Today we have a special guest, Rohit Kulkarni, Managing Director and Senior Research Analyst covering Internet and Capital Markets at ROTH MKM Ventures. Rohit and I dive deep into Amazon’s recent Amazon Q1 earnings call in this episode and discuss the key takeaways.
With almost 25 years of experience in the field, Rohit brings valuable insights into the world of technology products and investment banking.
“Amazon and their earnings call in April were 4 out of 5 stars. From a fundamental standpoint, the company reported an upside across the board. They were amongst the better earnings call we have seen in the last 12 to 18 months.” Rohit Kulkarni
Andy Jassy’s FBA Cuts
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.
Amazon’s Pillars of Revenue and Profitability
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.
“Wall Street tends to think that AWS is the key to Amazon’s cash but look at 3P seller services closely to see the real value of Amazon.”
Jason Boyce
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.
Some Additional Resources…
Rohit Kulkarni’s email: [email protected]
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