Q1 2022 Amazon.com Inc Earnings Call
Okay.
[music].
Thank you for standing by good day, everyone and welcome to the amazon.com Q1, 2022 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'll be turning the call over to the director of Investor Relations Day files. Please go ahead.
Hello, and welcome to our Q1 2022 financial results Conference call Joy.
Joining us today to answer your questions is Brian <unk> 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 2021.
Our comments and responses to your questions reflect management's views as of today April 28 2022 only.
We will include forward looking statements actual results may differ materially Adil.
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.
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 maybe materially affected by many factors, including uncertainty regarding the impacts of the COVID-19 pandemic.
Fluctuations in foreign exchange rates changes in global economic conditions and customer demand and spending.
<unk> labor market and global supply chain constraints world events, the rate of growth of the Internet online commerce and cloud services and the various factors detailed in our filings with the SEC.
This guidance also reflects our estimates to date regarding the impacts of the COVID-19 pandemic on our operations, including those discussed in our filings with the SEC.
Our guidance also 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 and now I will turn the call over to Brian .
Thank you for joining today's call.
Like to start with a few comments on what we're seeing is we're coming out of the pandemic both on the customer experience side and on the operating cost side and as current inflationary environment.
Let's start with demand and customer experience.
Net sales in Q1 were $116 4 billion, an increase of 9% year over year, excluding the impact of foreign exchange. This is the top end of our guidance range of 112 billion to a $117 billion.
Our compound annual growth since before the pandemic stands at 25% growth rate higher than what we were seeing before the pandemic.
Prime members continue to be a key driver of growth.
<unk> had meaningfully increase their spend with us.
Start of the pandemic and we continue to see consistently high member renewal rates. We also added millions more new prime members during the quarter.
Throughout the past two years, we've seen stronger usage of prime benefits by Prime members and a greater reliance on Amazon for their shopping and entertainment.
First quarter, we made encouraging progress on our key customer metrics delivery speed performance is now approaching levels not seen since the months immediately preceding the pandemic in early 2020, and we now have the widest selection ever available for Prime's fast delivery.
Work to protect and enhance the customer experience. Despite a sharp increase in costs, particularly over the past three quarters. We've.
We've seen a large cost to keep up with demand these past two years.
During this period, we doubled the size of our operations and nearly doubled our workforce to $1 6 million employees.
Labor in a physical space are no longer the bottlenecks they were throughout much of 2020 in 2021.
However, we continue to face a variety of cost pressures in our consumer business I'll break this into two buckets externally driven cost primarily inflation and internally controllable costs, primarily productivity and fixed cost deleverage.
Internally driven costs are a result of intensifying inflationary pressures throughout Q1.
Line haul air and Ocean shipping rates continued to be at or above the rates in the second half of last year, which are already much higher than pre COVID-19 levels. Some of this is due to the impact of the <unk> variant in China and labor shortages at point of origin and the start of the war in Ukraine has contributed to high fuel prices for.
For example, the cost of shipping overseas container has more than doubled compared to pre pandemic rates. The cost of fuel is approximately one five times higher than it was even a year ago.
With the year over year increases in wage inflation. These inflationary pressures have added approximately $2 billion incremental costs when compared to last year. While we will continue to look for ways to mitigate these costs. We expect it will be around for some time.
The next bucket of costs related to productivity and fixed cost leverage which was considered to be more within our control and are working to reduce these additional cost corresponds to the state of the labor Force and fulfillment network. Following two years of disruption and large demand variability. We now look forward to more predictability and a consumer order patterns and greater stability in our.
<unk>, let's.
Let's start with labor as a reminder, in the second half of 2021, we were operating in the labor constrained environment with the emergence of the <unk> variant in late 2021, you saw a substantial increase in fulfillment network employees out on leave and we continue to hire new employees to cover these absences.
The variance subsided in the second half of the quarter and employees returned from leave we quickly transitioned from being understaffed to being overstaffed, resulting in lower productivity is lower productivity added approximately $2 billion in costs compared to last year in the last few weeks of the quarter and into April we've seen productivity improvements across the network and we expect.
To reduce these cost headwinds in Q2, the last issue relates to our fixed cost leverage.
