In this episode, Jason and Rohit Kulkarni dive deep into Amazon's April earnings call and discuss the key takeaways, including why Amazon remains a safe bet.
Today we have a special guest, Rohit Kulkarni, Managing Director and Senior Research Analyst covering Internet and Capital Markets at ROTH MKM Ventures. With almost 25 years of experience in the field, Rohit brings valuable insights into the world of technology products and investment banking.
Rohit and I dive deep into Amazon's recent earnings call in this episode and discuss the key takeaways.
Amazon's cost-cutting measures have garnered attention and concern among investors. Just as we observed last episode with Malia Kim, it is possible that the red pen got a little too thick-lined and cut not just to the bone but to the marrow.
Andy Jassy's budget cuts are causing disruptions in the FBA system, which is leading to delays and inventory issues.
From the revenue numbers standpoint, Amazon is surprisingly doing very well. Compared to other companies, the investment community received their earrings call well, though it didn't lead to a higher share price.
Rohit and I break down the various revenue streams for Amazon, including online store sales, physical store sales, third-party seller services, subscription fees, advertising, and AWS.
As the numbers show, Amazon's marketplace is the king and drives a lot of cash to their top line. Amazon obfuscates many of the numbers coming from sellers and vendors, leading to the mistaken notion that AWS is the cash flow king.
Looking ahead to the next quarter, Rohit and I discuss the factors investors will scrutinize before influencing Amazon's stock price. Third-party seller services and AWS will continue to drive Amazon's cash flow.
Join us in this episode as we analyze Amazon's numbers and what they mean for sellers and brands.
Key Takeaways
- 2022 – the year to forget (03:04)
- Insights from the Amazon earnings call (07:40)
- Andy Jassy's cost-cutting impact (10:20)
- Amazon's pillars of revenue and profitability (17:10)
- Amazon revenue numbers line by line (18:22)
- The juggernaut that is Amazon advertising (23:10)
- Amazon ecommerce vs. AWS (26:58)
- How much FBA is driving towards Amazon's bottom line (33:43)
- Is Buy with Prime sticking around? (41:10)
Additional Resources:
Rohit Kulkarni's email: rkulkarni@roth.com
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Day 2 Podcast has a goal of helping Amazon sellers learn how to launch, grow and protect their brand on the world's largest online marketplace (and beyond).
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