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Exhibit 99.1
AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 46% TO $7.13 BILLION
SEATTLE(BUSINESS WIRE)April 22, 2010Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2010.
Operating cash flow was $2.78 billion for the trailing twelve months, compared with $1.76 billion for the trailing twelve months ended March 31, 2009. Free cash flow increased 62% to $2.32 billion for the trailing twelve months, compared with $1.43 billion for the trailing twelve months ended March 31, 2009.
Common shares outstanding plus shares underlying stock-based awards totaled 463 million on March 31, 2010, compared with 447 million a year ago.
Net sales increased 46% to $7.13 billion in the first quarter, compared with $4.89 billion in first quarter 2009. Excluding the $185 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with first quarter 2009.
Operating income increased 62% to $394 million in the first quarter, compared with $244 million in first quarter 2009. Excluding the $15 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 56% compared with first quarter 2009.
Net income increased 68% to $299 million in the first quarter, or $0.66 per diluted share, compared with net income of $177 million, or $0.41 per diluted share, in first quarter 2009.
We remain heads-down focused on customers, said Jeff Bezos, founder and CEO of Amazon.com. Amazon Prime has just celebrated its fifth anniversary, adoption of Amazon Web Services continues to accelerate, Kindle remains our #1 bestselling product, and earlier this week, Kindle selection reached 500,000 titles.
Highlights
| North America segment sales, representing the Companys U.S. and Canadian sites, were $3.78 billion, up 47% from first quarter 2009. |
| International segment sales, representing the Companys U.K., German, Japanese, French and Chinese sites, were $3.35 billion, up 45% from first quarter 2009. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 37%. |
| Worldwide Media sales grew 26% to $3.43 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 22%. |
| Worldwide Electronics & Other General Merchandise sales grew 72% to $3.51 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 68%. |
| Amazon Prime, a program that allows customers to take advantage of unlimited expedited shipping for a low annual fee, celebrated its fifth anniversary. In the last five years, we have introduced Amazon Prime to customers in the U.S., Japan, the United Kingdom, Germany, and France. |
| Amazon WebStore introduced new capabilities and a self-service toolset that improve flexibility and control over a Sellers site design, branding, and catalog offering. Amazon WebStore incorporates Amazons expertise, and makes building and operating an eCommerce business fast, easy and low cost. |
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| Amazon Web Services (AWS) introduced Amazon Simple Notification Service (Amazon SNS), a new offering that provides developers with a highly scalable, flexible, and cost-effective capability to publish messages from an application and immediately deliver them to subscribers or other applications. |
| During the quarter, AWS lowered pricing for outbound data transfer by up to 40%. By aggregating total Data Transfer Out usage across multiple services, customers can reach higher tiers and lower pricing more quickly. |
| AWS announced the availability of Reserved Instances with Windows for Amazon EC2. Customers running Windows Server can choose to pay a low, upfront fee to guarantee the right to run a compute instance at a significantly discounted hourly price. |
| The Company announced that authors and publishers around the world can now use the self-service Kindle Digital Text Platform (DTP) to upload and make available their books in Spanish, Portuguese and Italian to customers worldwide in the Kindle Store. Authors and publishers already have the ability to upload and make available their books in English, French and German. |
| The U.S. Kindle Store now has more than 500,000 books, including 100 of 111 New York Times Bestsellers, more than 9,000 blogs, and more than 175 top U.S. and International newspapers and magazines, including: The New York Times, Le Monde, USA Today, The Times (U.K.), The Economist, Fortune, Newsweek, and Time. |
| Kindle, the #1 bestselling product on Amazon, is available for immediate shipment for $259 and comes with 3G wireless with no annual contract or monthly fees. Kindle weighs only 10.2 ounces and reads like real paper without glare even in bright sunlight. |
Financial Guidance
The following forward-looking statements reflect Amazon.coms expectations as of April 22, 2010. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.
