Sign in or join
or
Join us
Didn't receive confirmation?
Thanks for registering. Please click on the confirm link in the email we just sent you.
Continue
Reset password
Resend confirmation
Post as Guest
+
Be part of the collaborative process!

Add a note by highlighting text or Replying to an existing note.

Okay
+
Be part of the collaborative process!

Add a note by highlighting text or Replying to an existing note.

Okay
EX-99.1

Exhibit 99.1

 

LOGO

AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 22% TO $16.07 BILLION

SEATTLE—(BUSINESS WIRE)—April 25, 2013—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2013.

Operating cash flow increased 39% to $4.25 billion for the trailing twelve months, compared with $3.05 billion for the trailing twelve months ended March 31, 2012. Free cash flow decreased 85% to $177 million for the trailing twelve months, compared with $1.15 billion for the trailing twelve months ended March 31, 2012. Free cash flow for the trailing twelve months ended March 31, 2013 includes fourth quarter 2012 cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.

Common shares outstanding plus shares underlying stock-based awards totaled 471 million on March 31, 2013, compared with 464 million one year ago.

Net sales increased 22% to $16.07 billion in the first quarter, compared with $13.18 billion in first quarter 2012. Excluding the $302 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 24% compared with first quarter 2012.

Operating income decreased 6% to $181 million in the first quarter, compared with $192 million in first quarter 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $12 million.

Net income decreased 37% to $82 million in the first quarter, or $0.18 per diluted share, compared with $130 million, or $0.28 per diluted share, in first quarter 2012.

“Amazon Studios is working on a new way to greenlight TV shows. The pilots are out in the open where everyone can have a say,” said Jeff Bezos, founder and CEO of Amazon.com. “I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don’t matter. Our customers will determine what goes into full-season production. We hope Amazon Originals can become yet another way for us to create value for Prime members.”

Highlights

 

  •  

Amazon.com expanded selection for Prime Instant Video, announcing new licensing agreements with A+E Networks, CBS Corporation, FX, PBS Distribution and Scripps Networks Interactive, bringing exclusive access to popular television series such as Downton Abbey, Justified and Under the Dome as well as shows from HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel. Prime Instant Video now includes more than 38,000 movies and TV episodes that are available for Prime members to watch at no additional charge.

 

  •  

Amazon Studios, the original film and series production arm of Amazon.com, debuted 14 original comedy and kids pilots. The pilots, which feature stars such as John Goodman, Jeffrey Tambor and Bebe Neuwirth, are available exclusively at www.amazonoriginals.com and on the Amazon Instant Video app for Kindle Fire HD, Kindle Fire, iPad, iPhone, iPod touch, Roku, Xbox 360, PlayStation 3, Wii and Wii U, as well as hundreds of other connected devices. Viewer feedback will help determine which pilots Amazon Studios will produce into full series.

 

  •  

Amazon expanded the popular Kindle Fire feature “X-Ray for Movies” to TV shows, bringing the power of IMDb directly to the most popular TV shows on Kindle Fire. With a single tap viewers can discover the names of actors and what they’ve been in, without even leaving the TV show.


  •  

Kindle Owners’ Lending Library has grown to over 300,000 books available to borrow for free as frequently as a book a month, including many titles exclusive to Amazon.

 

  •  

Amazon announced the launch of the Amazon MP3 store optimized specifically for Safari browser. For the first time ever, iPhone and iPod touch users can discover and buy digital music from Amazon’s 22 million song catalog. Amazon also announced its Cloud Player app for iPad and iPad mini, enabling customers to play or download music stored in Cloud Player to their device, play music that is already stored on their device, and manage or create playlists.

 

  •  

Amazon announced it has extended its popular AutoRip services to vinyl records. AutoRip provides customers with free MP3 versions of CDs and vinyl records they purchase from Amazon. Additionally, customers who have purchased AutoRip CDs or vinyl records at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries – also automatically for free.

