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we're seeing strong growth in sales through the quarter in Q2.
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2022 Q2
31 Jul 22
If you look at our stock-based comp as a percent of revenue, it's gone up 150 basis points quarter-over-quarter, as we stepped up from Q1 to Q2.
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2022 Q2
31 Jul 22
other inflationary factors. Well, some of them are coming down slightly.
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2022 Q2
31 Jul 22
the new thing this quarter is additional pressure on the energy, electricity rates in our data centers because of the ramp up in natural gas prices
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2022 Q2
31 Jul 22
, which we expect will be largely offset by investments in AWS and additional digital content for Prime members.
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2022 Q2
31 Jul 22
This third quarter guidance assumes, we see approximately $1.5 billion in quarter-over-quarter sequential cost improvement in our fulfillment network operations
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2022 Q2
31 Jul 22
The estimated FX impact to operating income is not significant.
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2022 Q2
31 Jul 22
our guidance includes an estimated approximately 390 basis points of unfavorable impact from year-over-year change in foreign exchange rates.
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2022 Q2
31 Jul 22
Prime Day sales event occurred on July 12th and 13th, and is incorporated into our third quarter guidance. Prime Day occurred in Q2 in 2021.
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2022 Q2
31 Jul 22
We expect infrastructure to represent a bit more than half of our total capital investments in 2022.
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2022 Q2
31 Jul 22
About 40% of that is comprised of technology infrastructure, primarily supporting AWS as well as our worldwide stores business.
Another 30% of the $60 billion was fulfillment capacity and a little less than 25% was for transportation, remaining 5% was comprised of things like corporate space and physical stores.
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2022 Q2
31 Jul 22
AWS operating income was $5.7 billion in Q2.
As a reminder, this includes a portion of our seasonal Q2 step-up in stock-based compensation expense. AWS results include a greater mix of these costs, reflecting wage inflation in high demand areas
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2022 Q2
31 Jul 22
On the second point, we expect fixed cost leverage to improve in the second half of the year as we continue to grow into our capacity.
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2022 Q2
31 Jul 22
These include pressures from higher fuel, trucking, air and ocean shipping rates, which we expect will continue into Q3.
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2022 Q2
31 Jul 22
For the second quarter, incremental costs were in line with our expectations at approximately $4 billion when compared to Q2 2021.
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2022 Q2
31 Jul 22
Last quarter, I discussed several cost pressures facing our worldwide stores business; inflationary costs, fulfillment network productivity, and fixed cost deleverage. Recall that these amounted to approximately $6 billion of incremental costs in Q1 when compared to Q1 2021. We've made solid progress in reducing these costs.
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2022 Q2
31 Jul 22
We have slowed our 2022 and 2023 operations expansion plans to better align with expected customer demand.
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2022 Q2
31 Jul 22
This was a larger foreign exchange headwind than the 200 basis point impact we had incorporated into our Q2 guidance.
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2022 Q2
31 Jul 22
represented an increase of 10% year-over-year, excluding approximately 320 basis points of unfavorable impact from changes in foreign exchange rates.
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2022 Q2
31 Jul 22
During the quarter, we saw improvement in many of our key operational metrics, including in-stock levels and delivery speed and saw a subsequent step-up in consumer demand.
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2022 Q2
31 Jul 22