EP138 - Amazon Q2 2018 Earnings Hot Take

EP138 - Amazon Q2 2018 Earnings Hot Take 

This episode is a hot take on Amazon Q2 2018 earnings

• Amazon Q2 Earnings Highlights
  • $52.9B, which is a 39% y/y increase
  • $2.98B in operating income
  • $21.8B in Free cash flow, less $11.4B in capex, $6.2B in lease repayments = Net $4.1B Free Cash Flow
  • AWS had a material acceleration up 48% y/y constant currency and profits were $1.4b
• Amazon Web Services – came in at $6.1b – 49% y/y growth (an acceleration from last quarters 48% growth)
• North America – $32.2B up 44% Y/Y, operating income of $1.84B
• International  – Revenue increased to $14.6B (+21% Y/Y) for a $0.494B loss
• Marketplace
  • 53% 3P by Unit sales
  • 3P Growing at 55% (constant currency)
  • Wingo GMV estimate -> 1p – $37.6b/ 3p – $71b = $108.6b GMV
• Amazon Ad Business – grew 129% y/y  to $2.19B
  • Cowen estimates $8.6BN in 2018  rising to ~$37BN in 2023
  • Amazon increasingly bypassing agencies to go directly to advertisers
• Increasing likely Amazon becomes first $1 trillion dollar company

Jason & Scot will at eTail East in Boston next week.

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Episode 138 of the Jason & Scot show was recorded on Monday, July 30th 2018.

Join your hosts Jason “Retailgeek” Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.