 

  •  

Amazon announced the launch of Kindle Fire HD 8.9” — the large-screen version of its best-selling tablet —for the U.K., Germany, France, Italy, Spain and Japan. With the expansion of Kindle Fire HD 8.9” to Europe and Japan, Amazon also announced a lower price on Kindle Fire HD 8.9” in the U.S., with the Wi-Fi version starting at $269 and the 4G version starting at $399.

 

  •  

Amazon Publishing, the publishing arm of Amazon.com, announced that it will start paying authors their royalties monthly, 60 days in arrears — allowing authors to receive payment more frequently than the twice-a-year industry standard.

 

  •  

Amazon acquired Goodreads, a leading site for readers and book recommendations that helps people find and share books they love. Goodreads members can discover new books by seeing what their friends are reading or by using the Goodreads Book Recommendation Engine; share ratings and recommendations; track what they have read, and list what they want to read.

 

  •  

Amazon Web Services (AWS) announced the launch of Amazon Redshift, a fast and powerful, fully managed, petabyte-scale data warehouse service in the cloud for a fraction of the cost of a traditional data warehouse.

 

  •  

AWS launched AWS OpsWorks, an application management solution for the complete lifecycle of complex applications, including resource provisioning, configuration management, deployment, monitoring, and access control.

 

  •  

AWS announced Amazon Elastic Transcoder, a highly scalable service for transcoding video files between different digital media formats. Amazon Elastic Transcoder manages all aspects of the transcoding process transparently and automatically, providing scalability and performance by leveraging AWS services.

 

  •  

AWS announced AWS CloudHSM, a new service enabling customers to increase data security and meet compliance requirements by using dedicated Hardware Security Module (HSM) appliances within the AWS Cloud. The CloudHSM service allows customers to securely generate, store and manage cryptographic keys used for data encryption in a way that keys are accessible only by the customer.

 

  •  

AWS has lowered prices 31 times since it launched in 2006, including 7 price reductions so far in 2013.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of April 25, 2013. 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 2013 Guidance

 

  •  

Net sales are expected to be between $14.5 billion and $16.2 billion, or to grow between 13% and 26% compared with second quarter 2012.

 

  •  

Operating income (loss) is expected to be between $(340) million and $10 million, compared to $107 million in the comparable prior year period.

 

  •  

This guidance includes approximately $340 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, or legal settlements 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 Company’s 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 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 and data 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.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

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 Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s 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 Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle Paperwhite is the most-advanced e-reader ever constructed with 62% more pixels and 25% increased contrast, a patented built-in front light for reading in all lighting conditions, extra-long battery life, and a thin and light design. The new latest generation Kindle, the lightest and smallest Kindle, now features new, improved fonts and faster page turns. Kindle Fire HD features a stunning custom high-definition display, exclusive Dolby audio with dual stereo speakers, high-end, laptop-grade Wi-Fi with dual-band support, dual-antennas and MIMO for faster streaming and downloads, enough storage for HD content, and the latest generation processor and graphics engine—and it is available in two display sizes—7” and 8.9”. The large-screen Kindle Fire HD is also available with 4G wireless, and comes with a groundbreaking $49.99 introductory 4G LTE data package. The all-new Kindle Fire features a 20% faster processor, 40% faster performance, twice the memory, and longer battery life.

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, www.amazon.cn, www.amazon.it, www.amazon.es and www.amazon.com.br. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.


AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

     Three Months Ended     Twelve Months Ended  
     March 31,     March 31,  
     2013     2012     2013     2012  

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

   $ 8,084      $ 5,269      $ 2,288      $ 2,641   

OPERATING ACTIVITIES:

        

Net income (loss)

     82        130        (87     561   

Adjustments to reconcile net income (loss) to net cash from operating activities:

        

Depreciation of property and equipment, including internal-use software and website development, and other amortization

     700        457        2,402        1,338   

Stock-based compensation

     229        160        901        605   

Other operating expense (income), net

     31        46        139        168   

Losses (gains) on sales of marketable securities, net

     —          (2     (7     (8

Other expense (income), net

     68        15        306        (78

Deferred income taxes

     (80     (38     (307     83   

Excess tax benefits from stock-based compensation

     —          (40     (390     (56

Changes in operating assets and liabilities:

