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And then certainly, let's not forget the new offerings, too. While still early, automation and content production is something that we're driving effectively in a lot of these accounts with Firefly services. So that mix of new users, existing user migration, and also the new offerings that we have in market are driving that growth formula that we talked about, which is now P times Q plus V for value with these automation systems. | In terms of existing customers, the migration has been going very well for us as well. So more people are moving to the higher-priced, higher-value plans because of the Firefly capabilities. We're even seeing this in enterprises where people are moving up to the highest versions of Creative Cloud, which is what we call it, Creative Cloud Enterprise [ 4 ] because they get more access to features beyond just generation. They have more collaborative capabilities beyond just kind of sharing via e-mail. And we're starting to see that create a nice momentum in upgrade cycles in the enterprise segment as well. | Jonathan Vaas, Shantanu Narayen, Operator, David Wadhwani, Daniel J. Durn, Anil S. Chakravarthy | null | 0 |
It's just their application, their app is so easy to use. You have all your healthcare data in one spot. You can do chats with medical practitioners. You can do video calls, if you need to see someone, there's physical locations and lots of metropolis cities where you can get in the same day, if you need to see a specialist, they're probably into specialists and all the cities in which we operate, where you can get in a day or two later, like just it's a very different experience. Now if you actually need medication, you can get that sent to you in a day or two, either through Amazon pharmacy or other pharmacies that we work with. | People really love the experience. And I think that when -- the healthcare experience, particularly in the U.S. is a pretty frustrating 1 and not a very good one. And I think that when we tell our grandkids that the way we used to have to go get primary care was to make an appointment 3 weeks in advance and then drive 20 minutes to the doctor, park, wait in the reception for 15 minutes, get put into an exam room for 15 minutes. Doctor comes in, talks to you for 5 to 10 minutes and then you got to drive 20 minutes to the pharmacy. People are just not -- our grandkids will not believe that was the experience and it's not going to be, and you already see that changing. And it's part of what attracted us in such a significant way to on medical. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
Thanks, Andy. Overall, we saw strong performance in the fourth quarter. Worldwide revenue was $170 billion, representing an increase of 13% year-over-year, excluding the impact of foreign exchange and approximately $3 billion above the top end of our guidance range. Saw our highest quarterly worldwide operating income ever, which was $13.2 billion for the quarter, an increase of $10.5 billion year-over-year and $2.2 billion above the high end of our guidance range. For the full year 2023, we had a meaningful improvement across our financial results. | I'll close by reiterating that 2023 was a really good year. I'm grateful to all of our teams who delivered on behalf of customers. Yet I think every one of us at Amazon believes this is just the start of what's possible. We have a long way to go in every one of our businesses before we exhaust how we can make customers' lives better and easier, and there is considerable upside in each of the businesses in which we're investing. With that, I'll turn it over to Brian. | Dave Fildes, Operator, Andy Jassy | Brian | 0 |
Our subscription business is going well. Transacting accounts and paid accounts are growing. Paid accounts are growing double digits. And also, we've seen a really strong performance both in developed and emerging markets. So very pleased with the way the Services business is going. | Mike, it's Luca. On the outlook, what we said is we expect to grow low single digits in total for the company. We expect Services to grow double digits at a rate that is similar to what we've done in the first half of our fiscal year. And we also mentioned that iPad should grow double digits. This is the color that we're providing for the June quarter. In Services, we've seen very strong performance across the board. We've mentioned we've had records in several categories, in several geographic segments. It's very broad-based. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | Luca Maestri | 0 |
For the last couple of years, we were doing $90 billion. Now we're doing $110 billion. So let's get there first. It's going to take a while still. And then when we are there, we're going to reassess and see what is the optimal capital structure for the company at that point in time. Obviously, there's going to be a number of considerations that we will need to look at when we get there. | Amit, this is Luca. I would say 1 step at a time, we have put out this target of getting to net cash neutral several years ago, and we're working very hard to get there. Our free cash flow generation has been very strong over the years, particularly the last few years. And so as you've seen this year, we've increased the amount that we're allocating to the buyback. | Operator, Michael Ng, Luca Maestri, Erik William Richard Woodring, Timothy D. Cook, Suhasini Chandramouli, Wamsi Mohan | Luca Maestri | 0 |
I think it has been and is through last quarter the most competitive market in the world. So I wouldn't say anything other than that. I've said that before and I believe that it was last quarter as well. And -- but if you step back from the 90-day cycle, what I see is a lot of people moving into the middle class. We try to serve customers very well there and have a lot of happy customers. And you can kind of see that in the the latest store opening over there. And so I continue to feel very optimistic. | Yes, I can only tell you what we're seeing. And so I don't want to present myself as an economist so I'll steer clear of that. What we saw was an acceleration from Q1, and it was driven by iPhone, and iPhone in Mainland China before we adjust for this $5 billion impact that we talked about earlier, did grow. That means the other products didn't fare as well, and so we clearly have work there to do. | Operator, Michael Ng, Benjamin Alexander Reitzes, Luca Maestri, Timothy D. Cook, Erik William Richard Woodring, Suhasini Chandramouli, Wamsi Mohan | Timothy D. Cook | 0 |
As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial 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 2022. | Hello, and welcome to our Q4 2023 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO; and Brian Olsavsky, our CFO. | Dave Fildes, Operator | null | 0 |
Our comments and responses to your questions reflect management's views as of today, February 1, 2024, only, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings. | Hello, and welcome to our Q4 2023 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO; and 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 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 2022. | Dave Fildes, Operator | null | 0 |
During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions. Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services and new and emerging technologies and the various factors detailed in our filings with the SEC. | As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial 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 2022. Our comments and responses to your questions reflect management's views as of today, February 1, 2024, only, and will include forward-looking statements. Actual results may differ materially. Additional information about factors that could potentially impact our financial results is included in today's press release and our filings with the SEC, including our most recent annual report on Form 10-K and subsequent filings. | Dave Fildes, Operator | null | 0 |
Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. | During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions. Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services and new and emerging technologies and the various factors detailed in our filings with the SEC. | Dave Fildes, Operator | null | 0 |
And now I'll turn the call over to Andy. | During this call, we may discuss certain non-GAAP financial measures. In our press release, slides accompanying this webcast and our filings with the SEC, each of which is posted on our IR website, you will find additional disclosures regarding these non-GAAP measures, including reconciliations of these measures with comparable GAAP measures. Our guidance incorporates the order trends that we've seen to date and what we believe today to be appropriate assumptions. Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, and customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services and new and emerging technologies and the various factors detailed in our filings with the SEC. Our guidance assumes, among other things, that we don't conclude any additional business acquisitions, restructurings or legal settlements. It's not possible to accurately predict demand for our goods and services, and therefore, our actual results could differ materially from our guidance. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Looking back at Q4, I'll start with our stores business, where customers responded to our continued focus on selection, price and convenience. We continue to have the broadest retail selection with hundreds of millions of products available and added tens of millions of new items last year alone, including fashion selection from Coach, Victoria's Secrets Fashion, Pit Viper and Beyonce's Renaissance to our Merge to cosmetics from Lancome, Urban Decay, cosmetics and No Beauty by Vanessa Hudgens, to consumer technology and services from Boost, Infinite and Woop to homewares for Martha Stewart. Being sharp on price is always important, but particularly in an uncertain economy, where customers are careful about how much they're spending. We kicked off the holiday season with Prime Big Deal Days, an exclusive event for Prime members to provide an early start on holiday shopping. This was followed by our extended Black Friday and Cyber Monday holiday shopping event, which was open to all customers and ended up being our largest event ever. | Thanks, Dave. Today, we're reporting $170 billion in revenue, up 13% year-over-year, excluding the impact from foreign exchange rates, $13.2 billion in operating income, up 383% year-over-year or $10.5 billion and $35.5 billion in trailing 12-month free cash flow adjusted for equipment finance leases, up $48.3 billion year-over-year. While we've made meaningful progress in our financial measures, what we're most pleased about is the continued customer experience improvements across our businesses. These results represent a lot of invention, collaboration, discipline, execution, adjusting and reimagining from teams across Amazon. | Dave Fildes, Operator, Andy Jassy | null | 0 |
These events also helped attract new customers and Prime members. Throughout the quarter, customers saved nearly $10 billion across millions of deals and coupons, almost 70% more than last year. In addition to offering great deals, we continue to improve delivery speeds. In 2023, Amazon delivered to Prime members at the fastest speeds ever with more than 7 billion items arriving same or next day, including more than 4 billion in the U.S. and more than 2 billion in Europe. In the U.S., this result is the combination of 2 things. One is the benefit of regionalization, where we rearchitected the network to store items closer to customers. The other is the expansion of same-day facilities where in the U.S. in the fourth quarter, we increased the number of items delivered the same day overnight by more than 65% year-over-year. | Looking back at Q4, I'll start with our stores business, where customers responded to our continued focus on selection, price and convenience. We continue to have the broadest retail selection with hundreds of millions of products available and added tens of millions of new items last year alone, including fashion selection from Coach, Victoria's Secrets Fashion, Pit Viper and Beyonce's Renaissance to our Merge to cosmetics from Lancome, Urban Decay, cosmetics and No Beauty by Vanessa Hudgens, to consumer technology and services from Boost, Infinite and Woop to homewares for Martha Stewart. Being sharp on price is always important, but particularly in an uncertain economy, where customers are careful about how much they're spending. We kicked off the holiday season with Prime Big Deal Days, an exclusive event for Prime members to provide an early start on holiday shopping. This was followed by our extended Black Friday and Cyber Monday holiday shopping event, which was open to all customers and ended up being our largest event ever. | Dave Fildes, Operator, Andy Jassy | null | 0 |
As we're able to get customers items this fast, it increases the number of occasions that customers choose Amazon to fulfill their shopping needs. And we can see that in all sorts of areas, including how fast our everyday essentials business is growing. Our regionalization efforts have also brought transportation distances down, which has helped lower our cost to serve. In 2023, for the first time since 2018, we reduced our cost to serve on a per unit basis globally. In the U.S. alone cost to serve was down by more than $0.45 per unit compared to the prior year. Lowering cost to serve allows us not only to invest in speed improvements but also afford adding more selection at lower average selling prices or ASPs and profitably. We have a saying that it's not hard to lower prices, it's hard to be able to afford lowering prices. | These events also helped attract new customers and Prime members. Throughout the quarter, customers saved nearly $10 billion across millions of deals and coupons, almost 70% more than last year. In addition to offering great deals, we continue to improve delivery speeds. In 2023, Amazon delivered to Prime members at the fastest speeds ever with more than 7 billion items arriving same or next day, including more than 4 billion in the U.S. and more than 2 billion in Europe. In the U.S., this result is the combination of 2 things. One is the benefit of regionalization, where we rearchitected the network to store items closer to customers. The other is the expansion of same-day facilities where in the U.S. in the fourth quarter, we increased the number of items delivered the same day overnight by more than 65% year-over-year. | Dave Fildes, Operator, Andy Jassy | null | 0 |
The same is true with adding selection. It's not hard to add lower ASP selection, it's hard to be able to afford offering lower ASP selection and still like the economics. Like improving speed, adding selection puts us in the consideration set for more purchases. | As we're able to get customers items this fast, it increases the number of occasions that customers choose Amazon to fulfill their shopping needs. And we can see that in all sorts of areas, including how fast our everyday essentials business is growing. Our regionalization efforts have also brought transportation distances down, which has helped lower our cost to serve. In 2023, for the first time since 2018, we reduced our cost to serve on a per unit basis globally. In the U.S. alone cost to serve was down by more than $0.45 per unit compared to the prior year. Lowering cost to serve allows us not only to invest in speed improvements but also afford adding more selection at lower average selling prices or ASPs and profitably. We have a saying that it's not hard to lower prices, it's hard to be able to afford lowering prices. | Dave Fildes, Operator, Andy Jassy | null | 0 |
