Amazon.com (AMZN) 1 Feb 242023 Q4 Earnings call transcript

Thank you for standing by. Good day, everyone, and welcome to the Amazon.com Fourth Quarter 2023 Financial Results Teleconference. [Operator Instructions] Today's call is being recorded.

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

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

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

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

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

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

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

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

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

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

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

from impact excluding $XX.X $XX.X in adjusted $XX.X in revenue, billion year-over-year. billion year-over-year foreign operating up trailing billion XX% XXX% cash Today, up income, and the Dave. in free we're reporting billion; $XXX leases, up billion flow exchange finance XX-month Thanks, year-over-year, rates; $XX.X equipment for or

meaningful customer is across reimagining These made collaboration, lot and improvements in of measures, Amazon. our pleased continued results the we've progress discipline, what our execution, about experience represent most across businesses. we're from While a financial invention, teams adjusting

convenience. QX, start where I'll at customers focus our continued back business, our Looking and responded stores with on selection, to price

Pit Beyoncé Victoria's alone, and of Hudgens, Infinite and Renaissance selection and cosmetics Lancôme, Vipers and Vanessa hundreds to Woop, from from cosmetics technology We last items continue products by Martha year broadest and retail new of services millions Decay from consumer Merch to have KNOW homewares Beauty Stewart. including of Boost, of tens Urban selection to with fashion to from the millions available added Coach, Fashion, Secret

start Deal sharp the millions saved Being members new Black shopping events customers price how Prime Friday uncertain was last XX% coupons, by our of customers holiday all event with Prime important almost followed provide extended about customers largest our customers Big year. event on more season open off in also holiday and $XX and ended up Throughout nearly kicked and billion holiday early ever. Cyber event, than deals members. exclusive always which shopping. much where helped Monday was economy quarter, to are on the being to spending. is These We attract but they're Days, Prime an an for particularly an careful This and across

U.S., with the to more same day, than more this speeds In where XXXX, the items to or ever, fastest we Prime members billion addition great to the continue X to next and more items In U.S. One combination deals, delivery offering the the X improve of two customers. things. than of in we network arriving billion result X store the is regionalization Europe. is including delivered In rearchitected than closer speeds. in benefit at to Amazon billion

other fourth quarter, the items day number XX% is facilities the expansion of of where same-day U.S. overnight the the by in The or the we year-over-year. in more increased than delivered same

including As see we're customers our to we how number increases items Essentials that business is Everyday get of able occasions growing. customers' in And it their to this all that needs. can of fulfill Amazon the shopping sorts fast, choose areas, fast

by prior than also cost down invest to per ASPs, or selection efforts serve reduced only in us time transportation to In but more and average first XXXX, prices, down, unit at distances cost has serve. basis the alone, to XXXX, cost allows our to serve lower serve compared have a brought Lowering per improvements regionalization also year. U.S. to more globally. afford profitably. Our unit we $X.XX our since cost the In for which helped not on to was lower selling adding speed the

us hard able to for more afford economics. in the a same with prices. hard to to true be It's saying add offering afford the like it's hard it's lower improving adding selection. Like not able and The speed, is to lowering adding have lower still selection, it's purchases. consideration selection We ASP to ASP lower be selection puts prices, that hard to not set

our look customers. to and reevaluated and it and lowering areas we're every can part We've not believe cost where fulfillment done closely toward beyond, we As network found several also faster we in while belief of held lower challenged costs XXXX we for our serve. every delivering

inventory resulting have more there's we of Our us. optimism inbound fulfillment and areas for upside and focus XXXX, placement are in architecture

is U.S., growth added advertising brands spend, by recently up business. offering TV primarily driven reach ads. with remained sponsored no create our in minimum advertising We've business, stores within putting our XX% TV to our any this a year-over-year, strong, for to solution Alongside sponsored self-service which campaigns this streaming of the