Still seeing strong customer demand and expansion of our SBA business. We currently have excess capacity in our fulfillment and transportation network capacity decisions are made years in advance and we made conscious decisions in 2020 and early 2021 to not let space be a constraint on our business.
During the pandemic, we were facing not only unprecedented demand, but also extended lead times on new capacity, we built towards the high end of a very volatile demand outlook now that demand patterns have stabilized, we see an opportunity to better match our capacity to demand we have lowered our operations capital expenditures for 2022 and are evaluating other ways to increase.
Our fixed cost leverage we estimate that this overcapacity coupled with the extraordinary leverage we saw in Q1 of last year resulted in $2 billion of additional costs year over year. In Q1, we do expect the effects of these fixed cost leverage to persist for the next several quarters as we grow into this capacity.
When combining impacts to the externally driven cost me internally controllable costs, you get approximately $6 billion and incremental costs for the quarter. Approximately two thirds of these costs are within our control and with demand normalizing we remain focused on right sizing our cost structure and driving out any cost inefficiencies.
Our guidance includes an expectation that we will incur approximately $4 billion of these incremental costs in Q2, we.
We saw another strong quarter of innovation and customer engagement in the AWS segment, where net sales were $18 4 billion in Q1 up 37% year over year and now represent an annualized sales run rate of nearly $74 billion.
Developers that organizations of all sizes from governments and not for profits to startups and enterprises continue to choose Amazon web services companies like Telefonica horizon.
Mongo DB Amdocs legislature Maple Leafs sports and entertainment, the NHL and thread announced new agreements and service launches supported by AWS. We also continue to build support infrastructure to best serve Aws's millions of customers. We recently completed the launch of our first <unk>.
<unk> local zones in the United States with 32 more to come across 26 countries.
Local zones extend AWS regions to place our services at the edge of the cloud near large population industry and it centers, expanding our infrastructure footprint and enabling customers to build with single digit millisecond latency performance last quarter I provided some detail on our overall capital investments. So let me add to that.
With our current thinking first as a reminder, we look at the combination of Capex plus finance leases capital investments were $61 billion on a trailing 12 month period ended March 31.
40% of that went to infrastructure, primarily supporting AWS, but also supporting our sizable consumer business about 30% is fulfillment capacity.
Merely fulfillment center warehouses.
Less than 25% is for transportation so.
Think of that as the middle and last mile capacity related to customer shipments the remaining 5% or so is comprised of things like corporate space in physical stores for full year 2022.
Do expect infrastructure spend to grow year over year in large part to support the rapid growth in innovation, we're seeing within AWS.
We expect infrastructure should represent about half of our total capital investments in 2020 to the consumer business as I said earlier, we currently have some excess capacity in the network that we need to grow into so we brought down our build expectations note again that many of the build decisions were made to 18 to 24 months ago. So there are limitations on what we can.
Mid year that said, we expect fulfillment dollars spent on capital projects and lower in 2022 versus the prior year.
We also expect transportation dollars spent on capital projects to be flat to slightly down.
Finally, I'll highlight a few additional items, we reported an overall net loss of $3 8 billion in the first quarter, while we primarily focus our comments on operating income I would point out that this net loss includes a pre tax valuation loss of $7 6 billion.
Included in non operating expense from our common stock investment in Iridium automotive you may remember that we had a $12 billion gain Arabian in Q4, we also provided our second quarter financial guidance as part of our earnings release as a reminder, our comparable period of Q2 2021 included continuation extraordinary net sales growth.
Through roughly the first half of that quarter that began to moderate in the second half as vaccines became more readily available in many countries and people start getting out of their homes. In addition note that this year's Prime day sales event will occur in the third quarter in July to be specific last year in 2021 Prime day occurred in the second quarter Prime day.
You did about 400 basis points to our Q2 2021 year over year revenue growth rate.
Lastly, as you look at our Q2 operating income guidance.
Mind, you that we will see our seasonal step up in stock based compensation expense as our employees receive annual restricted stock unit grants in the second quarter.
As you would expect to see stock based compensation expense of approximately $6 billion.
Up from $3 3 billion in Q1, largely reflecting wage inflation as we continue to hire and retain employees in high demand areas, including engineers and other tech workers.