As we look toward 2024 and beyond, we're not done lowering our cost to serve. We've challenged every closely held belief in our fulfillment network and reevaluated every part of it and found several areas where we believe we can lower costs while also delivering faster for customers. Our inbound fulfillment architecture and resulting inventory placement are areas of focus in 2024, and we have optimism there's more upside for us. | As we're able to get customers items this fast, it increases the number of occasions that customers choose Amazon to fulfill their shopping needs. And we can see that in all sorts of areas, including how fast our everyday essentials business is growing. Our regionalization efforts have also brought transportation distances down, which has helped lower our cost to serve. In 2023, for the first time since 2018, we reduced our cost to serve on a per unit basis globally. In the U.S. alone cost to serve was down by more than $0.45 per unit compared to the prior year. Lowering cost to serve allows us not only to invest in speed improvements but also afford adding more selection at lower average selling prices or ASPs and profitably. We have a saying that it's not hard to lower prices, it's hard to be able to afford lowering prices. The same is true with adding selection. It's not hard to add lower ASP selection, it's hard to be able to afford offering lower ASP selection and still like the economics. Like improving speed, adding selection puts us in the consideration set for more purchases. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Alongside our stores business, our advertising growth remained strong, up 26% year-over-year, which is primarily driven by our sponsored ads. We've recently added sponsored TV to this offering in the U.S., a self-service solution for brands to create streaming TV campaigns with no minimum spend, putting this advertising within reach of any business. While still early days, streaming TV advertising continues to grow quickly. Brands are using our capabilities to reach engaged viewers on Twitch, Free V, Fire TV and Prime Video shows and movies, which just launched in the U.S. as well as Thursday Night Football. | The same is true with adding selection. It's not hard to add lower ASP selection, it's hard to be able to afford offering lower ASP selection and still like the economics. Like improving speed, adding selection puts us in the consideration set for more purchases. As we look toward 2024 and beyond, we're not done lowering our cost to serve. We've challenged every closely held belief in our fulfillment network and reevaluated every part of it and found several areas where we believe we can lower costs while also delivering faster for customers. Our inbound fulfillment architecture and resulting inventory placement are areas of focus in 2024, and we have optimism there's more upside for us. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Shifting to AWS, revenue in the quarter grew 13% year-over-year in Q4 versus 12% year-over-year in Q3, and we're now approaching an annualized revenue run rate of $100 billion. We watched the incremental revenue added each quarter. And in Q4, AWS added more than $1.1 billion of incremental quarter-over-quarter revenue, which on an FX-neutral basis is more than any other cloud provider as far as we can tell. | Alongside our stores business, our advertising growth remained strong, up 26% year-over-year, which is primarily driven by our sponsored ads. We've recently added sponsored TV to this offering in the U.S., a self-service solution for brands to create streaming TV campaigns with no minimum spend, putting this advertising within reach of any business. While still early days, streaming TV advertising continues to grow quickly. Brands are using our capabilities to reach engaged viewers on Twitch, Free V, Fire TV and Prime Video shows and movies, which just launched in the U.S. as well as Thursday Night Football. | Dave Fildes, Operator, Andy Jassy | null | 0 |
While cost optimization continued to attenuate, larger new deals also accelerated, evidenced by recently inked agreements with Salesforce, BMW, NVIDIA, LG, Hyundai, Merck, MUFG, Axiata, Cathay, BYD, Accor, Amgen and SAIC. Our customer pipeline remains strong as existing customers are renewing at larger commitments over longer periods and migrations are growing. 2023 also was a very significant year of delivery and customer trial for generative AI or Gen AI in AWS. You may remember that we've explained our vision of 3 distinct layers in the Gen AI stack, each of which is gigantic and each of which we're deeply investing. | Alongside our stores business, our advertising growth remained strong, up 26% year-over-year, which is primarily driven by our sponsored ads. We've recently added sponsored TV to this offering in the U.S., a self-service solution for brands to create streaming TV campaigns with no minimum spend, putting this advertising within reach of any business. While still early days, streaming TV advertising continues to grow quickly. Brands are using our capabilities to reach engaged viewers on Twitch, Free V, Fire TV and Prime Video shows and movies, which just launched in the U.S. as well as Thursday Night Football. Shifting to AWS, revenue in the quarter grew 13% year-over-year in Q4 versus 12% year-over-year in Q3, and we're now approaching an annualized revenue run rate of $100 billion. We watched the incremental revenue added each quarter. And in Q4, AWS added more than $1.1 billion of incremental quarter-over-quarter revenue, which on an FX-neutral basis is more than any other cloud provider as far as we can tell. | Dave Fildes, Operator, Andy Jassy | null | 0 |
At the bottom layer, where customers who are building their own models run training and inference on compute where the chip is the key component in that compute, we offer the most expansive collection of compute instances with NVIDIA chips. We also have customers who like us to push the price performance envelope on AI chips, just as we have with Graviton for generalized CPU chips, which are 40% more price performance than other X86 alternatives. And as a result, we've built custom AI training chips, named Trainium and inference chips name Inferentia. At Reinvent, we announced Trainium 2, which offers 4x faster trading performance and 3x more memory capacity versus the first generation of Trainium, enabling advantageous price performance versus alternatives. | While cost optimization continued to attenuate, larger new deals also accelerated, evidenced by recently inked agreements with Salesforce, BMW, NVIDIA, LG, Hyundai, Merck, MUFG, Axiata, Cathay, BYD, Accor, Amgen and SAIC. Our customer pipeline remains strong as existing customers are renewing at larger commitments over longer periods and migrations are growing. 2023 also was a very significant year of delivery and customer trial for generative AI or Gen AI in AWS. You may remember that we've explained our vision of 3 distinct layers in the Gen AI stack, each of which is gigantic and each of which we're deeply investing. | Dave Fildes, Operator, Andy Jassy | null | 0 |
We already have several customers using our AI chips, including Anthropic, Airbnb, Hugging Face, Qualtrics, Rico and Snap. In the middle layer, where companies seek to leverage an existing large language model, customize it with their own data and leverage AWS' security and other features, all as a managed service, we've launched Bedrock, which is off to a very strong start with many thousands of customers using the service after just a few months. The team continues to rapidly iterate on Bedrock, recently delivering capabilities, including guardrails to safeguard what questions applications will answer, knowledge basis to expand model's knowledge base with retrieval augmented generation of RAG and real-time queries, agents to complete multistep tasks and fine-tuning to keep teaching and refining models, all of which will help customers' applications be higher quality and have better customer experiences. | At the bottom layer, where customers who are building their own models run training and inference on compute where the chip is the key component in that compute, we offer the most expansive collection of compute instances with NVIDIA chips. We also have customers who like us to push the price performance envelope on AI chips, just as we have with Graviton for generalized CPU chips, which are 40% more price performance than other X86 alternatives. And as a result, we've built custom AI training chips, named Trainium and inference chips name Inferentia. At Reinvent, we announced Trainium 2, which offers 4x faster trading performance and 3x more memory capacity versus the first generation of Trainium, enabling advantageous price performance versus alternatives. | Dave Fildes, Operator, Andy Jassy | null | 0 |
We also added new models from Anthropic, Cohere, Meta with Llama 2, Stability AI and our own Amazon Titan family [indiscernible]. What customers have learned at this early stage of Gen AI is that there's meaningful iteration required in building a production Gen AI application with the requisite enterprise quality at the cost and latency needed. Customers don't want only 1 model. They want different models for different types of applications and different sized models for different applications. Customers want a service that makes us experimenting and iterating simple. And this is what Bedrock does, which is why so many customers are excited about it. | We already have several customers using our AI chips, including Anthropic, Airbnb, Hugging Face, Qualtrics, Rico and Snap. In the middle layer, where companies seek to leverage an existing large language model, customize it with their own data and leverage AWS' security and other features, all as a managed service, we've launched Bedrock, which is off to a very strong start with many thousands of customers using the service after just a few months. The team continues to rapidly iterate on Bedrock, recently delivering capabilities, including guardrails to safeguard what questions applications will answer, knowledge basis to expand model's knowledge base with retrieval augmented generation of RAG and real-time queries, agents to complete multistep tasks and fine-tuning to keep teaching and refining models, all of which will help customers' applications be higher quality and have better customer experiences. | Dave Fildes, Operator, Andy Jassy | null | 0 |
At the top layer of the stack is the application layer, one of the very best early Gen AI applications is a coded companion. At Reinvent, we launched Amazon Q, which is an expert on AWS, writes code, debugs code, tests code, does translations like moving from an old version of Java to a new one and can also query customers various data repositories like Internet, Wickes or from over 40 different popular connectors to data in Salesforce, Amazon S3, ServiceNow, Slack, Elastin or Zendesk, among others. And answer questions, summarize this data, carry on a coherent conversation and take action. | We also added new models from Anthropic, Cohere, Meta with Llama 2, Stability AI and our own Amazon Titan family [indiscernible]. What customers have learned at this early stage of Gen AI is that there's meaningful iteration required in building a production Gen AI application with the requisite enterprise quality at the cost and latency needed. Customers don't want only 1 model. They want different models for different types of applications and different sized models for different applications. Customers want a service that makes us experimenting and iterating simple. And this is what Bedrock does, which is why so many customers are excited about it. | Dave Fildes, Operator, Andy Jassy | null | 0 |
It was designed with security and privacy in mind from the start, making it easier for organizations to use generative AI safely. Q is the most capable work assistant and another service that customers are very excited about. By the way, don't underestimate the point about Bedrock and Q inheriting the same security and access control as customers get with AWS. Security is a big deal, an important differentiator between cloud providers. The data in these models is some of the company's most sensitive and critical assets. With AWS' advantaged security capabilities and track record relative to other providers, we continue to see momentum around customers wanting to do their long-term Gen AI work with AWS. | At the top layer of the stack is the application layer, one of the very best early Gen AI applications is a coded companion. At Reinvent, we launched Amazon Q, which is an expert on AWS, writes code, debugs code, tests code, does translations like moving from an old version of Java to a new one and can also query customers various data repositories like Internet, Wickes or from over 40 different popular connectors to data in Salesforce, Amazon S3, ServiceNow, Slack, Elastin or Zendesk, among others. And answer questions, summarize this data, carry on a coherent conversation and take action. | Dave Fildes, Operator, Andy Jassy | null | 0 |
We're building dozens of Gen AI apps across Amazon's businesses, several of which have launched and others of which are in development. This morning, we launched Rufus, an expert shopping assistant trained on our product and customer data that represents a significant customer experience improvement for Discovery. Rufus lets customers ask shopping journey questions like what is the best golf ball to use for better spin control or which are the best cold weather rain jackets and get thoughtful explanations for what matters and recommendations on products. You can carry on a conversation with Rufus on other related or unrelated questions and retains context coherently. You can sift through our rich product pages by asking Rufus has questions on any product features and will return answers quickly. | It was designed with security and privacy in mind from the start, making it easier for organizations to use generative AI safely. Q is the most capable work assistant and another service that customers are very excited about. By the way, don't underestimate the point about Bedrock and Q inheriting the same security and access control as customers get with AWS. Security is a big deal, an important differentiator between cloud providers. The data in these models is some of the company's most sensitive and critical assets. With AWS' advantaged security capabilities and track record relative to other providers, we continue to see momentum around customers wanting to do their long-term Gen AI work with AWS. | Dave Fildes, Operator, Andy Jassy | null | 0 |