Freevee, grow to reach advertising Football. Fire movies, which quickly. and continues and as U.S., streaming our launched just TV well as Brands shows While Prime Video Twitch, TV are viewers still capabilities in Thursday the to on using early days, Night engaged

versus the added we in incremental grew we're year-over-year than watch $X.X XX% revenue billion which, in XX% an in revenue revenue cloud QX QX, more basis, in added and to provider each AWS AWS. on run of the quarter. And than as annualized We QX, billion. FX-neutral quarter-over-quarter quarter incremental Revenue $XXX now other any more as approaching Shifting of is far rate year-over-year can tell. an

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existing are are larger at longer over customers renewing pipeline periods, migrations commitments and customer as Our strong growing. remains

a customer year in generative AI trial also or of XXXX was significant very AI delivery gen AWS. and for

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performance chips performance AI named chips, envelope several We generation first as chips have training chips, capacity price-performant alternatives. price memory re:Invent, and versus as of alternatives. also Xx Qualtrics, with Face, offers In other enabling the and have more more We AirBnB, announced customers our Rico including using named faster push and Inferentia. advantageous AI generalized performance to inference And for already us Graviton we the Trainium than xXX we we've Trainium, AI custom Anthropic, are customers training which CPU XX% which versus on Xx who a result, built TrainiumX, Snap. just have chips like price Hugging

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we'll the able more. the be Citadel to of Smith, Reacher, Rings, in over Video We increasing Prime have and meaningfully time. Night Mr. can members in own, Thursday Prime on Video, and profitable that Football, of And conviction with and continue investing Lord for in compelling to a & continue Mrs. its like Prime be we'll addition ads content business large exclusive content invest

really I'll on customers. Amazon close behalf of every teams who to start grateful us year. think all the XXXX good a Yet, by just is of one at of I'm believes was delivered this reiterating possible. our what's of I that

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turn I'll it Brian. With that, over to

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lot XXXX, customers year Operating XX-month $XX.X impact a a ever. world to around equipment first for ability year-over-year outputs to last exchange. meaningful we the excluding year-over-year at improvements strong our deliver key a partners of up serve, such billion. XX% time our stores' $XXX.X and income of cash our improvement foreign Trailing full very $XX.X increase for was XXXX and as decreased speeds results. our performance. of our finance the want billion, to XXXX, financial versus I was For result our billion $XX.X customers, flow leases a our the across an had financial year-over-year, These of the in input for billion, free to cost which are tripled adjusted year. to metrics thank since teammates fastest Revenue

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focused most on price, that matter the During we remained customers: the quarter, and to selection convenience. inputs our

members and helped United new our deliver provide Prime strong and quarter the shopping throughout delivery throughout globally, customers. including where ensure attract notable the in speeds quarter, events Friday Monday in October, helped savings sales progress on shipping and members Cyber helped for and We in Days our event gifting States fast our meaningful their ability shopping Big gifts Our extended made the last-minute included got to Prime that which in they Deal before Black billions the strength holidays. to Prime the

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recent Shifting quarter-over-quarter. America operating to Since resulting low of cumulative profitability. $X.X quarters. QX these improvement North in X basis points XXX over billion, of XXXX, an points of America year-over-year, seen segment margins improvement, billion income of X $X.X of resulting operating their we was were a past quarters up in an margin at increase X.X%, XXX North consecutive have in levels basis operating now

the throughout and reducing make our supported to time cost drive to helped top our progress serve. leverage The network. line is operations large businesses, strong by to fourth integrated busiest addition In to improved which quarter year continue increasingly an on we growth our of

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and haul, staffing lower which levels. in benefits We and to a market, from see rail continue rates stable also more include improved from line labor resulting transportation ocean

billion and Japan, our International operations. cost countries represents our an and $XXX International contributed more U.K., year-over-year leverage XX box, units relatively transportation per loss increased like established inputs growth by as growth. Germany In strong customer profitability. improve through across continue revenue on we focus improvement to than segment, of degrees million, in an of to largest varying the improvement operating our within of segment costs efficiencies the The countries serve driven our we year-over-year. lower fixed was had our to and primarily $X.X In of rates This improvement lowering

saw good as Additionally, while emerging continue in progress expand their to customer invest to offerings we wisely. countries they seeking our

