reminder, regularly of Prime driver on member these included income the in cost our to encouraged sales of video new spend are video and we continue return on Prime be be and the

AWS. representing run $XX.X more to of than growth rate conditions. ways in as tough annualized year-over-year sizes response QX, in of all rates their $XX billion. third quarter an XXXX, Net billion the evaluated XX% sales macroeconomic back sales spending Moving on to middle Starting up saw the enterprises of increased and slow we optimize in cloud the year-over-year to our of now

expected, As fourth quarter. optimization the efforts these into continued

of to during your to benefits key in the costs the quickly, being large cloud economic and ability the are demand handle of data uncertainty. optimize managing of center swings to compared especially own times Some relatively

looking help are to and how focus informs DNA money, customer for long so. do customers in term. is our about a trying think spend partner and how them the with time our our This for will lot and we customer of we we them Our save to relationships ways

of quarters. we headwind couple efforts next continue to will optimization look AWS be least we ahead, at As in expect the to growth these a

revenue new and customer and the our migrate back, the healthy said, the remains many over to customers to and in mid-teens. the term. are AWS put plans commit there month to in pipeline first to growth year-over-year place cloud That far in robust, So long stepping year, continuing the AWS of is

to shift income. let's worldwide Now operating

had and our in the billion these billion equipment approximately operating changes impacted would was estimates liabilities. QX, The severance, incurred impairments added If self-insurance charges property billion. approximately This For operating our not primarily costs we This large X of have $X.X income in items, operating leases and America and related to operating impacted which to in income. North we $X.X segment. income negatively cost been in employee quarter, reported $X.X related by the was quarter. of

our with the to the operations time in business. compared to make costs quarter QX the continue the at right of productivity in progress allowing place in us more our Amazon network are gains. the year, labor streamlining right we and demand matched stores right with encouraged appropriately We We labor last to drive to entered have across the

also across improvements We our fill Amazon tech resulted line rates. process higher productivity continued saw improved efficiencies and haul where in transportation Logistics network, and

fulfillment While overperformed our productivity the saw transportation in our in expectations plan. quarter, centers, also improvements with line we across

into customers, remain customer good reducing while serve outstanding to driving network we an We holiday the operations look was by our cost saw we by strong making leverage and forward strong it focused head also team, efficiencies and we on our cost ensuring XXXX. volumes. effort to Overall, experience. headway throughout We maintain driven further a as the

Circling the during back to charges X quarter. the large

initiated share additional me Let fourth we with starting job the quarter. some color, eliminations during the

just as to us as As eliminate resources the this well environment, teams. we over XX,XXX stores uncertainties our human businesses impacting our led of ongoing difficult to and consider the decision the roles, primarily macroeconomic device

As our primarily a technology income These statement. general estimated of we were and charges on cost in fulfillment result, content, $XXX administration and recorded severance million. recorded

to recorded will equipment our property with build customers, find stores. us and meaningfully refining time. primarily related our and grocery to continuously allow of and Amazon we store Go impairments and the ones that Next, over brand will will leases, scale We're Amazon resonate our Fresh physical operating to formats

an exit income and portfolio and our impairment our values was decided access in growth As The such, statement. stores potential. on other periodically take costs capitalized of on operating is stores leased included with and QX associated in charge we We'll $XXX low our to expense impairment also buildings. certain of million

significant We focused we're to serving whether channels, believe that's multiple is through opportunity, and shopping. online customers on continue grocery or in-store a pickup delivery,

billion. increased reserves general about This income the additional of quarter, primarily our in automobile sales driven product by and for expense our we resulting Lastly, liabilities, statement. our $X.X during on in is recorded cost of impact and unasserted asserted claims, self-insurance cost the estimates changes in of

adjust have for built As this as grown out as evaluate our inflation, business well particularly unasserted we've the amounts seen for claims. years, our quickly network our last estimate and asserted several continued to both over and as we've fulfillment claims and industry-wide reserve transportation has claim

quarter. of overall net reported We fourth $XXX in income million the

comments focus Automotive. Rivian I'd our includes investment income, we stock our While income on included this income common that valuation in billion of a in loss primarily nonoperating $X.X pretax net point operating from out

this operations in but quarter-to-quarter noted related ongoing we've fluctuations quarters, rather in recent Amazon's As not is activity the Rivian's to price. stock

driving reliable way into shareholders. better believe we the customer head heads-down first our the only focused We value on experience. to lasting we putting remain a new customers As year, is for create

this Andy. Everybody, is

our be on call of last be full start economy parts today. from calls in and the good to of might I and on just time thought year time the all this a business, in forward. to jump we this good with one before the my moving role, the with that wanted was Just And it's thought might to I this questions, the unusual join. I quarter given I to some first end the given say you

having So thanks me. for

line first of from Nowak Instructions]. question Morgan comes [Operator our Stanley. the with And Brian

you've to Andy, the a while. the I two. first one, ask I seat in want been just you, for have