Second Quarter 2010 Guidance
| Net sales are expected to be between $6.1 billion and $6.7 billion, or to grow between 31% and 44% compared with second quarter 2009. |
| Operating income is expected to be between $220 million and $320 million, or to grow between 39% and 102% compared with second quarter 2009. The second quarter 2009 results include the impact of our settlement with Toysrus.com LLC for $51 million, substantially all of which was expensed during the quarter. |
| This guidance includes approximately $130 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates. |
A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Companys financial and operating results.
These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests
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in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, government regulation and taxation, payments and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.coms financial results is included in Amazon.coms filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.
About Amazon.com
Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earths Biggest Selection. Amazon.com, Inc. seeks to be Earths most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazons developer customers with access to in-the-cloud infrastructure services based on Amazons own back-end technology platform, which developers can use to enable virtually any type of business. Kindle and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.
Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.amazon.cn. As used herein, Amazon.com, we, our and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.
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AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended March 31, |
Twelve Months Ended March 31, |
|||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
$ | 3,444 | $ | 2,769 | $ | 1,701 | $ | 1,496 | ||||||||
OPERATING ACTIVITIES: |
||||||||||||||||
Net income |
299 | 177 | 1,024 | 679 | ||||||||||||
Adjustments to reconcile net income to net cash from operating activities: |
||||||||||||||||
Depreciation of fixed assets, including internal-use software and website development, and other amortization |
119 | 87 | 411 | 309 | ||||||||||||
Stock-based compensation |
87 | 67 | 360 | 288 | ||||||||||||
Other operating expense (income), net |
26 | 11 | 118 | (19 | ) | |||||||||||
Losses (gains) on sales of marketable securities, net |
| (2 | ) | (2 | ) | (1 | ) | |||||||||
Other expense (income), net |
(6 | ) | 2 | (23 | ) | (30 | ) | |||||||||
Deferred income taxes |
(20 | ) | | 63 | 14 | |||||||||||
Excess tax benefits from stock-based compensation |
(86 | ) | (49 | ) | (141 | ) | (145 | ) | ||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Inventories |
321 | 107 | (317 | ) | (273 | ) | ||||||||||
Accounts receivable, net and other |
454 | 167 | (195 | ) | (190 | ) | ||||||||||
Accounts payable |
(1,892 | ) | (1,129 | ) | 1,096 | 686 | ||||||||||
Accrued expenses and other |
(361 | ) | (122 | ) | 60 | 249 | ||||||||||
Additions to unearned revenue |
188 | 206 | 1,036 | 576 | ||||||||||||
Amortization of previously unearned revenue |
(227 | ) | (107 | ) | (710 | ) | (386 | ) | ||||||||
Net cash provided by (used in) operating activities |
