Shulou(Shulou.com)11/24 Report--

Sina Technology News Beijing time on October 28 in the early morning news, Amazon today released the company's financial results for the third quarter of fiscal year 2022. According to the report, Amazon's third-quarter net sales were $127.101 billion, up 15% from $110.812 billion in the same period last year, and 19% year-on-year, excluding exchange rate changes; net profit was $2.872 billion, down 9% from $3.156 billion in the same period last year; diluted earnings per share were 28%, compared with 31% per diluted share in the same period last year.

After the earnings announcement, Amazon CFO Brian Brian Olsavsky and investor relations director Dave Fields answered investor questions.

The following is the content of the conference call:

Goldman Sachs analyst Eric Sheridan: my question is about the fourth-quarter earnings guide. The US e-commerce business and AWS (Amazon Cloud) business are mentioned in the guide. could you ask the management to explain further for us? The data provided in the fourth-quarter guide seem to suggest that the trend of these two parts of the business is likely to be lower than in previous years. Could you ask the management to talk about the current optimization of AWS? What are the changes in the consumer behavior of American e-commerce?

Brian Osavisky: I think the biggest factor affecting the fourth-quarter guide is still foreign exchange. Year-on-year, the fourth-quarter guide expects the exchange rate to have an adverse impact of 460 basis points. Compared with income, foreign exchange changes have a greater impact on revenue growth.

This year's Prime Day membership Day is set in July in the third quarter. From the perspective of global performance, demand is strong, and our capacity, delivery speed and inventory rate are gradually recovering. This good momentum will continue into this quarter, but the growth rate will slow down, especially in the international business. North America is still doing well, but growth is also slowing.

The most volatile is the international business, which we think is behind the declining global macroeconomic environment. Judging from the current data, the situation in Europe is relatively bad, and there are many influencing factors, including the war between Russia and Ukraine, the energy price crisis and so on, and the regional situation is more complex. But we have been actively communicating with AWS users and enterprises to try to reduce costs. Like all companies, users want to spend less when faced with market uncertainty.

In my opinion, cloud computing can best reflect the advantages of cloud computing: it can help users turn some fixed costs into variable costs. Whether it is our new generation of self-developed chip Amazon Graviton3 or using AWS services, we can help users achieve high efficiency while reducing expenses and saving money.

All in all, from a long-term point of view, we are still optimistic about AWS business prospects. Even in the short term, you can still see that we added $4.5 billion in revenue in the third quarter from the original $16 billion. It can be said that AWS business is growing well. Even if some consumers plan to cut budgets in the short term, AWS grew by about 28 per cent in the quarter (compared with about 25 per cent in the previous quarter). We are not sure how it will go in the fourth quarter, but we are optimistic about the development prospect of AWS. This year's Amazon Cloud re:Invent Global Conference will be held in Las Vegas in late November, with more than 40, 000 offline attendees and even more online viewers.

In short, we will continue to help users manage and optimize their budgets through a series of ways such as new products and services, and help them tide over the current macroeconomic difficulties.

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