Join hosts Jason “Retailgeek” Goldberg, Chief Commerce Strategy Officer at Publicis, and Scot Wingo, CEO of GetSpiffy and 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.
http://jasonandscot.com
episode 194: 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.
http://jasonandscot.com
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.