XX% to more shift and basis, to Revenues driving quarter-over-quarter innovation towards focus in AWS the we than added $XX.X were their Moving AWS. workloads $X.X On an increase as new of are a billion, revenue customers of bringing to continuing year-over-year. billion cloud.

to what cost seeing slow newer Similar migrations. of their initiatives optimizations last down, to turning and attention we're optimizations. shared to we And companies diminishing the these continue see existing as quarter, more reaccelerating we impact

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$X.X an $X operating was year-over-year. increase billion, AWS income billion of

margin effectively head points a pace and XX.X%, of reductions This flat and more margin in basis. slowdown basis the count for the operating Our up quarter quarter-over-quarter year-over-year reflects was hiring. XXX improvement the from than our year earlier in a on

to cash increased The operating On segments. an by cash finance Shifting across in regionalization our a seeing the free free three all notably largest driver efficiency capital, for flow. driven in flow year-over-year. trailing are our we which We're leases flow basis, free of improvement was also is inventory $XX.X adjusted efforts. cash of our income, working seeing improvements improvement of billion XX-month billion, in $XX.X

was was primarily and $XX.X investments Next, year let's transportation. of our $XX.X turn capital investments. on by as CapEx billion plus define fulfillment year-over-year, equipment a CapEx XXXX, down driven spend finance which combination full In leases. to lower billion, capital We

XXXX, to business, and large additional support by CapEx CapEx in to increased models. AWS including language generative forward anticipate AI look we year-over-year investments of primarily to our increase we As growth infrastructure driven

in like January a quarter years and I'd completed in years X increasing recently for from our study the X beginning highlight is life servers first useful to useful we life XXXX. to are thing we guidance One our that

QX, will in have to anticipated approximately income operating our We of which included our this is benefit in $XXX income guidance. million operating

customers. us calendar prioritizing projects deliver also XXXX. upon the to have way We great and As in that innovating excited allows on continue are for inventing able to reduces we work costs teams been to and turn effective remain to streamlining we and in the focused XXXX, the an continue

let's that, to on With questions. move

question Goldman line [Operator from the Instructions] comes Eric with Sheridan Our first of Sachs.

and CapEx into to about how going contribution at allowed standpoint can from If conversion, about any those should to you initiatives velocity little how AWS. on AWS And from broader just CapEx bit should some against on elements you I'm then workloads think comments the against a a components commentary? color CapEx, AWS we AI-driven take the do thinking two-parter within reaccelerate AI the be that revenue talk step exit an broader we your we on and in XXXX? back, a about backlog QX

Yes, that's right. This is Dave.

billion to figure. $XXX.X that Just give you as of balance was XX/XX. The

$XX than more $XX quarter-over-quarter. year-over-year billion up and billion that's So

you acceleration. if we And That growth, just then revenue the mentioned. to look as back accelerated at in it was XX.X% QX, an

XXXX. We during trends excited guess, hold on migrations and put XXXX products, into like interest Bedrock that resumption, Q, generative describing. I continue expect and as was AI accelerating the may about cases to companies Andy our We're of have in in some

also total for infrastructure. Amazon mix side, XXXX. our tied It year-over-year. but CapEx of XX% AWS let of supporting me in during $XX talk year quite of in the the the mostly businesses, talked billion down bit, We Infrastructure, was investment core was spend. We was our lot a had supporting the to a XXXX about in $XX billion company. On about

for the trends still high but doing anticipate the CapEx in XXXX. we're So projects. I'm it up for expansions, primarily not with AI work rise today, will reached AWS expect a We CapEx continuing year, working giving capacity into a we through go XXXX. generative region we percentage. plans very do we're as in but those to number add