We're at the start of what Rufus will do with further personalization and expansion coming, but we're excited about how it will make discovery even easier on Amazon. | We're building dozens of Gen AI apps across Amazon's businesses, several of which have launched and others of which are in development. This morning, we launched Rufus, an expert shopping assistant trained on our product and customer data that represents a significant customer experience improvement for Discovery. Rufus lets customers ask shopping journey questions like what is the best golf ball to use for better spin control or which are the best cold weather rain jackets and get thoughtful explanations for what matters and recommendations on products. You can carry on a conversation with Rufus on other related or unrelated questions and retains context coherently. You can sift through our rich product pages by asking Rufus has questions on any product features and will return answers quickly. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Gen AI is and will continue to be an area of pervasive focus and investment across Amazon, primarily because there are a few initiatives, if any, that give us the chance to reinvent so many of our customer experiences and processes, and we believe it will ultimately drive tens of billions of dollars of revenue for Amazon over the next several years. In addition to our stores and AWS businesses, we continue to make progress on newer business investments that have the potential to be important to customers and Amazon long term. | We're building dozens of Gen AI apps across Amazon's businesses, several of which have launched and others of which are in development. This morning, we launched Rufus, an expert shopping assistant trained on our product and customer data that represents a significant customer experience improvement for Discovery. Rufus lets customers ask shopping journey questions like what is the best golf ball to use for better spin control or which are the best cold weather rain jackets and get thoughtful explanations for what matters and recommendations on products. You can carry on a conversation with Rufus on other related or unrelated questions and retains context coherently. You can sift through our rich product pages by asking Rufus has questions on any product features and will return answers quickly. We're at the start of what Rufus will do with further personalization and expansion coming, but we're excited about how it will make discovery even easier on Amazon. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Touching on 2 of them. In October, we had a major milestone in our journey to commercialize Project HyPer, which is our low earth orbit satellite initiative that aims to provide broadband connectivity to the 400 million to 500 million households who don't have it today. We launched two end-to-end prototype satellites into space and successfully validated all key systems and subsystems, made a 2-way video call, streamed a Prime Video movie in Ultra HD 4K and made an Amazon purchase over our end-to-end communication network. It's rare to be able to exercise all these elements in an initial launch like this. | Gen AI is and will continue to be an area of pervasive focus and investment across Amazon, primarily because there are a few initiatives, if any, that give us the chance to reinvent so many of our customer experiences and processes, and we believe it will ultimately drive tens of billions of dollars of revenue for Amazon over the next several years. In addition to our stores and AWS businesses, we continue to make progress on newer business investments that have the potential to be important to customers and Amazon long term. | Dave Fildes, Operator, Andy Jassy | null | 0 |
We're on track to launch our first production satellite in the first half of 2024 and started beta testing in the second half of the year. We've still got a long way to go, but are encouraged by our progress. During the quarter, we also completed our second season of Thursday Night Football, which was a rousing success by all accounts. The customer experience continued to improve as our talent, production, streaming quality, analytics, unique AI features like Prime Vision and defensive alerts, all took big leaps forward on top of the very good start last year. | Touching on 2 of them. In October, we had a major milestone in our journey to commercialize Project HyPer, which is our low earth orbit satellite initiative that aims to provide broadband connectivity to the 400 million to 500 million households who don't have it today. We launched two end-to-end prototype satellites into space and successfully validated all key systems and subsystems, made a 2-way video call, streamed a Prime Video movie in Ultra HD 4K and made an Amazon purchase over our end-to-end communication network. It's rare to be able to exercise all these elements in an initial launch like this. | Dave Fildes, Operator, Andy Jassy | null | 0 |
We launched a new NFL tradition with the inaugural Black Friday football game and our continuous innovation resonated with viewers as the number of people watching increased 24% year-over-year and with advertisers as we made dramatic year-over-year gains in ad sales. We have increasing conviction that Prime Video can be a large and profitable business on its own, and we'll continue to invest in compelling exclusive content for Prime members like Thursday Night Football, Go To The Rings, Reacher, Mr. & Mr. Smith, Citadel and more. | We're on track to launch our first production satellite in the first half of 2024 and started beta testing in the second half of the year. We've still got a long way to go, but are encouraged by our progress. During the quarter, we also completed our second season of Thursday Night Football, which was a rousing success by all accounts. The customer experience continued to improve as our talent, production, streaming quality, analytics, unique AI features like Prime Vision and defensive alerts, all took big leaps forward on top of the very good start last year. | Dave Fildes, Operator, Andy Jassy | null | 0 |
And with the ads in Prime Video, we'll be able to continue investing meaningfully in content over time. | We launched a new NFL tradition with the inaugural Black Friday football game and our continuous innovation resonated with viewers as the number of people watching increased 24% year-over-year and with advertisers as we made dramatic year-over-year gains in ad sales. We have increasing conviction that Prime Video can be a large and profitable business on its own, and we'll continue to invest in compelling exclusive content for Prime members like Thursday Night Football, Go To The Rings, Reacher, Mr. & Mr. Smith, Citadel and more. | Dave Fildes, Operator, Andy Jassy | null | 0 |
I'll close by reiterating that 2023 was a really good year. I'm grateful to all of our teams who delivered on behalf of customers. Yet I think every one of us at Amazon believes this is just the start of what's possible. We have a long way to go in every one of our businesses before we exhaust how we can make customers' lives better and easier, and there is considerable upside in each of the businesses in which we're investing. | We launched a new NFL tradition with the inaugural Black Friday football game and our continuous innovation resonated with viewers as the number of people watching increased 24% year-over-year and with advertisers as we made dramatic year-over-year gains in ad sales. We have increasing conviction that Prime Video can be a large and profitable business on its own, and we'll continue to invest in compelling exclusive content for Prime members like Thursday Night Football, Go To The Rings, Reacher, Mr. & Mr. Smith, Citadel and more. And with the ads in Prime Video, we'll be able to continue investing meaningfully in content over time. | Dave Fildes, Operator, Andy Jassy | null | 0 |
With that, I'll turn it over to Brian. | I'll close by reiterating that 2023 was a really good year. I'm grateful to all of our teams who delivered on behalf of customers. Yet I think every one of us at Amazon believes this is just the start of what's possible. We have a long way to go in every one of our businesses before we exhaust how we can make customers' lives better and easier, and there is considerable upside in each of the businesses in which we're investing. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Revenue was $574.8 billion, an increase of 12% year-over-year, excluding the impact of foreign exchange. Operating income tripled year-over-year to $36.9 billion. Trailing 12-month free cash flow adjusted for equipment finance leases was $35.5 billion, up $48.3 billion versus last year. These financial outputs are a result of a lot of improvements in our key input metrics such as stores' cost to serve, which decreased year-over-year for the first time since 2018 and our ability to deliver to customers at our fastest speeds ever. | Thanks, Andy. Overall, we saw strong performance in the fourth quarter. Worldwide revenue was $170 billion, representing an increase of 13% year-over-year, excluding the impact of foreign exchange and approximately $3 billion above the top end of our guidance range. Saw our highest quarterly worldwide operating income ever, which was $13.2 billion for the quarter, an increase of $10.5 billion year-over-year and $2.2 billion above the high end of our guidance range. For the full year 2023, we had a meaningful improvement across our financial results. | Dave Fildes, Operator, Andy Jassy | null | 0 |
I want to thank our customers, our partners and our teammates around the world for a very strong 2023 performance. | Revenue was $574.8 billion, an increase of 12% year-over-year, excluding the impact of foreign exchange. Operating income tripled year-over-year to $36.9 billion. Trailing 12-month free cash flow adjusted for equipment finance leases was $35.5 billion, up $48.3 billion versus last year. These financial outputs are a result of a lot of improvements in our key input metrics such as stores' cost to serve, which decreased year-over-year for the first time since 2018 and our ability to deliver to customers at our fastest speeds ever. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Focusing on the fourth quarter, North America revenue was $105.5 billion, an increase of 13% year-over-year and an acceleration of 200 basis points compared to Q3. International revenue was $40.2 billion, an increase of 13% year-over-year, excluding the impact of foreign exchange, also an acceleration of 200 basis points compared to Q3. During the quarter, we remained focused on the inputs that matter most to our customers, price, selection and convenience. | Revenue was $574.8 billion, an increase of 12% year-over-year, excluding the impact of foreign exchange. Operating income tripled year-over-year to $36.9 billion. Trailing 12-month free cash flow adjusted for equipment finance leases was $35.5 billion, up $48.3 billion versus last year. These financial outputs are a result of a lot of improvements in our key input metrics such as stores' cost to serve, which decreased year-over-year for the first time since 2018 and our ability to deliver to customers at our fastest speeds ever. I want to thank our customers, our partners and our teammates around the world for a very strong 2023 performance. | Dave Fildes, Operator, Andy Jassy | null | 0 |
Our shopping events throughout the quarter included Prime Big Deal Days in October and our extended Black Friday and Cyber Monday shopping event helped to attract new Prime members and deliver billions in savings for customers. We made meaningful progress on delivery speeds in the United States and globally, which helped strong sales throughout the quarter, including notable strength in the last-minute gifting where our ability to provide fast shipping helped our Prime members ensure that they got their gifts before the holidays. | I want to thank our customers, our partners and our teammates around the world for a very strong 2023 performance. Focusing on the fourth quarter, North America revenue was $105.5 billion, an increase of 13% year-over-year and an acceleration of 200 basis points compared to Q3. International revenue was $40.2 billion, an increase of 13% year-over-year, excluding the impact of foreign exchange, also an acceleration of 200 basis points compared to Q3. During the quarter, we remained focused on the inputs that matter most to our customers, price, selection and convenience. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
These improvements in delivery speed have led to increased purchase frequency by our Prime members across all of our major geographies. It also strengthened demand for our everyday essentials. Categories like beauty and health and personal care, where speed is even more important to customers. Third-party sellers were a big part of our success over the holidays with worldwide third-party seller services revenue growing at 19% year-over-year, excluding the impact of foreign exchange. And worldwide third-party seller unit mix was 61%, its highest level ever. | Our shopping events throughout the quarter included Prime Big Deal Days in October and our extended Black Friday and Cyber Monday shopping event helped to attract new Prime members and deliver billions in savings for customers. We made meaningful progress on delivery speeds in the United States and globally, which helped strong sales throughout the quarter, including notable strength in the last-minute gifting where our ability to provide fast shipping helped our Prime members ensure that they got their gifts before the holidays. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
We also saw strong performance in worldwide advertising, which grew 26% year-over-year, excluding the impact of foreign exchange. The strength in advertising was primarily driven by sponsored products as our teams worked hard to increase the relevancy of the ads we show customers by leveraging machine learning. Advertising only works if the ads are helpful to customers and there's a lot of value in tailoring sponsored products, so they are relevant to what a customer is actually searching for. We're also continually focused on improving our measurement capabilities, which allow brands to see the payback of their advertising spend. | These improvements in delivery speed have led to increased purchase frequency by our Prime members across all of our major geographies. It also strengthened demand for our everyday essentials. Categories like beauty and health and personal care, where speed is even more important to customers. Third-party sellers were a big part of our success over the holidays with worldwide third-party seller services revenue growing at 19% year-over-year, excluding the impact of foreign exchange. And worldwide third-party seller unit mix was 61%, its highest level ever. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
Shifting to profitability. North America segment operating income was $6.5 billion, an increase of $6.7 billion year-over-year, resulting in an operating margin of 6.1%, up 120 basis points quarter-over-quarter. Since North America operating margins were at their recent low levels in Q1 of 2022, we have now seen 7 consecutive quarters of improvement resulting in a cumulative improvement of 800 basis points over these past 7 quarters. | We also saw strong performance in worldwide advertising, which grew 26% year-over-year, excluding the impact of foreign exchange. The strength in advertising was primarily driven by sponsored products as our teams worked hard to increase the relevancy of the ads we show customers by leveraging machine learning. Advertising only works if the ads are helpful to customers and there's a lot of value in tailoring sponsored products, so they are relevant to what a customer is actually searching for. We're also continually focused on improving our measurement capabilities, which allow brands to see the payback of their advertising spend. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
In addition to the strong top line growth, which helped to drive improved leverage throughout our businesses, we continue to make progress on reducing our cost to serve. The fourth quarter is our busiest time of year, supported by an increasingly large and integrated operations network. Overall, our teams executed extremely well, yielding strong efficiency gains with minimal disruptions. We were pleased with the performance of our regionalized network during the holiday period, where we saw benefits from improved inventory placement helping drive faster speeds and also lowering costs. | We also saw strong performance in worldwide advertising, which grew 26% year-over-year, excluding the impact of foreign exchange. The strength in advertising was primarily driven by sponsored products as our teams worked hard to increase the relevancy of the ads we show customers by leveraging machine learning. Advertising only works if the ads are helpful to customers and there's a lot of value in tailoring sponsored products, so they are relevant to what a customer is actually searching for. We're also continually focused on improving our measurement capabilities, which allow brands to see the payback of their advertising spend. Shifting to profitability. North America segment operating income was $6.5 billion, an increase of $6.7 billion year-over-year, resulting in an operating margin of 6.1%, up 120 basis points quarter-over-quarter. Since North America operating margins were at their recent low levels in Q1 of 2022, we have now seen 7 consecutive quarters of improvement resulting in a cumulative improvement of 800 basis points over these past 7 quarters. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
