Amazon.com (AMZN) 27 Apr 232023 Q1 Earnings call transcript

Good day, everyone, and welcome to the Amazon.com First Quarter 2023 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.

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

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

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

to conference As to includes commentary our well front call, on have as which our results metrics we of you you, press today’s encourage as listen financial the in release you and quarter.

for stated, call will our results Please this be XXXX. of in note, the all unless period comparisons otherwise comparable against

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

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

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

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

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

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

the over to And turn now, I’ll Brian. call

Thank for today’s joining call. you

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

results. our on make Before some I’ll regarding we to move comments take QX questions, your

revenue. Let’s begin with

changes were sales was year-over-year, the our approximately rates. For points XX% worldwide excluding basis the $XXX.X foreign range. net XXX top our or from X% This billion, first guidance quarter, in impact exchange up of unfavorable end above of

and consumers. quarter. economic pleased segment, pricing, in speeds, on that helped macroeconomic Across looking with delivery inflationary our and first budgets is including pressures are That to to having in by selection seeing acceleration and International on pressures serve, on believe cautious the including quarter-over-quarter focus their businesses, spending value. the the are drive we we across uncertain strong factor, revenue which further in and continuing environment customers throughout Overall, easing which continued the we’re stretch continue customers focused we ongoing improve worldwide the staying it’s geographies appreciate our easier a convenience, growth sharp Europe. to are be said, stores means to This

We saw discretionary in on and demand well everyday shifts essentials, categories items moderated healthy beauty. as as spending as and to such consumables lower-priced

by the are Third-party businesses storage to utilize contributor sellers, to to services their who shipping and offered customers. Fulfillment Amazon a selection including for elect key

efforts, protection year XX% up in that sales unit overall industry-leading to experience of including bad can a We also QX, we from provide XX% so comprised selling Sellers brand trust continued free invest from actors. in meaningfully one sellers will technology, great ago.

make help in We and sponsored excluding foreign year-over-year, advertising as of offerings saw our remain work we impact to key decisions. driver purchase product rates. up our informed the also advertisers customers engagement XX% particular, strong growth revenue with with brand In services more in a exchange changes from

that return ability their teams along them advertising focused flexible to grow allow the Our business. performance capabilities on the through measure help spend insights remain delivering measurement their comprehensive and on our and with advertisers

sales annualized quarter, sales up billion representing $XX.X run rate $XX were than net first the in year-over-year more AWS, of In an XX% billion. and

ongoing businesses, continue industries you’ve across to to the for look seen customers what of cost their economic savings all Amazon. Given similar in sizes us all uncertainty, doing at

As cloud we response in expected, conditions these saw first are evaluate economic the revenue with lower quarter. tough April basis optimizations rates And about to into in what customers growth spending second in ways to optimize seeing to continue their points continue these quarter XXX we QX. the than

optimize quarter we’re one reminder, for a As not year. trying any or to

built sales our business AWS We’re and and customer spend This of helping over that customer optimize spend we will long into better customers how continue think and of to Therefore, economy. our a working relationships business so outlast build that much about their term. they support weather customer the to time this all us. DNA teams their orientation our and uncertain can is AWS relationships

shift to operating let’s worldwide income. Now,

in AWS. For to negatively the million guidance first approximately $XXX operating by reported we above billion This our income top was impacted $X.X in related QX, estimated of operating including million quarter, the income, range. employee of severance end $XXX charge an

our the decision As process and ongoing impacting difficult Twitch, AWS as human eliminate roles, we business the as well advertising environment, teams. resources we devices, made finalized economic our our considered annual X,XXX planning to and

pressures fuel year-over-year revenue our primarily driven and in expense continued reductions to linehaul costs. as well unit electricity sales QX, fulfillment and our in rates outpaced our diesel shipping and lower in outbound both growth by ease as costs. stores In growth shipping Inflationary quarter-over-quarter,

stable tech progress remaining year. fulfillment we built exited QX good our QX also a through leveraged last of made network balance throughout compared and labor process the with network throughout on and with to XXXX demand QX in improving improvements. in that We throughout the of patterns continued We more productivity customer

moderated, network good inventory able availability both position our and significant our serve to us changes to chain we’re customers transition fulfillment regionalized implement and delivery in improve put believe cost some structural U.S. time. have has to speed We to a stabilized challenges improvements supply to over labor As model. a these