will at continue this percentage automation additional going and capacity some spend the are the to additional based delivery fulfillment large although is But a center more XXXX. say logistics I robotics. that point In and seeing investments for area, into demand, would it's same-day the trend we in and of on incremental be sites infrastructure

that think to said, it the backlog just then work part way relates amount conversion the to takes I the migrate long-term it signed first these are question, we've a few to about some just things that deals customers time deals Brian typically to with of customers, add those just workloads. think there's as of with are is To and those where what we

of deals lion's see cost seen that think it that but just over has And that I very some at we of It's so it's the or same first that more trends that this attenuated share there some migrations, we've but the the won't And time, don't seen any optimization last all, and have that speaks happened. anymore, to we quarter, significantly. is migrations not of were what the proceeding of those maybe the trend. of backlog, be not see at that typically that continuing heard in pick the also saw lot sum that more signing A have a up my to pace to of you we're We've the the in and And the some we environments. done several, before uncertain of quickly got opening was slowly again. were signed number quarter. more more that remarks last of examples, in seen started but that a

revenue how going big customers. to it's it's on fast future, over offering $XXX run really revenue several it have, will the really tens and what absolute believe much we billions resonating the of then of side, scheme rate But it's our annual AI AI business, years. than the we if gen growing where dollars we're drive encouraging small, with in billion still the is And look But it's of in of the a be next at relatively revenue numbers, you number. in a gen smaller pretty

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

cost first since I have the comments is for sort serve down on the XXXX. coming Andy, two. one time first to the of

and just that 'XX to you walk drive of through you're operational down look north the levels some As to or sort from that sort blocking-and-tackling about serve into cost XXXX perspective? however key your back us happen star that to thinking of continue you to can to of 'XX, is

could some of building the How to repurchases then second capital think type like buybacks, help returns. you of And share balance idea out? philosophically cash about pretty It programs about start sort of here. sort looks shareholders is the the nicely return capital of or do one

Thank and I'll the let first, Brian the I'll you, second. it. take I Brian, appreciate take

On cost to down, as that we serve feel don't to where in mentioned I ultimately I opening my be. the remarks, like we're think coming going

think like there. we I meaningful upside feel we have

make as in we think saying, hone that improvements a XXXX. of done." thing, ways I have reality we a that it's change "Check, and can easy U.S. regionalization made the But several made XXXX we in we in and we the one regionalization bunch to in large improvements as got the that is still

speaks areas And continue opportunities, so we about when just as the believe the team they regionalization where to in that. still they opportunities have there's hone

a we areas even believe faster doing that we at deliver at and, evolve us will we fulfillment with cost where both go it found think pretty in size that network think, months was can it for very XX last-mile to was size looked also very of of XX and our were the importantly, But useful help network out optimized. was so was transportation what UPS I But we doubled delivery the us for to useful was pandemic more speeds disruptive relook eye, in with get It caused the really that one a many we in through we network. we ways, And it a beginner's of many to significant change went have customers. that during I really things built everything our center serve to months. the fulfillment and that through

then one and our is and there inbound think real on you'll network And just area, particular, I see which to processes that, cost those are where don't opportunities we tasks. is focus over we in mentioned us or of our two in the year us, believe next inbound believe in locate with both But serve. which XXXX inventory star that will we north the in for association that I accomplish

I believe better evolving can we keep think being we it and than that.

in of Yes, you're I a our ability per better as controls as of there. fixed scale. cost We've gotten other part we a lot couple cost think seeing I'd items just lower serve. And at to add that It's fuel actually XXXX of like we're And that some transportation others. operations, company. especially in and hit XXXX, not reduction things inflationary a and services, throughout the the only hard in factors seeing it's us

So not still down, upside. the there totally see some out of more we and coming but woods

repurchase least of in excited that for periods question, that it. XXXX. our through that to X calculation tumultuous as have On our heavily. your have the doubled question. saw appreciate the to actually first me invested size come of period years really Andy No we all, at XXXX asked and footprint just in just you one's where, said, But And and on we negative logistics flow, cash share free

