Q3 2020 Amazon.com Inc Earnings Call
[music].
Thank you for standing by good day, everyone and welcome to the Amazon Dot Com Q3, 2020 financial results teleconference. At this time all participants are in a listen only mode.
After the presentation, we will conduct a question and answer session.
Today's call is being recorded for opening remarks, I will be turning the call over to the head of Investor Relations Day filed please go ahead.
Hello, and welcome to our Q3 2020 financial results Conference call.
Joining us today to answer your questions is Brian Olsavsky our CFO.
As you listen to today's conference call. We encourage you to have our press release in front of you, which includes our financial 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 2019.
Our comments and responses to your questions reflect managements views as of today October 29, 2020, 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 FCC, including our most recent annual report on form 10-K and subsequent filings.
During this call we may discuss certain non-GAAP financial measures in our press release slides accompanying this webcast and our filings with the FCC 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 are.
Our results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates.
Changes in global economic conditions and customer spending.
World events the rate of growth of the Internet online commerce and cloud services and the various factors detailed in our filings with the FCC.
This guidance also reflects our estimates to date regarding the impact of the COVID-19 pandemic on our operations, including those discussed in our filings with the FCC and its highly dependent on numerous factors that we may not be able to predict or control, including.
The duration and scope of the pandemic, including any recurrence.
Actions taken by governments businesses and individuals in response to the pandemic.
The impact of the pandemic on global and regional economies and economic activity workforce staffing and productivity and our significant and continued spending on employee safety measures are.
Our ability to continue operations in affected areas and consumer demand and spending patterns as well as the effects on suppliers creditors and third party sellers all of which are uncertain.
Our guidance also assumes among other things that we don't conclude any additional business acquisitions investments 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.
And now I'll turn the call over to Brian.
Thank you for joining us today I.
I'd like to start by extending a big Thank you to all the folks who worked hard to make this year's Prime day great success.
Not only for our more than 150 million prime numbers around the world, but also for the hundreds of thousands of small and medium size businesses, who sell out or Amazon store, many of whom are facing their own challenges during this pandemic.
These businesses thrived on Prime day was third party sellers, recognizing more than $3.5 billion in sales over the two day global event.
60% increase compared to Prime day last year.
I also want to thank and recognize the contributions of the more than 1 million Amazon employees and delivery partners, who are continuing to work hard to serve our customers all around the world.
We will continue to spend what it takes to help ensure the safety and well being of our employees and partners.
Now, let me share some highlights from the quarter.
Our Q3 results largely reflect a continuation of demand trends, we saw when we exited the second quarter, the strong demand and sales growth across our major product categories globally, killing Hardlines consumables Softlines and media.
We also continue to see strong prime member engagement Prime.
Prime members continue to shop, with greater frequency and across more categories and before the pandemic began.
They continue to expand their usage of primes digital benefits, including Prime video.
Internationally, the number of Prime members, who stream Prime video grew by more than 80% year over year in the third quarter and international customers more than doubled the hours of content. They watched on prime video compared to last year.
We're also reaching more customers with our grocery offerings.
Q3, our year over year growth rate of online grocery sales continued to accelerate both continued to offer more convenient options for customers, including grocery pickup which is now available from all whole foods market stores.
And just as we saw in Q2 Prime member renewal rates improved in Q3 year over year.
Threepi sellers, who as I mentioned are largely comprised of small and medium sized businesses continue to be an important part of our offering to customers.
Threepi seller services revenue continued to grow faster than the online stores revenue.
With particularly strong growth this quarter in F. EA as we return to a similar mix of EBITDA as a percentage of total threepi units as we had seen prior to cover that.
Threepi units continue to represent over half of overall unit volume increasing to 54% of the total unit mix in Q3.
We're investing heavily to support sellers and are pleased to report that over half a million sellers are seeing record sales in our stores this year.
We continue to focus on stepped up employee safety, particularly in our fulfillment and logistics operations shelf ensure the safety and well being of our employees and partners as well as the employees and customers shopping in our whole foods market and other stores.
This of course has added incremental costs to our PNM.
The largest portion of these costs relate to continued productivity headwinds in our facilities, including process revisions to allow for social distancing and incremental cost to ramp up new facilities.
