04 Feb Amazon Announces CEO Transition
Amazon announced that Jeff Bezos will transition to the role of executive chair in the third quarter of 2021 and Andy Jassy will become CEO at that time.
Jassy is CEO of Amazon Web Services (AWS). He joined Amazon in 1997 as a marketing manager. In 2003, he founded Amazon Web Services (AWS). In April 2016, Jassy was promoted from senior vice president to CEO of AWS. Bezos founded Amazon in 1994.
“Amazon is what it is because of invention. We do crazy things together and then make them normal. We pioneered customer reviews, 1-Click personalized recommendations, Prime’s insanely-fast shipping, Just Walk Out shopping, the Climate Pledge, Kindle, Alexa, Marketplace, Infrastructure Cloud Computing, Career Choice, and much more,” said Bezos, Amazon founder and CEO. “If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”
When the leadership changes were announced, Amazon reported earnings in the fourth quarter doubled as sales rose 44 percent.
Fourth Quarter 2020
- Net sales increased 44 percent to $125.6 billion in the fourth quarter, compared with $87.4 billion in fourth-quarter 2019. Excluding the $1.7 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 42 percent compared with fourth-quarter 2019.
- Operating income increased to $6.9 billion in the fourth quarter, compared with operating income of $3.9 billion in fourth-quarter 2019.
- Net income increased to $7.2 billion in the fourth quarter, or $14.09 per diluted share, compared with net income of $3.3 billion, or $6.47 per diluted share, in the fourth quarter of 2019.
Full Year 2020
- Net sales increased 38 percent to $386.1 billion, compared with $280.5 billion in 2019. Excluding the $1.4 billion favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 37 percent compared with 2019.
- Operating income increased to $22.9 billion, compared with operating income of $14.5 billion in 2019.
- Net income increased to $21.3 billion, or $41.83 per diluted share, compared with net income of $11.6 billion, or $23.01 per diluted share, in 2019.
First Quarter 2021 Guidance
- Net sales are expected to be between $100.0 billion and $106.0 billion or to grow between 33 percent and 40 percent compared with first-quarter 2020. This guidance anticipates a favorable impact of approximately 300 basis points from foreign exchange rates.
- Operating income is expected to be between $3.0 billion and $6.5 billion, compared with $4.0 billion in first-quarter 2020. This guidance assumes approximately $2.0 billion of costs related to COVID-19.
- This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.
The full press release is here.