        

Inventories

     535        747        (1,211     (1,374

Accounts receivable, net and other

     729        746        (877     (479

Accounts payable

     (4,187     (4,258     2,141        1,388   

Accrued expenses and other

     (703     (529     864        721   

Additions to unearned revenue

     684        397        2,083        1,252   

Amortization of previously unearned revenue

     (460     (269     (1,712     (1,070
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (2,372     (2,438     4,245        3,051   

INVESTING ACTIVITIES:

        

Purchases of property and equipment, including internal-use software and website development

     (670     (386     (4,068     (1,899

Acquisitions, net of cash acquired, and other

     (103     (50     (798     (615

Sales and maturities of marketable securities and other investments

     599        1,738        3,098        6,641   

Purchases of marketable securities and other investments

     (776     (852     (3,227     (5,997
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     (950     450        (4,995     (1,870

FINANCING ACTIVITIES:

        

Excess tax benefits from stock-based compensation

     —          40        390        56   

Common stock repurchased

     —          (960     —          (1,237

Proceeds from long-term debt and other

     25        68        3,319        154   

Repayments of long-term debt, capital lease, and finance lease obligations

     (182     (153     (603     (483
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (157     (1,005     3,106        (1,510

Foreign-currency effect on cash and cash equivalents

     (124     12        (163     (24
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (3,603     (2,981     2,193        (353

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 4,481      $ 2,288      $ 4,481      $ 2,288   
  

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

        

Cash paid for interest on long-term debt

   $ 13      $ 6      $ 37      $ 17   

Cash paid for income taxes (net of refunds)

     86        19        179        45   

Property and equipment acquired under capital leases

     340        149        993        721   

Property and equipment acquired under build-to-suit leases

     150        17        163        207   


AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

 

     Three Months Ended  
     March 31,  
     2013     2012  

Net product sales

   $ 13,271      $ 11,249   

Net services sales

     2,799        1,936   
  

 

 

   

 

 

 

Total net sales

     16,070        13,185   

Operating expenses (1):

    

Cost of sales

     11,801        10,027   

Fulfillment

     1,796        1,295   

Marketing

     632        480   

Technology and content

     1,383        945   

General and administrative

     246        200   

Other operating expense (income), net

     31        46   
  

 

 

   

 

 

 

Total operating expenses

     15,889        12,993   
  

 

 

   

 

 

 

Income from operations

     181        192   

Interest income

     10        12   

Interest expense

     (33     (21

Other income (expense), net

     (77     (99
  

 

 

   

 

 

 

Total non-operating income (expense)

     (100     (108
  

 

 

   

 

 

 

Income before income taxes

     81        84   

Benefit (provision) for income taxes

     18        (43

Equity-method investment activity, net of tax

     (17     89   
  

 

 

   

 

 

 

Net income

   $ 82      $ 130   
  

 

 

   

 

 

 

Basic earnings per share

   $ 0.18      $ 0.29   
  

 

 

   

 

 

 

Diluted earnings per share

   $ 0.18      $ 0.28   
  

 

 

   

 

 

 

Weighted average shares used in computation of earnings per share:

    

Basic

     455        453   
  

 

 

   

 

 

 

Diluted

     463        460   
  

 

 

   

 

 

 

 

(1)    Includes stock-based compensation as follows:

    

Fulfillment

   $ 61      $ 37   

Marketing

     16        12   

Technology and content

     120        85   

General and administrative

     32        26   


AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)

 

     Three Months Ended  
     March 31,  
     2013     2012  

Net income

   $ 82      $ 130   

Other comprehensive income (loss):

    

Foreign currency translation adjustments, net of tax of $(9) and $(38)

     (78     137   

Net change in unrealized gains on available-for-sale securities:

    

Unrealized gains (losses), net of tax of $1 and $(3)

     (2     7   

Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax effect of $0 and $1

     —          (2
  

 

 

   

 

 

 

Net unrealized gains (losses) on available-for-sale securities

     (2     5   
  

 

 

   

 

 

 

Total other comprehensive income (loss)

