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And then the other inflationary factors, well, some of them are coming down slightly. It’s early days in the adoption curve for companies and governments. And customers have responded and we’re going to keep investing there.
Joining us today to answer your questions is Brian Olsavsky, our CFO. As you listen to today’s conference call, we encourage you to have our press release in front of you, which includes our financial aafx trading review results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2021.
We’ve invested a lot in tools and capabilities and, of course, the delivery capabilities and all the things that go along with that. And so really excited about, of course, getting to be able to launch this program over the last few months and dialing it up for more sellers as the year progresses. So on the seller fee, again, we added that fee grudgingly in May to compensate for some of the inflationary pressures we’re seeing. You can see from our operating results, some of it’s internal related, but a lot of it’s external factors that there — we are not passing through that at 100% to external groups. And it’s — we’ve got to work our way out of the condition we’re in.
- We have slowed our 2022 and 2023 operations expansion plans to better align with expected customer demand.
- So I think, seller business remain strong in an integral part of our customer offering.
- And so I think as you remember, there was a very difficult labor period in the second half of last year, and it didn’t arrived kind of quickly out of nowhere.
- But we saw strength in the seller results in Q2, as we mentioned on the percentage mix.
- This rollout is the start of what we expect to be thousands of EDVs in more than 100 cities by the end of the year and 100,000 vehicles across the U.S. by the year 2030.
Your comment on discounting, we’re not seeing some of the pressures that other people are seeing right now. Our macroeconomic issues are principally on inflation and pretty transparent on that. I think the new thing this quarter is additional pressure on the energy, electricity rates in our data centers because of the ramp up in natural gas prices, if you’ve seen that. So that’s probably the new information and then the other inflationary factors. They’re still significantly a penalty year-over-year. In the U.S., we’ve started making customer deliveries using the Rivian electric delivery vehicles.
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Eric, I’ll just add a little more on advertising because you’re probably wondering again about softness — potential for softness in that or macroeconomic factors. Again, it’s got to be a positive both for the customer and for the brand. I think it was — Eric, it was a question around kind of the interactive work.
This guidance also reflects our estimates to date regarding the impact of the COVID-19 pandemic on our operations, including those discussed in our filings with the SEC. Companies like Delta Airlines, Riot Games, British Telecom, and Jefferies Investment Bank to name a few, announced new agreements and service launches supported by AWS. As a reminder, this includes a portion of our seasonal Q2 step-up in stock-based compensation expense. AWS results included a greater mix of these costs, reflecting wage inflation in high-demand areas, including engineers and other tech workers as well as increasing technology infrastructure investment to support long-term growth. We also provided our third quarter financial guidance as part of our earnings release.
Doug, just to – I mean, just to pile on to that too. I mean, I think just the longer term vision I probably talked about here, we’re right now with 84 availability zones. So that’s 26 geographic regions, and we’ve got plans for – to launch 24 more of those availability zones across eight regions. And this is Australia, Canada, India, Israel, New Zealand, Spain, Switzerland, UAE, so a lot of different spots. And so continuing to focus on building out to customers, working on that pipeline and building longer commitments, making – finding customers that are making longer commitments is really important to that.
But where we’ve been operating, in many of those cases, considerably shorter than the tenure that we’ve had in the U.S. In our established international locations, U.K., Germany, Japan, over time, we’ve continued to improve the profitability of that business as we build out and establish stronger customer relationships and work on the cost structure and how we serve folks. A lot of that, of course, is driving improvements through our key pillars with price selection and convenience and working with vendors on commercial terms.
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Our first question comes from Brian Nowak with Morgan Stanley. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. On the headcount, yes, I think it was more, as we mentioned last quarter, last year in — or excuse me, in Q1, we added — to give you a flavor for it, we added 14,000 workers in Q1.
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Speaking more broadly, we know AWS is a huge opportunity. Our growth rates going forward will no longer require this historical explanation. Q2 last year was also when vaccines have become more available, particularly fxdd forex broker review in the United States, and we began to see more normal shopping patterns. Prime Day also occurred in Q2 last year and contributed about 400 basis points to our Q year-over-year revenue growth rate.
Amazon.com, Inc. (AMZN) Q2 2022 Results – Earnings Call Transcript
For full year 2022, we do expect to spend slightly more on capital investments than last year, but the proportion of capital spending shifts among our businesses. We expect technology infrastructure spend to grow year over year, primarily to support the rapid growth and innovation we’re seeing with AWS. We continue to improve the customer experience in Q2, including quarter-over-quarter improvements in delivery speed and inventory in-stock levels. While there’s still work to be done, we made good progress in Q2.
This compares to Q2 operating income of $3.3 billion. For AWS, these quarter-over-quarter increases are primarily driven by higher infrastructure investments to support continued strong customer growth, including larger depreciation on a growing fixed asset base. We also expect increased energy costs as we continue to see volatility in utility prices around the world in operating our AWS data centers. Our third quarter operating income guidance range is zero to $3.5 billion. For AWS, this quarter-over-quarter increases are primarily driven by higher infrastructure investments to support continued strong customer growth, including larger depreciation on a growing fixed asset base. Our guidance incorporates the order trends that we’ve seen to date and what we believe today to be appropriate assumptions.
On the transportation side, we continue to improve delivery, route density, and improve package deliveries per hour. Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. For the twelve months ended June 30, 2021 and 2022, this amount fx choice review relates to property included in “Principal repayments of finance leases” of $11,435 million and $9,789 million. For the twelve months ended June 30, 2021 and 2022, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $9,976 million and $3,579 million.
So how do you think the environment is going to fair for you to be adding headcount? And also the stock-based compensation came in below, where you had guided for the second quarter. So is this a matter of not hitting the hiring goals you were hoping for, or do you think the environment for the hiring of technical and engineering talent is losing up a little bit? We’re interested in learning and working with FBA sellers that we’ve known and had good trust with, but also expanding. And I think as you think about it, merchants, they obviously have a lot of choices on where they’re going to sell products. And we have a long history of empowering and helping merchants.
The company reported income of $6.7 billion for Q2, or 65 cents per share, compared with a net loss of $2.0 billion in the year-ago quarter. Analysts on average had projected revenue of $131.54 billion and earnings per share of 34 cents, according to Zacks Investment Research. Consolidated earnings per share came in at -$0.2, missing Wall Street consensus of $0.12 by a far cry again due to the ongoing risk-off environment in public markets.
This rollout is the start of what we expect to be thousands of EDVs in more than 100 cities by the end of the year and 100,000 vehicles across the U.S. by the year 2030. Additionally, note that all of our share and per share information included in our financial materials has been retroactively adjusted to reflect the 20-for-1 stock split, which was effective on May 27th. We’ve also taken steps to slow future network capacity additions. First is the unfavorable comparison to very high holiday level utilization rates that we saw in the first half of 2021. And second is the normal step down in volumes off of our Q4 peak that we saw in first half of 2022.