America your key categories there, recover? product most points, are in growth investment retail drive multiyear focal As to durable you you're North focused as we sit that what that on priorities segment or

North of of do are side, few you years to efficiency grow staying the And then those the next second warehouse what you America into And how the warehouse? that over potential business to the are potential factors the you think about sort the And the just retail get goals? of what sort as one, on network? margin

is this Brian, Brian.

me First, with second just let question. start your

margins, said the our the especially were XXXX. the can our sorry, early starting a On network back the just out structure would in what of we years pre-pandemic, in what North expansion. when quite part me? and for retail we've an look of XXXX, On -- we had one-day is of to a X of structure has in bit doubling expectation cost like. changed That now shipping last roll to in America, North We're due cost end to just our hear look expectation America, we you

think heard I story different tell this you've calls. me on

up. going will we essentially, X added improvement the improvements in XXXX continuing where -- the the have drive now need where at North to, to change But our we're efficient corrections, to we to more, structure this things regain trying beyond. on investment and costs. we've working assets make that cost of operations again, through and need expect in definitely big look make years growth, working And to always balance to and the last on get we've and X, make make again, we that, the in want But in made that expect are past, on at had we're and all XXXX. to areas XXXX. we America we be to now good to also look We headway in the them course be We a lot more

relentlessly do trying everything and just as at in up exist we always experiences to working is change well level, across a the we broad term. the to we the lives customers' entire I'll do us. our make the broad easier for hard maniacally long-term in so. being At going believe America, start and And same this tissue customer America give focused true the business, as that company, we be don't stores do at North North the Amazon for and over to we're better to streamline day priority-wise. the that every that and The so we long same top And is strategic and can meaningfully time including Yes. a across realize investments experiences, on in on really costs time, to connective customer went priority change

to as American North built it's it the serve size of priority center spent our Brian -- -- directly addressed our And I for last the out remember we've And team XX on, roughly few couple we just years. that a UPS last As we've touched on fulfillment think our with questions, #X and time I I in we, that same then of is couple years, took network. the stores the cost mile important probably operations the years of reducing network to a time, that at built a in doubled years. over transportation a in footprint over the

And when to in of both you're those do we the get everything just to demand, functional, so you huge -- things to surge those it meet going had. took

And so more there's productive. to lot how more make efficient how to out and a optimize and figure to

big pretty that network. different becomes time, And number doubling have large and those then the expansion adding network. a to to fulfillment to the I of you then network bit about if little products you centers very the all the in number same you in a that's facilities a think think at link together and It of transportation realize nodes get of have customers,

And so the efficient to figure and them highly way, all how it flows to right time. the those and out across takes to really facilities have working those utilized be in be get links

I'm that in will and on can But in it. of some with the progress made you QX, results. we're very the pleased work 'XX. working So see that into hard extend we

first. that's So

second about customers continuing believe to We also they I that deliveries higher and talk would can is a rate speed. of I think converted are faster. when just they're get the to faster, promises happier, products customers see makes they thing, priority-wise,

matters were overall third-party of be selection. selling very always customers. hard the to thousands focus partners. high selling millions the with in will lot unmatched In quarter, us. units for work of XX% partners, We area a sold and of we that selection and world from to hundreds provide past in think this of And U.S. work our I the a very

with having important and partners you in that But together work hard the deals I quarter think of type they're important. an how that we we'll on selling particularly economy, pricing our uncertain sharp on the being demand about where put the much being this pricing. sharp are in was spending, conscious is customers fourth of part continue always of to really very saw, millions

apparel a those clothing or how business, very that to able on with experience, and websites customer RxPass in our whether experience or care continue in improvements for Prime even planned. it buy, looks your virtually that might all just time, changes will Amazon; And then our adding Prime just $X Prime looking can with a buying get use medicines fashion; their customer just benefits it's where and outfit work that it's month to your customers on more see unlimited it working we're where the hard whether we when you allows in your shoes Buy space, experience, customer other to being experiences, you're the have we see health all than users Prime the adding to using lot the they're

with the from question comes the Anmuth Doug next JPMorgan. of line And

have I two. Andy, for Also

in would efforts how know market. a you're evaluate I first, you thus grocery Just it's far? huge big, -- your