     (80     142   
  

 

 

   

 

 

 

Comprehensive income

   $ 2      $ 272   
  

 

 

   

 

 

 


AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

 

     Three Months Ended  
     March 31,  
     2013     2012  

North America

    

Net sales

   $ 9,391      $ 7,427   

Segment operating expenses (1)

     8,934        7,078   
  

 

 

   

 

 

 

Segment operating income

   $ 457      $ 349   
  

 

 

   

 

 

 

International

    

Net sales

   $ 6,679      $ 5,758   

Segment operating expenses (1)

     6,695        5,709   
  

 

 

   

 

 

 

Segment operating income (loss)

   $ (16   $ 49   
  

 

 

   

 

 

 

Consolidated

    

Net sales

   $ 16,070      $ 13,185   

Segment operating expenses (1)

     15,629        12,787   
  

 

 

   

 

 

 

Segment operating income

     441        398   

Stock-based compensation

     (229     (160

Other operating income (expense), net

     (31     (46
  

 

 

   

 

 

 

Income from operations

     181        192   

Total non-operating income (expense)

     (100     (108

Benefit (provision) for income taxes

     18        (43

Equity-method investment activity, net of tax

     (17     89   
  

 

 

   

 

 

 

Net income

   $ 82      $ 130   
  

 

 

   

 

 

 

Segment Highlights:

    

Y/Y net sales growth:

    

North America

     26     36

International

     16        31   

Consolidated

     22        34   

Y/Y segment operating income growth (decline):

    

North America

     31     20

International

     (133     (72

Consolidated

     11        (15

Net sales mix:

    

North America

     58     56

International

     42        44   
  

 

 

   

 

 

 
     100     100
  

 

 

   

 

 

 

 

(1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments.


AMAZON.COM, INC.

Supplemental Net Sales Information

(in millions)

(unaudited)

 

     Three Months Ended  
     March 31,  
     2013     2012  

North America

    

Media

   $ 2,513      $ 2,197   

Electronics and other general merchandise

     6,128        4,772   

Other (1)

     750        458   
  

 

 

   

 

 

 

Total North America

   $ 9,391      $ 7,427   
  

 

 

   

 

 

 

International

    

Media

   $ 2,545      $ 2,513   

Electronics and other general merchandise

     4,086        3,203   

Other (1)

     48        42   
  

 

 

   

 

 

 

Total International

   $ 6,679      $ 5,758   
  

 

 

   

 

 

 

Consolidated

    

Media

   $ 5,058      $ 4,710   

Electronics and other general merchandise

     10,214        7,975   

Other (1)

     798        500   
  

 

 

   

 

 

 

Total consolidated

   $ 16,070      $ 13,185   
  

 

 

   

 

 

 

Y/Y Net Sales Growth:

    

North America:

    

Media

     14     17

Electronics and other general merchandise

     28        44   

Other

     64        66   

Total North America

     26        36   

International:

    

Media

     1     21

Electronics and other general merchandise

     28        40   

Other

     14        24   

Total International

     16        31   

Consolidated:

    

Media

     7     19

Electronics and other general merchandise

     28        43   

Other

     59        61   

Total consolidated

     22        34   

Y/Y Net Sales Growth Excluding Effect of Exchange Rates:

    

International:

    

Media

     7     22

Electronics and other general merchandise

     32        42   

Other

     18        26   

Total International

     21        32   

Consolidated:

    

Media

     10     19

Electronics and other general merchandise

     30        43   

Other

     60        61   

Total consolidated

     24        34   

Consolidated Net Sales Mix:

    

Media

     31     36

Electronics and other general merchandise

     64        60   

Other

     5        4   
  

 

 

   

 

 

 
     100     100
  

 

 

   

 

 

 

 

(1) Includes sales from non-retail activities, such as AWS in the North America segment, advertising services, and our co-branded credit card agreements in both segments.


AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

 

     March 31,
2013
    December 31,
2012
 
     (unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 4,481      $ 8,084   

Marketable securities

     3,414        3,364   

Inventories

     5,395        6,031   

Accounts receivable, net and other

     2,516        3,364   

Deferred tax assets

     507        453   
  

 

 

   

 

 

 

Total current assets

     16,313        21,296   

Property and equipment, net

     7,674        7,060   

Deferred tax assets

     123        123   

Goodwill

     2,535        2,552   

Other assets

     1,732        1,524   
  

 

 

   

 

 

 

Total assets

   $ 28,377      $ 32,555   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 8,916      $ 13,318   

Accrued expenses and other

     5,416        5,684   
  

 

 

   

 

 

 

Total current liabilities

     14,332        19,002   

Long-term debt

     3,040        3,084   

Other long-term liabilities

     2,573        2,277   

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 — 479 and 478

    

Outstanding shares — 455 and 454

     5        5   

Treasury stock, at cost

     (1,837     (1,837

Additional paid-in capital

     8,585        8,347   

Accumulated other comprehensive loss

     (319     (239

Retained earnings

     1,998        1,916   
  

 

 

   

 

 

 

Total stockholders’ equity

     8,432        8,192   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 28,377      $ 32,555   
  

 

 

   

 

 

 


AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

 

     Q1 2012     Q2 2012     Q3 2012     Q4 2012     Q1 2013     Y/Y %
Change
 

Cash Flows and Shares

            

Operating cash flow — trailing twelve months (TTM)

   $ 3,051      $ 3,222      $ 3,368      $ 4,180      $ 4,245        39

Purchases of property and equipment (incl. internal-use software & website development) — TTM

   $ 1,899      $ 2,123      $ 2,310      $ 3,785      $ 4,068        114

Free cash flow (operating cash flow less purchases of property and equipment) — TTM

   $ 1,152      $ 1,099      $ 1,058      $ 395      $ 177        (85 %) 

Free cash flow — TTM Y/Y growth (decline)

     (39 %)      (40 %)      (31 %)      (81 %)      (85 %)      N/A   

Invested capital (1)

   $ 10,006      $ 10,250      $ 10,392      $ 11,181      $ 12,019        20

Return on invested capital (2)

     12     11     10     4     1     N/A   

Common shares and stock-based awards outstanding

     464        468        469        470        471        2

Common shares outstanding

     450        452        453        454        455        1

Stock-based awards outstanding

     13        16        16        16        16        17

Stock-based awards outstanding — % of common shares outstanding

     2.9     3.6     3.6     3.5     3.4     N/A   

Results of Operations

            

Worldwide (WW) net sales

   $ 13,185      $ 12,834      $ 13,806      $ 21,268      $ 16,070        22

WW net sales — Y/Y growth, excluding F/X

     34     32     30     23     24     N/A   

WW net sales — TTM

   $ 51,404      $ 54,325      $ 57,256      $ 61,093      $ 63,978        24

WW net sales — TTM Y/Y growth, excluding F/X

     37     35     33     29     27     N/A   

Operating income (loss)

   $ 192      $ 107      $ (28   $ 405      $ 181        (6 %) 

Operating income — Y/Y growth (decline), excluding F/X

     (38 %)      (34 %)      (137 %)      59     1     N/A   

Operating margin — % of WW net sales

     1.5     0.8     (0.2 %)      1.9     1.1     N/A   

Operating income — TTM

   $ 732      $ 637      $ 531      $ 676      $ 665        (9 %) 

Operating income — TTM Y/Y growth (decline), excluding F/X

     (50 %)      (50 %)      (48 %)      (15 %)      (6 %)      N/A   

Operating margin — TTM % of WW net sales

     1.4     1.2     0.9     1.1     1.0     N/A   

Net income (loss)

   $ 130      $ 7      $ (274   $ 97      $ 82        (37 %) 

Net income (loss) per diluted share

   $ 0.28      $ 0.01      $ (0.60   $ 0.21      $ 0.18        (37 %) 

Net income (loss) — TTM

   $ 561      $ 377      $ 40      $ (39   $ (87     (116 %) 

Net income (loss) per diluted share — TTM

   $ 1.22      $ 0.82      $ 0.09      $ (0.09   $ (0.19     (116 %) 