We reported billion overall net in quarter. income the of $X.X first

of operating in included from on Automotive. Rivian non-operating point in our pretax includes I’d out income, $XXX that valuation million income focus expense stock net primarily investment our comments we this While loss common a

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

flows. We remain sustainable a capital towards free cash cash efforts growth flow, accretive in cycle. long-term strong our including to working focused building flow on Turning cash

to impact trailing improved working chains in ended purchasing flow Our the increased March Besides for our XX to we’ve and and XXst the up year-over-year, capital. comparable operating easing payment year-over-year. made months the of cycles, period cash $XX.X on seen turn a positive inventory versus also cash billion, benefit XX% has up which progress improve supply profitability

investments finance leases. investments. of CapEx equipment our to turn our as let’s plus combination Now, capital We the capital define

in network year investments our be investments. XXXX, capital primarily full expect an we year-over-year lower fulfillment in investment the For level XXXX, expected by than to $XX decrease billion driven

We’re continuing needs, customer to infrastructure to support in including investments Large support to AI. generative invest Language and AWS Models

to up hand perspectives to it open some Andy for share we the your call the on quarter. first over questions, I’ll Before high-level

I’ll share Brian. Thanks, up a questions. few opening before for thoughts

perspective, my very cost bit think customers our how we’re about delivering a been fulfillment there’s like our our serve are see. business, on for our fair to in we’ve and From storage In focused teams I reducing results starting to to network. the

number national the of also of UPS the as fulfillment re-architecting U.S. productivity the fulfillment given selection couple footprint in better unexpected but doubled being and nodes in processes one. of surge built center regions footprint larger means in largely of we to changing the transportation way a fulfillment our several in the our drive substantially interconnected years. And a areas we’ve last network. in geographic in in operate of result, the network size only to the As center while able we each we created relevant broad the up nationally fulfillment ended to approach a largely from of the and ship shared move to X connections a months size regional necessary. placement redesigning regions It demand still and our these a when not dozens This self-sufficient pandemic, with having to during past, network spent

providing distances the Not on surprisingly, to XXXX. on Prime are lower and shorter and travel their the to We cost just this bullish on track quite one-day customers and while progress recently And speed, in faster. topic early ever rollout about more speeds of completed excited in fastest delivery means delivery deliveries are orders we’re results. getting and our our have same-day really customers serve

advertising side, and to advertising the trends wider On continuing we’re growth. buck deliver robust

few for I are it. think reasons there a

with lot of First, even substantial largest our companies in Amazon. investment in well shopping various makes seek That, we coupled to customers for looking learning difficult items, still customers most make which a with e-commerce they’re when see brands, performed have that to shop. people advertisements to venue, have relevant ads want advertise them reach. have very machine economies, unusually And for in meant the that these sure

find way to very ads It’s grocery sports, also we’re that thoughtfully a noting and live to early broader properties. place in audio video, worth our our still in efforts

We advertising. in upside have still a of lot

cost this resources because In right in reallocate are cost AWS, cost to they versus looking most customer They is new they say to time. which an however optimizing is now. in optimizing money cutting, we’re what uncertain on save continuing that spending ways seeing tell distinction be their Customers it enterprises for those cautious of interesting to they’re is us can experiences.

not up or cloud the with case demand down great on-premise’ the scale the which is of as can attributes dictates, of is One you seamlessly infrastructure. that

finding set what want as customers time fundamentals sometimes of Customers looks a fair looking on-premises. seeing given that IT time. and these it’s seeing, we’ve less global AWS during still of rapid analyzing challenging spent customers best is is myself we’re migrations The adjustments. spend The is actively product that innovation the and spend forget make We’ve of XX-plus we’re long strong. percent and The for AWS. people to compelling. new And of chunk strong. of I’ve time a term, spent ways customer help like well, we in bit pipeline delivery to good helping ongoing this what of And workloads been and

equation the And moving the and us having is functionality well ecosystem a broadest largest do, securing which bit, going offering move for flip, to operational the forward. that partner to believe you bodes going fair best we the by the with If infrastructure performance to cloud it’s cloud.

