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• |
Amazon announced a record-setting holiday season for Amazon Prime, the annual membership program with tens of millions of members worldwide. Amazon is working hard to increase capacity for the Prime program. In December, Prime was so popular that Amazon limited new Prime membership signups during peak periods. |
• |
Prime Instant Video selection increased from 33,000 to more than 40,000 movies and TV episodes in 2013. |
• |
Selection in the Kindle Owners’ Lending Library in 2013 grew from 250,000 books to more than 475,000 books—books that Kindle owners with a Prime membership can borrow for free with no due dates. |
• |
Amazon worked with the FAA to update its rules on the use of electronic devices on planes and now over 20 airlines allow customers to use their Kindles gate-to-gate. |
• |
Amazon announced that on Christmas Day, the average response time when a customer tapped the Mayday button on Kindle Fire HDX was just 9 seconds, faster than the response time goal of 15 seconds. Thousands of Mayday Tech Advisors in the U.S. were available on Christmas Day to take calls from customers. |
• |
Amazon announced a new version of Kindle FreeTime on Kindle Fire tablets that brings new educational features built from the ground up for parents and kids. The new features let parents set educational goals for their kids before switching to cartoons or games. Parents can also manage screen time with additional Time Limits features: set different limits for weekends vs. weekdays, and use “Bedtime” to set a curfew. |
• |
Amazon announced a software update for the new Kindle Paperwhite that brings exclusive features including Goodreads integration and Kindle FreeTime. |
• |
Amazon launched the Australian Kindle Store, offering over 2 million eBooks, including more than 400,000 Kindle—exclusive titles. |
• |
Amazon launched Kindle MatchBook, a new benefit that gives customers the option to buy — for $2.99, $1.99, $0.99 or free — the Kindle edition of the print books they have purchased from Amazon, including more than 100,000 titles. |
• |
Since its launch one year ago, Amazon AutoRip has delivered more than 2 billion digital music tracks to customers who have purchased AutoRip albums. The digital copy is automatically added to the customer’s Cloud Player library where it is available, free of charge, for immediate playback or download. |
• |
Amazon Instant Video announced it is working with the world’s leading consumer electronics companies, top Hollywood studios and TV programmers, including Samsung, Warner Bros., Lionsgate, 20th Century Fox, Discovery and others to offer customers a premium 4K Ultra HD experience. In addition, Amazon Studios announced that it plans to shoot all 2014 full original series, including comedies and dramas, in 4K Ultra HD.
|
• |
Amazon Studios debuted new original series Alpha House and Betas. The first three episodes are available for all customers to enjoy, with the remaining episodes available exclusively on Prime Instant Video.
|
• |
Amazon Prime Instant Video will be the exclusive premium subscription home for Extant, a serialized drama starring Halle Berry and produced by Steven Spielberg’s Amblin Television. The drama will premiere on the CBS Television Network in June with unlimited streaming of all the series’ episodes available four days after their initial broadcast on CBS.
|
• |
Amazon launched AmazonSmile, a new program that makes it easy for customers to support their favorite charitable organizations every time they shop. Customers who visit AmazonSmile (smile.amazon.com) will find the exact same Amazon they know and love, with the added bonus that Amazon will donate a portion of the purchase price to their favorite charitable organization. There is no cap on the total donation amount and customers can choose from nearly one million organizations around the country. |
• |
During the quarter, Amazon Web Services (AWS) announced over 100 new services and features, including Amazon AppStream, Amazon Kinesis, and three new Amazon Elastic Compute Cloud (Amazon EC2) instances. AWS now offers six Amazon EC2 instance families with 13 instance types to support a wide range of use-cases. |
• |
AWS announced Amazon WorkSpaces, a fully managed desktop computing service in the cloud that allows end-users to access the documents, applications and resources they need with the device of their choice, including laptops, iPad, Kindle Fire, and Android tablets. |
• |
The AWS Partner Network program, which provides technical, business and marketing support for the AWS partner ecosystem, has grown to more than 8,000 technology and consulting partners worldwide. In addition, AWS Marketplace now offers over 1,100 third-party software products for customers to choose from. |
• |
AWS announced the upcoming launch of its China Region. This will be the fourth AWS Region in Asia Pacific and the tenth Region globally |
• |
Net sales are expected to be between $18.2 billion and $19.9 billion, or to grow between 13% and 24% compared with first quarter 2013.
