CLAIM #7153 · Amazon.com Inc (AMZN) · 2021Q4 earnings call · Feb 3, 2022 · due Dec 31, 2022
“We still see additional levels of investment in that in 2022.”
Brian Olsavsky · CFO
In context
“we’re adding regions and capacity to handle usage that still exceeds revenue growth in that business. So, we feel good about making those investments. On the fulfillment center side, that’s about 30% of the spend in the last two years. We see that moderating and that will probably now match growth of our underlying businesses. I think there’s always things that can tick up that growth rate, things like expansion of our FBA business, expansion of cube that maybe not be different than the square footage. So, there’s -- we want to have capacity to have a healthy retail and FBA business because that fuels prime in 1-day delivery and 2-day delivery and same-day delivery. So, that’s very important. But we see the FC piece likely moderating this year. And then the third piece is transportation. We still see additional levels of investment in that in 2022. So, if you wrap that up, we expect CapEx including equipment finance leases to increase year-over-year. I can’t give you the exact percentage, but hopefully, it gives you a little more dynamic on what -- how we approach it. Operator: Our next question is from Mark Mahaney with Evercore ISI. Mark Mahaney: You lay out all of these costs that you were expecting to see in the December quarter. Just talk to whether there are any real surprises to you. So, it looks like you had a little bit greater leverage than you may have thought. And then use that to help us think about what the -- I think you said the sun is coming out. Financially, does that mean that we’re going to have a kind of nice improvement in operating margins as we go through the year as some of those temporary costs get temporiz”
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SEC filings for AMZN ↗ · Claim quote is verbatim from the 2021Q4 earnings call.