The Jason & Scot Show - E-Commerce And Retail News 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.
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.