|
• |
Operating income (loss) is expected to be between $(200) million and $200 million, compared to $181 million in first quarter 2013.
|
• |
This guidance includes approximately $350 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
(unaudited) |
|||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
$ |
3,872 |
$ |
2,980 |
$ |
8,084 |
$ |
5,269 |
|||||||
OPERATING ACTIVITIES: |
|||||||||||||||
Net income (loss) |
239 |
97 |
274 |
(39 |
) |
||||||||||
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 |
963 |
662 |
3,253 |
2,159 |
|||||||||||
Stock-based compensation |
326 |
235 |
1,134 |
833 |
|||||||||||
Other operating expense (income), net |
40 |
36 |
114 |
154 |
|||||||||||
Losses (gains) on sales of marketable securities, net |
— |
(1 |
) |
1 |
(9 |
) |
|||||||||
Other expense (income), net |
51 |
100 |
166 |
253 |
|||||||||||
Deferred income taxes |
(109 |
) |
(148 |
) |
(156 |
) |
(265 |
) |
|||||||
Excess tax benefits from stock-based compensation |
(78 |
) |
(239 |
) |
(78 |
) |
(429 |
) |
|||||||
Changes in operating assets and liabilities: |
|||||||||||||||
Inventories |
(1,330 |
) |
(974 |
) |
(1,410 |
) |
(999 |
) |
|||||||
Accounts receivable, net and other |
(1,239 |
) |
(1,024 |
) |
(846 |
) |
(861 |
) |
|||||||
Accounts payable |
5,128 |
4,926 |
1,888 |
2,070 |
|||||||||||
Accrued expenses and other |
1,589 |
1,412 |
736 |
1,038 |
|||||||||||
Additions to unearned revenue |
819 |
545 |
2,691 |
1,796 |
|||||||||||
Amortization of previously unearned revenue |
(821 |
) |
(546 |
) |
(2,292 |
) |
(1,521 |
) |
|||||||
Net cash provided by (used in) operating activities |
5,578 |
5,081 |
5,475 |
4,180 |
|||||||||||
INVESTING ACTIVITIES: |
|||||||||||||||
Purchases of property and equipment, including internal-use software and website development |
(880 |
) |
(2,025 |
) |
(3,444 |
) |
(3,785 |
) |
|||||||
Acquisitions, net of cash acquired, and other |
(59 |
) |
(35 |
) |
(312 |
) |
(745 |
) |
|||||||
Sales and maturities of marketable securities and other investments |
515 |
506 |
2,306 |
4,237 |
|||||||||||
Purchases of marketable securities and other investments |
(419 |
) |
(1,528 |
) |
(2,826 |
) |
(3,302 |
) |
|||||||
Net cash provided by (used in) investing activities |
(843 |
) |
(3,082 |
) |
(4,276 |
) |
(3,595 |
) |
|||||||
FINANCING ACTIVITIES: |
|||||||||||||||
Excess tax benefits from stock-based compensation |
78 |
239 |
78 |
429 |
|||||||||||
Common stock repurchased |
— |
— |
— |
(960 |
) |
||||||||||
Proceeds from long-term debt and other |
249 |
3,083 |
394 |
3,378 |
|||||||||||
Repayments of long-term debt, capital lease, and finance lease obligations |
(270 |
) |
(156 |
) |
(1,011 |
) |
(588 |
) |
|||||||
Net cash provided by (used in) financing activities |
57 |
3,166 |
(539 |
) |
2,259 |
||||||||||
Foreign-currency effect on cash and cash equivalents |
(6 |
) |
(61 |
) |
(86 |
) |
(29 |
) |
|||||||