(1,098 | ) | (585 | ) | 2,780 | 1,757 | ||||||||||
INVESTING ACTIVITIES: |
||||||||||||||||
Purchases of fixed assets, including internal-use software and website development |
(140 | ) | (55 | ) | (458 | ) | (326 | ) | ||||||||
Acquisitions, net of cash acquired, and other |
(19 | ) | (15 | ) | (43 | ) | (155 | ) | ||||||||
Sales and maturities of marketable securities and other investments |
872 | 314 | 2,524 | 1,348 | ||||||||||||
Purchases of marketable securities and other investments |
(1,255 | ) | (391 | ) | (4,755 | ) | (1,686 | ) | ||||||||
Net cash provided by (used in) investing activities |
(542 | ) | (147 | ) | (2,732 | ) | (819 | ) | ||||||||
FINANCING ACTIVITIES: |
||||||||||||||||
Excess tax benefits from stock-based compensation |
86 | 49 | 141 | 145 | ||||||||||||
Common stock repurchased |
| | | (100 | ) | |||||||||||
Proceeds from long-term debt and other |
62 | 3 | 124 | 48 | ||||||||||||
Repayments of long-term debt and capital lease obligations |
(61 | ) | (343 | ) | (168 | ) | (673 | ) | ||||||||
Net cash provided by (used in) financing activities |
87 | (291 | ) | 97 | (580 | ) | ||||||||||
Foreign-currency effect on cash and cash equivalents |
(47 | ) | (45 | ) | (2 | ) | (153 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents |
(1,600 | ) | (1,068 | ) | 143 | 205 | ||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ | 1,844 | $ | 1,701 | $ | 1,844 | $ | 1,701 | ||||||||
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AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended March 31, |
||||||||
2010 | 2009 | |||||||
Net sales |
$ | 7,131 | $ | 4,889 | ||||
Operating expenses (1): |
||||||||
Cost of sales |
5,501 | 3,741 | ||||||
Fulfillment |
546 | 422 | ||||||
Marketing |
201 | 128 | ||||||
Technology and content |
366 | 275 | ||||||
General and administrative |
97 | 68 | ||||||
Other operating expense (income), net |
26 | 11 | ||||||
Total operating expenses |
6,737 | 4,645 | ||||||
Income from operations |
394 | 244 | ||||||
Interest income |
11 | 12 | ||||||
Interest expense |
(7 | ) | (12 | ) | ||||
Other income (expense), net |
3 | 4 | ||||||
Total non-operating income (expense) |
7 | 4 | ||||||
Income before income taxes |
401 | 248 | ||||||
Provision for income taxes |
(100 | ) | (69 | ) | ||||
Equity-method investment activity, net of tax |
(2 | ) | (2 | ) | ||||
Net income |
$ | 299 | $ | 177 | ||||
Basic earnings per share |
$ | 0.67 | $ | 0.41 | ||||
Diluted earnings per share |
$ | 0.66 | $ | 0.41 | ||||
Weighted average shares used in computation of earnings per share: |
||||||||
Basic |
445 | 429 | ||||||
Diluted |
454 | 437 | ||||||
(1) Includes stock-based compensation as follows: |
||||||||
Fulfillment |
$ | 18 | $ | 15 | ||||
Marketing |
5 | 4 | ||||||
Technology and content |
47 | 36 | ||||||
General and administrative |
17 | 12 |
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AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended March 31, |
||||||||
2010 | 2009 | |||||||
North America |
||||||||
Net sales |
$ | 3,780 | $ | 2,578 | ||||
Operating expenses: |
||||||||
Cost of sales |
2,761 | 1,884 | ||||||
Direct segment operating expenses (1) |
746 | 544 | ||||||
Segment operating income |
$ | 273 | $ | 150 | ||||
International |
||||||||
Net sales |
$ | 3,351 | $ | 2,311 | ||||
Operating expenses: |
||||||||