We also continue to see benefits from lower transportation rates, which include linehaul, ocean and rail and from a more stable labor market, resulting in improved staffing levels. | In addition to the strong top line growth, which helped to drive improved leverage throughout our businesses, we continue to make progress on reducing our cost to serve. The fourth quarter is our busiest time of year, supported by an increasingly large and integrated operations network. Overall, our teams executed extremely well, yielding strong efficiency gains with minimal disruptions. We were pleased with the performance of our regionalized network during the holiday period, where we saw benefits from improved inventory placement helping drive faster speeds and also lowering costs. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
In our International segment, we had an operating loss of $419 million, an improvement of $1.8 billion year-over-year. This improvement was primarily driven by lowering our cost to serve through increased units per box, lower transportation rates and leverage across our fixed costs as we continue to focus on customer inputs and improve efficiencies within our operations. The International segment represents more than 20 countries of varying degrees of growth and our largest established countries like the U.K., Germany and Japan, relatively strong revenue growth contributed to the year-over-year improvement in profitability. Additionally, we saw good progress in our emerging countries as they continued to expand their customer offerings, while seeking to invest wisely. | In addition to the strong top line growth, which helped to drive improved leverage throughout our businesses, we continue to make progress on reducing our cost to serve. The fourth quarter is our busiest time of year, supported by an increasingly large and integrated operations network. Overall, our teams executed extremely well, yielding strong efficiency gains with minimal disruptions. We were pleased with the performance of our regionalized network during the holiday period, where we saw benefits from improved inventory placement helping drive faster speeds and also lowering costs. We also continue to see benefits from lower transportation rates, which include linehaul, ocean and rail and from a more stable labor market, resulting in improved staffing levels. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
Moving to AWS. Revenues were $24.2 billion, an increase of 13% year-over-year. On a quarter-over-quarter basis, we added more than $1.1 billion of revenue in AWS as customers are continuing to shift their focus towards driving innovation and bringing new workloads to the cloud. Similar to what we shared last quarter, we continue to see the diminishing impact of cost optimizations. And as these optimization slow down, we're seeing more companies turning their attention to newer initiatives and reaccelerating existing migrations. | In our International segment, we had an operating loss of $419 million, an improvement of $1.8 billion year-over-year. This improvement was primarily driven by lowering our cost to serve through increased units per box, lower transportation rates and leverage across our fixed costs as we continue to focus on customer inputs and improve efficiencies within our operations. The International segment represents more than 20 countries of varying degrees of growth and our largest established countries like the U.K., Germany and Japan, relatively strong revenue growth contributed to the year-over-year improvement in profitability. Additionally, we saw good progress in our emerging countries as they continued to expand their customer offerings, while seeking to invest wisely. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
Customers are also excited about our approach to generative AI. Still relatively early days, but the revenues are accelerating rapidly across all 3 layers and our approach to democratizing AI is resonating well with our customers. We have seen significant interest from our customers wanting to run generative AI applications and build large language models and foundation models, all with the privacy, reliability and security they have grown accustomed to with AWS. | Moving to AWS. Revenues were $24.2 billion, an increase of 13% year-over-year. On a quarter-over-quarter basis, we added more than $1.1 billion of revenue in AWS as customers are continuing to shift their focus towards driving innovation and bringing new workloads to the cloud. Similar to what we shared last quarter, we continue to see the diminishing impact of cost optimizations. And as these optimization slow down, we're seeing more companies turning their attention to newer initiatives and reaccelerating existing migrations. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
AWS' operating income was $7.2 billion, an increase of $2 billion year-over-year. Our operating margin for the quarter was 29.6%, up more than 500 basis points year-over-year and effectively flat on a quarter-over-quarter basis. This margin improvement reflects our headcount reductions from earlier in the year and a slowdown in the pace of hiring. | Moving to AWS. Revenues were $24.2 billion, an increase of 13% year-over-year. On a quarter-over-quarter basis, we added more than $1.1 billion of revenue in AWS as customers are continuing to shift their focus towards driving innovation and bringing new workloads to the cloud. Similar to what we shared last quarter, we continue to see the diminishing impact of cost optimizations. And as these optimization slow down, we're seeing more companies turning their attention to newer initiatives and reaccelerating existing migrations. Customers are also excited about our approach to generative AI. Still relatively early days, but the revenues are accelerating rapidly across all 3 layers and our approach to democratizing AI is resonating well with our customers. We have seen significant interest from our customers wanting to run generative AI applications and build large language models and foundation models, all with the privacy, reliability and security they have grown accustomed to with AWS. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
Shifting to free cash flow. On a trailing 12-month basis, free cash flow adjusted for finance leases was $35.5 billion, an improvement of $48.3 billion year-over-year. The largest driver of the improvement in free cash flow is our increased operating income, which we are seeing across all 3 of our segments. We're also seeing improvements in working capital, notably in inventory efficiency driven by our regionalization efforts. | Customers are also excited about our approach to generative AI. Still relatively early days, but the revenues are accelerating rapidly across all 3 layers and our approach to democratizing AI is resonating well with our customers. We have seen significant interest from our customers wanting to run generative AI applications and build large language models and foundation models, all with the privacy, reliability and security they have grown accustomed to with AWS. AWS' operating income was $7.2 billion, an increase of $2 billion year-over-year. Our operating margin for the quarter was 29.6%, up more than 500 basis points year-over-year and effectively flat on a quarter-over-quarter basis. This margin improvement reflects our headcount reductions from earlier in the year and a slowdown in the pace of hiring. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
Next, let's turn to capital investments. We define our capital investments as a combination of CapEx plus equipment finance leases. In 2023, full year CapEx was $48.4 billion, which was down $10.2 billion year-over-year, primarily driven by lower spend on fulfillment and transportation. As we look forward to 2024, we anticipate CapEx to increase year-over-year, primarily driven by increased infrastructure CapEx, support growth of our AWS business, including additional investments in generative AI and large language models. | AWS' operating income was $7.2 billion, an increase of $2 billion year-over-year. Our operating margin for the quarter was 29.6%, up more than 500 basis points year-over-year and effectively flat on a quarter-over-quarter basis. This margin improvement reflects our headcount reductions from earlier in the year and a slowdown in the pace of hiring. Shifting to free cash flow. On a trailing 12-month basis, free cash flow adjusted for finance leases was $35.5 billion, an improvement of $48.3 billion year-over-year. The largest driver of the improvement in free cash flow is our increased operating income, which we are seeing across all 3 of our segments. We're also seeing improvements in working capital, notably in inventory efficiency driven by our regionalization efforts. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
One thing I'd like to highlight in our first quarter guidance is that we recently completed a useful life study for our servers and we are increasing the useful life from 5 years to 6 years beginning in January 2024. We will have this anticipated benefit to our operating income of approximately $900 million in Q1, which is included in our operating income guidance. | Shifting to free cash flow. On a trailing 12-month basis, free cash flow adjusted for finance leases was $35.5 billion, an improvement of $48.3 billion year-over-year. The largest driver of the improvement in free cash flow is our increased operating income, which we are seeing across all 3 of our segments. We're also seeing improvements in working capital, notably in inventory efficiency driven by our regionalization efforts. Next, let's turn to capital investments. We define our capital investments as a combination of CapEx plus equipment finance leases. In 2023, full year CapEx was $48.4 billion, which was down $10.2 billion year-over-year, primarily driven by lower spend on fulfillment and transportation. As we look forward to 2024, we anticipate CapEx to increase year-over-year, primarily driven by increased infrastructure CapEx, support growth of our AWS business, including additional investments in generative AI and large language models. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
As we turn the calendar to 2024, we are excited to continue upon the great work the teams have been able to deliver in 2023. We remain focused on streamlining and prioritizing projects in an effective way that reduces costs and also allows us to continue innovating and inventing for customers. | Next, let's turn to capital investments. We define our capital investments as a combination of CapEx plus equipment finance leases. In 2023, full year CapEx was $48.4 billion, which was down $10.2 billion year-over-year, primarily driven by lower spend on fulfillment and transportation. As we look forward to 2024, we anticipate CapEx to increase year-over-year, primarily driven by increased infrastructure CapEx, support growth of our AWS business, including additional investments in generative AI and large language models. One thing I'd like to highlight in our first quarter guidance is that we recently completed a useful life study for our servers and we are increasing the useful life from 5 years to 6 years beginning in January 2024. We will have this anticipated benefit to our operating income of approximately $900 million in Q1, which is included in our operating income guidance. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
With that, let's move on to questions. | One thing I'd like to highlight in our first quarter guidance is that we recently completed a useful life study for our servers and we are increasing the useful life from 5 years to 6 years beginning in January 2024. We will have this anticipated benefit to our operating income of approximately $900 million in Q1, which is included in our operating income guidance. As we turn the calendar to 2024, we are excited to continue upon the great work the teams have been able to deliver in 2023. We remain focused on streamlining and prioritizing projects in an effective way that reduces costs and also allows us to continue innovating and inventing for customers. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
And then if you look back at the revenue growth, it accelerated to 13.2% in Q4 as we just mentioned. That was an acceleration. We expect accelerating trends to continue into 2024. We're excited about the migrate -- continuous resumption, I guess, of migrations that companies may have put on hold during 2023 in some cases and interest in our generative AI and products, like Bedrock and as Andy was describing that. | Yes, that's right. This is Dave. Just to give you that -- the balance was $155.7 billion as of 12/31. So that's up more than $45 billion year-over-year and $20 billion quarter-over-quarter. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
On the CapEx side, let me talk in total for the company. We had $48 billion in 2023 was down $10 billion year-over-year. We talked about during the year quite a bit. A lot of the mix of investment in 2023 was tied to infrastructure, mostly supporting AWS but also supporting our core Amazon businesses was about 60% of our spend. So it reached a very high percentage. We anticipate those trends continuing into 2024. CapEx will go up in 2024. I'm not giving a number today, but we do -- we're still working through plans for the year, but we do expect CapEx to rise as we add capacity in AWS for region expansions, but primarily the work we're doing with generative AI projects. | Yes, that's right. This is Dave. Just to give you that -- the balance was $155.7 billion as of 12/31. So that's up more than $45 billion year-over-year and $20 billion quarter-over-quarter. And then if you look back at the revenue growth, it accelerated to 13.2% in Q4 as we just mentioned. That was an acceleration. We expect accelerating trends to continue into 2024. We're excited about the migrate -- continuous resumption, I guess, of migrations that companies may have put on hold during 2023 in some cases and interest in our generative AI and products, like Bedrock and as Andy was describing that. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
In the fulfillment center and logistics area, I would say it's more incremental capacity at this point based on additional demand, although we are seeing some additional investments for same-day delivery sites and automation, robotics. But the trend for most of the large percentage of the spend will be in infrastructure is going to continue into 2024. | On the CapEx side, let me talk in total for the company. We had $48 billion in 2023 was down $10 billion year-over-year. We talked about during the year quite a bit. A lot of the mix of investment in 2023 was tied to infrastructure, mostly supporting AWS but also supporting our core Amazon businesses was about 60% of our spend. So it reached a very high percentage. We anticipate those trends continuing into 2024. CapEx will go up in 2024. I'm not giving a number today, but we do -- we're still working through plans for the year, but we do expect CapEx to rise as we add capacity in AWS for region expansions, but primarily the work we're doing with generative AI projects. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