Net increase (decrease) in cash and cash equivalents |
4,786 |
5,104 |
574 |
2,815 |
|||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD |
$ |
8,658 |
$ |
8,084 |
$ |
8,658 |
$ |
8,084 |
|||||||
SUPPLEMENTAL CASH FLOW INFORMATION: |
|||||||||||||||
Cash paid for interest on long-term debt |
$ |
37 |
$ |
10 |
$ |
97 |
$ |
31 |
|||||||
Cash paid for income taxes (net of refunds) |
25 |
52 |
169 |
112 |
|||||||||||
Property and equipment acquired under capital leases |
554 |
239 |
1,867 |
802 |
|||||||||||
Property and equipment acquired under build-to-suit leases |
213 |
(17 |
) |
877 |
29 |
||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
(unaudited) |
|||||||||||||||
Net product sales |
$ |
21,072 |
$ |
18,147 |
$ |
60,903 |
$ |
51,733 |
|||||||
Net services sales |
4,515 |
3,121 |
13,549 |
9,360 |
|||||||||||
Total net sales |
25,587 |
21,268 |
74,452 |
61,093 |
|||||||||||
Operating expenses (1): |
|||||||||||||||
Cost of sales |
18,806 |
16,136 |
54,181 |
45,971 |
|||||||||||
Fulfillment |
2,918 |
2,258 |
8,585 |
6,419 |
|||||||||||
Marketing |
1,133 |
851 |
3,133 |
2,408 |
|||||||||||
Technology and content |
1,862 |
1,345 |
6,565 |
4,564 |
|||||||||||
General and administrative |
318 |
235 |
1,129 |
896 |
|||||||||||
Other operating expense (income), net |
40 |
38 |
114 |
159 |
|||||||||||
Total operating expenses |
25,077 |
20,863 |
73,707 |
60,417 |
|||||||||||
Income from operations |
510 |
405 |
745 |
676 |
|||||||||||
Interest income |
10 |
9 |
38 |
40 |
|||||||||||
Interest expense |
(39 |
) |
(28 |
) |
(141 |
) |
(92 |
) |
|||||||
Other income (expense), net |
(30 |
) |
(49 |
) |
(136 |
) |
(80 |
) |
|||||||
Total non-operating income (expense) |
(59 |
) |
(68 |
) |
(239 |
) |
(132 |
) |
|||||||
Income before income taxes |
451 |
337 |
506 |
544 |
|||||||||||
Provision for income taxes |
(179 |
) |
(194 |
) |
(161 |
) |
(428 |
) |
|||||||
Equity-method investment activity, net of tax |
(33 |
) |
(46 |
) |
(71 |
) |
(155 |
) |
|||||||
Net income (loss) |
$ |
239 |
$ |
97 |
$ |
274 |
$ |
(39 |
) |
||||||
Basic earnings per share |
$ |
0.52 |
$ |
0.21 |
$ |
0.60 |
$ |
(0.09 |
) |
||||||
Diluted earnings per share |
$ |
0.51 |
$ |
0.21 |
$ |
0.59 |
$ |
(0.09 |
) |
||||||
Weighted average shares used in computation of earnings per share: |
|||||||||||||||
Basic |
458 |
454 |
457 |
453 |
|||||||||||
Diluted |
467 |
461 |
465 |
453 |
|||||||||||
_____________ |
|||||||||||||||
(1) Includes stock-based compensation as follows: |
|||||||||||||||
Fulfillment |
$ |
81 |
$ |
62 |
$ |
294 |
$ |
212 |
|||||||
Marketing |
25 |
18 |
88 |
61 |
|||||||||||
Technology and content |
175 |
124 |
603 |
434 |
|||||||||||
General and administrative |
45 |
31 |
149 |
126 |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
(unaudited) |
|||||||||||||||
Net income (loss) |
$ |
239 |
$ |
97 |
$ |
274 |
$ |
(39 |
) |
||||||
Other comprehensive income: |
|||||||||||||||