close not AWS. done inventing being we’re But in to

associated pending And happen with and services recent the machine new is from AI recent the over on and cloud several my them much another will the learning Language appreciate folks coming. years example. how Our announcement in of opinion, business chips next Large deluge few generative Models managed and that’s

of past has year streamlining. cost fair bit seen do This a us

In As our across to potential some cases, long-term online returns. Care cases, cash and asked drive Fabric, we took over for look looked capital. we didn’t flow see the bookstores, shuttering in to my we’d a free certain mentioned return I Forestar us grocery whether revenue, the that each led where In shareholder we enough deep returns free them. Company all ourselves of $XX producing businesses income, programs Amazon initiative’s to it example about devices and on had a recent letter, and conviction we invested physical at hoped, other weren’t some like Stores, Amazon and orders changed an meaningful shipping certain operating path

areas for in connectivity. earlier to better very in Amazon while decision Earth Amazon segments in with made large as off been Prime as so larger government our adaptively. both international lives actions households, nascent and entertainment, business what investments and business, that believe XX,XXX our can we’ve and of still and corporate the pursuing seeing millions eliminate retail we’ve costs, which like to our well have in But streamline to like allowing mentioned strategic consumers stores in long-term limited make evaluate what the to care grocery no difficult program, We market are entities do potentially Low continue investments most roles. in teams, about change several our our leadership satellite we’re devices, expansion to business-to-business, These the meaningfully still hundreds Like key business our is. Buy we’re that taken we health companies of and while we’ll to use customers’ of Prime also as proceed Orbit able

two It’s long these predict our hard that would over business successful the all working will or change to of only one term. be but

are We direction days of headed us, lot work of strongly like our and have the best I us. in front a we’re believe front but in of

And up with open that, questions. it for I’ll

line the Instructions] [Operator with Our Anmuth question from comes JPMorgan. first of Doug

talked you Andy, optimization. continued about the

Can efforts? start talk do you about of the And you AWS done still can curious, then optimization to that Thanks. be CapEx said and from versus ‘XX. to has and just when model and you degree the Just little retail large think would you us And what lie required also ahead, think AWS? better I side, some overall in which what’s those language lap help between AI could been on a on in then CapEx bit a understand you generative CapEx down perspective?

This part first last on we million CapEx, second -- billion, of areas, that first. excuse transportation core is we the the -- are year-over-year, and adding we are actually On we and fulfillment the GAAP -- going Models in Large or Brian. year. And I’ll take for AI. more spent me, $XX question $XX spending estimates the Language generative -- those AWS less infrastructure dollars down. increases and to The are and and our

think year-over-year. the and number fulfillment CapEx that we’re repurposed some to be still AWS. over will been has in So, lower We combined space transportation creating our

hard the exactly It’s say Doug. question, to are first your process. we on in where Just

what that they’re own. ways for to and They’re customers optimize customers trying And to term year. most talk for cautious what money to continue long for the long think save our our seeing that which pursue, when continue see that we a is not about are, in record, I with including or to we to as makes a we’re which appropriately they’re we think a we economy. quarter track trying find companies I for sense business have

last do successful to takes all long over business help of trying to whatever we’re going We’re us. relationships of customers because time in it a period that a build be to to

can with time the advantages and be so, of one short-term we’re to the if it, is you ways, of think of but on-premises. scale to us for and when optimize you don’t see not you you back to that lot down. and to to give with ways trying paying the them is help grow and smart demand, a have it smart customers of up. can spending their And quickly, you scale not But true stop big And up ways, again, costs cloud able what that seamlessly

to with work hard And that. to trying help so we’re customers

possible. I think cost not matters of the technology cloud. this customer business is spending less This most so the on telling on are intend cutting change trying and is what customers this to reallocate our effort where it’s us on important to that a to our can reprioritizing resource experience at new we explicitly we pretty time money that build what’s remember or

-- so, think redefining build and those take you’re working those reallocating, go projects, time initiatives. what customers we’re And if the closely I got implement And When you you by to pretty way, to it. about think it actually you you’re build. you’re to on you’re before can build, with carefully reprioritizing, going

spend of there’s I much cloud, so think it’s IT of important still growth to percent XX-plus that ahead the the global is remember on-premises.

the you the spent and if don’t now be cloud I that’s realize of happen in flip, amount Large cloud. moving Language going so is that a equation lot to And right And AI. to of the believe the to and going also with advent that that of it’s generative Models are there think folks mostly non-consumption

that I and think be customer before. the so to opinion, in that’s existed cloud. experiences to many spent reinvented haven’t all going are going my And be invented on

