Amazon.com, Inc., Q4 2016 Earnings Call, Feb 02, 2017 - NasdaqGS:AMZN

NasdaqGS:AMZN

During the Amazon.com, Inc. Q4 2016 Earnings Call on February 2, 2017, Darin Manney, the Former Finance Director of EU Retail Categories & Expansion, made several comments. Here is a detailed list of his statements:

1. Opening Remarks:

   • "Hello, and welcome to our Q4 2016 Financial Results Conference Call. Joining us today to answer your questions is Brian Olsavsky, our CFO."

2. Form 10-K Filing:

   • "And just briefly before we move to questions, I'd like to address our Form 10-K that we'll be filing with the SEC. We received a comment letter from the SEC's Division of Corporate Finance regarding our 2015 Form 10-K and have subsequently been engaged with the SEC staff regarding our disclosures. We will be revising the disclosures of net, product and service sales in our Form 10-K. As a result, we expect to file our 2016 Form 10-K later than we typically have but before the SEC's due date of March 1. These changes relate to our entity-wide disclosures and do not impact the financial results that we report for the company or our segments."

3. China Strategy:

   • "Ben, this is Darin. Yes, we're very pleased with our FBA offering, and that's really helpful to sellers around the world. Certainly, our international sellers have access to more and more customers through that offering, and that doesn't exclude sellers in China as well. The offering in China that we have for consumers is also a great, trusted customer engagement. And we have a very, very strong and trusted venue for Chinese customers to access international brands there as we continue to focus on great offerings through the AmazonGlobal store, which offers great brands from outside of China to customers. And so there's a mix of things going on in China, and we're happy with what we're seeing in both of those."

4. Customer Count:

   • "Mark, this is Darin. On the customer count, no absolute number to give this quarter. As you know, back in Q1, we gave an active customer count that exceeded 300 million. I can say it's still is growing and we're pleased with the number there. What we do like is the engagement with Prime. We continue to add Prime members, and similar to the flywheel that Brian was just mentioning, that the FBA selection helps us with engaging customers and, in particular, the Prime program. So we're very pleased with our customer engagement this year."

5. AWS Customer Engagement:

   • "On the customer split, we serve, in AWS, we serve millions of active customers along the spectrum of large enterprise companies as well as small start-ups and the public company -- public environment as well. The multitude of launches that we had in re:Invent was great for all sizes of customers really, both large and small. Both companies starting -- just getting their start with AWS, but also companies that have been engaged with AWS for many years. And so we're really happy about the engagement of re:Invent and the participation in that conference as well as the engagement of the new services that we've launched in Q4 and in all of '16 really."

6. Other Revenue and India Demonetization:

   • "And on other revenue, I just want to call out, there's a number of things going into that particular line. These things include revenue from our cobranded credit card arrangements and certain advertising, particularly display advertising. We have other types of advertising that's spread out throughout the P&L, whether that's kind of shared marketing investment from our vendors, which goes into contra COGS and lowers the cost of sales, or it's related to other seller advertising, which is generally within the EGM and media categories. And so I'd say other revenue incorporates a number of things, not just advertising. And on India demonetization, nothing particular to call out today on that."

These are the detailed statements made by Darin Manney during the earnings call.