Foreign currency translation adjustments, net of tax of $(6), $(12), $(20), and $(30) |
23 |
60 |
63 |
76 |
|||||||||||
Net change in unrealized gains on available-for-sale securities: |
|||||||||||||||
Unrealized gains (losses), net of tax of $0, $1, $3, and $(3) |
(1 |
) |
(1 |
) |
(10 |
) |
8 |
||||||||
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $(1), and $3 |
— |
(1 |
) |
1 |
(7 |
) |
|||||||||
Net unrealized gains (losses) on available-for-sale securities |
(1 |
) |
(2 |
) |
(9 |
) |
1 |
||||||||
Total other comprehensive income |
22 |
58 |
54 |
77 |
|||||||||||
Comprehensive income |
$ |
261 |
$ |
155 |
$ |
328 |
$ |
38 |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
(unaudited) |
|||||||||||||||
North America |
|||||||||||||||
Net sales |
$ |
15,331 |
$ |
12,175 |
$ |
44,517 |
$ |
34,813 |
|||||||
Segment operating expenses (1) |
14,606 |
11,567 |
42,631 |
33,221 |
|||||||||||
Segment operating income |
$ |
725 |
$ |
608 |
$ |
1,886 |
$ |
1,592 |
|||||||
International |
|||||||||||||||
Net sales |
$ |
10,256 |
$ |
9,093 |
$ |
29,935 |
$ |
26,280 |
|||||||
Segment operating expenses (1) |
10,105 |
9,023 |
29,828 |
26,204 |
|||||||||||
Segment operating income |
$ |
151 |
$ |
70 |
$ |
107 |
$ |
76 |
|||||||
Consolidated |
|||||||||||||||
Net sales |
$ |
25,587 |
$ |
21,268 |
$ |
74,452 |
$ |
61,093 |
|||||||
Segment operating expenses (1) |
24,711 |
20,590 |
72,459 |
59,425 |
|||||||||||
Segment operating income |
876 |
678 |
1,993 |
1,668 |
|||||||||||
Stock-based compensation |
(326 |
) |
(235 |
) |
(1,134 |
) |
(833 |
) |
|||||||
Other operating income (expense), net |
(40 |
) |
(38 |
) |
(114 |
) |
(159 |
) |
|||||||
Income from operations |
510 |
405 |
745 |
676 |
|||||||||||
Total non-operating income (expense) |
(59 |
) |
(68 |
) |
(239 |
) |
(132 |
) |
|||||||
Provision for income taxes |
(179 |
) |
(194 |
) |
(161 |
) |
(428 |
) |
|||||||
Equity-method investment activity, net of tax |
(33 |
) |
(46 |
) |
(71 |
) |
(155 |
) |
|||||||
Net income (loss) |
$ |
239 |
$ |
97 |
$ |
274 |
$ |
(39 |
) |
||||||
Segment Highlights: |
|||||||||||||||
Y/Y net sales growth: |
|||||||||||||||
North America |
26 |
% |
23 |
% |
28 |
% |
30 |
% |
|||||||
International |
13 |
21 |
14 |
23 |
|||||||||||
Consolidated |
20 |
22 |
22 |
27 |
|||||||||||
Y/Y segment operating income growth (decline): |
|||||||||||||||
North America |
19 |
% |
114 |
% |
19 |
% |
71 |
% |
|||||||
International |
116 |
(61 |
) |
41 |
(88 |
) |
|||||||||
Consolidated |
29 |
47 |
20 |
6 |
|||||||||||
Net sales mix: |
|||||||||||||||
North America |
60 |
% |
57 |
% |
60 |
% |
57 |
% |
|||||||
International |
40 |
43 |
40 |
43 |
|||||||||||
100 |
% |
100 |
% |
100 |
% |
100 |
% |
(1) |
Represents operating expenses, excluding stock-based compensation and "Other operating expense (income), net," which are not allocated to segments. |
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2013 |