And the large influx of new employees hired to support strong customer demand.
So also includes investments in pp for employees and enhance cleaning of our facilities.
In total we have incurred more than $7.5 billion in incremental covert related costs in the first three quarters of 2020, and we expect to incur approximately $4 billion in Q4.
Our consolidated revenue and operating income exceeded the top end of our guidance range.
As demand remains strong in the quarter, the extra volume and operating leverage helped us to achieve higher than expected profitability.
And we saw another strong quarter of revenue growth in operating income performance in eight of us and advertising.
Good leverage with our fulfillment centers as well as in Amazon logistics, our transportation network. Despite the higher covered related costs that I mentioned.
Although we had strong growth in our network in Q3, some of our fulfillment network expansion shifted out a few weeks and will happen in Q4, rather than Q3.
Once newbuildings open their short term headwind to profitability as they ramp up and we prepare for Q4 peak.
More of this headwind will be felt in Q4, rather than Q3 and this is reflected in our Q4 guidance.
We were able to meet the heightened demand in Q3, because we opened up more network capacity, particularly in our transportation network.
I point to two important drivers of this first we hired a lot more people to support the strong customer demand. We welcome 250000 permanent full time and part time employees just in Q3 and have already added about 100000 more in the first month of Q4.
I will note that these are permanent jobs with industry, leading pay including Amazon's $15 minimum wage and great benefits such as health insurance four one k. plan and parental leave.
Secondly, this has been a big year for capital investments, we've invested nearly $30 billion in Capex and finance leases through the first nine months of 2020.
Including over $12 billion in Q3.
As I mentioned last quarter, we expect to grow our fulfillment and logistics network square footage by approximately 50%. This year, which includes significant additions to our fulfillment centers as well as our transportation facilities majority of these buildings opened in late Q3 and into Q4.
About half of this square footage growth will be on the transportation side to the opening of more sort centers and delivery stations.
And finally in ADW as customer usage remains strong we continue to see companies meaningfully growing their plans to move to eight of us.
We are busy gearing up for our annual reinvent conference.
This year reinvent will be a free three week virtual conference running from November Thirtyth through December 18th.
We are extremely grateful to our employees across Amazon well delivered on unprecedented demand for several months now as well as a strong prime day in October.
We are ready to go and looking forward to meeting the needs of our customers. This holiday season.
With that let's move on to Q and a.
At this time, we will now open the call up for questions. We ask each caller. Please limit yourself to one question.
If you would like to ask a question. Please press star one on your keypad, we asked that when you pose your question you pick up your handset to provide optimum sound quality once again to initiate a question. Please press Star then one on your Touchtone telephone at this time, please hold while we poll for questions.
Thank you.
Our first question comes from Brian Nowak with Morgan Stanley. Please proceed with your question.
Thanks for taking my question I have two Brian just the the first on your you mentioned the fulfillment centers. So good leverage in the quarter can you just talk to us about some of the some of the qualitative drivers of this improvement you're seeing in fulfillment cost per fulfilled unit in the quarter and sort of year to date and how to think about the durability of that over time.
And then secondly, I think throughout the summer Amazon logistics launch the third party delivery service in the UK curious to hear about sort of early learnings from that product and how you think about scaling that to other countries and maybe globally. Thanks.
Sure Brian Thanks for your question so.
Yes, the fulfillment center cost is going to be a blend of.
The coveted related part of the Cobra related costs that I mentioned and itemized.
Offset by some really strong leverage I would say that.
We've been running.
Very consistently high levels.
Really since.
All of our employees were came back in the first or second week of May and it's so some of them had been on.
Unpaid leave the gap.
So that demand is very consistent and strong and has created.
A lot of favorable.
Leverage because again.
The order pattern being high and consistent is leveraging our fixed cost assets.
Things like our delivery routes or more dance at high volumes. So we see even transportation some.
Increased efficiencies offsetting that again is productivity elements that we'd like ticket related things like social distancing extended breaks are there other steps, we're taking to keep people safe and distance in our in our facilities and our delivery network.
Hey, this is Dave I don't have much to share I think what we've got going on with that.
Any any those mcl efforts other than I'd, just say, we're always working to develop new and innovative ways to support.