Cost of sales |
2,740 | 1,857 | ||||||
Direct segment operating expenses (1) |
377 | 282 | ||||||
Segment operating income |
$ | 234 | $ | 172 | ||||
Consolidated |
||||||||
Net sales |
$ | 7,131 | $ | 4,889 | ||||
Operating expenses: |
||||||||
Cost of sales |
5,501 | 3,741 | ||||||
Direct segment operating expenses |
1,123 | 826 | ||||||
Segment operating income |
507 | 322 | ||||||
Stock-based compensation |
(87 | ) | (67 | ) | ||||
Other operating income (expense), net |
(26 | ) | (11 | ) | ||||
Income from operations |
394 | 244 | ||||||
Total non-operating income (expense), net |
7 | 4 | ||||||
Provision for income taxes |
(100 | ) | (69 | ) | ||||
Equity-method investment activity, net of tax |
(2 | ) | (2 | ) | ||||
Net income |
$ | 299 | $ | 177 | ||||
Segment Highlights: |
||||||||
Y/Y net sales growth: |
||||||||
North America |
47 | % | 21 | % | ||||
International |
45 | 15 | ||||||
Consolidated |
46 | 18 | ||||||
Y/Y segment operating income growth: |
||||||||
North America |
81 | % | 15 | % | ||||
International |
37 | 34 | ||||||
Consolidated |
58 | 25 | ||||||
Net sales mix: |
||||||||
North America |
53 | % | 53 | % | ||||
International |
47 | 47 |
(1) | A significant majority of our costs for Technology and content are incurred in the United States and most of these costs are allocated to our North America segment. |
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AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
Three Months Ended March 31, |
||||||||
2010 | 2009 | |||||||
North America |
||||||||
Media |
$ | 1,597 | $ | 1,305 | ||||
Electronics and other general merchandise |
2,024 | 1,172 | ||||||
Other |
159 | 101 | ||||||
Total North America |
3,780 | 2,578 | ||||||
International |
||||||||
Media |
1,833 | 1,418 | ||||||
Electronics and other general merchandise |
1,489 | 874 | ||||||
Other |
29 | 19 | ||||||
Total International |
3,351 | 2,311 | ||||||
Consolidated |
||||||||
Media |
3,430 | 2,723 | ||||||
Electronics and other general merchandise |
3,513 | 2,046 | ||||||
Other |
188 | 120 | ||||||
Total Consolidated |
$ | 7,131 | $ | 4,889 | ||||
Y/Y Net Sales Growth: |
||||||||
North America: |
||||||||
Media |
22 | % | 8 | % | ||||
Electronics and other general merchandise |
73 | 42 | ||||||
Other |
57 | 7 | ||||||
Total North America |
47 | 21 | ||||||
International: |
||||||||
Media |
29 | % | 6 | % | ||||
Electronics and other general merchandise |
70 | 34 | ||||||
Other |
57 | 14 | ||||||
Total International |
45 | 15 | ||||||
Consolidated: |
||||||||
Media |
26 | % | 7 | % | ||||
Electronics and other general merchandise |
72 | 38 | ||||||
Other |
57 | 8 | ||||||
Total Consolidated |
46 | 18 | ||||||
Y/Y Net Sales Growth Excluding Effect of Exchange Rates: |
||||||||
International: |
||||||||
Media |
23 | % | 17 | % | ||||
Electronics and other general merchandise |
61 | 50 | ||||||
Other |
47 | 40 | ||||||
Total International |
37 | 28 | ||||||
Consolidated: |
||||||||
Media |
22 | % | 13 | % | ||||
Electronics and other general merchandise |
68 | 46 | ||||||
Other |
56 | 11 | ||||||
Total Consolidated |
42 | 25 | ||||||
Consolidated Net Sales Mix: |
||||||||
Media |
48 | % | 56 | % | ||||
Electronics and other general merchandise |
49 | 42 | ||||||
Other |
3 | 2 |
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AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
