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

CTOnews.com, February 3, Beijing morning, February 3, Beijing time, Amazon today released the company's fourth quarter and full-year results for fiscal year 2022.

According to the report, Amazon's fourth-quarter net sales were $149.204 billion, up 9% from $137.412 billion a year earlier, and 12% year-on-year excluding exchange rate changes; net profit was $278 million, down 98% from $14.323 billion a year earlier; diluted earnings per share were $0.03, compared with $1.39 per share in the same period last year.

After the results, Amazon CEO Andy Jassy, CFO Brian Brian Olsavsky and investor relations director Dave Dave Fildes answered investors' questions.

Image source Pixabay the following is the content of the conference call:

Morgan Stanley analyst Brian Nowak: I have two questions. First of all, Andy, you have been Amazon CEO for some time. As the global economic environment gradually recovers, what are your business priorities, product categories or investment priorities? How do you plan to promote sustainable year-on-year growth of retail business in North America? My second question also concerns the North American retail business. How does management view the profit potential of Amazon's Warehouse business in the next few years? How does management plan to build a Warehouse network? How do you plan to achieve these goals?

Brian Osavisky: let me answer your second question first. For our expectations for retail margins in North America, before the outbreak, around the end of 2019 to early 2020, we had just launched a "one-day delivery" service in North America, and we had our own expectations about the cost structure. But the situation has changed a lot in the past three years. Our distribution network has expanded greatly and its coverage has doubled. I think you have heard me discuss this issue in previous conference calls. Overall, we are currently trying to restore the pre-epidemic cost structure, to make more efficient use of the assets we have added over the past three years, and to drive growth in all areas of investment. In addition, we will try to make changes, and many improvements are expected to be made in North America. Operating costs were optimized in 2022 and related efforts will continue in 2023. All in all, we hope to achieve significant improvements in 2023.

Andy Gassi: the point of everything we do, including in North America, is to make our users' daily lives better and easier, and we've always been committed to that. Focusing on the user experience is always our top priority. At the same time, we are committed to streamlining costs while making strategic investments in all areas that make sense, improve the user experience and have a positive impact on Amazon.

As for the business priorities you mentioned in your question. In terms of business in North America, I think the first task for me and the team is to reduce the cost of services in the company's operating network. Brian just mentioned this point. In the past few years alone, we have doubled the coverage of the distribution network established in the previous 25 years; at the same time, we have built the "last mile" distribution network in the past few years, which is now close to UPS. So it's not hard to imagine that we spend almost everything we have to meet the surge in user demand over the past few years. Therefore, our top priority at present is to figure out how to optimize the cost structure and improve efficiency and productivity.

In addition, you can imagine that with the doubling of the number of distribution centers and the expansion of distribution network coverage, we have come to realize that all this infrastructure must be effectively connected in order to deliver products to users. We must connect each distribution network node. Therefore, how to connect these nodes and make efficient use of them, to find the best way to operate takes time, we have been committed to this work. At present, we are very satisfied with the progress made in the fourth quarter, which is also reflected in the financial results. But the work is not over, but will last until 2023.

Personally, I think the other priority is to improve the speed of distribution. We believe that faster delivery and more efficient delivery can make users happier. In addition, the rich product category is also one of the key areas we pay attention to. Amazon has hundreds of thousands of partners in the United States and millions of partners worldwide. In the last quarter alone, 59% of orders came from third-party vendors. We are committed to providing users with a wide variety of product choices. Advantageous pricing is also important, especially in the current macroeconomic uncertainty, where users are very concerned about every penny they spend. We have made millions of deals in the fourth quarter, and we will continue to maintain superior pricing in the future. Finally, I am very concerned about the user experience. Whether it's expanding the reach of Amazon Prime members (Prime members can offer discounts on other non-Amazon websites) or providing Prime members with a RxPass service that allows Prime members to get the drugs they need from a list of 50 generic drugs for the treatment of more than 80 common chronic diseases, including high blood pressure, anxiety and diabetes. The cost is $5 per person per month, free delivery), or to enable people to buy clothes with virtual fitting, virtual matching, and so on, all of these efforts are to improve the user's purchasing experience. In the future, we will continue to make efforts to improve user service and user experience. There are many related plans.

(constantly updating. )

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