you're the You're here it to steps greater share? different on key attacking ways. focused are market What drive that

autonomous And think and about strategic and how like others? of bets of then health among Kuiper these secondly, areas we emerging care importance some should vehicles, the type of

and we in stores delivered that stores. and a It's think a in them, grocery is be from and pick and are us. are out important segment, omnichannel. order so be to of also continue to people kiosk stores, it on lot be large or people of that to those, in and online. physical one in shop something have or app are by strategic people very lot not there There grocery. really and it also go grocery area But to and to for lot see that's their that for delivered they going believe there's to who to we how order stores, grocery, grocery of going in first I'd hybrid online start it items a a a frequency over saying you're up the the to they what people be market there's online their just of consumers On want buy inventory is And time, a going a to in where going pick

And so really I going think having to omnichannel is matter.

And I pretty significant-sized think that we a business. have grocery

of It's I we've it think long accelerate, a people time. kind don't building and pieces. continuing for I realize sometimes that that into and broken a few been see to

If supplies you the large grocery aisles we grow. canned business looks health to grocery physical we if a clip large packaged to there. at typical from about a think offering, and the from we grow about continues in to products to very to think store. goods mega different paper you very personal rapid food have the items have store, a there grocery that consumables, then business to It continue online will think to pet care a and But

it segment in segment perishables. offerings want a And perishables, you you really have to X But typically different market doesn't And kind have in of significant we share have big share market physical there. need if stores.

physical but progress grocery very continuing is year. of business store see very in business the For a Foods, a last best product, a what it's significant-sized good that, It's have think -- selection, a really think which I experience it's business. us to profitability is for I And front that that's I it, I has the significant I like space. and what in in premium that's grow. we Whole and business like the made very the organic on a

we store need working offering. far. so expand we've like, so We're with that or if that experimentation have And what with stores that in with been we're on economic we optimistic and stores the want of we've we mass a bit find to to to a that to like economics. you resonates year some few we to format opportunity fair at doing offering, hard decided it meaningful some and a I physical different But Amazon last the doors fashion working differentiation going have you dozen going segment. Fresh, we that's find we're customers. have think the that think been a expansively. It's significant a until find I today where a try when expand those -- we we've that encouraging in differentiated over that And we We very it. we XXXX. equation see will more in the grocery value and signs. not We're in do Fresh And think that we're physical equation, but have

pretty building on to and it. network continue to online going see I us grocery across think we're a you're broad work and physical,

And next Sachs. of from Eric question our comes with the Sheridan Goldman line

then I'll should the geographies maturity how of a different you your just if to investors perspective on global big margin strategy e-commerce years today? with businesses picture and Maybe ahead? Amazon's a us And keeping wide growth picture get Obviously, Can matter how variance of international love on be evolution cycles. you're I'd thinking sort can. of footprint housekeeping in on international theme this perspective, the those the about ask give businesses. mix a investment and to Andy, in and see range your Andy your and in one of e-commerce Brian, of big view I and of you

QX a just investors restructuring to some capturing follow-up. can In that you QX made QX between operating QX. you was Can the in quick QX the included the among the income might be of from as I and way frame versus ask that be think what the charges if where Brian, I you might announcements just has what captured guidance? confusion employee gave, operating income the in you some count company maybe, guidance there's clarify And on

This is Sure, me start. let Brian.

Let second part. me that start with

earlier, to QX into QX. in a we million into late the elimination January. position I as that that fell So announced mid tied took said $XXX A of charge lot to we

the in But to the So for what a operating the those severance costs is the results first where in weeks QX. placement, months or salaries way of charge there's the that, X January, lot are for period in QX. the was of for covered $XXX it coverage, are million terminations weeks think about job after

helps. that hope I So

And international question building business on the enthusiastic about we're very about e-commerce, the we're there.

of look And and given net XX%; at haven't grow U.K., but you to established has even compounded the if amount from look was where over in we're fact that that meaningful perspective, back XX%. in market the our you the we 'XX, to growth, all share we're about and in of growth, that continuing XXXX it a growth are just think these it we annual couple to FX, quarters segment Japan, rate and of I back last at if XX%; haven't the Germany, was given global it e-commerce of excited some that. territories, shifted was