2012 |
2013 |
2012 |
||||||||||||
(unaudited) |
|||||||||||||||
Net Sales: |
|||||||||||||||
North America |
|||||||||||||||
Media |
$ |
3,513 |
$ |
2,903 |
$ |
10,809 |
$ |
9,189 |
|||||||
Electronics and other general merchandise |
10,648 |
8,503 |
29,985 |
23,273 |
|||||||||||
Other (1) |
1,170 |
769 |
3,723 |
2,351 |
|||||||||||
Total North America |
$ |
15,331 |
$ |
12,175 |
$ |
44,517 |
$ |
34,813 |
|||||||
International |
|||||||||||||||
Media |
$ |
3,714 |
$ |
3,611 |
$ |
10,907 |
$ |
10,753 |
|||||||
Electronics and other general merchandise |
6,478 |
5,431 |
18,817 |
15,355 |
|||||||||||
Other (1) |
64 |
51 |
211 |
172 |
|||||||||||
Total International |
$ |
10,256 |
$ |
9,093 |
$ |
29,935 |
$ |
26,280 |
|||||||
Consolidated |
|||||||||||||||
Media |
$ |
7,227 |
$ |
6,514 |
$ |
21,716 |
$ |
19,942 |
|||||||
Electronics and other general merchandise |
17,126 |
13,934 |
48,802 |
38,628 |
|||||||||||
Other (1) |
1,234 |
820 |
3,934 |
2,523 |
|||||||||||
Total consolidated |
$ |
25,587 |
$ |
21,268 |
$ |
74,452 |
$ |
61,093 |
|||||||
Year-over-year Percentage Growth: |
|||||||||||||||
North America |
|||||||||||||||
Media |
21 |
% |
13 |
% |
18 |
% |
15 |
% |
|||||||
Electronics and other general merchandise |
25 |
24 |
29 |
34 |
|||||||||||
Other |
52 |
68 |
58 |
64 |
|||||||||||
Total North America |
26 |
23 |
28 |
30 |
|||||||||||
International |
|||||||||||||||
Media |
3 |
% |
5 |
% |
1 |
% |
9 |
% |
|||||||
Electronics and other general merchandise |
19 |
35 |
23 |
35 |
|||||||||||
Other |
25 |
4 |
22 |
11 |
|||||||||||
Total International |
13 |
21 |
14 |
23 |
|||||||||||
Consolidated |
|||||||||||||||
Media |
11 |
% |
8 |
% |
9 |
% |
12 |
% |
|||||||
Electronics and other general merchandise |
23 |
28 |
26 |
35 |
|||||||||||
Other |
50 |
61 |
56 |
59 |
|||||||||||
Total consolidated |
20 |
22 |
22 |
27 |
|||||||||||
Year-over-year Percentage Growth: |
|||||||||||||||
Excluding the effect of exchange rates |
|||||||||||||||
International |
|||||||||||||||
Media |
6 |
% |
7 |
% |
7 |
% |
12 |
% |
|||||||
Electronics and other general merchandise |
21 |
37 |
27 |
40 |
|||||||||||
Other |
27 |
5 |
26 |
15 |
|||||||||||
Total International |
15 |
23 |
19 |
27 |
|||||||||||
Consolidated |
|||||||||||||||
Media |
13 |
% |
10 |
% |
12 |
% |
14 |
% |
|||||||
Electronics and other general merchandise |
24 |
29 |
28 |
36 |
|||||||||||
Other |
51 |
61 |
56 |
59 |
|||||||||||
Total consolidated |
22 |
23 |
24 |
29 |
|||||||||||
Consolidated Net Sales Mix: |
|||||||||||||||
Media |
28 |
% |
31 |
% |
29 |
% |
33 |
% |
|||||||
Electronics and other general merchandise |
67 |
65 |
66 |
63 |
|||||||||||
Other |
5 |
4 |
5 |
4 |
|||||||||||
Total consolidated |
100 |
% |
100 |
% |
100 |
% |
100 |
% |
(1) |
Includes sales from non-retail activities, such as AWS sales, which are included in the North America segment, and advertising services and our co-branded credit card agreements, which are included in both segments. |