But it's encouraging how fast it's growing and our offering is really resonating with customers. | We've also seen that a number of the deals that typically signed more quickly, but were signing more slowly in more uncertain environments. A lot of those got done in the last quarter, and you heard in my opening remarks some of the examples, but that was some of several, and we're continuing to see that trend. And then on the Gen AI side, it's -- if you look at the Gen AI revenue we have, in absolute numbers, it's a pretty big number, but in the scheme of a $100 billion annual revenue run rate business, it's still relatively small, much smaller than what it will be in the future, where we really believe we're going to drive tens of billions of dollars of revenue over the next several years. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
And so when the team speaks about the areas where they believe they have opportunities, there's still opportunities just in regionalization as we continue to hone that, but I also think, in many ways, it was very useful for us to go through what was a pretty significant change we went through during the pandemic, where we doubled the size of our fulfillment center network in 18 months and built out a last mile transportation network, the size of UPS in 18 months. It was disruptive to get that optimized. But one of the things that was very useful was, it really caused us to relook at everything we were doing with fulfillment network. | Brian, I appreciate it. I'll take the first, and I'll let Brian take the second. On the cost to serve coming down, as I mentioned in my opening remarks, I don't think that we feel like where we're going to ultimately be. I think we feel like we have meaningful upside there. And I think 1 thing that it's easy to make as large a change as we made in regionalization in the U.S. and saying, check, we got that done. But the reality is, we still have several improvements and a bunch of ways that we can hone the regionalization improvements that we made in 2023 and in 2024. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
And we looked at it really a beginner's eye and we have found so many areas that we believe that we can evolve that I think will both help our cost to serve and even more importantly, deliver faster delivery speeds for customers. And I mentioned one area which, in particular, which you'll see us focus on over the next year or two is just, we think there are real opportunities in our inbound network and our inbound processes. And then where we locate inventory in association with that, which will accomplish both of those tasks. But for us, I don't believe that we believe that 2018 is the North Star in cost to serve. I think we believe we can keep evolving it and being better than that. | And so when the team speaks about the areas where they believe they have opportunities, there's still opportunities just in regionalization as we continue to hone that, but I also think, in many ways, it was very useful for us to go through what was a pretty significant change we went through during the pandemic, where we doubled the size of our fulfillment center network in 18 months and built out a last mile transportation network, the size of UPS in 18 months. It was disruptive to get that optimized. But one of the things that was very useful was, it really caused us to relook at everything we were doing with fulfillment network. | Dave Fildes, Brian Olsavsky, Operator, Andy Jassy | null | 0 |
On your share repurchase question, first of all, just really excited to actually have that question. No one's asked me that in 3 years and appreciate it. But we have come through a tumultuous period where, as Andy just said, we doubled the size of our logistics footprint and invested heavily in -- we saw that negative free cash flow, at least on our all 2 calculation for the period 2021 to 2022. So we're glad to see the improvement in the bounce back in free cash flow. A lot of -- and we do debate and discuss capital structure policies annually or more often. And I have nothing to announce today, but again, we primarily think we have a lot of strong investments in front of us. We're good -- we're glad to have the liquidity -- better liquidity at the end of 2023, and we're going to try to continue to build that. | Yes, I'd just add a couple of other items there. We've gotten a lot better at fixed cost controls, as we scale. And I think you're seeing that as part of our ability to lower cost per serve not only in operations, it's actually throughout the company. And we're seeing a reduction in some of the inflationary factors that hit us in -- especially hard in 2021 and 2022, things like transportation services, fuel and others. So not totally out of the woods there, but coming down, and we still see some more upside. | Operator, Dave Fildes, Brian Olsavsky, Andy Jassy, Brian Nowak | null | 0 |
On the International segment, operating income, yes, we're very pleased with the results, especially over the last few quarters. We improved operating income by $1.8 billion year-over-year. And I would attribute it to the steady progress that Andy was saying about the U.S. is, again, cost of serve down, advertising is stronger, a lot of attention to cost, a lot of attention to investments, and we are going to invest and other fixed cost control. So a lot of that is what we're seeing in the established countries of Europe and Japan. I would divide the segment a bit into a couple of buckets. | Yes. Let me start with the second one first. So we're mindful of the geopolitical issues around the world, especially as you say in the supply chain and how that might impact shipments both to the U.S. and to Europe. We're just working very hard to make that not back up on customers, and we'll continue to work that. It's not a material impact into the -- estimated in our guidance in Q1. But again, as I said, we're vigilant on that, and we'll work to take steps where we need to, to make sure that customer experience is not impacted. | Operator, Dave Fildes, Brian Olsavsky, Andy Jassy, Brian Nowak | null | 0 |
First, there's that International segment, excuse me, European established country segment. And that's -- it behaves a lot like you would see in North America. If you look at the emerging countries, and again, we've launched 10 countries in the last 7 years. They're all on their own trajectory of journey to profitability and significance with customers, and we're pleased with that. I think they're all growing nicely and again, leveraging their cost structure, investing wisely and Prime benefits, but all on a curve to breakeven and then be a contributor to income and free cash flow. | On the International segment, operating income, yes, we're very pleased with the results, especially over the last few quarters. We improved operating income by $1.8 billion year-over-year. And I would attribute it to the steady progress that Andy was saying about the U.S. is, again, cost of serve down, advertising is stronger, a lot of attention to cost, a lot of attention to investments, and we are going to invest and other fixed cost control. So a lot of that is what we're seeing in the established countries of Europe and Japan. I would divide the segment a bit into a couple of buckets. | Operator, Dave Fildes, Brian Olsavsky, Andy Jassy, Brian Nowak | null | 0 |
The other thing I'd point out is that we have advanced loaded, I would say, price benefits in our International markets. We think it's a very good source of customer acquisition and customer retention. The investment in those areas can fluctuate quarter-to-quarter. We had a bit of a higher spend in -- excuse me, in digital content in Q4 as we had a number of marketing and content, especially around live sports, English Premier League and Champions League in Germany and Italy, for example. But we like those benefits in those investments, different proven vehicle for customer acquisition, as I said, and it gets people shopping at our sites and engaging with benefits is always positive for the relationship with Amazon. | First, there's that International segment, excuse me, European established country segment. And that's -- it behaves a lot like you would see in North America. If you look at the emerging countries, and again, we've launched 10 countries in the last 7 years. They're all on their own trajectory of journey to profitability and significance with customers, and we're pleased with that. I think they're all growing nicely and again, leveraging their cost structure, investing wisely and Prime benefits, but all on a curve to breakeven and then be a contributor to income and free cash flow. | Operator, Dave Fildes, Brian Olsavsky, Andy Jassy, Brian Nowak | null | 0 |
And I might add, at the same time, increase the customer experience because we did that -- we had that cost improvement at the same time when we at first got back to our shipping speeds from pre-pandemic and then exceeded them. So we're happy with that, and we'll continue to do both to improve the customer experience and also to lower our costs and leverage our cost structure. | Sure, Mark. I think Andy laid it out pretty well a few minutes ago on the cost structure, the regionalization, the -- growing into the assets that we added during the pandemic, great efficiency and work with productivity across really all of our operations network fixed -- attention to fixed cost and lowering costs where we can, maintaining costs where we can, the increase in advertising, success in advertising revenue growth that's outpaced our traffic growth rates. So all of those trends we expect to continue, and we're going to work hard to make sure they continue. And as we said, we have one guidepost is maybe pre-pandemic profitability, but we are working to -- we're not putting a limit on our improvement. We're going to continue to look for ways to lower the cost to serve. | Operator, Dave Fildes, Brian Olsavsky, Andy Jassy, Brian Nowak | null | 0 |
Yes, your second question on ads. I can't scale it right now. I mean what I would say for ads in videos is that advertisers are excited to access our Prime customer base. We are looking for ways to increase our advertising in our streaming properties, including Fire TV, but also -- and Prime Video, but also things like Free V and Twitch. And it's an important part of the total business model, and we expect it will allow us to have a healthy business to continue to invest in content and to continue to grow that. And we feel good about it, and we -- the way we anticipate the ads progressing, we will not have heavy ad loads relative to see other network TV and other things. And like all of our advertising, we're trying to be useful for customers. | Sure, Mark. I think Andy laid it out pretty well a few minutes ago on the cost structure, the regionalization, the -- growing into the assets that we added during the pandemic, great efficiency and work with productivity across really all of our operations network fixed -- attention to fixed cost and lowering costs where we can, maintaining costs where we can, the increase in advertising, success in advertising revenue growth that's outpaced our traffic growth rates. So all of those trends we expect to continue, and we're going to work hard to make sure they continue. And as we said, we have one guidepost is maybe pre-pandemic profitability, but we are working to -- we're not putting a limit on our improvement. We're going to continue to look for ways to lower the cost to serve. And I might add, at the same time, increase the customer experience because we did that -- we had that cost improvement at the same time when we at first got back to our shipping speeds from pre-pandemic and then exceeded them. So we're happy with that, and we'll continue to do both to improve the customer experience and also to lower our costs and leverage our cost structure. | Operator, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
We have a physical presence along with online, but Whole Foods market, which is really the pioneer and the leader in organic grocery and that's continuing to grow at a very good clip. We also made a number of changes in the business last year on the profitability side, where we really like the profitability trajectory we see there. And so again, you'll see that keep growing and expanding and feel very good about that as well. If you want to serve as many grocery needs as we do, you have to have a mass physical presence. And that's what we've been trying to do with Fresh over several years. We have tested -- we've been testing a V2 of our Fresh format in a few locations near Chicago, in a few locations in Southern California. It's very early. It's just a few months in, but the results thus far are very promising and on almost every dimension. | Yes. On grocery, we're pleased with the progress we're making there. When we think about our grocery business right now and kind of, I'll call it, 3 big macro segments. The first is nonperishables where these are things like consumables and canned goods and pet food and health and beauty products and pharmaceutical. And we -- it's a big business and it's continuing to grow at a very healthy clip, and we're really pleased with that business. And it's really the way the most mass merchandise -- mass merchandisers got into the grocery business a few decades ago. So that continues to grow at a very healthy clip. | Operator, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
And so we need to see it for a little bit longer time, but the results appear like we have something that's resonating. And if we continue to see that then the issue becomes how fast and what's the best way to expand. We have also been spending increasing amounts of time and efforts here trying to make it easier for customers to be able to shop between the nonperishables and then our selection of Whole Foods as well as Fresh, I think you can expect to see that over time, both in the user experience on the app and on the website as well as how we're able to better leverage between the different business segments and their logistics capabilities, being able to get better leverage there, better economics and then allowing people to order in 1 conservative place to be able to pick up in multiple -- pick up for multiple types of grocery products in one place. You're seeing us already do more of that, and I think you can expect that in the future. | We have a physical presence along with online, but Whole Foods market, which is really the pioneer and the leader in organic grocery and that's continuing to grow at a very good clip. We also made a number of changes in the business last year on the profitability side, where we really like the profitability trajectory we see there. And so again, you'll see that keep growing and expanding and feel very good about that as well. If you want to serve as many grocery needs as we do, you have to have a mass physical presence. And that's what we've been trying to do with Fresh over several years. We have tested -- we've been testing a V2 of our Fresh format in a few locations near Chicago, in a few locations in Southern California. It's very early. It's just a few months in, but the results thus far are very promising and on almost every dimension. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
In the healthcare space, I -- if you think about what we do on the retail side, adding a pharmacy capability is a pretty natural extension. It's something that customers had asked us for, for many years, and it's got more complexity to it than the rest of our retail business. So we have to think carefully about whether we wanted to pursue it, but customers so badly wanted it and the experience we thought could be better and we could be a meaningful part of changing that, that we pursued it. And I really like the momentum that we're seeing in our Amazon Pharmacy business. It's growing really quickly. But even more important with how fast it's growing, if you've used it and you've paid attention to the customer experience over the last 12 to 15 months, it's just substantially improved from where it already was pretty good. | And so we need to see it for a little bit longer time, but the results appear like we have something that's resonating. And if we continue to see that then the issue becomes how fast and what's the best way to expand. We have also been spending increasing amounts of time and efforts here trying to make it easier for customers to be able to shop between the nonperishables and then our selection of Whole Foods as well as Fresh, I think you can expect to see that over time, both in the user experience on the app and on the website as well as how we're able to better leverage between the different business segments and their logistics capabilities, being able to get better leverage there, better economics and then allowing people to order in 1 conservative place to be able to pick up in multiple -- pick up for multiple types of grocery products in one place. You're seeing us already do more of that, and I think you can expect that in the future. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