The companies, we work with getting small and medium size businesses, who sell on Amazon and that includes testing shipping programs that can help.
These businesses get packages to customers quickly and reliably.
Great. Thank you both.
Our next question comes from Doug Anmuth with Jpmorgan. Please proceed with your question.
Thanks for taking the questions. Brian just wanted to go back to the Fourq you operating income guide.
I appreciate your thoughts there just trying to dig a little bit deeper in terms of how you're thinking about it.
Kind of beyond the $4 billion in Kobe costs. It still feels like maybe there's some more in there that were not.
Thinking about perhaps beyond that square footage increases and the incremental head count. So if youve any comments there and just curious I know it's early on on 2021, but you've obviously done a ton of investment this year.
And with the 50% square footage increase.
You tend to cycle at times in terms of.
Capex investment just how do you think about digesting that.
On a build out as you go forward. Thanks.
Sure Doug one last comment I forgot that had mentioned to Brian on his last question is.
The fact that.
A lot of that heightened demand so far coming Q2, and Q3, when we end to have excess capacity before Q4. So that's another source of leverage, especially in non peak quarters as.
As far as guidance is concerned again I think the.
Just a lot of uncertainty certainly.
In Q4, we generally have a lot of uncertainty.
Around the holiday thing from holiday spending too.
Let our cost to fill the normal orders would be weather issues that can come up. This year is an election year. We saw some disruption in 2016, so there's a whole host of issues that generally.
Come to bear in Q4, I think the fact that covidien.
Is dwarfing all of those is causing us a lot of uncertainty on our topline range.
We do see a continuation we saw continuation in Q3 of some really good trends from Q2.
And we.
Project those into Q4.
Some of the negative factors that you mentioned as far as profitability is again, the we'll see more of the brunt of the.
Capital investment and the people investment.
We have added a lot of people in the last quarter and then we added another 100000 people in October so far so there's that there's generally you know the dynamics of Prime day, hi, because if that deal oriented time period.
That's usually not the highest margin period in that it's shifted into Q4, but generally you know we have really because of the calendar. This year. We've really built our capacity included both in fulfillment facilities and people and our carrying it through the entire quarter.
We carried a true.
Prime day, and now we're carrying through into.
The rest of the quarter I think it other quarters you might have seen a more gradual build up that would have occurred through October and then.
Probably maximized in November and December so.
That is the Oh, yeah, that's what I would tell you I'm on holiday again, we have a normal caveats. It there's a lot of uncertainty.
Certainly and things that could go right and wrong. So that's why we put a range around it and I'm sorry could you repeat your second question.
Just on.
Hi, how you think about 2021, perhaps you just capex build out going forward given that you really stepped up the investment in 2020.
Sure I think some of the investment things like grocery delivery in that capacity. Yeah. There are things that we would have invested in overtime and could.
Could there be matched by higher order volume so our.
Our intent is to can you continue to deliver a great grocery delivery experience for our customers.
So that is a little bit of a pull forward, yes on we did expect to build out our logistics.
Logistics capacity a lot this year, especially as we had been.
Yeah.
Yeah. She's me as we had been rolling out one day delivery the middle of last year that was setting us up for a built a big built this year. So we pulled forward a bit from a 2021 entered this year to satisfy that demand I think we have a logistics team is really good at.
In one way locking up long term commitments on space and buildings, but on other hand being able to.
The just the timeline in or out to match capacity on demand I think at this point, we are not trying to cut a close and we are you know erring on the side of having too much demand excuse me too much capacity on and we think that's the right call. It has been this year and out you know, we'll just as we get through the holiday, we'll learn a lot more.
Hopefully the endemic we'll we'll be in better shape as a.
Country in a globe in.
Q1 of next year, but it's very reactionary at this point, we have data that play the hand that we're dealt and you know we're trying to anticipate a thin and keep the customer insulated from.
Any variability, but I challenging certainly.
Thanks for the color Brian.
Our next question comes from Justin Post with Merrill Lynch. Please proceed with your question.
Great. Thanks, when you when you look at Q3 Q. The environment can you help us kind of understand a the best you can quantify how much of that the incremental unit sales do you think are being aided by co that or how much is it just a natural recurring a shift online.