December 31, 2013 |
December 31, 2012 |
||||||
ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
8,658 |
$ |
8,084 |
|||
Marketable securities |
3,789 |
3,364 |
|||||
Inventories |
7,411 |
6,031 |
|||||
Accounts receivable, net and other |
4,767 |
3,817 |
|||||
Total current assets |
24,625 |
21,296 |
|||||
Property and equipment, net |
10,949 |
7,060 |
|||||
Goodwill |
2,655 |
2,552 |
|||||
Other assets |
1,930 |
1,647 |
|||||
Total assets |
$ |
40,159 |
$ |
32,555 |
|||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
15,133 |
$ |
13,318 |
|||
Accrued expenses and other |
6,688 |
4,892 |
|||||
Unearned revenue |
1,159 |
792 |
|||||
Total current liabilities |
22,980 |
19,002 |
|||||
Long-term debt |
3,191 |
3,084 |
|||||
Other long-term liabilities |
4,242 |
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 — 483 and 478 |
|||||||
Outstanding shares — 459 and 454 |
5 |
5 |
|||||
Treasury stock, at cost |
(1,837 |
) |
(1,837 |
) |
|||
Additional paid-in capital |
9,573 |
8,347 |
|||||
Accumulated other comprehensive loss |
(185 |
) |
(239 |
) |
|||
Retained earnings |
2,190 |
1,916 |
|||||
Total stockholders’ equity |
9,746 |
8,192 |
|||||
Total liabilities and stockholders’ equity |
$ |
40,159 |
$ |
32,555 |
Q4 2012 |
Q1 2013 |
Q2 2013 |
Q3 2013 |
Q4 2013 |
Y/Y %
Change
|
||||||||||||
Cash Flows and Shares |
|||||||||||||||||
Operating cash flow -- trailing twelve months (TTM) |
$ |
4,180 |
$ |
4,245 |
$ |
4,532 |
$ |
4,977 |
$ |
5,475 |
31 |
% |
|||||
Purchases of property and equipment (incl. internal-use software & website development) -- TTM |
$ |
3,785 |
$ |
4,068 |
$ |
4,267 |
$ |
4,589 |
$ |
3,444 |
(9 |
)% |
|||||
Free cash flow (operating cash flow less purchases of property and equipment) -- TTM |
$ |
395 |
$ |
177 |
$ |
265 |
$ |
388 |
$ |
2,031 |
414 |
% |
|||||
Free cash flow -- TTM Y/Y growth (decline) |
(81 |
)% |
(85 |
)% |
(76 |
)% |
(63 |
)% |
414 |
% |
N/A |
||||||
Invested capital (1) |
$ |
11,181 |
$ |
12,019 |
$ |
13,115 |
$ |
14,306 |
$ |
15,749 |
41 |
% |
|||||
Return on invested capital (2) |
4 |
% |
1 |
% |
2 |
% |
3 |
% |
13 |
% |
N/A |
||||||
Common shares and stock-based awards outstanding |
470 |
471 |
474 |
475 |
476 |
1 |
% |
||||||||||
Common shares outstanding |
454 |
455 |
457 |
458 |
459 |
1 |
% |
||||||||||
Stock awards outstanding |
16 |
16 |
17 |
17 |
17 |
4 |
% |
||||||||||
Stock awards outstanding -- % of common shares outstanding |
3.5 |
% |
3.4 |
% |
3.8 |
% |
3.8 |
% |
3.6 |
% |
N/A |
||||||
Results of Operations |
|||||||||||||||||
Worldwide (WW) net sales |
$ |
21,268 |
$ |
16,070 |
$ |
15,704 |
$ |
17,092 |
$ |
25,587 |
20 |
% |
|||||
WW net sales -- Y/Y growth, excluding F/X |
23 |
% |
24 |
% |
25 |
% |
26 |
% |
22 |
% |
N/A |
||||||
WW net sales -- TTM |
$ |
61,093 |
$ |
63,978 |
$ |
66,848 |
$ |
70,133 |