People really love the experience. And I think that when -- the healthcare experience, particularly in the U.S. is a pretty frustrating 1 and not a very good one. And I think that when we tell our grandkids that the way we used to have to go get primary care was to make an appointment 3 weeks in advance and then drive 20 minutes to the doctor, park, wait in the reception for 15 minutes, get put into an exam room for 15 minutes. Doctor comes in, talks to you for 5 to 10 minutes and then you got to drive 20 minutes to the pharmacy. People are just not -- our grandkids will not believe that was the experience and it's not going to be, and you already see that changing. And it's part of what attracted us in such a significant way to on medical. | In the healthcare space, I -- if you think about what we do on the retail side, adding a pharmacy capability is a pretty natural extension. It's something that customers had asked us for, for many years, and it's got more complexity to it than the rest of our retail business. So we have to think carefully about whether we wanted to pursue it, but customers so badly wanted it and the experience we thought could be better and we could be a meaningful part of changing that, that we pursued it. And I really like the momentum that we're seeing in our Amazon Pharmacy business. It's growing really quickly. But even more important with how fast it's growing, if you've used it and you've paid attention to the customer experience over the last 12 to 15 months, it's just substantially improved from where it already was pretty good. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
And that experience is so much better than what we've been accustomed to seeing. And so I think it's -- again, it's still early days. We're excited. We launched for Prime members the ability to get one medical subscription for $9 a month or $99 a year, which is 50% off, the typical price and that saw a very good take-up. So it's still early days, but we think we have an opportunity to be a meaningful part of changing that experience. And if we are helpful in changing what that primary care experience is and what it looks like to get pharmaceutical items, there's a lot of other things that we might be able to help customers with over time that whether it's wellness or whether it's diet, there's a bunch of areas that I think we can help over time. | It's just their application, their app is so easy to use. You have all your healthcare data in one spot. You can do chats with medical practitioners. You can do video calls, if you need to see someone, there's physical locations and lots of metropolis cities where you can get in the same day, if you need to see a specialist, they're probably into specialists and all the cities in which we operate, where you can get in a day or two later, like just it's a very different experience. Now if you actually need medication, you can get that sent to you in a day or two, either through Amazon pharmacy or other pharmacies that we work with. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Andy Jassy, Brian Nowak | null | 0 |
And I know one of the other interesting things that we see early on right now in generative AI is that -- it's a very iterative process and real work to go from posing a question into a chat bot and getting an answer to turning that into a production quality application at the quality you need for your customer experience and your reputation and then also getting that application to work at the latency and cost characteristics that you need. And so what we see is that customers want choice. They don't want just 1 model to rule the world. They want different models for different applications. | Yes. So Colin, I would say a few things on -- first on generative AI. It's -- when we talk to customers, particularly at enterprises as they're thinking about generative AI, many are still thinking through at which layers of those 3 layers of the stack, I laid out that they want to operate in. And we predict that most companies will operate in at least 2 of them. But I also think even though it may not be the case early on, I think many of the technically capable companies will operate at all 3. They will build their own models. They will leverage existing models from us, and then they're going to build the apps. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
And they want to experiment with all different sized models because they yield different cost structures and different latency characteristics. And so Bedrock is really resonating with customers. They just -- they know they want to change all these variables and try and experiment and they have something that manages all those different transitions and changes so they can figure out what works best for them, especially in the first couple of years where they're learning how to build successful generative applications is incredibly important for them. So it's part of why we see Bedrock resonating so much. | And I know one of the other interesting things that we see early on right now in generative AI is that -- it's a very iterative process and real work to go from posing a question into a chat bot and getting an answer to turning that into a production quality application at the quality you need for your customer experience and your reputation and then also getting that application to work at the latency and cost characteristics that you need. And so what we see is that customers want choice. They don't want just 1 model to rule the world. They want different models for different applications. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
In the same way, what's attractive to enterprises when they think about coding companions like Q, is just if you can get 30%, 40% better productivity for your developers, which in many cases, for companies is their most scarce resource, it's a game changer. And they won't roll out every bit of code that comes from a coding companion. But if it can assist them to get 80% plus the way there quickly, that's a big deal. And one of the things that's unique about Q is it's not just a coding companion, yes, it's an expert on AWS. It will help you -- it helps you write the code, but it also helps you debug the code and it helps you test the code, helps you do transformations and it helps you figure out how a multistep implement features. There's a lot of -- helps you troubleshoot. If there's something in your application that's you write, you can find it and help you fix it. | And they want to experiment with all different sized models because they yield different cost structures and different latency characteristics. And so Bedrock is really resonating with customers. They just -- they know they want to change all these variables and try and experiment and they have something that manages all those different transitions and changes so they can figure out what works best for them, especially in the first couple of years where they're learning how to build successful generative applications is incredibly important for them. So it's part of why we see Bedrock resonating so much. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
And so -- and then it also lets you look at all your data repositories, whether it's Internet or Wickes or the 40-plus data connectors like Salesforce, Alassian, and Zendesk and Slack. And let you have an intelligent conversation to get answers and take action. So it's a pretty differentiated capability there. And when enterprises are looking at how they might best make their developers more productive, they're looking at what's the array of capabilities in these different coding companion options they have. And so we're spending a lot of time -- our enterprises are quite excited about it. It created a meaningful Reinvent. And what you see typically is that these companies experiment with different options they have and they make decisions for their employee base, and we're seeing very good momentum there. | In the same way, what's attractive to enterprises when they think about coding companions like Q, is just if you can get 30%, 40% better productivity for your developers, which in many cases, for companies is their most scarce resource, it's a game changer. And they won't roll out every bit of code that comes from a coding companion. But if it can assist them to get 80% plus the way there quickly, that's a big deal. And one of the things that's unique about Q is it's not just a coding companion, yes, it's an expert on AWS. It will help you -- it helps you write the code, but it also helps you debug the code and it helps you test the code, helps you do transformations and it helps you figure out how a multistep implement features. There's a lot of -- helps you troubleshoot. If there's something in your application that's you write, you can find it and help you fix it. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
The question about how we're thinking about Gen AI in our consumer businesses. We're building dozens of generative AI applications across the company. It's every business that we have has multiple generative AI applications that we are building. And they're all in different stages, many of which have launched and others of which are in development. So if you just look at our -- some of our consumer businesses, on the retail side, we built a generative AI application that allowed customers to look at summary of customer review, so that they didn't have to read hundreds and sometimes thousands of reviews to get a sense for what people like or dislike about a product. | And so -- and then it also lets you look at all your data repositories, whether it's Internet or Wickes or the 40-plus data connectors like Salesforce, Alassian, and Zendesk and Slack. And let you have an intelligent conversation to get answers and take action. So it's a pretty differentiated capability there. And when enterprises are looking at how they might best make their developers more productive, they're looking at what's the array of capabilities in these different coding companion options they have. And so we're spending a lot of time -- our enterprises are quite excited about it. It created a meaningful Reinvent. And what you see typically is that these companies experiment with different options they have and they make decisions for their employee base, and we're seeing very good momentum there. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
We launched a generative AI application that allows customers to quickly be able to predict what kind of fit they'd have for different apparel items. We built a generative AI application that in our fulfillment centers, that forecasts how much inventory we need in each particular fulfillment center. And so the start of the rollout of Rufus today is really just another step, but we think one that's pretty meaningful in being a generative AI powered shopping assistant and it's trained on our very expansive product catalog as well as our community Q&A and customer reviews and the broader web. | The question about how we're thinking about Gen AI in our consumer businesses. We're building dozens of generative AI applications across the company. It's every business that we have has multiple generative AI applications that we are building. And they're all in different stages, many of which have launched and others of which are in development. So if you just look at our -- some of our consumer businesses, on the retail side, we built a generative AI application that allowed customers to look at summary of customer review, so that they didn't have to read hundreds and sometimes thousands of reviews to get a sense for what people like or dislike about a product. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
But it lets customers discover items in a very different way than they have been able to on e-commerce websites. So if you want buying advice, like what should I look for in a pair of headphones or if you are doing purpose buying, like what should I buy for cold weather golf or comparisons, what's difference in lip-gloss or lip oil or you want recommendations of the best Valentine's Day gifts or you're on a detailed page with bridge product info, where you don't want to go through the whole page, you want to ask is this pickleball rack that's good for beginners. All those questions you can pull in and get really good answers. And then it's seamlessly integrated in the Amazon experience that customers are used to and love to be able to take action. | We launched a generative AI application that allows customers to quickly be able to predict what kind of fit they'd have for different apparel items. We built a generative AI application that in our fulfillment centers, that forecasts how much inventory we need in each particular fulfillment center. And so the start of the rollout of Rufus today is really just another step, but we think one that's pretty meaningful in being a generative AI powered shopping assistant and it's trained on our very expansive product catalog as well as our community Q&A and customer reviews and the broader web. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
So I think that that's just the next iteration. I think it's going to meaningfully change what discovery looks like for our shopping experience and for our customers. And I could kind of step through every one of those consumer businesses. Our advertising business is building capabilities where people can submit a picture and ad copy is written and the other way around. And you kind of think about Alexa, where we're building a very large -- expansive large language model is going to make Alexa even more productive and helpful for customer. Every one of our consumer businesses has a significant number of generative AI applications that they either have built and delivered or they're in the process of building. And I don't see that changing for many years. We have a lot of ideas. | But it lets customers discover items in a very different way than they have been able to on e-commerce websites. So if you want buying advice, like what should I look for in a pair of headphones or if you are doing purpose buying, like what should I buy for cold weather golf or comparisons, what's difference in lip-gloss or lip oil or you want recommendations of the best Valentine's Day gifts or you're on a detailed page with bridge product info, where you don't want to go through the whole page, you want to ask is this pickleball rack that's good for beginners. All those questions you can pull in and get really good answers. And then it's seamlessly integrated in the Amazon experience that customers are used to and love to be able to take action. | Operator, Scott William Devitt, Dave Fildes, Brian Olsavsky, Mark Mahaney, Colin Sebastian, Andy Jassy, Brian Nowak | null | 0 |