That could recur and continue to grow next year any thoughts on that and then same same type of question for the cloud.
With you know, there's I'm guessing, there's some headwinds of lower transaction volumes for some of your customers and then maybe there's more demand from the work at home environment. So if you could give us any any thoughts on on both the retail and cloud and how cold it is impacting it and could there be how that will impact next year. Thank you.
Sure.
It's it's hard to predict I would say that are you know theres been phases of this year or last.
Last year excuse me early on there were a lot of stock upsets groceries and other household supplies followed by at least the people flying gloves and.
Disinfecting wipes and masks and you know that or.
Maybe it's a bit of a bubble that people are not going to buy as much next year, hopefully that would be a good problem to have if those demand that demand went down.
But otherwise you know we're seeing prime member engagement. So it's you know it's strengthening our prime program, we're adding the renewal rates are going up or.
And the engagement is going up and so people are buying more frequently and across more categories, they're using more of our digital benefits. So there we like the trends on a kind of connectiveness to our prime program and we think that'll have lasting value you know what when Ah things open up a bit more.
There's more <unk> store options for people to buy from a you know that there will be you know leveling of volume back to the stores I would imagine, but <unk>. So we think the trends are.
Good they've been pulled forward probably a bit from our the adoption curves have been pulled forward from our initial pre cove, it thinking, especially on things like grocery delivery.
So your second question on the cloud the cloud is a mixed bag right now because I mean, we're very happy with the cloud performance and.
We're seeing a lot of customers, who are now moving to the cloud at a faster pace they've accelerated their plans.
[noise], there's you know anomalies in different industries going on this year things like hot trout travel and hospitality or down a lot of companies are in a holding pattern in the middle and some are doing really well things like video conferencing and gaming and remote learning things tied to entertainment. So I would say the majority of the.
The companies that are looking for ways to cut down on expenses.
[noise] coming going to the cloud is a good way to cut down on expenses long term, they're trying to cut down on the short term.
Costs in the cloud by you know tuning their workloads and we're helping them do that.
And doing the best we can to help them save short term dollars and again tune their their usage against some of our benchmarks. So we think that is.
Good for the customer and that therefore be good for us long term, but even despite a those actions we had strong growth the year over year growth in absolute dollars. This quarter were the largest weve ever seen and we you know we feel good about the state of the business and they are state of our Salesforce.
Yes, and their ability to drive value. During this period Ive seen a lot of you know companies extending their contracts with us the backlog of multiyear deals has gone up quite a bit. So you know it's good from a you know customer connected that connectiveness standpoint, certainly each.
Industry is going through different dynamics right now.
And you can see that Dave as he wants to add to that you can see a number of those significant commitments customers called out in the release, so carrier global payments a number of others. There's also do you also see some.
You know good.
Engagement with governments they are recognizing the need to transform attack get their technology more nimble and innovative schools universities are planning for online learning so.
A lot of help we can work with customers to provide there and on the kind of from a product perspective, we're we're seeing significant momentum with our eight of U.S. design grabbing onto processors. So you've got customers like smog, and Netflix and there's many others, but they're realizing up to 40% better price performance from that the newer.
Youre in a funny she choose the MRC T. instance families. So when you compare that to the X. 86 based instances and so the Amazon you should you instance families are all powered by our new we have used to think Gravitant you processor. So really pleased to oversee are there in that engagement as well.
Our next question is from Heath Terry from Goldman Sachs. Please proceed with your question.
Great. Thanks, just a couple of things one.
Related or how should we think about where capacity utilization of the fulfillment infrastructure is at this point with the wave of growth that we've seen in the the wave of new warehouse announcement, what kind of capex is going to be necessary to sort of bring you back to what you would consider normal levels that you're or they could be.
Growing from and then you know, there's obviously been a lot of discussion around the capacity limitations that third party shipping networks are going to see this holiday season.
Given given demand how much of an issue or do you see that as being and given your investments and your own delivery capacity does that become a competitive advantage for you during the holiday.
Yeah. Thanks Heath, so I'll start with that last one yes, and they are a bit all intertwined here. So that's a third party shipping we rely on third party shippers, we have great partnerships around the globe with third party shippers and and we know that their capacity will be tight as well ours Uh huh.