Segments

            

North America Segment:

            

Net sales

   $ 7,427      $ 7,326      $ 7,884      $ 12,175      $ 9,391        26

Net sales — Y/Y growth, excluding F/X

     36     36     33     23     26     N/A   

Net sales — TTM

   $ 28,667      $ 30,587      $ 32,540      $ 34,813      $ 36,777        28

Operating income

   $ 349      $ 344      $ 291      $ 608      $ 457        31

Operating margin — % of North America net sales

     4.7     4.7     3.7     5.0     4.9     N/A   

Operating income — TTM

   $ 991      $ 1,120      $ 1,268      $ 1,592      $ 1,700        72

Operating income — TTM Y/Y growth, excluding F/X

     2     14     34     71     72     N/A   

Operating margin — TTM % of North America net sales

     3.5     3.7     3.9     4.6     4.6     N/A   

International Segment:

            

Net sales

   $ 5,758      $ 5,508      $ 5,922      $ 9,093      $ 6,679        16

Net sales — Y/Y growth, excluding F/X

     32     28     27     23     21     N/A   

Net sales — TTM

   $ 22,737      $ 23,738      $ 24,716      $ 26,280      $ 27,201        20

Net sales — TTM % of WW net sales

     44     44     43     43     43     N/A   

Operating income (loss)

   $ 49      $ 16      $ (59   $ 70      $ (16     (133 %) 

Operating margin — % of International net sales

     0.9     0.3     (1.0 %)      0.8     (0.2 %)      N/A   

Operating income — TTM

   $ 515      $ 359      $ 183      $ 76      $ 11        (98 %) 

Operating income — TTM Y/Y growth (decline), excluding F/X

     (49 %)      (57 %)      (68 %)      (77 %)      (83 %)      N/A   

Operating margin — TTM % of International net sales

     2.3     1.5     0.7     0.3     0.0     N/A   

Consolidated Segments:

            

Operating expenses (3)

   $ 12,787      $ 12,474      $ 13,574      $ 20,590      $ 15,629        22

Operating expenses — TTM (3)

   $ 49,899      $ 52,846      $ 55,805      $ 59,425      $ 62,267        25

Operating income

   $ 398      $ 360      $ 232      $ 678      $ 441        11

Operating margin — % of Consolidated sales

     3.0     2.8     1.7     3.2     2.7     N/A   

Operating income — TTM

   $ 1,505      $ 1,480      $ 1,451      $ 1,668      $ 1,711        14

Operating income — TTM Y/Y growth (decline), excluding F/X

     (22 %)      (21 %)      (15 %)      7     15     N/A   

Operating margin — TTM % of Consolidated net sales

     2.9     2.7     2.5     2.7     2.7     N/A   


AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except inventory turnover, accounts payable days and employee data)

(unaudited)

 

     Q1 2012     Q2 2012     Q3 2012     Q4 2012     Q1 2013     Y/Y %
Change
 

Supplemental

            

Supplemental North America Segment Net Sales:

            

Media

   $ 2,197      $ 1,874      $ 2,215      $ 2,903      $ 2,513        14

Media — Y/Y growth, excluding F/X

     17     18     15     13     14     N/A   

Media — TTM

   $ 8,270      $ 8,559      $ 8,847      $ 9,189      $ 9,506        15

Electronics and other general merchandise

   $ 4,772      $ 4,937      $ 5,061      $ 8,503      $ 6,128        28

Electronics and other general merchandise — Y/Y growth, excluding F/X

     44     41     39     24     28     N/A   

Electronics and other general merchandise — TTM

   $ 18,784      $ 20,226      $ 21,652      $ 23,273      $ 24,629        31

Electronics and other general merchandise — TTM % of North America net sales

     66     66     67     67     67     N/A   

Other

   $ 458      $ 515      $ 608      $ 769      $ 750        64

Other — TTM

   $ 1,613      $ 1,802      $ 2,041      $ 2,351      $ 2,642        64

Supplemental International Segment Net Sales:

            

