I’m *real* happy with this quarter’s earning results, Amazon. Just real happy! Some highlights:
- Nice profit rebound, Amazon! Net Income +3.2B, Operating Income $4.8B. Worth noting that after they roll off severance payments, they will have reduced headcount expenses by about $5B annually…so there’s more upside here…
- 40% y/y improvement in Free Cash Flow – we’re back in innovation territory.
- Total Net Revenue +9% y/y. Biggest gains in 3P ($4.5B) and WS ($3B). Best growth rate in 5 quarters…yay!
- Advertising +20% y/y, a slight growth acceleration from last quarter. Andy Jassy said they’re getting “better at placing ads offsite” and still see tons of upside (Just announced some cool new stuff at NewFronts conference this week too)
- AWS was the real star, but only if you listened to the call. Growth actually slowed y/y to 16% (but still added $3B in total incremental revenue y/y) and they took guidance down…but when they described their work in artificial intelligence and Generative AI OVER THE PAST 25 YEARS, people, participation in the entire value chain, and future prospects/ TAM, it’s real exciting
- Not much is happening in physical Grocery. Andy says they already have a sizable (center store) grocery business on .com…also not much on One Medical acquisition yet.
Fellow The CPG Guys co-host Bryan Gildenberg and I geeked out for an entire hour on it…and we recorded it too! Links below if you need help going to sleep tonight…
Part 1: Overall Performance
Part 2: Artificial Intelligence & AWS
Part 3: Grocery
Part 4: International
Find the original LinkedIn post here and let us know your thoughts!