March 31, 2010 |
December 31, 2009 |
|||||||
(unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 1,844 | $ | 3,444 | ||||
Marketable securities |
3,219 | 2,922 | ||||||
Inventories |
1,820 | 2,171 | ||||||
Accounts receivable, net and other |
815 | 988 | ||||||
Deferred tax assets |
266 | 272 | ||||||
Total current assets |
7,964 | 9,797 | ||||||
Fixed assets, net |
1,436 | 1,290 | ||||||
Deferred tax assets |
16 | 18 | ||||||
Goodwill |
1,234 | 1,234 | ||||||
Other assets |
1,392 | 1,474 | ||||||
Total assets |
$ | 12,042 | $ | 13,813 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 3,619 | $ | 5,605 | ||||
Accrued expenses and other |
1,574 | 1,759 | ||||||
Total current liabilities |
5,193 | 7,364 | ||||||
Long-term debt |
131 | 109 | ||||||
Other long-term liabilities |
1,100 | 1,083 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Preferred stock, $0.01 par value: |
||||||||
Authorized shares 500 |
| | ||||||
Issued and outstanding shares none |
| | ||||||
Common stock, $0.01 par value: |
||||||||
Authorized shares 5,000 |
| | ||||||
Issued shares 462 and 461 |
| | ||||||
Outstanding shares 446 and 444 |
5 | 5 | ||||||
Treasury stock, at cost |
(600 | ) | (600 | ) | ||||
Additional paid-in capital |
5,887 | 5,736 | ||||||
Accumulated other comprehensive loss |
(145 | ) | (56 | ) | ||||
Retained earnings |
471 | 172 | ||||||
Total stockholders equity |
5,618 | 5,257 | ||||||
Total liabilities and stockholders equity |
$ | 12,042 | $ | 13,813 | ||||
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AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Y/Y % Change |
||||||||||||||||||
Cash Flows and Shares |
|||||||||||||||||||||||
Operating cash flow trailing twelve months (TTM) |
$ | 1,757 | $ | 1,878 | $ | 2,253 | $ | 3,293 | $ | 2,780 | 58 | % | |||||||||||
Purchases of fixed assets (incl. internal-use software & website development) TTM |
$ | 326 | $ | 336 | $ | 337 | $ | 373 | $ | 458 | 40 | % | |||||||||||
Free cash flow (operating cash flow less purchases of fixed assets) TTM |
$ | 1,431 | $ | 1,542 | $ | 1,916 | $ | 2,920 | $ | 2,322 | 62 | % | |||||||||||
Free cash flow TTM Y/Y growth |
82 | % | 89 | % | 98 | % | 114 | % | 62 | % | N/A | ||||||||||||
Invested capital (1) |
$ | 3,501 | $ | 3,666 | $ | 3,847 | $ | 4,449 | $ | 5,104 | N/A | ||||||||||||
Return on invested capital (2) |
41 | % | 42 | % | 50 | % | 66 | % | 45 | % | N/A | ||||||||||||
Common shares and stock-based awards outstanding |
447 | 451 | 451 | 461 | 463 | 4 | % | ||||||||||||||||
Common shares outstanding |
429 | 432 | 433 | 444 | 446 | 4 | % | ||||||||||||||||
Stock-based awards outstanding |
17 | 19 | 18 | 17 | 18 | 4 | % | ||||||||||||||||
Stock-based awards outstanding % of common shares outstanding |
4.0 | % | 4.4 | % | 4.2 | % | 3.8 | % | 4.0 | % | N/A | ||||||||||||
Results of Operations |
|||||||||||||||||||||||
Worldwide (WW) net sales |
$ | 4,889 | $ | 4,651 | $ | 5,449 | $ | 9,519 | $ | 7,131 | 46 | % | |||||||||||
WW net sales Y/Y growth, excluding F/X |
25 | % | 20 | % | 29 | % | 37 | % | 42 | % | N/A | ||||||||||||
WW net sales TTM |
$ | 19,921 | $ | 20,509 | $ | 21,693 | $ | 24,509 | $ | 26,750 | 34 | % | |||||||||||
WW net sales TTM Y/Y growth, excluding F/X |
27 | % | 24 | % | 24 | % | 29 | % | 33 | % | N/A | ||||||||||||