In Services, we set an all-time revenue record, up 14% over the past year. Keep in mind, as we described on the last call, in the March quarter a year ago, we were able to replenish iPhone channel inventory and fulfill significant pent-up demand from the December quarter COVID-related supply disruptions on the iPhone 14 Pro and 14 Pro Max. We estimate this onetime impact added close to $5 billion to the March quarter revenue last year. If we removed this from last year's results, our March quarter total company revenue this year would have grown. Despite this impact, we were still able to deliver the records I described. | Thank you, Suhasini. Good afternoon, everyone, and thanks for joining the call. Today, Apple is reporting revenue of $90.8 billion and an EPS record of $1.53 for the March quarter. We set revenue records in more than a dozen countries and regions. These include, among others, March quarter records in Latin America and the Middle East as well as Canada, India, Spain, and Turkey. We also achieved an all-time revenue record in Indonesia, one of the many markets where we continue to see so much potential. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Of course, this past quarter, we were thrilled to launch Apple Vision Pro, and it has been so wonderful to hear from people who now get to experience the magic of spatial computing. They described the impossible becoming possible right before their eyes, and they share their amazement and their emotions about what they can do now, whether it's reliving their most treasured memories or having a movie theater experience right in their living room. | In Services, we set an all-time revenue record, up 14% over the past year. Keep in mind, as we described on the last call, in the March quarter a year ago, we were able to replenish iPhone channel inventory and fulfill significant pent-up demand from the December quarter COVID-related supply disruptions on the iPhone 14 Pro and 14 Pro Max. We estimate this onetime impact added close to $5 billion to the March quarter revenue last year. If we removed this from last year's results, our March quarter total company revenue this year would have grown. Despite this impact, we were still able to deliver the records I described. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
It's also great to see the enthusiasm from the enterprise market. For example, more than half of the Fortune 100 companies have already bought Apple Vision Pro units and are exploring innovative ways to use it to do things that weren't possible before. And this is just the beginning. Looking ahead, we're getting ready for an exciting product announcement next week that we think our customers will love. And next month, we have our Worldwide Developers Conference, which has generated enormous enthusiasm from our developers. We can't wait to reveal what we have in store. | In Services, we set an all-time revenue record, up 14% over the past year. Keep in mind, as we described on the last call, in the March quarter a year ago, we were able to replenish iPhone channel inventory and fulfill significant pent-up demand from the December quarter COVID-related supply disruptions on the iPhone 14 Pro and 14 Pro Max. We estimate this onetime impact added close to $5 billion to the March quarter revenue last year. If we removed this from last year's results, our March quarter total company revenue this year would have grown. Despite this impact, we were still able to deliver the records I described. Of course, this past quarter, we were thrilled to launch Apple Vision Pro, and it has been so wonderful to hear from people who now get to experience the magic of spatial computing. They described the impossible becoming possible right before their eyes, and they share their amazement and their emotions about what they can do now, whether it's reliving their most treasured memories or having a movie theater experience right in their living room. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
We continue to feel very bullish about our opportunity in generative AI. We are making significant investments and we're looking forward to sharing some very exciting things with our customers soon. We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era, including Apple's unique combination of seamless hardware, software, and services integration, groundbreaking Apple silicon with our industry-leading neural engines and our unwavering focus on privacy, which underpins everything we create. As we push innovation forward, we continue to manage thoughtfully and deliberately through an uneven macroeconomic environment and remain focused on putting our users at the center of everything we do. | It's also great to see the enthusiasm from the enterprise market. For example, more than half of the Fortune 100 companies have already bought Apple Vision Pro units and are exploring innovative ways to use it to do things that weren't possible before. And this is just the beginning. Looking ahead, we're getting ready for an exciting product announcement next week that we think our customers will love. And next month, we have our Worldwide Developers Conference, which has generated enormous enthusiasm from our developers. We can't wait to reveal what we have in store. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Now let's turn to our results for the March quarter across each product category, beginning with iPhone. iPhone revenue for the March quarter was $46 billion, down 10% year-over-year. We faced a difficult compare over the previous year due to the $5 billion impact that I mentioned earlier. However, we still saw growth on iPhone in some markets, including Mainland China, and according to Kantar, during the quarter, the 2 bestselling smartphones in urban China where the iPhone 15 and iPhone 15 Pro Max. | We continue to feel very bullish about our opportunity in generative AI. We are making significant investments and we're looking forward to sharing some very exciting things with our customers soon. We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era, including Apple's unique combination of seamless hardware, software, and services integration, groundbreaking Apple silicon with our industry-leading neural engines and our unwavering focus on privacy, which underpins everything we create. As we push innovation forward, we continue to manage thoughtfully and deliberately through an uneven macroeconomic environment and remain focused on putting our users at the center of everything we do. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
I was in China recently where I had the chance to meet with developers and creators who are doing remarkable things with iPhone. And just a couple of weeks ago, I visited Vietnam, Indonesia, and Singapore, where it was incredible to see all the ways customers and communities are using our products and services to do amazing things. Everywhere I travel, people have such a great affinity for Apple, and it's one of the many reasons I'm so optimistic about the future. | Now let's turn to our results for the March quarter across each product category, beginning with iPhone. iPhone revenue for the March quarter was $46 billion, down 10% year-over-year. We faced a difficult compare over the previous year due to the $5 billion impact that I mentioned earlier. However, we still saw growth on iPhone in some markets, including Mainland China, and according to Kantar, during the quarter, the 2 bestselling smartphones in urban China where the iPhone 15 and iPhone 15 Pro Max. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Turning to Mac. March quarter revenue was $7.5 billion, up 4% from a year ago. We had an amazing launch in early March with the new 13- and 15-inch MacBook Air. The world's most popular laptop is the best consumer laptop for AI with breakthrough performance of the M3 chip and its even more powerful neural engine. Whether it's an entrepreneur starting a new business or a college student finishing their degree, users depend on the power and portability of MacBook Air to take them places they couldn't have gone without it. | I was in China recently where I had the chance to meet with developers and creators who are doing remarkable things with iPhone. And just a couple of weeks ago, I visited Vietnam, Indonesia, and Singapore, where it was incredible to see all the ways customers and communities are using our products and services to do amazing things. Everywhere I travel, people have such a great affinity for Apple, and it's one of the many reasons I'm so optimistic about the future. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
In iPad, revenue for the March quarter was $5.6 billion, 17% lower year-over-year due to a difficult compare with the momentum following the launch of M2 iPad Pro and the tenth-generation iPad last fiscal year. iPad continues to stand apart for its versatility, power and performance. For video editors, music makers and creatives of all kinds, iPad is empowering users to do more than they ever could with a tablet. | Turning to Mac. March quarter revenue was $7.5 billion, up 4% from a year ago. We had an amazing launch in early March with the new 13- and 15-inch MacBook Air. The world's most popular laptop is the best consumer laptop for AI with breakthrough performance of the M3 chip and its even more powerful neural engine. Whether it's an entrepreneur starting a new business or a college student finishing their degree, users depend on the power and portability of MacBook Air to take them places they couldn't have gone without it. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Across Wearables, Home and Accessories, March quarter revenue was $7.9 billion, down 10% from a year ago due to a difficult launch compare on Watch and AirPods. Apple Watch is helping runners go the extra mile on their wellness journeys, keeping hikers on course with the latest navigation capabilities in watchOS 10, and enabling users of all fitness levels to live a healthier day. Across our Watch lineup, we're harnessing AI and machine learning to power life-saving features like irregular rhythm notifications and fall detection. I often hear about how much these features mean to users and their loved ones, and I'm thankful that so many people are able to get help in their time of greatest need. | Turning to Mac. March quarter revenue was $7.5 billion, up 4% from a year ago. We had an amazing launch in early March with the new 13- and 15-inch MacBook Air. The world's most popular laptop is the best consumer laptop for AI with breakthrough performance of the M3 chip and its even more powerful neural engine. Whether it's an entrepreneur starting a new business or a college student finishing their degree, users depend on the power and portability of MacBook Air to take them places they couldn't have gone without it. In iPad, revenue for the March quarter was $5.6 billion, 17% lower year-over-year due to a difficult compare with the momentum following the launch of M2 iPad Pro and the tenth-generation iPad last fiscal year. iPad continues to stand apart for its versatility, power and performance. For video editors, music makers and creatives of all kinds, iPad is empowering users to do more than they ever could with a tablet. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
As I shared earlier, we set an all-time revenue record in Services with $23.9 billion, up 14% year-over-year. We also achieved all-time revenue records across several categories and geographic segments. Audiences are tuning in on screens large, small and spatial and are enjoying Apple TV+ originals like Palm Royal and Sugar. And we have some incredible theatrical releases coming this year, including Wolves, which reunites George Clooney and Brad Pitt. Apple TV+ productions continue to be celebrated as major awards contenders. Since launch, Apple TV+ productions have earned more than 2,100 award nominations and 480 wins. | Across Wearables, Home and Accessories, March quarter revenue was $7.9 billion, down 10% from a year ago due to a difficult launch compare on Watch and AirPods. Apple Watch is helping runners go the extra mile on their wellness journeys, keeping hikers on course with the latest navigation capabilities in watchOS 10, and enabling users of all fitness levels to live a healthier day. Across our Watch lineup, we're harnessing AI and machine learning to power life-saving features like irregular rhythm notifications and fall detection. I often hear about how much these features mean to users and their loved ones, and I'm thankful that so many people are able to get help in their time of greatest need. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Meanwhile, we're enhancing the live sports experience with a new iPhone app, Apple Sports. This free app allows fans to follow their favorite teams and leagues with real-time scores, stats and more. Apple Sports is the perfect companion for MLS Season Pass subscribers. | As I shared earlier, we set an all-time revenue record in Services with $23.9 billion, up 14% year-over-year. We also achieved all-time revenue records across several categories and geographic segments. Audiences are tuning in on screens large, small and spatial and are enjoying Apple TV+ originals like Palm Royal and Sugar. And we have some incredible theatrical releases coming this year, including Wolves, which reunites George Clooney and Brad Pitt. Apple TV+ productions continue to be celebrated as major awards contenders. Since launch, Apple TV+ productions have earned more than 2,100 award nominations and 480 wins. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Turning to retail. Our stores continue to be vital spaces for connection and innovation. I was delighted to be in Shanghai for the opening of our latest flagship store. The energy and enthusiasm from our customers was truly something to behold. And across the United States, our incredible retail teams have been sharing Vision Pro demos with customers, delighting them with a profound and emotional experience of using it for the very first time. | As I shared earlier, we set an all-time revenue record in Services with $23.9 billion, up 14% year-over-year. We also achieved all-time revenue records across several categories and geographic segments. Audiences are tuning in on screens large, small and spatial and are enjoying Apple TV+ originals like Palm Royal and Sugar. And we have some incredible theatrical releases coming this year, including Wolves, which reunites George Clooney and Brad Pitt. Apple TV+ productions continue to be celebrated as major awards contenders. Since launch, Apple TV+ productions have earned more than 2,100 award nominations and 480 wins. Meanwhile, we're enhancing the live sports experience with a new iPhone app, Apple Sports. This free app allows fans to follow their favorite teams and leagues with real-time scores, stats and more. Apple Sports is the perfect companion for MLS Season Pass subscribers. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Everywhere we operate, in everything we do, we're guided by our mission to enrich users' lives and leave the world better than we found it. Whether we're making Apple Podcasts more accessible with a new transcripts feature or helping to safeguard iMessage users' privacy with new protections that can defend against advances in quantum computing. | Meanwhile, we're enhancing the live sports experience with a new iPhone app, Apple Sports. This free app allows fans to follow their favorite teams and leagues with real-time scores, stats and more. Apple Sports is the perfect companion for MLS Season Pass subscribers. Turning to retail. Our stores continue to be vital spaces for connection and innovation. I was delighted to be in Shanghai for the opening of our latest flagship store. The energy and enthusiasm from our customers was truly something to behold. And across the United States, our incredible retail teams have been sharing Vision Pro demos with customers, delighting them with a profound and emotional experience of using it for the very first time. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Our environmental work is another great example of how innovation and our values come together. As we work toward our goal of being carbon neutral across all of our products by 2030, we are proud of how we've been able to innovate and do more for our customers while taking less from the planet. Since 2015, Apple has cut our overall emissions by more than half, while revenue grew nearly 65% during that same time period. And we're now using more recycled materials in our products than ever before. | Turning to retail. Our stores continue to be vital spaces for connection and innovation. I was delighted to be in Shanghai for the opening of our latest flagship store. The energy and enthusiasm from our customers was truly something to behold. And across the United States, our incredible retail teams have been sharing Vision Pro demos with customers, delighting them with a profound and emotional experience of using it for the very first time. Everywhere we operate, in everything we do, we're guided by our mission to enrich users' lives and leave the world better than we found it. Whether we're making Apple Podcasts more accessible with a new transcripts feature or helping to safeguard iMessage users' privacy with new protections that can defend against advances in quantum computing. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Earlier this spring, we launched our first-ever product to use 50% recycled materials with the new M3-powered MacBook Air. We're also investing in new solar and wind power in the U.S. and Europe, both to power our growing operations and our users' devices. And we're working with partners in India and the U.S. to replenish 100% of the water we use in places that need it most, with the goal of delivering billions of gallons of water benefits over the next 2 decades. | Our environmental work is another great example of how innovation and our values come together. As we work toward our goal of being carbon neutral across all of our products by 2030, we are proud of how we've been able to innovate and do more for our customers while taking less from the planet. Since 2015, Apple has cut our overall emissions by more than half, while revenue grew nearly 65% during that same time period. And we're now using more recycled materials in our products than ever before. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Through our Restore Fund, Apple has committed $200 million to nature-based carbon removal projects. And last month, we welcomed 2 supplier partners as new investors who will together invest up to an additional $80 million in the fund. Whether we're enriching lives of users across the globe or doing our part to be a force for good in the world, we do everything with a deep sense of purpose at Apple, and I'm proud of the impact we've already made at the halfway point in a year of unprecedented innovation. I couldn't be more excited for the future we have ahead of us, driven by the imagination and innovation of our teams and the enduring importance of our products and services in people's lives. With that, I'll turn it over to Luca. | Earlier this spring, we launched our first-ever product to use 50% recycled materials with the new M3-powered MacBook Air. We're also investing in new solar and wind power in the U.S. and Europe, both to power our growing operations and our users' devices. And we're working with partners in India and the U.S. to replenish 100% of the water we use in places that need it most, with the goal of delivering billions of gallons of water benefits over the next 2 decades. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Services revenue set an all-time record of $23.9 billion, up 14% year-over-year, with record performance in both developed and emerging markets. Company gross margin was 46.6%, up 70 basis points sequentially, driven by cost savings and favorable mix to Services partially offset by leverage. Products gross margin was 36.6%, down 280 basis points sequentially, primarily driven by seasonal loss of leverage and mix, partially offset by favorable costs. Services gross margin was 74.6%, up 180 basis points from last quarter due to a more favorable mix. Operating expenses of $14.4 billion were at the midpoint of the guidance range we provided and up 5% year-over-year. Net income was $23.6 billion, diluted EPS was $1.53 and a March quarter record, and operating cash flow was strong at $22.7 billion. | Thank you, Tim, and good afternoon, everyone. Revenue for the March quarter was $90.8 billion, down 4% from last year. Foreign exchange had a negative year-over-year impact of 140 basis points on our results. Products revenue was $66.9 billion, down 10% year-over-year due to the challenging compare on iPhone that Tim described earlier, which was partially offset by strength from Mac. And thanks to our unparalleled customer satisfaction and loyalty and a high number of customers who are new to our products, our installed base of active devices reached an all-time high across all products and all geographic segments. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
Let me now provide more detail for each of our revenue categories. iPhone revenue was $46 billion, down 10% year-over-year due to the almost $5 billion impact from a year ago that Tim described earlier. Adjusting for this onetime impact, iPhone revenue would be roughly flat to last year. Our iPhone active installed base grew to a new all-time high in total and in every geographic segment. | Services revenue set an all-time record of $23.9 billion, up 14% year-over-year, with record performance in both developed and emerging markets. Company gross margin was 46.6%, up 70 basis points sequentially, driven by cost savings and favorable mix to Services partially offset by leverage. Products gross margin was 36.6%, down 280 basis points sequentially, primarily driven by seasonal loss of leverage and mix, partially offset by favorable costs. Services gross margin was 74.6%, up 180 basis points from last quarter due to a more favorable mix. Operating expenses of $14.4 billion were at the midpoint of the guidance range we provided and up 5% year-over-year. Net income was $23.6 billion, diluted EPS was $1.53 and a March quarter record, and operating cash flow was strong at $22.7 billion. | Suhasini Chandramouli, Timothy D. Cook | null | 0 |
And during the March quarter, we saw many iPhone models as the top-selling smartphones around the world. In fact, according to a survey from Kantar, an iPhone was the top-selling model in the U.S., urban China, Australia, the U.K., France, Germany, and Japan. And the iPhone 15 family continues to be very popular with customers. 451 Research recently measured customer satisfaction at 99% in the U.S. | Services revenue set an all-time record of $23.9 billion, up 14% year-over-year, with record performance in both developed and emerging markets. Company gross margin was 46.6%, up 70 basis points sequentially, driven by cost savings and favorable mix to Services partially offset by leverage. Products gross margin was 36.6%, down 280 basis points sequentially, primarily driven by seasonal loss of leverage and mix, partially offset by favorable costs. Services gross margin was 74.6%, up 180 basis points from last quarter due to a more favorable mix. Operating expenses of $14.4 billion were at the midpoint of the guidance range we provided and up 5% year-over-year. Net income was $23.6 billion, diluted EPS was $1.53 and a March quarter record, and operating cash flow was strong at $22.7 billion. Let me now provide more detail for each of our revenue categories. iPhone revenue was $46 billion, down 10% year-over-year due to the almost $5 billion impact from a year ago that Tim described earlier. Adjusting for this onetime impact, iPhone revenue would be roughly flat to last year. Our iPhone active installed base grew to a new all-time high in total and in every geographic segment. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | null | 0 |
Mac revenue was $7.5 billion, up 4% year-over-year, driven by the strength of our new MacBook Air powered by the M3 chip. Customers are loving the incredible AI performance of the latest MacBook Air and MacBook Pro models. And our Mac installed base reached an all-time high with half of our MacBook Air buyers during the quarter being new to Mac. Also, customer satisfaction for Mac was recently reported at 96% in the U.S. | Let me now provide more detail for each of our revenue categories. iPhone revenue was $46 billion, down 10% year-over-year due to the almost $5 billion impact from a year ago that Tim described earlier. Adjusting for this onetime impact, iPhone revenue would be roughly flat to last year. Our iPhone active installed base grew to a new all-time high in total and in every geographic segment. And during the March quarter, we saw many iPhone models as the top-selling smartphones around the world. In fact, according to a survey from Kantar, an iPhone was the top-selling model in the U.S., urban China, Australia, the U.K., France, Germany, and Japan. And the iPhone 15 family continues to be very popular with customers. 451 Research recently measured customer satisfaction at 99% in the U.S. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | null | 0 |
iPad generated $5.6 billion in revenue, down 17% year-over-year. iPad continued to face a challenging compare against the launch of the M2 iPad Pro and iPad tenth generation from last year. At the same time, the iPad installed base has continued to grow and is at an all-time high, as were half of the customers who purchased iPads during the quarter were new to the product. In addition, the latest report from 451 Research indicated customer satisfaction of 96% for iPad in the U.S. | And during the March quarter, we saw many iPhone models as the top-selling smartphones around the world. In fact, according to a survey from Kantar, an iPhone was the top-selling model in the U.S., urban China, Australia, the U.K., France, Germany, and Japan. And the iPhone 15 family continues to be very popular with customers. 451 Research recently measured customer satisfaction at 99% in the U.S. Mac revenue was $7.5 billion, up 4% year-over-year, driven by the strength of our new MacBook Air powered by the M3 chip. Customers are loving the incredible AI performance of the latest MacBook Air and MacBook Pro models. And our Mac installed base reached an all-time high with half of our MacBook Air buyers during the quarter being new to Mac. Also, customer satisfaction for Mac was recently reported at 96% in the U.S. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | null | 0 |
Wearables, Home and Accessories revenue was $7.9 billion, down 10% year-over-year due to a difficult launch compare. Last year, we had the continued benefit from the launches of the AirPods Pro second generation, the Watch SE and the first Watch Ultra. Apple Watch continues to attract new customers with almost 2/3 of customers purchasing an Apple Watch during the quarter being new to the product, sending the Apple Watch installed base to a new all-time high. And customer satisfaction was recently measured at 95% in the U.S. | iPad generated $5.6 billion in revenue, down 17% year-over-year. iPad continued to face a challenging compare against the launch of the M2 iPad Pro and iPad tenth generation from last year. At the same time, the iPad installed base has continued to grow and is at an all-time high, as were half of the customers who purchased iPads during the quarter were new to the product. In addition, the latest report from 451 Research indicated customer satisfaction of 96% for iPad in the U.S. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | null | 0 |
In Services, as I mentioned, total revenue reached an all-time record of $23.9 billion, growing 14% year-over-year with our installed base of active devices continuing to grow at a nice pace. This provides a strong foundation for the future growth of the services business as we continue to see increased customer engagement with our ecosystem. | Wearables, Home and Accessories revenue was $7.9 billion, down 10% year-over-year due to a difficult launch compare. Last year, we had the continued benefit from the launches of the AirPods Pro second generation, the Watch SE and the first Watch Ultra. Apple Watch continues to attract new customers with almost 2/3 of customers purchasing an Apple Watch during the quarter being new to the product, sending the Apple Watch installed base to a new all-time high. And customer satisfaction was recently measured at 95% in the U.S. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | null | 0 |
Both transacting accounts and paid accounts reached a new all-time high, with paid accounts growing double digits year-over-year. And paid subscriptions showed strong double-digit growth. We have well over 1 billion paid subscriptions across the services on our platform, more than double the number that we had only 4 years ago. We continue to improve the breadth and quality of our current services, from creating new games on Arcade and great new shows on TV+, to launching additional countries and partners for Apple Pay. | Wearables, Home and Accessories revenue was $7.9 billion, down 10% year-over-year due to a difficult launch compare. Last year, we had the continued benefit from the launches of the AirPods Pro second generation, the Watch SE and the first Watch Ultra. Apple Watch continues to attract new customers with almost 2/3 of customers purchasing an Apple Watch during the quarter being new to the product, sending the Apple Watch installed base to a new all-time high. And customer satisfaction was recently measured at 95% in the U.S. In Services, as I mentioned, total revenue reached an all-time record of $23.9 billion, growing 14% year-over-year with our installed base of active devices continuing to grow at a nice pace. This provides a strong foundation for the future growth of the services business as we continue to see increased customer engagement with our ecosystem. | Suhasini Chandramouli, Luca Maestri, Timothy D. Cook | null | 0 |
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Transcript Speaker Identification Dataset
Description
This dataset is designed to facilitate the development and evaluation of models that identify and assign speakers and speaker changes within event transcripts. It consists of segments from various transcripts where the primary task is to determine who the speaker is, based on the given textual context and a list of possible speakers. The dataset was assembled from three earnings events:
- Q4 2023 Amazon.Com Inc Earnings Call
- Q2 2024 Apple Inc Earnings Call
- Q2 2024 Adobe Inc Earnings Call
Dataset Structure
Columns
transcript_segment: A specific segment of the transcript which requires speaker identification.prior_context: The textual context preceding thetranscript_segment, which can be instrumental in identifying the speaker.possible_speakers: A list of names or identifiers representing individuals who could potentially be the speaker of the segment.speaker: The actual speaker of thetranscript_segmentchange: 1 or 0 indicating whether the speaker has changed
Data Format
The dataset is presented in a tabular format, where each row corresponds to a data point that includes a transcript segment, its prior context, the possible speakers, the label indicating the actual speaker, and an indicator of whether the speaker has changed between the prior context and the transcript segment.
Use Cases
This dataset can be used for a variety of applications, including:
- Training machine learning models for speaker identification in transcripts.
- Enhancing speech recognition systems by improving their ability to attribute text to the correct speaker.
- Developing tools for automated meeting summarization where speaker labels are essential.
Accessing the Dataset
You can access this dataset via the HuggingFace Datasets library using the following Python code:
from datasets import load_dataset
dataset = load_dataset("Aiera/aiera-speaker-assign")
A guide for evaluating using EleutherAI's lm-evaluation-harness is available on github.
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