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

growth possibly greater driving -- and the a call that some margin strike over the structures letter built and returning balance and Thanks saw in years? where and you an us the talked you Can overcapacity the during you lot on efforts Company couple margins last next the absorbing levels between you’ve about give match levels are profitability initiatives those earnings Andy, right versus of driving the broad in efficiencies the we so update and think shareholder to much. up in pandemic. your letter of the pre-pandemic on of pre-pandemic also

Eric, this Brian. is

Let part me question. financial start of the on that

and all to over a look still our example North our you there. our getting So operations as in cost made journey quarter, on the efforts that North of number I talked last the X% if adjustments a especially But along of that was and the America operating segment, on the look at it and America, X% recovering in months taken operations. structure us, have and broadly. businesses regionalization solid at to of We’ve X X ourselves about on ahead in operational would we’re and hard side we describe pre-pandemic there’s obviously lot margin for was this think levels. like X.XX% back our progress the it Andy’s that making pre-pandemic range to

in the a profitable achieving. of of for there’s bit upside. our marker on and parts the that investments future a that it’s lot how structure there’s going there’s on and operations number. there’s much cost moving But are Obviously, growth, advertising, So, core

than quarters. but one So, it, at in it’s making a working bouncing longer hard progress, road two back or

would pretty looked efficient. the the of it, be stores it’s I efficiency in more And of our most think our single have what’s think hard business, given we while operating I businesses. every I size the probably finding the just add to visible every hard is ways one on and business that that at to in really working margin improvement

to to as of over your and there’s build on we on lot lot a fulfillment of double and when become in X you when get a the as months, -- network a -- because through the significant through operated interesting you changes, making we’re to curve a and months. they you And which network of our But one the of said, elbows our to operations stores before, productive encouraging spent is fulfillment things you working to X network want. good that fundamentally that all have as footprint that really as the remember, center scale, worked And they time I network us business. growth But inefficient also inefficient last transportation costs and as a much the last several changed, we the that go work X of years, that last-mile Brian went of in way. X we’ve frankly you as in as some in that’s really, become you UPS and been pretty couple ways fundamentally progress, the the add size think you through the

the virtually regionalization what to operations us about, really And last months. to in also we do everything so led reevaluate over talked I the it’s part effort that but to caused of X it X

opportunities And more we there a even were have lot found than before. we thought

So, optimistic identified. we operating have but margin, I’m chance were pre-pandemic pretty recover the opportunities a we some I there’s additional just we’ve to of in that think not of with terms upside to where

next the And of line from Brian with question Nowak Morgan Stanley. the comes

have I Andy. two,

one, lot potential The talked and language you out about the of AWS. first a AI long-term model large

of discussion you some lot offers competitors? you I points Could X about think of versus differentiation of AWS’s think or walk the it AI positioning of just and sort that competitive X comes key the there’s a to AWS tools tools. of these through when us

view Language you then division? be now second around with one Large networks technology of around investment of And that emergence Alexa key what’s rapid the not And these The the new edge on about ROIC Echo and may Models. priorities of How and some forward? Echo your for do Alexa. think leading Thanks. going a the neural

answer and those try because I’ll they’re related. together Yes. somewhat

remember ingrained do. Pass useful and learning, recommendations. investment learning fulfillment our our machine everything deeply for it’s think e-commerce Amazon. you years in Pick pretty XX-plus the that It It’s personalized centers. It think we virtually had when a fuels I we drives in have to in about machine substantial

our Go We stores. have in it

Air, we we in have XX-plus it machine Alexa. base obviously have by fair And machine bit. It’s where and services our then learning drones. functionality AWS, Prime have the a broadest learning customer in We our

so, And ingrained it our is deeply heritage. in

months really but Large so more at X, look they gotten much quickly capabilities, Models transform that the a compelling they’ve that that And last while, were have X AI and possible it exist virtually better, and over and experience X you models so every frankly, generative months if before. not think opportunity Language for easily so remarkable these exists don’t bigger I before what’s much that about happened is been a made weren’t the around that presents really ago. that customer much many to that or

days across macro I three Models that way our in but in And we’ve and Language for Company. break areas that so, investment have space, the in the in investing I out, space. building it would say And been own not is it’s very Brian, very probably a surprisingly, early would this we several there’s Large years, large

they’re be the you And is are that’s of about chip in If Models here, I for the that going they’re compute. scarce. is Language are of that all there, compute. type find bottom think a date, think GPUs, and run to particularly lot on maybe the Large this And key layer which compute optimized the expensive to to workload, going capacity. that the to chips hard to enough of It’s

for production, most are several from they’re and AWS, is learning their machine specialized time a and these people a The But reality, the in to most the apps, is chips, spend training. inference. specialized be that the that customized -- which as models way, chip so, working money Trainium, or of we that’s all training called graduate been spending for machine call And that’s by model predictions to for going we training, learning the the Inferentia. chip the we’ve an where on years inference on come built in building

