reader feedback 113
The proven fact that Amazon made loads of funds in 2017, each within the full yr and its fiscal fourth quarter, can also not surprise anybody who continues tabs on the retailer/cloud services provider/video streamer/drone operator.
however the newsworthy thing about its latest quarterly monetary file (PDF), released on Thursday, comes from comparing it to a previous earnings file from October 2017: just how bad Amazon was at predicting its bonkers this fall earnings.
Amazon’s October assistance expected (PDF) an working profits no longer exceeding $ 1.sixty five billion for q4 2017—a good looking sky-high estimate, considering that the company mentioned $ 1.3 billion of operating revenue in this autumn 2016. however that changed into nothing. Amazon’s this fall 2017 operating income was really $ 2.1 billion—a fab sixty nine-p.c hop over the equal period remaining yr.
similarly, that quarter’s web income climbed to $ 1.9 billion in q4 2017, in comparison to $ 749 million in the equal duration final year.
So, what the heck took place? Amazon CEO Jeff Bezos delivered a short statement to the record that indicated “positive projections for Alexa” being handed, together with a indistinct income determine of “tens of thousands and thousands” of Echo-related devices throughout all of 2017. For context, you only have to scroll down a few paragraphs within the Thursday document, which states that the enterprise’s Kindle line has sold “tens of thousands and thousands” of gadgets in view that its November 2007 launch. That would not always ascertain that Echo devices simplest obligatory a yr to reach a Kindle-like device sales count number, but it certainly tips at the chance.
practically half of the this fall file is committed to the miraculous variety of new products brought by using the AWS household within the quarter. This list contains a litany of “laptop-studying” capabilities, along with Amazon Rekognition Video, a video evaluation service whose capabilities had been teased in 2016, launched in late 2017, and arguably resemble the tracking technologies employed on the company’s new no-cashier Amazon Go grocery store in its headquarters metropolis of Seattle.