With that let's move on to your questions.
Thank you at this time, we will now open the call up for questions. We ask each caller to please limit yourself to one question if you'd like to ask a question. Please press star one on your keypad, we asked that when you pose your question you pick up your handsets to provide optimum sound quality once again to initiate a <unk>.
<unk>. Please press Star then one on your Touchtone telephone at this time.
Please hold while we poll for your questions. Thank you.
Our first question comes from Mark Mahaney with Evercore ISI. Please proceed with your question.
Okay. Thanks, I want to ask two questions. Please in terms of the revenue guide for the June quarter, I think it sort of implies about 3% and if you look sequentially. If you look back at the last couple of years. The non COVID-19 years. The growth has been between 4% to 6% are you seeing signs of consumer softness or weakening is there any particular factor that would be cause your sequential growth to be lower than.
Than typical and then briefly on the margins for Q2, so you've got $4 billion in kind of these incremental costs versus $6 billion in the March quarter, but yet your guidance year over year implies kind of the same sort of year over year margin decline about 500 bps could you just explain that a little bit. Thanks.
Hi, Mark how are you doing on revenue yes.
The.
Revenue guidance, we've given is kind of our best view of what we're seeing right now.
Customer demand does remain strong we're seeing again continued.
Strength.
In prime purchases prime commitment.
Those of usage benefits being used et cetera.
And the big part of the year over year comp is that we're comping. The last part is a very elevated.
Over your step up.
It lasted about half of last year's second quarter.
And then the prime data Q3 so.
We're not seeing softness.
<unk>.
Hi.
Cognizant of the current inflationary environment and the impact it has on.
Consumer or excuse me the household budgets a lot of times that.
As a time when.
People come to Amazon because they know we have great prices and selection and convenience. So it can go one of two ways, but we don't see any.
Macroeconomic factors generally in this.
Forecast on the demand side, we definitely see it on the cost side, though.
And Mark I think your second question was related to the operating income guidance and some of the detail there. So.
Brian So first time, we've given the guidance for the second quarter, but it.
Detailed a number of pieces, but like you said.
Expect to see in aggregate about $4 billion.
For the three buckets that Brian talked about higher inflationary pressures lower productivity and some fixed cost deleverage.
Persisting into Q2, so that will be at some lower levels as we.
Hum.
Aim to kind of expect to see some improvement.
And productivity some of those other areas.
We're also committed to just generally reducing variable cost per unit and working to lever our fixed costs, specifically, where we have those controllable cost buckets, Brian spoke about the other thing again, Brian mentioned it towards the end of their.
Okay.
You see that seasonal step up in stock based compensation expense, so recall that our employees receive those RF <unk> grants in the second quarter. This year, we expect to see expense of approximately $6 billion.
And so that's up from about $3 3 billion in the first quarter.
Yeah.
Our next question comes from Justin Post with Bank of America. Please proceed with your question.
Great. Thank you.
Big picture Amazon Hasnt really been around during a period of high inflation, how do you think about passing through the higher input costs through pricing. When you look at your units they are flat.
And Youre, just not seeing any price increases in there I know FX is a headwind, but how do you think about passing that through and when can we start to see that and then second question. It looks like Youre shipping costs are up 14 versus units flat.
Probably makes sense with the input costs, but we would expect some savings as you bring a lot of that transportation in house a lot of the delivery in house is are you seeing savings there and how do you think about shipping cost versus units.
Yes.
Sure, let me make a comment on units first.
If we step back.
The first year of the pandemic.
Essentially.
From our world from the Middle of May 2020 May 2021 we saw high growth.
We went from a 20% growth rate in revenue, a 40% growth rate almost overnight and held it for a year and then we start to lap that for the last year that.
And in the Middle of this next month.
Okay.
Noted step downs in the run rate as soon as the middle of May hit last year. So.
On units, though units grew during that instead of jumping from.
It's a 40% John .
Up to that mid 45, mid 40% to 50% range, mainly because of the product mix people were buying a lot more clubs.
Cleaning agents and all the things tied to the pandemic, so theres a lot of.
You have to look at the unit data with <unk>.