Operating income (3) |
$ | 244 | $ | 159 | $ | 251 | $ | 476 | $ | 394 | 62 | % | |||||||||||
Operating income Y/Y growth (decrease), excluding F/X |
39 | % | (13 | )% | 69 | % | 63 | % | 56 | % | N/A | ||||||||||||
Operating margin % of WW net sales |
5.0 | % | 3.4 | % | 4.6 | % | 5.0 | % | 5.5 | % | N/A | ||||||||||||
Operating income TTM (3) (4) |
$ | 887 | $ | 829 | $ | 925 | $ | 1,129 | $ | 1,279 | 44 | % | |||||||||||
Operating income TTM Y/Y growth, excluding F/X |
30 | % | 13 | % | 22 | % | 39 | % | 44 | % | N/A | ||||||||||||
Operating margin TTM % of WW net sales |
4.5 | % | 4.0 | % | 4.3 | % | 4.6 | % | 4.8 | % | N/A | ||||||||||||
Net income (3) |
$ | 177 | $ | 142 | $ | 199 | $ | 384 | $ | 299 | 68 | % | |||||||||||
Net income per diluted share |
$ | 0.41 | $ | 0.32 | $ | 0.45 | $ | 0.85 | $ | 0.66 | 62 | % | |||||||||||
Net income TTM (3) (4) |
$ | 679 | $ | 663 | $ | 743 | $ | 902 | $ | 1,024 | 51 | % | |||||||||||
Net income per diluted share TTM |
$ | 1.56 | $ | 1.52 | $ | 1.69 | $ | 2.04 | $ | 2.30 | 47 | % | |||||||||||
Segments |
|||||||||||||||||||||||
North America Segment: |
|||||||||||||||||||||||
Net sales |
$ | 2,578 | $ | 2,451 | $ | 2,843 | $ | 4,956 | $ | 3,780 | 47 | % | |||||||||||
Net sales Y/Y growth, excluding F/X |
22 | % | 13 | % | 24 | % | 36 | % | 46 | % | N/A | ||||||||||||
Net sales TTM |
$ | 10,681 | $ | 10,963 | $ | 11,503 | $ | 12,828 | $ | 14,030 | 31 | % | |||||||||||
Operating income |
$ | 150 | $ | 125 | $ | 156 | $ | 278 | $ | 273 | 81 | % | |||||||||||
Operating margin % of North America net sales |
5.8 | % | 5.1 | % | 5.5 | % | 5.6 | % | 7.2 | % | N/A | ||||||||||||
Operating income TTM |
$ | 464 | $ | 494 | $ | 562 | $ | 709 | $ | 832 | 79 | % | |||||||||||
Operating income TTM Y/Y growth, excluding F/X |
5 | % | 8 | % | 20 | % | 59 | % | 79 | % | N/A | ||||||||||||
Operating margin TTM % of North America net sales |
4.4 | % | 4.5 | % | 4.9 | % | 5.5 | % | 5.9 | % | N/A | ||||||||||||
International Segment: |
|||||||||||||||||||||||
Net sales |
$ | 2,311 | $ | 2,200 | $ | 2,606 | $ | 4,563 | $ | 3,351 | 45 | % | |||||||||||
Net sales Y/Y growth, excluding F/X |
28 | % | 28 | % | 35 | % | 37 | % | 37 | % | N/A | ||||||||||||
Net sales TTM |
$ | 9,240 | $ | 9,546 | $ | 10,190 | $ | 11,681 | $ | 12,720 | 38 | % | |||||||||||
Net sales TTM % of WW net sales |
46 | % | 47 | % | 47 | % | 48 | % | 48 | % | N/A | ||||||||||||
Operating income |
$ | 172 | $ | 179 | $ | 194 | $ | 319 | $ | 234 | 37 | % | |||||||||||
Operating margin % of International net sales |
7.4 | % | 8.1 | % | 7.4 | % | 7.0 | % | 7.0 | % | N/A | ||||||||||||
Operating income TTM |
$ | 692 | $ | 722 | $ | 773 | $ | 863 | $ | 925 | 34 | % | |||||||||||
Operating income TTM Y/Y growth, excluding F/X |
52 | % | 49 | % | 49 | % | 41 | % | 33 | % | N/A | ||||||||||||
Operating margin TTM % of International net sales |
7.5 | % | 7.6 | % | 7.6 | % | 7.4 | % | 7.3 | % | N/A | ||||||||||||
Consolidated Segments: |
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Operating expenses (5) |
$ | 4,567 | $ | 4,347 | $ | 5,099 | $ | 8,922 | $ | 6,624 | 45 | % | |||||||||||
Operating expenses TTM (5) |
$ | 18,765 | $ | 19,293 | $ | 20,358 | $ | 22,937 | $ | 24,993 | 33 | % | |||||||||||
Operating income |