Now Europe example, and than impact higher the significant. in more also is for the and you we're developed something our going in the if as -- And more at on hikes happening in war this stage, look the inflation international we're big be significant prices and there there's when is energy impacted well. enough as Ukraine that to the places, are significant, just macro, territories Europeans in most we're an

numbers. can our growth you of in see So some that

the countries And they're of -- in a of and then a in Mexico bit number They you have a take when -- cover and and be drive they're amount think little going different are and a look of certain India like countries, believe trajectory Brazil to like East Africa our of of we amount and large But types But time. investment. a it's we're to and new the you what investment all established these if Turkey, Australia certain able and you profitable Middle what enter you geography, There's countries, make a amount stage and a in those roughly to America seeing. have that trajectories at little geographies, fixed you look different then our and North bit a we in at recognize emerging as to e-commerce the to question. on business. all like right we're and revenue international look saw fixed certain and international following right all you that investment the and have we

with And of comes Post the the Justin America. next Bank question from line of

for one Maybe for growth then the be and look AWS, down quarter. Andy could even Great. you of Brian. implies if one at it revenue and it flattish this mid-teens,

maybe So could clients driving it workload that. changes? what's on talk shifting? on? there Anything about are some that Are Is you the market comment share

when second, to revenues what's that. then when it time this I'll And Like recover? And expect the you back could do you think frame? would come at margins reaccelerate? leave

Thanks, This is Brian. Justin, question. for your

the start with at the customer Let seeing what -- level. me we're

as So like things like mortgage it's weakness, some -- points There financial are that industries. companies services, all mentioned, across I've continuing of do.

well. advertising and of volumes spend, mortgage are less there's lower tied down. there's advertising, spend lower on down, their to compute as analytics crypto. trading some challenges And things volumes Crypto compute as compute or As -- in is advertising

can . But -- things their spend do. you an our everything at Amazon, as as large, -- the as so interest downturn. by and there's just doing they else. get an And and to seeing infrastructure priority our a same there's enter down is thing But We're expenses customers questioning by economic what well we we're

can defer lower-cost can to -- switch products. You you

data. your calculations You do just There's you -- on frequently. can storage less of different run can types

time. cost ways period in to bill a your your alter short So and there's of

again, our to we're as with seeing. help customers what do think I that. seeing I ourselves we're said, we're working that's them at Amazon. And And

let seeing Andy customer general AWS, level some on of that's in trends kind at the the right I'll So what now. but add we're color more

a I -- bunch would I just So I it. Brian covered mean, add of think

now enterprises acting cautiously. most think are right I

You streamlining see ways can worth," of in thoughtful in lot being you that necessarily you economic they're can with are I some And But they being cautious, with term. when optimize and analysis will as for cost we're can X or, companies information of best companies you uncertain may they less virtually and away that spend about over when thing weeks, it the for to money. you find days where say, cases, very well. look it be every -- enterprise, costs our doing not can a long weeks' used X "Well, XX doing situation. do get And it's

is the we're all going a money. way our we've AWS customers to find this reality that less instance, way but that the in to And help is that particular spend businesses, built our

not trying focused year, us. set of trying one in build in to on all outlast a quarter are optimize We one to of any that we're business any or relationships

And our uncertain in more be that. spend way it's a to for customers a so to our of find effective cycles if good an cost doing is economy, lot team going to

seamlessly more can't it of And don't that talked it's anticipated, cloud, one launched XXXX of the if But scale as cloud is a reasons turns the unusual. are the effective had, in give that demand can the can and us that since you turns AWS very much you elasticity than It's stop customers. is which you you very you as advantages is of need we And lot we've you that why demand up. about AWS do to paying is when which one it out for out back many on-premises, it. for and have you it something

think I we look what the time we spent fair closely bit this, at -- team on see. with of a I've and and AWS

think very to what new times step a have and those see position healthy lot number that want are migrations of means and uncertain to and like We set economies be customers, businesses this to will back to a as as well. that of about often companies moving emerge, quickly during of their robust, change to they discontinuity change We a customer happen. in strategically reinvent the A their customer more pipeline, experiences cloud. pieces

a specific only in the break ones more way. we're really numbers our And cloud that out

some to So year-over-year, question your a dollar estimations, the significantly we have bit to dollar it's at large with than think partner operational still about capability that's the security answer else fact we and of and a a anybody by growth more more what But lot see have growth space. see. hard we, little ecosystem. absolute a absolute I in best we we look stronger always that we our when just a larger amount, And function of this performance

in don't So XX IT but believe XX% I be we on-premises will best if useful it experience, that, means in the in of in have to which it's flip, do. and the front the at you on-premises. really working remains us of XX remember hard shift if that lot going next AWS a And go which have do of have the XX% spend most that away, years will an global business. believe to that equation cloud also ever the growth customer to I is to of It to really to event I work think we continue we're to think we