$ |
74,452 |
22 |
% |
|||||
WW net sales -- TTM Y/Y growth, excluding F/X |
29 |
% |
27 |
% |
25 |
% |
25 |
% |
24 |
% |
N/A |
||||||
Operating income (loss) |
$ |
405 |
$ |
181 |
$ |
79 |
$ |
(25 |
) |
$ |
510 |
26 |
% |
||||
Operating income -- Y/Y growth (decline), excluding F/X |
59 |
% |
1 |
% |
(9 |
)% |
(33 |
)% |
24 |
% |
N/A |
||||||
Operating margin -- % of WW net sales |
1.9 |
% |
1.1 |
% |
0.5 |
% |
(0.1 |
)% |
2.0 |
% |
N/A |
||||||
Operating income -- TTM |
$ |
676 |
$ |
665 |
$ |
637 |
$ |
640 |
$ |
745 |
10 |
% |
|||||
Operating income -- TTM Y/Y growth (decline), excluding F/X |
(15 |
)% |
(6 |
)% |
3 |
% |
27 |
% |
14 |
% |
N/A |
||||||
Operating margin -- TTM % of WW net sales |
1.1 |
% |
1.0 |
% |
1.0 |
% |
0.9 |
% |
1.0 |
% |
N/A |
||||||
Net income (loss) |
$ |
97 |
$ |
82 |
$ |
(7 |
) |
$ |
(41 |
) |
$ |
239 |
146 |
% |
|||
Net income (loss) per diluted share |
$ |
0.21 |
$ |
0.18 |
$ |
(0.02 |
) |
$ |
(0.09 |
) |
$ |
0.51 |
143 |
% |
|||
Net income (loss) -- TTM |
$ |
(39 |
) |
$ |
(87 |
) |
$ |
(101 |
) |
$ |
132 |
$ |
274 |
N/A |
|||
Net income (loss) per diluted share -- TTM |
$ |
(0.09 |
) |
$ |
(0.19 |
) |
$ |
(0.22 |
) |
$ |
0.28 |
$ |
0.59 |
N/A |
|||
Segments |
|||||||||||||||||
North America Segment: |
|||||||||||||||||
Net sales |
$ |
12,175 |
$ |
9,391 |
$ |
9,495 |
$ |
10,301 |
$ |
15,331 |
26 |
% |
|||||
Net sales -- Y/Y growth, excluding F/X |
23 |
% |
26 |
% |
30 |
% |
31 |
% |
26 |
% |
N/A |
||||||
Net sales -- TTM |
$ |
34,813 |
$ |
36,777 |
$ |
38,945 |
$ |
41,361 |
$ |
44,517 |
28 |
% |
|||||
Operating income |
$ |
608 |
$ |
457 |
$ |
409 |
$ |
295 |
$ |
725 |
19 |
% |
|||||
Operating margin -- % of North America net sales |
5.0 |
% |
4.9 |
% |
4.3 |
% |
2.9 |
% |
4.7 |
% |
N/A |
||||||
Operating income -- TTM |
$ |
1,592 |
$ |
1,700 |
$ |
1,766 |
$ |
1,770 |
$ |
1,886 |
19 |
% |
|||||
Operating income -- TTM Y/Y growth, excluding F/X |
71 |
% |
72 |
% |
58 |
% |
40 |
% |
18 |
% |
N/A |
||||||
Operating margin -- TTM % of North America net sales |
4.6 |
% |
4.6 |
% |
4.5 |
% |
4.3 |
% |
4.2 |
% |
N/A |
||||||
International Segment: |
|||||||||||||||||
Net sales |
$ |
9,093 |
$ |
6,679 |
$ |
6,209 |
$ |
6,791 |
$ |
10,256 |
13 |
% |
|||||
Net sales -- Y/Y growth, excluding F/X |
23 |
% |
21 |
% |
20 |
% |
20 |
% |
15 |
% |
N/A |
||||||
Net sales -- TTM |
$ |
26,280 |
$ |
27,201 |
$ |
27,903 |
$ |
28,772 |
$ |
29,935 |
14 |
% |
|||||
Net sales -- TTM % of WW net sales |
43 |
% |
43 |
% |
42 |
% |
41 |
% |
40 |
% |
N/A |
||||||
Operating income (loss) |
$ |
70 |
$ |
(16 |
) |
$ |
— |
$ |
(28 |
) |
$ |
151 |
116 |
% |
|||
Operating margin -- % of International net sales |
0.8 |
% |
(0.2 |
)% |
— |
% |
(0.4 |
)% |
1.5 |
% |
N/A |
||||||
Operating income (loss) -- TTM |
$ |
76 |
$ |
11 |
$ |
(6 |
) |
$ |
25 |
$ |
107 |
41 |
% |
||||
Operating income -- TTM Y/Y growth (decline), excluding F/X |
(77 |
)% |
(83 |