Keeping that in mind, because there is a mix heavy mix issue, but putting all that aside you asked the question about transportation shipping rates are shipping rates.
Are very competitive and we are seeing savings versus what we would get from external carriers.
And it's beyond that we would not even necessarily have had the capacity to from external.
The third party providers to handle the transportation loads that we've seen in the last couple of years. So we're really glad that we have are as we've built our ANZ on network.
Would not be able to have a one day program.
Dan One day shipments if we if we tried to deliberate with third party shippers that just would not be cost effective so.
What youre seeing there in the growth in shipping costs versus the unit growth a little bit on the unit side, but essentially a factor of inflation and productivity that I've mentioned to you on that.
Got it.
The component that hits in the transportation area.
Okay.
On your on your second point.
Regarding inflation of course, we've talked about we're not immune to inflationary pressures on the on the cost side and with the ongoing supply chain disruptions.
Started the war in the Ukraine since since our last quarter, we see a larger impact from inflation line haul shipping rates fuel by shipping supplies and wages, which we've talked about in some recent quarters as well.
I also see some volatility and utility pricing.
Some of the energy costs and operating the AWS data centers now when you look at cost for customers and sellers in terms of product pricing I'd, just reinforce our pricing philosophy Hasnt changed we aim to offer low competitive pricing and try to stay on top of that pricing environment and make sure we're delivering a great price for customers.
For our <unk> business that means continuing to be really competitive in that space with low prices relative to reputable competitors out there.
And.
Staying really close to having the data for third party.
Don't control that price that is set by third party sellers, so theyre running their own businesses and will adjust the pricing.
To account for inflation in costs on the environment as well and of course on pricing in another other many other services with sellers, we offer services to help them.
Only handle with logistics, but also get better pricing information to make sure that they're.
Staying on top of that as well so wherever we can help them do that.
We did increase some fees.
Effective I believe is today.
Really to the FBA sellers and some surcharge there we're focused on of course addressing permanent costs and ensuring our fees are competitive.
Versus those charged out there by the sellers, but it's still unclear if the inflationary costs will go up or down and so and for how long they'll persist so.
Rather than a permanent fee change, we implemented that fuel and inflation surcharge for the first time and it's it's of course a mechanism that's broadly used across the supply chain providers that are out there already but it's the first time that we've done something like this.
Our next question comes from Brian Nowak with Morgan Stanley . Please proceed with your question.
Great. Thanks for taking my questions I have two first one Brian I want to ask you about one day same day now that Youre getting inventory selection and SKU selection and in some cases back to where it was pre pandemic. What are you seeing from a demand elasticity perspective as you get more inventory available for one day same day is it really leading to incremental sale.
<unk> based on your data in the second one I wanted to ask about tech and content. It came in a little higher despite.
AWS costs coming in lower is there anything else, we should sort of be thinking about in our modeling and tech and content, whether it's hyper or other items that are moving through that line item for the year.
Yeah, Let me start with your first question on one day and same day, yes, we're approaching the.
Service levels that we had pre pandemic and Thats a positive sign.
But this doesn't.
It doesn't turn on a dime.
I think as this consumer I noticed it myself I see more things in.
Stock Ni.
It opens up the consideration set for things that I may have had to run to the store to get in a short period of time.
And that trust.
More and more of that you trust it.
Continue to order in U S.
Thank God, Amazon first and say, okay last wouldn't be there.
First first stop before I, even think about going to the stores. So it's a it's a it has to be built.
Over time it doesn't take years. It takes you hopefully weeks and months, but where we're hopeful and expecting that that will.
Sure.
Add to that the elasticity the same elasticities that we start to see pre pandemic.
On the second point, the technology and content.
And just as a reminder, the components in there <unk> got the Amazon Tech in the AWS infrastructure, so everything from servers networking equipment.
Datacenter related depreciation.
Rent utilities those types of things the AWS tech employee costs.
And cost to support that.
Dot Com web site and a number of other technology initiatives that we're working on for Q1.
It was up about 19% year over year, which was down a little bit.
Less than what you see for year over year growth throughout 2021 that growth rate, though it does of course include an offset.