We do feel good that weve invested quite a bit in our own capacity and you.
Just mentioned that about half of our ops capex is going to expand it transportation a lot of the people that we're hiring are you know has also focused on transportation. So we feel good that weve been able to develop that capability a lot. This year, because we needed it and we're going to need it in Q4, having said that it's going to be tight for everyone and I think it's.
Yeah, we'll all be stretched and it's advantageous to the customer and probably just companies for people to order early this year, but regardless of the order pattern, we're going to do our best to let it get the usual excellent service to our customers on Capex levels again, we've we've oh grown.
Our infrastructure excuse me, our fulfillment and logistics infrastructure, 50%. This year, we'll see again, what that implies for next year.
We do we do see continued expansion and Oh capex, specifically in a transportation area. So that will be the start of that probably a.
Multiyear period, where works, it's a higher on capex for that.
But we'll see where are you right now we're just focused on Q4 and giving the guidance for Q4 your question on capacity utilization.
You know it's been very tight this year, certainly we were able to fill up a lot of our any excess capacity in Q2, and Q3 that it might have seasonally been excess.
As we get into Q4 and everything stepping up you know, we're adding it and using it simultaneously we had a really good test for Prime day, and you know we feel good about the performance of the network and we continue to add on top of that so I well lots of excitement around.
Around the holiday and you know, but we feel we're in good shape and ready to go.
Our next question is from Mark Mahaney with RBC. Please proceed with your question.
Thanks, two questions, please or how should we think about these 4 billion expenses in the fourth quarter. The 7 billion a year to date like do you view the more as one time ish or just overall increases as you build out the network are they are they structural one or one timeish I really want to get it that secondly.
International segments been nicely profitable or <unk>.
Reasonably profitable for two quarters in a row is there some reason to think that that's sustainable.
And then I'm sorry third question the open to other revenue growth accelerated to 49% can you give any color behind that thanks a lot.
Hi, Mark. Thank you, let me start with the Cobot question. So.
We have again.
Our <unk> expenses in Q3 were estimated to be two point fived around 2.5 billion and we're seeing a closer to four in Q4 or the majority of that is due to the expansion of our operations so things like productivity that.
You know, there's pretty productivity drags for things like a new hire ramp social distancing standing break periods things that we can quantify to say look. This is this is a change in our process that has as her <unk> productivity. We also costs related to that there are more dessert. So those are calculated that there's more direct costs.
Around cleaning supplies testing and.
Those are the main things I would say so what we're trying to do by capturing these costs is to.
Sure. What is we believe is incremental and the intent is that piece for our own knowledge as well that these will I you know once once a the pandemic is over or hopefully that soon that they should be costs that don't recur okay.
You know, though simultaneously there are some benefits going on right now there's things like you know.
In Q2, we had a lower marketing expense you see that in our trends.
Starting to come back in Q3, and Q4 to more normalized levels, but certainly everyone. Yeah. There was there was not a lot of <unk> requirement or need to do marketing.
This year for parts of the year, we saved you know nearly a billion dollars and travel this year because you traveled ground to a halt internal travel travel on expenses. So there's things like that that will resume at a later date and maybe not get to the same levels as the past, but they will be you know.
They won't be as artificially low as this year. So you know we're trying to be transparent as best we can on the costs were seeing.
Oh, we're not was netting against some of the favorability from demand and some of the other costs that might be off saying, although they're not upsetting to the extent that they cover costs are sitting there.
And then I will point to the fact that we are because we're running at such a high level and a consistently high level really in off peak periods.
We have been able to run these warehouses very efficiency efficiently you have to split the discussion kind of between the cost penalty on the covenant related issues, but then there's certainly been some favorability.
Favorability from your running assets at a you know more fallout condition. Okay. So hopefully that gives you some color on it international.
Segment profitability, Yeah, I would say and I think we discuss this a bit last quarter.
You know, we're we're seeing and advancement of volume and very strong volume if you will in especially in our countries in Europe and Japan.
That you know should we so we may be putting away yeah future volume onto this year's cost structure. So that is probably why you're starting to see that is why you are seeing profitability in international I would say generally we are still.