$ | 322 | $ | 304 | $ | 350 | $ | 597 | $ | 507 | 58 | % | |||||||||||
Operating margin % of consolidated sales |
6.6 | % | 6.5 | % | 6.4 | % | 6.3 | % | 7.1 | % | N/A | ||||||||||||
Operating income TTM |
$ | 1,156 | $ | 1,216 | $ | 1,335 | $ | 1,572 | $ | 1,757 | 52 | % | |||||||||||
Operating income TTM Y/Y growth, excluding F/X |
28 | % | 29 | % | 35 | % | 48 | % | 51 | % | N/A | ||||||||||||
Operating margin TTM % of consolidated net sales |
5.8 | % | 5.9 | % | 6.2 | % | 6.4 | % | 6.6 | % | N/A |
9
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Q1 2009 | Q2 2009 | Q3 2009 | Q4 2009 | Q1 2010 | Y/Y % Change |
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Supplemental |
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Supplemental North America Segment Net Sales: |
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Media |
$ | 1,305 | $ | 1,148 | $ | 1,412 | $ | 2,099 | $ | 1,597 | 22 | % | |||||||||||
Media Y/Y growth, excluding F/X |
9 | % | 0 | % | 14 | % | 19 | % | 22 | % | N/A | ||||||||||||
Media TTM |
$ | 5,450 | $ | 5,449 | $ | 5,616 | $ | 5,964 | $ | 6,255 | 15 | % | |||||||||||
Electronics and other general merchandise |
$ | 1,172 | $ | 1,187 | $ | 1,293 | $ | 2,662 | $ | 2,024 | 73 | % | |||||||||||
Electronics and other general merchandise Y/Y growth, excluding F/X |
42 | % | 29 | % | 36 | % | 54 | % | 73 | % | N/A | ||||||||||||
Electronics and other general merchandise TTM |
$ | 4,776 | $ | 5,043 | $ | 5,385 | $ | 6,314 | $ | 7,166 | 50 | % | |||||||||||
Electronics and other general merchandise TTM % of North America net sales |
45 | % | 46 | % | 47 | % | 49 | % | 51 | % | N/A | ||||||||||||
Other |
$ | 101 | $ | 116 | $ | 138 | $ | 195 | $ | 159 | 57 | % | |||||||||||
Other TTM |
$ | 455 | $ | 471 | $ | 502 | $ | 550 | $ | 608 | 34 | % | |||||||||||
Supplemental International Segment Net Sales: |
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Media |
$ | 1,418 | $ | 1,294 | $ | 1,517 | $ | 2,580 | $ | 1,833 | 29 | % | |||||||||||
Media Y/Y growth, excluding F/X |
17 | % | 12 | % | 22 | % | 26 | % | 23 | % | N/A | ||||||||||||
Media TTM |
$ | 5,814 | $ | 5,849 | $ | 6,118 | $ | 6,810 | $ | 7,225 | 24 | % | |||||||||||
Electronics and other general merchandise |
$ | 874 | $ | 882 | $ | 1,064 | $ | 1,947 | $ | 1,489 | 70 | % | |||||||||||
Electronics and other general merchandise Y/Y growth, excluding F/X |
50 | % | 60 | % | 58 | % | 56 | % | 61 | % | N/A | ||||||||||||
Electronics and other general merchandise TTM |
$ | 3,330 | $ | 3,603 | $ | 3,977 | $ | 4,768 | $ | 5,382 | 62 | % | |||||||||||
Electronics and other general merchandise TTM % of International net sales |
36 | % | 38 | % | 39 | % | 41 | % | 42 | % | N/A | ||||||||||||
Other |
$ | 19 | $ | 24 | $ | 25 | $ | 36 | $ | 29 | 57 | % | |||||||||||
Other TTM |
$ | 96 | $ | 94 | $ | 95 | $ | 103 | $ | 114 | 18 | % | |||||||||||
Supplemental Worldwide Net Sales: |
|||||||||||||||||||||||
Media |
$ | 2,723 | $ | 2,442 | $ | 2,929 | $ | 4,679 | $ | 3,430 | 26 | % | |||||||||||
Media Y/Y growth, excluding F/X |
13 | % | 7 | % | 18 | % | 23 | % | 22 | % | N/A | ||||||||||||
Media TTM |
$ | 11,264 | $ | 11,298 | $ | 11,734 | $ | 12,774 | $ | 13,480 | 20 | % | |||||||||||
Electronics and other general merchandise |
$ | 2,046 | $ | 2,069 | $ | 2,357 | $ | 4,609 | $ | 3,513 | 72 | % | |||||||||||