So, they both matter a lot.

pretty differentiated look significant. Inferentia. just from at of released can the And our of and combination second is and -- we versions performance those price and very get Trainium that And chips both you you if

that training lot So run we AWS. that inference machine learning on will of a think

number Large you models, think really the have have train -- to many you And you but money, if and inference, about build. most a but to got and have of you invest Models, want And that you that at small billions time to you build there one if years then Amazon, companies of look and models. leading will be dollars them build many run Then to don’t. the of significant to Language -- to we’ll be the take so in to the they companies

applications which models can ourselves, people leading where we Large And privacy for the they’d AWS. experience. Or them models the And in what It’s want and customer to and they do Bedrock use and to it AWS have is they Titan. foundational And can announced they to want and foundational exposing own they the Anthropic run so which model. a week Stability of like take features own all really what they of like and the and providers and managed use in same with run it what they AI. needs ability models, then those that’s customize it can service it to tell That’s companies one for be leak customize foundational IP where AIXX for Amazon, very most security ago proprietary from those data their their their for way and to from able And Models the that then generalized their call a so. customers. a run baseline, broader unique Language don’t own run and model is, purposes which we’re we rest compelling the just or their

Models. And the going are of to Large then layer Language really top be are applications built that that those on third

of We’ll applications that’s built. example of an build good a is ourselves. some being those application ChatGPT So,

are think have to we assistance. do generative with compelling that the of to with instance, applications much going be most built AI effective developers coding making one more for So in

general a language, want video build in And so, the up something where the hosting I employ bring need to which And plug and website. will a we put for, developer production, can like that needs announced you in is something which -- developers built we really CodeWhisperer, natural called CodeWhisperer compelling. to availability the just and code

that median about more their and productive how rewriting instead developer a as it’s a to they’re spend much of time takes on going time, If is I code to big what be going deal. you think think

one a to our was experiences, Now, Language Amazon a and Large it businesses, to top we’re your Models stores, inside And good just see it’s you’ll single about, every of every devices, build going businesses of which advertising, are related was one example on single devices, second this our of your in is to reinvent building specific I customer question, -- entertainment. and layer very to our top question, that. of talking

when we I ask if which But smart to broad speaker, assistant. were and best to domains want build that Alexa, building area. we would just a of people it’s smaller much a often often a world’s that about think we we us vision, investment. what a have we about be is share It’s conviction personal across it’s very have the lot And that, surface do difficult. a it

effective it AI, of personal best world’s However, the assistant. underlying models building the if that you think I that really possibility think it generative more and that about much such the advent of Models Large makes Language accelerates

of a more from but and much and And generalized underneath best language much capable. across had we’ve and building think of spot becoming a it, partners. personal from hundred we’re And large pretty larger million third-party couple we I entertainment model the of think really used we one a that’s have involvement and our And assistant. home that’s rapidly vision lot ecosystem going and a accelerate with and good I shopping smart Alexa world’s to information start being because endpoints

think it. underneath a significant business I there’s model

Sebastian Baird. of question line And the Colin the comes next from with

in segment, only not on I on the acceleration International first line, an but off, guess, mean, our also the top I margin side.

plans be grocery and of improvements thoughts businesses? of And If are the the the going those any for the optimizing stores there. strategy initiatives And you any to on have strategy, there color changes stores, you. the physical across if you could footprint updated including secondly, of there add more through then kind maybe worth categories. little some a maybe on around Thank any

Thanks, Colin. I’ll start international question. with the

we an X% basis, FX-neutral of growth X% in QX. yes, versus So an acceleration saw on

stabilize in there I is starting think to the established and Europe. especially of economy countries

down. ticking is inflation and increased has confidence consumer seeing We’re

those and in some is weren’t had a But of strength. North that the what are good So in we some first on we quarter, America. upside that probably counting was similar international to that

on those programs the improvement On is but Top of be our the of also North cost going the of in are has you’ll some making of helping down. and the of across margin negative we’re margin, of margin has the are the international. investments. come to that in Most edge operational reducing a kind some reductions global some in -- of see that America, line but efficiency the function there it’s

remind you of parity is North America, stage working an bit of established countries and look that, already on like earlier an will again, are their profitable I at profitability. way perhaps international development and who to a aggregation which that

a Prime have these curve benefits the we America. in that lot We that ahead saw of North of countries forward-loaded are in