So primarily to see bounce-back think discuss improvement better have have And cash front of investments in have nothing and we more of build to announce often. strong do flow. a try going liquidity we and policies to we're to but free we to at the or us. capital continue XXXX, end today, in glad And and lot I we're of to We're that. annually glad again, structure debate the the

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

just America of look move seen there, all for the Red to income outlook And your you very several North follow-up talk potentially quarters. Can disruptions that any how in related currently some And does and you into a factor improvement then International as just approach shipping Sea? you're International XQ? could to at time? positive levers the over good last levels into seeing just here are then that operating about profitability thinking about you've Brian, over the you

Yes.

first. Let with me start second the one

and the work to impact said, continue impact and It's of I just very to, estimated geopolitical mindful on are back to not around working steps need impacted. guidance our material say, make We're that, customer sure to and a But we'll we Europe. as supply in you in take the where that. the again, customers, chain QX. experience shipments work not we might how hard to the not to that that to especially, vigilant is and world, in as make on we'll issues that U.S. we're both up So

operating serve income it by the a cost controls. cost And over progress segment U.S. lot quarters. and about yes, investments the other invest very of $X.X of that few to down, I saying International attention the attention as, attribute year-over-year. stronger, On the where advertising results, going and billion last cost, steady lot a we're operating is we're the with improved especially to pleased again, fixed to was We to Andy income, would to

So a what we're in Japan. of and is countries that lot the of seeing Europe established

the bit divide into a of would buckets. segment a couple I

And in you First, would European like segment. lot America. behaves there's see established that a North it countries

years, look their on they're customers, emerging XX with in with we've to and that. again, countries, X we're If you the own of and all and profitability last countries the at trajectory journey launched pleased significance

to Prime I be contributor but cash structure, think a then and in income on nicely all again, and a cost they're wisely investing all benefits, leveraging to growing their free and curve breakeven flow.

The retention. those in can proven had number sites. it The and of example. positive in had acquisition benefits other Premier a point and with with people We for acquisition, marketing especially our content, like fluctuate and said, shopping But And we engaging is and vehicle have Prime sports, we markets. English as Germany League International Amazon. areas live very customer a of say, investments, of We gets source they're those QX it's in customer always a loaded, content Italy, at a for around that as digital I'd I out would benefits the benefits in relationship thing our League and in for customer and Champions good bit higher is we investment spend a think advanced quarter-to-quarter. those I

the the Evercore with Mahaney question comes line of And next ISI. Mark from

please. Two questions,

quarters you that, significant the I then would like you on that assume your center all shipping American the and American comment a most row something number. for CapEx the costs, efficiencies I a or get mentioned, North of capacity probably moderation I factors have that if retail, to in logistics labor would Brian, that. in given these about X margins, costs, factors rising think improved and North mean improvement continue margins mean but we'll regional that commentary in overall, utilization like an

Prime seems coming that? on of secondly, users know number are Amazon in got provide or CPM could who a Prime You've we expectations then a substantial I you on the appreciated. just that to the but about like color you. a And load, want for would it really low context how you us massive upside, And try but there to with be size Video. a be with ad if should opportunity you or for think any reasonable launched, around that

you. Thank Mark. Sure,

advertising maintaining our outpaced we the to the growth during pretty success costs of across all and pandemic, our can, that attention the growing Andy into ago where we efficiency lowering traffic minutes fixed network, great a cost regionalization, increase added growth few rates. in and costs work advertising, assets in really I out cost on operations the with we can, where productivity think revenue that's laid well structure, it the

So cost those profitability, as guidepost a to trends going going maybe to continue. our sure we make lower improvement. to to hard not but said, ways And we're we serve. one continue, We're all the putting we're is to to pre-pandemic of to look for and expect work limit they on continue