Electronics and other general merchandise Y/Y growth, excluding F/X |
46 | % | 41 | % | 45 | % | 54 | % | 68 | % | N/A | ||||||||||||
Electronics and other general merchandise TTM |
$ | 8,106 | $ | 8,646 | $ | 9,362 | $ | 11,082 | $ | 12,548 | 55 | % | |||||||||||
Electronics and other general merchandise TTM % of WW net sales |
41 | % | 42 | % | 43 | % | 45 | % | 47 | % | N/A | ||||||||||||
Other |
$ | 120 | $ | 140 | $ | 163 | $ | 231 | $ | 188 | 57 | % | |||||||||||
Other TTM |
$ | 551 | $ | 565 | $ | 597 | $ | 653 | $ | 722 | 31 | % | |||||||||||
Balance Sheet |
|||||||||||||||||||||||
Cash and marketable securities (6) |
$ | 3,025 | $ | 3,504 | $ | 4,304 | $ | 6,672 | $ | 5,381 | 78 | % | |||||||||||
Inventory, net ending |
$ | 1,266 | $ | 1,325 | $ | 1,617 | $ | 2,171 | $ | 1,820 | 44 | % | |||||||||||
Inventory turnover, average TTM |
12.5 | 12.4 | 12.1 | 12.2 | 12.6 | 1 | % | ||||||||||||||||
Fixed assets, net |
$ | 889 | $ | 981 | $ | 1,086 | $ | 1,290 | $ | 1,436 | 61 | % | |||||||||||
Accounts payable ending |
$ | 2,380 | $ | 2,508 | $ | 3,354 | $ | 5,605 | $ | 3,619 | 52 | % | |||||||||||
Accounts payable days ending |
57 | 65 | 72 | 68 | 59 | 3 | % | ||||||||||||||||
Other |
|||||||||||||||||||||||
WW shipping revenue |
$ | 190 | $ | 185 | $ | 208 | $ | 341 | $ | 248 | 30 | % | |||||||||||
WW shipping costs |
$ | 358 | $ | 332 | $ | 388 | $ | 696 | $ | 518 | 45 | % | |||||||||||
WW net shipping costs |
$ | 168 | $ | 147 | $ | 180 | $ | 355 | $ | 270 | 61 | % | |||||||||||
WW net shipping costs % of WW net sales |
3.4 | % | 3.1 | % | 3.3 | % | 3.7 | % | 3.8 | % | N/A | ||||||||||||
Employees (full-time and part-time; excludes contractors & temporary personnel) |
20,600 | 21,000 | 21,700 | 24,300 | 26,100 | 27 | % |
(1) | Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends. |
(2) | TTM Free Cash Flow divided by Invested Capital. |
(3) | Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million. |
(4) | Q2 2008 includes a $53 million non-cash gain recognized on the sale of our European DVD rental assets. |
(5) | Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation. |
(6) | Includes restricted cash, classified within Other Assets on our consolidated balance sheet, of: $295 million Q1 2009, $292 million Q2 2009, $303 million Q3 2009, $306 million in Q4 2009 and $318 million in Q1 2010. |
10
Amazon.com, Inc.
Certain Definitions
Customer Accounts
| References to customers mean customer accounts, which are unique e-mail addresses, established either when a customers initial order is shipped or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period. |
Seller Accounts
| References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period. |
Registered Developers
| References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key. |
Units
| References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon.com domains worldwide such as www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca and www.amazon.cn, as well as Amazon.com-owned items sold through non-Amazon.com domains. Units sold do not include units associated with certain of our acquisitions or Amazon.com gift certificates. |
Contacts:
|
||||
Amazon.com Investor Relations | Amazon.com Public Relations | |||
Rob Eldridge, 206/266-2171 | Mary Osako, 206/266-7180 | |||
www.amazon.com/ir |
11