So there. happy

payment methods, and -- transportation with, In XX new us We established We see it infrastructure have a the fact, reach States. X for we’ve a business. infrastructure United for curve last the of to and the America countries. in North lot back a in looked to in than we is the of countries we’re have internet What that like emerging long else. large lack more additional seeing everything breakeven X especially if years, to years challenges of for for things There’s, you similar added lack ago, deal overseas. usually profitability took

with Video happy of are and core as They at building. their lot traits convenience that new selection countries about the have that, in well. and businesses from acquisition adoption of we’re adoption feel Prime we the we Price America. we’re of carry seeing customer the but North in a slower and lot same the a emerging that the can So, very be traffic good

country quarter. good again cost continue growing and So by structure businesses work We’ll those on to country.

part, say On what the to grocery we is I progress there. continue would

have It’s We and health an business years supplies quite canned all grocery and where it’s selection it merchandisers the interesting so care that personal grocery actually and mass and are while of are a much grocery grocery been into products have XX like and pet beauty we’ve food business, consumables. very temperature-controlled, large items a and just how ago, we XX, and unusual in an -- where got and goods selection for not business. sorts paper packaged the

And ways stayed very, about interestingly, trade down what consumables strong. product they in cautious being this consumers environment and very finding variations, where spend current to in have are different

to And seek that with broader try be grocery number to of very journeys, with. so, pleased grocery the serve our we business customers help -- part which that shopping to continue we a to much of

portion really pioneered are a organic have of We’ve that space. there. and bigger since made changes very year a continues still physical two a have changed And number grocery feel have nicely, about still Whole we’ve of in the efforts got Foods, at physical good to the grow that. shopping We trajectory the is it there and last that most time, And market of overall got We’ve of to the profitability which the the the visits business same stores. presence segment.

that’s have to like much a tried And brand a wish you been Fresh. if with We you to, physical ideas. serve we’ve working mass at to were Amazon as further called what we we’ve point. this And few we’d along the really We’ve of years for have want grocery of lots on as offering.

to we the found around want go haven’t expand We more format that yet broadly. much conviction

pretty our year bigger, ideas that And hopeful -- on we’re a we a have set and well of find have experiments business stores but over we it’s that may something believe much to big as believe larger customers that. having as also we to that ability and It’s we’re But of it today. more presence, us work. have optimistic product that I well physical grocery broadly. will be other And We across we’re very and come other help we we to the for get can concepts some and Amazon products working dozens to we And this there. for where next continue continuing well. pieces opportunity as they some help customers both be serve store think for lines have for to the we able the across

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

big call the Andy, in XQ second, April comp? very And the linearity just you those year. areas? the think appreciate Company out so Kuiper investments, areas. items can mean, think shareholder looks why And had in and the And thinking then AWS, about more you or good picked quarter. on investment you. margin It XQ letter. all about really unusual breaking guess, we I I the any you’ve does retail clarity ever last as you Thank medical like those Do -- the out I a big for had know structure?

laying extending AWS, now seeing we see dynamics out limits cutting -- continued where On Andy think and and that good in in job of you. Thank hitting their strength and among future. did they’re for and I we’re the the planning customers right Justin. contractual customers a workloads Hi them Yes.

about outlook doing strongly work the we’re short-term help save to feel that we understand business So, money. and really customers for the the

would initiatives in I the planning some there’s customers not others and say as that obvious and It’s understanding just, cutting on hopefully comp differential. in get versus to well. are an helping So, QX which them areas year-over-year are growing new again, QX, they

Yes.

acquire answers my being we’d have of right the we health talked And In things. quickly? to in we served move kind -- about about our the experience big care terms If not, can for letter it how letter, And if it’s some think at in have we in successful, we a trying big letter Is Amazon about in think that some could elsewhere? We annual confidence out that look we if what questions, it of well the to the And area? differentiation? investments we the make. investing and that the Kuiper new explain how like look those I the was -- be that I few that needle and I Do we at ROICs? and do we was think will invest. today do with Company calling

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