And had add, time, our I experience them. and at we might pre-pandemic to got time the at increase the the when cost exceeded same improvement because from same shipping that then back first customer we speeds at

and also leverage and to to that, we'll happy we're costs and So with improve customer lower the structure. do cost to both: our continue experience our

on I that now. videos On are for advertisers base. Prime it your ads what customer second I to is say question ads. our in mean can't access I excited right would scale

have it's business, streaming to model, invest Fire it and an total for business that. it, network looking have content increase and useful And Twitch. like trying our the our a and what including TV all And are ways and will in loads and will to our about we're advertising, Prime Freevee to we progressing, ad and we but things in important ads of healthy TV And be part to continue to like may not heavy properties, to continue We allow good see also we we to things. expect us Video, feel relative to of grow other the other anticipate the way we for customers. advertising

question Scott from our line Devitt Securities. next the with Wedbush And of comes

and grocery on one one health care. on have I

Whole the to traffic there was grocery, and logistics reverse how dot relates Foods driving the progress lowering is the logistics reverse business. revenue offering that using First, cost a making about significant the bit opportunity in and terms talk facilities, in and grocery in grocery you're that's there and between if a on whether the wondering you could in it and, I as com unifying Fresh of

such about customer in a pretty made offering primary be little an significant notoriously vision just longer-term curious could health care. more bit the industry, with poor experience on secondly, care, Then I'd health in if a you've acquisition and now efforts care. talk you

think three making we're grocery grocery, we On kind segments. in right big pleased about there. with When now Yes. business call of, we're our macro progress the I'll it,

really the ago. pleased nonperishables that is and these consumables and mass clip, big things and business. pharmaceutical. business a very the at the And a got goods canned grocery beauty with merchandisers really products and and it's decades grow first to The where health it's healthy few a most are pet food it's and into we're and And like business way continuing

a at grow clip. healthy to continues very that So

online Foods pioneer physical a grow We presence in is organic grocery, in the very and market, which leader to Whole but the really have with clip. good at and that's along continuing a

also made a we we where see the side the of really business like trajectory profitability in number on We the changes there. last profitability year

growing see And very that and well. good that feel as so again, expanding keep and you'll about

very as few If do, years. we've a very several our but just testing early, physical in results to a over Southern grocery serve in, a presence. you thus locations as We've have few dimension. to many almost been Fresh locations VX you needs mass Fresh trying the are been we format on with And months in promising few have of that's do to want it's and Chicago, far in every a near California. It's what

that's we if then for but the what's best like a we way see And time, how to it becomes fast expand. need and to have little appear so something issue the results bit the see And continue to that we longer resonating.

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then see economics, between I pick to one expect different you grocery how the think for app one be experience capabilities, in get able to and people well business place able products on to the and of to that their logistics the order there, to better time, leverage allowing website, the as on in we're being as and able segments better both leverage place. in types over user can and multiple conservative better up

do in already you us I seeing think that more and can You're expect that, the future. of

the got care had for natural health retail do if retail pretty of the our a about rest it capability space, you complexity years, asked that In adding than pharmacy is we more for, and it's the side, customers to something think what extension. on It's us business. many a

more a part pursued but that it, and our XX the So about already used the in experience, business. customers with And to quickly. attention we improved be wanted better badly you've And pursue the we thought, could where important even could It's if paid to and we we momentum months, like carefully of Pharmacy it's good. meaningful whether you've it People I changing it. But last think XX it we're need be Amazon pretty just the love fast the really to seeing that, it's that customer from over growing, we growing to how so experience. really experience it. wanted was really substantially

the exam minutes to room minutes. into minutes Doctor in an in, wait minutes, put reception for XX weeks to got doctor, in to drive you then one. an and make in care appointment grandkids experience, for And used primary when that the a health talks particularly park, care we for minutes, very to to to the our X get tell was go get not frustrating we that XX the that think I good to pharmacy. advance U.S., have and you is one I drive XX the the think pretty a X XX to way and then XX And comes

will it's to not you going was that experience. that grandkids and believe changing. the not see be, already And Our

a significant use. it's their application, their It's us just what attracted easy way to part so And in app, such of in medical. is

