EP129 - Amazon Q1 Earnings Hot Take This episode is a hot take of the Amazon Q1 2018 earnings Amazon Q1 Earnings Highlights $51b, which is a 43% y/y increase - 39% constant currency,  27% ex- Whole Foods NA was up 46% y/y which drove $1.1b in profits (26% ex WFM) Intl was up 21% constant currency and lost $622m  AWS had a material acceleration up 48% y/y constant currency and profits were $1.4b Amazon Prime fee increasing to $119 (20% increase) Marketplace  52% 3P by Unit sales 3P Growing at 60% (constant currency) JMP GMV analysis-> 1P - $31b / 3P - $69b = $101B GMV Wingo GMV estimate -> 1p - $37b/ 3p - $66b = $103b GMV   Amazon Ads - $2B quarter 132% y/y growth (72% y/y growth before accounting change vs. 60% last quarter) Increasing possible Amazon becomes first $1 trillion dollar company Bezos Annual Letter 100M Paid Prime Members (likely 60M in N.A vs. 124M Households) Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 129 of the Jason & Scot show was recorded on Monday, April 30th 2018. Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing. http://jasonandscot.com New beta feature - Google Automated Transcription of the show: Transcript Jason:  [0:25] Welcome to the Jason and Scott show this is episode 129 being recorded on Monday April 30th 2018 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo. Scot:  [0:39] Jason and welcome back Jason and Scott show listeners. [0:45] Will Fox tonight we want to focus on some Amazon news because there's been a lot of really big amazon news that his hit the wire in the last week or so and we've been. Bisley publishing are shoptalk interviews and wanted to interrupt the flow of those coming out so you get something a little more timely here and so that you know how to, did Justice Amazon news and think about what it means for your business Jason wants to kick it off. Jason:  [1:12] Yeah so two big events that we're going to talk about tonight early last week, Jeff Bezos released his annual shareholder letter and as we talked about several times on the show this something that he publishes every year he publishes one for the current year and he republish is the first one he wrote which is. 97 if I'm remembering right is that. Scot:  [1:34] That is correct. Jason:  [1:35] Ding ding and highly recommend you read the 97 one if you haven't, what will you talk about that a little bit later but then later in the week Amazon did their earnings announcement and tons of interesting things from both events so that's what we want to talk about tonight. Scot:  [1:57] Yes we're going to jump into the earnings let's look at the high-level and then we can kind of dig in so one thing that's kind of interesting is there's a new accounting standard coming out I know you're excited about this Jason. Jason:  [2:10] Oh my god I've been like my family have been on pins and needles for months waiting for this. Scot:  [2:14] It's a sit-down folks it's a it's a big one buckle up and so the. I know this because I am involved to the public company but the there's a group called The General accounting standard thingy Gap, and they have come out with a new way of recognizing Revenue that's called accounting standard 606 and this is. I'm packing all kinds of businesses one example of how it's impacted Amazon is. Amazon used to take Prime subscriptions and waited heavily towards the fourth quarter because that's when I got a lot of sign ups in this standard says you can't do that you have to allocate it, equally amongst quarters you can't do weighted averaging and things like that so it causes a little chaos and in the world of looking at these kind of results because you said we have apples and oranges so