EP194 - Amazon Q3 2019 Earnings and News

EP194 - Amazon Q3 2019Earnings and News

 

Amazon Q3 Earnings

Revenue accelerated in the US and intl due to 1-day prime juicing demand

• US - 24%  (Q1 - 17%, Q2 - 20%, Q3 - 24%)
• Intl 21% (Q1 - 16%, Q2 - 17%, Q3 - 21%)
• Unit growth (items sold) accelerated to 22% - 4% acceleration (18%) - fastest in 2yrs.

This came at a cost - profits were down 26% y/y and TODO wall st estimates because shipping costs grew 46%

 Specifically GAAP operating income of $3.16b came in 2% below street consensus of $3.22b  EPS was $4.31 vs street $4.56.

This caused the stock to soften by 7-9% in after-hours trading and articles are already out that bezos no longer richest man.

Amazon’s Q4 midpoint revenue was $4b below Wall St. estimates and they projected lower margins than wall st expected.

Specifically, guidance is $80b-<->$86.5b with midpoint of $83.25b - implies 15% growth, 5% below Wall St.

Amazon’s Ads biz which grew 45% y/y and represented $3.6B in the Quarter.  Brian T. Olsavsky - CFO:  “So other revenue, which is principally advertising grew 45% this quarter, up from 37% last quarter. And the biggest thing in there is advertising and advertising grew at a rate higher than that 45%.”

Amazon News

• Amazon Ad Conference - 400 people “AdCon 2019” 10/2 & 3
• Cutting back on apparel Brands 
• Free shipping on $1 items, no more CRaP, No more Add-On
• Amazon Counter Expansion
• Amazon acquires digital health start-up Health Navigator 
• Amazon Launches Premium Gin “Tovess” 
• Amazon charges brands for slots in holiday catalog 
• Jeff Bezos’s Master Plan by Franklin Foer of  The Atlantic
• Is Amazon Unstoppable? New Yorker Charles Duhigg

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Episode 194 of the Jason & Scot show was recorded on Thursday October 25th, 2019.

http://jasonandscot.com

Join your hosts Jason "Retailgeek" Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and Co-Founder of ChannelAdvisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.