spot. all in have You health data your one care

chats with medical do practitioners. can You

do video can calls. You

If day. the there's get can in lots cities where same see someone, of you need to locations physical you and metropolitan

to cities If a it's they're specialist, you or actually that is what other we've then if to you the either with. need see in in much get can we a that so seeing. through in two medication, plugged different better very in later. all Like, where experience. work than get accustomed to a been that into experience specialists Pharmacy we need you two you sent pharmacies day operate can you a And or Amazon which day And or

for And very so the for year, good take-up. get I a launched We're typical price. excited. $XX subscription think, or medical XX% ability a Prime We days. it's early $X one that members off, the month a to which again, still saw And is

looks can have there's other to help time. to whether is we are experience Whether like things we that a help to what customers of So it's primary it's that lot but there's a over get pharmaceutical changing areas of we that bunch part it's still meaningful be that think with able or time. what diet, and over early And days, think a be care wellness might changing items, I we of opportunity we helpful in if experience. an it

with And from the Sebastian question of will come line Colin final our Baird.

wanted AWS just for a I on to follow up moment.

generative I You is stack, AI which the very think outlined clear.

Or you of there? on side curious that Rufus the how Is business. of for expand, Andy, and could, layer think on a dynamics gen I vision today. you then I'm just if the market maybe sort apps? that. conversion what's within of you launched rates So little consumer an strategy area materially consumer-facing know bit the application the And could going overall your AI the competitive maybe the to improve you're the that retail on engagement given

Yes.

layers most still So to customers, Colin, in. And say of enterprises AI. as many When about want a few first at on out we those thinking companies they AI, operate generative at predict stack we the which laid are three of to talk technically at would then may generative particularly I models, the thinking their that think, them. in I three. I through operate be companies that though two they're things of at to own build operate all But existing not many will will think going case the from build capable even and leverage of on, it They us, will also they're I apps. will they least models early the layers

for real and things iterative work an that answer that we application I know at at go to you to production question application that chatbot you to your cost see turning that the getting the need. into getting other it's AI one a quality characteristics is customer interesting on process a and also work very the generative need a from quality and reputation of and then a early into experience latency now your that right and in plugging

see one choice. characteristics. don't all we model different structures different want rule want different is want with And to cost customers yield experiment latency different-sized just that models They different the world. what they They to for applications. want and models so because And they

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part it's so Bedrock of why much. resonating we So see

what's But scarce quickly, Q a get about a most is game from attractive out companies for big XX%-plus that roll many if their your developers, assist think cases, just of changer. every they XX%, companions coding get resource, way, there comes can it's you bit to deal. them a companion. won't when productivity for better XX% is same code that's to the can the like they way And coding in which, if enterprises In it

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differentiated So capability it's pretty a there.

of enterprises developers they more options at coding make looking companion capabilities in at looking they're their have. these are best what's might array how different the they When productive,

And so lot spending a of time. we're

Our enterprises there. companies meaningful It momentum make is decisions that stir typically and created base, in employee their are options quite for excited seeing have re:Invent. it. a experiment And see you these they good about what we're with different they very and

are in of about that have multiple AI we're Every has AI and different building across generative of generative the that they're about we business gen applications of And building. stages. how question thinking all dozens Many which in launched they're which businesses, The company. our we're in AI have others development. consumer applications

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that's that think I next So iteration. the just

it's meaningfully for for think discovery I our like going to change looks and experience our customers. what shopping

of could step of one those businesses. every And I kind through consumer

and businesses a many consumer of about the building. think Alexa business building the is advertising And an written picture process going productive even that to of language changing in for more number AI is you and built Our generative that model or where see they and can years. I people kind copy a other way either Every ad we're one And have around. applications capabilities is of has significant a of our submit Alexa expansive don't delivered building and they're for very where make helpful large customer.

We lot ideas. a have of

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

conclude that teleconference. gentlemen, and ladies And does today's

your this You you time. Thank participation. may lines for at your disconnect