Media

   $ 2,513      $ 2,245      $ 2,385      $ 3,611      $ 2,545        1

Media — Y/Y growth, excluding F/X

     22     12     12     7     7     N/A   

Media — TTM

   $ 10,261      $ 10,431      $ 10,590      $ 10,753      $ 10,785        5

Electronics and other general merchandise

   $ 3,203      $ 3,224      $ 3,497      $ 5,431      $ 4,086        28

Electronics and other general merchandise — Y/Y growth, excluding F/X

     42     42     39     37     32     N/A   

Electronics and other general merchandise — TTM

   $ 12,314      $ 13,139      $ 13,956      $ 15,355      $ 16,238        32

Electronics and other general merchandise — TTM % of International net sales

     54     55     56     58     60     N/A   

Other

   $ 42      $ 39      $ 40      $ 51      $ 48        14

Other — TTM

   $ 162      $ 168      $ 170      $ 172      $ 178        9

Supplemental Worldwide Net Sales:

            

Media

   $ 4,710      $ 4,119      $ 4,600      $ 6,514      $ 5,058        7

Media — Y/Y growth, excluding F/X

     19     15     14     10     10     N/A   

Media — TTM

   $ 18,531      $ 18,990      $ 19,437      $ 19,942      $ 20,291        9

Electronics and other general merchandise

   $ 7,975      $ 8,161      $ 8,558      $ 13,934      $ 10,214        28

Electronics and other general merchandise — Y/Y growth, excluding F/X

     43     42     39     29     30     N/A   

Electronics and other general merchandise — TTM

   $ 31,098      $ 33,365      $ 35,608      $ 38,628      $ 40,867        31

Electronics and other general merchandise — TTM % of WW net sales

     60     61     62     63     64     N/A   

Other

   $ 500      $ 554      $ 648      $ 820      $ 798        59

Other — TTM

   $ 1,775      $ 1,970      $ 2,211      $ 2,523      $ 2,820        59

Balance Sheet

            

Cash and marketable securities

   $ 5,715      $ 4,970      $ 5,248      $ 11,448      $ 7,895        38

Inventory, net — ending

   $ 4,255      $ 4,380      $ 5,065      $ 6,031      $ 5,395        27

Inventory turnover, average — TTM

     10.4        10.1        9.7        9.3        9.5        (8 %) 

Property and equipment, net

   $ 4,653      $ 5,097      $ 5,662      $ 7,060      $ 7,674        65

Accounts payable — ending

   $ 6,886      $ 7,072      $ 8,369      $ 13,318      $ 8,916        29

Accounts payable days — ending

     62        68        75        76        68        9

Other

            

WW shipping revenue

   $ 461      $ 469      $ 517      $ 832      $ 633        37

WW shipping costs

   $ 1,129      $ 1,054      $ 1,153      $ 1,798      $ 1,396        24

WW net shipping costs

   $ 668      $ 585      $ 636      $ 966      $ 763        14

WW net shipping costs — % of WW net sales

     5.1     4.6     4.6     4.5     4.7     N/A   

Employees (full-time and part-time; excludes contractors & temporary personnel)

     65,600        69,100        81,400        88,400        91,300        39

 

(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) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.


Amazon.com, Inc.

Certain Definitions

Customer Accounts

 

  •  

References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer places an order 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 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. 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 domains worldwide – for example www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es, www.amazon.com.br, www.diapers.com, www.shopbop.com and www.zappos.com – as well as Amazon-owned items sold through non-Amazon domains. Units sold are paid units and do not include units associated with certain acquisitions, rental businesses, web services or advertising businesses, or Amazon gift certificates.

 

Contacts:   
Amazon.com Investor Relations    Amazon.com Public Relations
Sean Boyle, 206/266-2171    Mary Osako, 206/266-9651
www.amazon.com/ir    www.amazon.com/pr
Close
The content provided on Two Margins is for information purposes only and does not constitute investment and/or legal advice. Crypto currencies are highly volatile, risky assets and no information on this site, whether generated by Two Margins or external contributors, is a substitute for your own research. Full Risk Disclosure and Disclaimer here.