line comes And from question our next the Citi. Ron of Josey with

accelerating around how customer time essentials, here high-level is wallet may this bigger is spending everyday for Andy engagement believe going. that seller relatively question around a members Talk Maybe little new just this Brian, just Prime just and on be member Prime which I the was growth a quarter. mentioned in more seeing services case. is evolving just use third-party share And and over a here and and grown where really more, maybe has bit how it engagement

we by with would a is a but you will sign-ups -- And that, not acquisition, launched varies Yes. member that the and purchased we again, Amazon I Lord Prime But some dollars Power. of last new member had our link new had that Both like if everyday Thanks, remains per Night say Rings Football membership large geography. website. record of properties member. very or step of Prime between we that and year, Thursday Rings: also help the so investments has of And Prime the only retention. strong of Ron, bit had type for purchases back, on a video in and higher Prime products for question. general, we membership. them know direct see It your engagement that

So of very Prime health the strong. is

that and think combination shipments. get be it's to one-day we are mentioned earlier, selection of also work received a we speed up will Andy by to get of As convenience. our price But members. continuing delivery Prime more well to And

on I been last third-party selection over added we've all the think of especially them, years. with inroads the made few that's

that competitive came, deal-driven to very members In their that the came Amazon to do environment, and the quarter. testament had sales think others people I we So a to is and fourth Prime in shopping.

encouraged by it. we're So

what add $XX, and really Prime think to entertainment back about is are month piece which that of is Just them a really step one today. of is more a programs, if for there just, subscription $XX are lot you than content, which number a here,

shipping regularly to mentioned, continue about we take continue Prime, value like just find number that you elsewhere. and of If the you and to and get as lots grocery to will get the better to it's get early across music to better photos Prime your you continue make the featured, different experiment and people people less where benefits. Gaming see elsewhere the more Video things capability, what get at subscription and you I that and than benefits just and the service get the and think various month value with a medications we of provide, is we a get launched on we you $X Amazon spend use fast And for is of don't you businesses. our remarkable benefit, to continuing fully just you But entertainment still you benefit add unlimited, RxPass Prime features find you that on with days. And we and shipping Prime benefit, side which some just Prime Prime the content benefit the can't of and websites the the get Amazon benefit the Buy beyond

we're it. about optimistic So

with And final Mahaney ISI. from comes question our Mark Evercore

Two questions. the continuing next is Brian, what demand? just mid-teens deterioration like looks a any couple holdable color quarters, on of why of pretty given AWS over in rate for enterprise clearly, growth kind

it's the how have doing more little you're lean level, in Maybe maybe say groceries not with quite priorities changed a different than at And just And And except for or like you've level more. you last on the what as stores, a at priorities then, so a of may may have But little it company's a your about Andy, CEO. content high the physical been or wonder bit sure how a maybe a high health. year same, spend it's and peel peel your then have on bit on devices, just bit a I'm over I back are entertainment there's talk looks like back or that. prior would a the you changed of changed priorities CEOs? if the could

this not on certainty forecast rate, to I AWS can you level any I'm So of is what going beyond happen with quarter. growth for the sure

this some on the I -- seeing things think of territories uncharted And this there's mentioned, a thing. bit we are in economically. many with base as the kind that industry same customer all You is unique going

I there in to And do don't we I one, deals. are for crystal a continue comments, the our ball earlier have customers. work to we on as going said be but So to that have for new

to And short-term the perhaps the cloud. cloud, save get in money to long-term have companies, belt And still are the to of The the trends there. is think infrastructure lot there's there. the expense quite I short new to way coming frankly. tightening whether We workloads I quickest value by was think term, a

positive have economic lot and just quickly. a volumes a of tough we'll people's happens customers of in led there's It what again cloud, the seeing resurgence with today. when see to probably So for and Saw we're that very times. acceleration long-term that if to XXXX that shifted in to journeys after

and shortage war adjust labor at for what's to XXXX And leadership look happening team, the try if in around and think pandemic businesses. any impacted often I and I that teams and how think the couple meaningfully each say of and you economy, should their you. and would inflation they leadership around era what by in the and like years good means the I look with is uncertain Yes. Ukraine figure different, that things last it's out

if realized to in we of I so some for in the sure and us in think XXXX XXXX, met make part of demand the early you what at and for in the surge in decisions -- to And we sellers look having to fulfillment make that just as our consumers tried you delay And we make part our of capacity than XXXX, economic. try mothballed to had early needed. and we're saw more some be builds network more of and going facilities we investments XXXX we

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