Q1, 2000, 10-Q related to partial offset I should say related to the change in estimated useful lives for for servers, which was a little under $1 billion of impact.
In the first quarter in terms of just the investment areas I just reinforce its continued investment in the tech infrastructure I wanted the bigger piece remains AWS of course, there and then just broadly speaking conclusive AWS head count to support.
The build out and support that the AWS team is doing as well as some consumer tech teams, the Alexa and echo devices.
Certain other areas there.
Okay.
Our next question comes from Doug Anmuth with Jpmorgan. Please proceed with your question.
Thanks for the question you talked about how youre no longer chasing physical or staffing capacity and in fact, we're actually running at in excess at the moment.
Hoping you could talk a little bit about how long you think it could take to regain some of the productivity and cost efficiencies and the fulfillment.
Network. Thank you.
Sure thing.
Well, let me start with productivity.
Began and ended the quarter with essentially $1 billion excuse me 1 million six employees $1 6 million employees.
Mostly.
Of course Youre in operations during the quarter, we had a peak of.
$1 7 million.
And we were able to work that down by the end of the quarter.
So we have certain ability with contractors and all to adjust headcount, but for the most part of our employees are well.
Blue badges or permanent Amazon employees and.
Now we work on getting productivity up it's a combination of productivity at the employee level, but it's also.
A matter of productivity are they in.
Amortization of the network, having the right demand in the REIT or excuse me the right capacity in the right demand matched at the warehouse level on the transportation dose level. So that's what we're working on and we've made.
Good strides.
In the last months and where we see a line of sight to getting back.
Not all the way to pre pandemic rates in the next quarter or two but.
A good bit of the way and that's what we're firmly focused on and working on and that's in the warehouses and also in transportation.
Hi.
As your second half to that question. Okay go ahead.
Our next question comes from Eric Sheridan with Goldman Sachs. Please proceed with your question.
Thanks for taking the question and hope you're both well maybe if I could just.
Sticking on the capacity issues for a minute in terms of the $4 billion number you're calling out maybe the first part of the question would be is that entirely the additional issues that are now front and center versus the issues. We've talked about from Q4 into first half of 'twenty two from a logistics and supply chain standpoint, what we had talked.
Permanent versus transient cost nature of that $4 billion as you move through the first half of the year. So is this above and beyond that and above and beyond some of the lingering COVID-19 costs that you had called out in prior periods just wanted to unpack some of the stock build of the $4 billion versus thing we already knew before and then maybe following up on Doug's.
And asking it a little bit differently. When you look out to the back part of the year not asking for how you might guide, but there is a typical cadence to fulfillment expense build in.
<unk> build in headcount build into the back part of the year as you build the capacity towards the holidays will that have a very different cadence to it. This year because you find yourself with this much excess capacity at Q1 Q2 versus prior years, just so we can keep that front of mind. Thanks, so much.
Sure good questions, Eric Let me, let me start with the.
Okay.
Cost penalties. So in in Q4, we did mentioned $4 billion of cost penalties interact on that quarter and a $1 billion of that was.
Fixed cost deleverage.
Principally combination of.
Having enough space and having.
Super high leverage in the prior year, when we were chasing.
<unk>.
It had less space at least indicated that that would be.
Carrying over into 2022 and it has.
From a productivity standpoint, our issues in the second half of last year were different they were we didn't have as much labor, even though we added I believe it was 200.
Uh huh.
I have it right here 270000 workers in the second half of last year.
We were chasing labor.
And it was creating much disruption within our network longhorn shipments have full trucks, all kinds of negative consequences of not having labor.
But we've made it through Q4 with the anticipation that.
We would be able to hold our labor for Q1 and Les.
Labor certainty would be a lot better and certainly in our network.
That is still the plan and we're probably a couple of months late on that because of some of the issues with <unk> in January and.
Our reaction to it was.
Okay, and uncertain labor environment, where a lot of people were on a leave we hired more people and.
Then found ourselves overstaffed, when they overcome variant subsided rather quickly at least from our standpoint in warehouses. So.
The issue is.
Switch from disruption productivity losses too.
Over overcapacity on labor and we believe that that will dissipate.
It will take time in Q2, but it's so it's not the full we don't get the full $2 billion back in Q2, but we will make.