[noise] investing ahead of the U.S. and a lot of dimensions internationally things like prime benefits things like the devices things like international expansions you might see that saw you might have seen that we just launched in Sweden yesterday.
So yeah, there's there's a lot of competing factors going on right now internationally, but I think right because of the high volumes and the leverage we're seeing particularly in places like the UK and Germany that you know, it's it's a it's creating a profitability ahead of schedule. If you will.
But we feel good about the level of investment that's continued and now we see that Oh, yeah, we're committed to continuing that.
Even after the pandemic.
Including the International segment of course is India, where.
You know Weve had a we had a very strong prime day and volleys off to a good start and.
So anyway. The third comment was on other revenue yeah that is essentially a penny mostly advertising.
And we have very strong advertising performance in Q3, it's a continuation of the trends that we saw in Q2, we started to see advertising budgets increase up from some of the contraction that is occurring earlier in Q2, and we just had a lot more traffic and we do a good job of yeah turned that traffic into valuable.
You know.
Real estate for our advertisers and and for our customers to get to to find out or you know more about the selection and Ah brand discovery. So most.
Most of that is a strong quarter with strong quarter in advertising enough switch or what you're seeing in the other revenue line.
Our final question will come from Eric Sheridan with you B.S. Please proceed with your question.
Thanks for taking the question maybe two if I can one following up on marks question on the advertising side. We continue to see you guys innovate a lot on the product side, especially with programmatic advertising video advertising can you just give us a little bit of a sense of how you see the advertising offering both on Amazon and all of us on sort of evolving.
In the years ahead, and the second question will be coming back Brian to your comments in the opening remarks around prime video and all the consumption you've seen globally in the recent past how does that help inform what do you think about in terms of the opportunity when the dust against our original content to continue to drive that sort of media consumption loop within the.
Hi membership thanks, so much.
Yeah, Great Eric I'll start off with the question on advertising. So you just to ground you and I think you know are our main priorities here with the space and somebody's probably aren't too surprising as you know we're focused on making our tools easier to use so well from the sponsor dance a sponsored brand side updating you know sponsored products targeting.
We're working on just simplifying registration for agencies marketers getting them set up.
We're also very focused on being smarter about servicing more relevant ads to customers, making display ads easier and then.
Increasing the usability of the Amazon I mean, if I platform. So yeah, we've been working on on a number of those areas and then developing new products and a lot of that is focused around you know how are we serving brands are very.
From various areas you know twitch.
Sponsor brands the stores of course I'm. So other interesting areas. So yes, it's we're certainly in a unique position to be able to provide.
Measurement services that help all these brands or understand the impact of.
Other advertising in ways that are going out.
Grow their business video you know you mentioned I think video is one that where we're working hard on with some of the O.G.T. video advertising opportunities there I'm seeing some good some good momentum with that well for inventory in the eye and BP I am TV TV on AD supported space announcing three p. apps, both on and off the.
Fire TV show, a lot and good momentum there and a lot of good learnings on some of those initiatives are there probably won't say too much about what will look like next year in the future, but that gives you a kind of a sense of priorities, where we're spending our time focused on.
And on your question on video so step back you know our goal is to deliver high quality and fresh content to our global Prime base number base, we're doing that by producing top tier U.S. content that we show globally and then we augment that with local originals in each region. If we do that job well you know we.
Seeing it as a very scene.
A significant acquisition channel for a new prime members, especially in many a smaller countries around the world.
You see higher free trial conversion rates higher membership renewal rates and then a higher overall engagement as I mentioned Q threes specifically.
And when they do that with <unk>. The more engaged they are we know that that turns into more sales on Amazon and that's a it's a self reinforcing loop. So we're very happy with the video performance, particularly during this period I think people have gotten a really.
Hi, good chance to test out the con the content, maybe that people hadn't use of prime members and use that benefit as much in the past given another look and as you know really a sound value in it a weird more than 240 countries and territories worldwide and again, we're seeing some really interesting.
Localized content, you know developing in places like India, Brazil, Mexico, Australia, the UK, and Spain, which I think the customers and this is a country is really appreciate it.
Great. Thanks for joining us today for the call and for your questions. A replay will be available on our Investor Relations website for at least three months. We appreciate your interest in Amazon and we look forward to talking with you again next quarter.
[noise].