Great strides on that.
<unk> has been in both periods inflation was in the transportation.
Cost, especially in wage inflation last year, yeah. It remains there.
It's been amplified a bit by the fuel cost following the Ukraine conflict, which has happened since we last spoke.
So it's more a factor of that those costs will now we believe will persist a little longer than we were hoping at the beginning of the year.
And I've mentioned some of it per unit rates for <unk>.
Transportation cargo shipments and also fuel costs those are real and we have to find ways to offset those or use less.
Hi, Hi cost things like transportation and fuel.
So we're working on that as we as we progressed theres only guidance for Q2.
<unk>.
What we see is that the fixed cost deleverage will narrow as we go through the year and we'll be really glad we have some capacity in Q3, when prime day hits, because that's always a big surge of.
Inventory and orders and then definitely in the holiday season, So we will.
The way, we see it as we've come out of a very.
Ultra is two years.
We're glad we made the decisions we made over the past two years.
And now we have a chance to.
More right sized our capacity to a more normalized demand pattern. So.
What's left there is really inflation and thats what were.
Working on in evaluating and.
Finding ways to mitigate and in some cases, having to pass some of the cost through to third party sellers as well so that we're.
We're not subsidizing sales there and then we will see so we.
We expect.
The year over year revenue comps to improve in the second half of the year because again, we're passing this year of Super high growth that I mentioned before from May of 2020 to may of 2021.
But it sounds like the volume has receded like in Q1.
Literally where revenue is 61% higher.
Over two years from 2020 so.
The way to think about it as it went up and stayed up and now it's.
It will resume a more normal growth pattern, but.
I wouldn't be full by the revenue growth rates in this difficult comp period.
Our next question comes from Ross Sandler with Barclays. Please proceed with your question.
Hey, guys.
So the letter mentioned some impacts post the Ukraine infusion I'm guessing, it's mostly on the inflation and the fuel costs I just mentioned, but any any comment about how.
Revenue trajectory compared in March after the conflict started versus before across your geographies and was there any noticeable difference between prime member volume and non prime thanks a lot.
Yes, Hi, Ross Ross.
No.
I would say, there's not a lot of prime versus non prime differential.
We are ahead of what we consider to be a very strong March.
It's very hard to compare year over year, because March last year is the height of some stimulus payments in the United States, but from kind of a sequential period, we thought.
March was strong.
So there is no indicators.
That we're seeing of weakness in consumer demand.
But we're wary of it.
Probably all companies are because.
Household budgets are.
<unk> tightened when fuel costs are.
Doubling and.
A big part of your.
Yes.
It ripples through food it ripples through everything else. So we're cognizant of that.
But what we'll focus on is the customer experience.
Continue to get our delivery times to be better.
And increasing selection, which is better than pre pandemic time period end.
Youre, making the customer experience great on a lot of dimensions.
Our final question comes from Jason <unk> with Oppenheimer. Please proceed with your question.
Thanks two questions.
Just can you talk about advertising a bit are you seeing supply chain disruption, having any impact on advertising.
Just any comment there and then second I don't think.
AWS backlog was asked if there's any numbers you can sharon.
AWS backlog growth this quarter versus last quarter. Thanks.
Yes, Jason I'll tell I'll take the second one first just on the backlog. So I mean, we're continuing to see what the backlog is greatest.
The increase of AWS customers, making long term commitments for AWS at.
The March period ended we had $88 $9 billion.
Balance for that so thats up about 68% year over year.
And the weighted average remaining life term for those is three eight years.
Yeah.
And on <unk>.
Revenue excuse me advertising revenue was up 25% year.
Year over year and that's a.
The strong run rate compared to the revenue growth rate. So we are still very.
Happy and <unk>.
Pleased with the way the advertising team is performing and how.
Advertising and valued by both sellers and.
Vendors and others, who use it to reach our customer base at the point, where they are considering sale purchases.
No.
Strong quarter and.
Continue to rollout new products for sellers to manage their.
Advertising and increase the.
Its ability to analyze and calculate the payback on marketing investments with us.
Joining us today on 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 and we look forward to speaking with you again next quarter.
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