)% |
(82 |
)% |
(56 |
)% |
106 |
% |
N/A |
||||||
Operating margin -- TTM % of International net sales |
0.3 |
% |
— |
% |
— |
% |
0.1 |
% |
0.4 |
% |
N/A |
||||||
Consolidated Segments: |
|||||||||||||||||
Operating expenses (3) |
$ |
20,590 |
$ |
15,629 |
$ |
15,295 |
$ |
16,825 |
$ |
24,711 |
20 |
% |
|||||
Operating expenses -- TTM (3) |
$ |
59,425 |
$ |
62,267 |
$ |
65,087 |
$ |
68,338 |
$ |
72,459 |
22 |
% |
|||||
Operating income |
$ |
678 |
$ |
441 |
$ |
409 |
$ |
267 |
$ |
876 |
29 |
% |
|||||
Operating margin -- % of Consolidated net sales |
3.2 |
% |
2.7 |
% |
2.6 |
% |
1.6 |
% |
3.4 |
% |
N/A |
||||||
Operating income -- TTM |
$ |
1,668 |
$ |
1,711 |
$ |
1,760 |
$ |
1,795 |
$ |
1,993 |
20 |
% |
|||||
Operating income -- TTM Y/Y growth (decline), excluding F/X |
7 |
% |
15 |
% |
21 |
% |
26 |
% |
21 |
% |
N/A |
||||||
Operating margin -- TTM % of Consolidated net sales |
2.7 |
% |
2.7 |
% |
2.6 |
% |
2.6 |
% |
2.7 |
% |
N/A |
Q4 2012 |
Q1 2013 |
Q2 2013 |
Q3 2013 |
Q4 2013 |
Y/Y %
Change
|
||||||||||||
Supplemental |
|||||||||||||||||
Supplemental North America Segment Net Sales: |
|||||||||||||||||
Media |
$ |
2,903 |
$ |
2,513 |
$ |
2,173 |
$ |
2,609 |
$ |
3,513 |
21 |
% |
|||||
Media -- Y/Y growth, excluding F/X |
13 |
% |
14 |
% |
16 |
% |
18 |
% |
21 |
% |
N/A |
||||||
Media -- TTM |
$ |
9,189 |
$ |
9,506 |
$ |
9,805 |
$ |
10,199 |
$ |
10,809 |
18 |
% |
|||||
Electronics and other general merchandise |
$ |
8,503 |
$ |
6,128 |
$ |
6,478 |
$ |
6,732 |
$ |
10,648 |
25 |
% |
|||||
Electronics and other general merchandise -- Y/Y growth, excluding F/X |
24 |
% |
28 |
% |
31 |
% |
33 |
% |
25 |
% |
N/A |
||||||
Electronics and other general merchandise -- TTM |
$ |
23,273 |
$ |
24,629 |
$ |
26,169 |
$ |
27,840 |
$ |
29,985 |
29 |
% |
|||||
Electronics and other general merchandise -- TTM % of North America net sales |
67 |
% |
67 |
% |
67 |
% |
67 |
% |
67 |
% |
N/A |
||||||
Other |
$ |
769 |
$ |
750 |
$ |
844 |
$ |
960 |
$ |
1,170 |
52 |
% |
|||||
Other -- TTM |
$ |
2,351 |
$ |
2,642 |
$ |
2,971 |
$ |
3,322 |
$ |
3,723 |
58 |
% |
|||||
Supplemental International Segment Net Sales: |
|||||||||||||||||
Media |
$ |
3,611 |
$ |
2,545 |
$ |
2,224 |
$ |
2,424 |
$ |
3,714 |
3 |
% |
|||||
Media -- Y/Y growth, excluding F/X |
7 |
% |
7 |
% |
7 |
% |
9 |
% |
6 |
% |
N/A |
||||||
Media -- TTM |
$ |
10,753 |
$ |
10,785 |
$ |
10,764 |
$ |
10,803 |
$ |
10,907 |
1 |
% |
|||||
Electronics and other general merchandise |
$ |
5,431 |
$ |
4,086 |
$ |
3,937 |
$ |
4,316 |
$ |
6,478 |
19 |
% |
|||||
Electronics and other general merchandise -- Y/Y growth, excluding F/X |
37 |
% |
32 |
% |
29 |
% |
28 |
% |
21 |
% |
N/A |
||||||
Electronics and other general merchandise -- TTM |
$ |
15,355 |
$ |
16,238 |
$ |
16,952 |
$ |
17,771 |
$ |
18,817 |
23 |
% |
|||||
Electronics and other general merchandise -- TTM % of International net sales |
58 |
% |
60 |
% |
61 |
% |
62 |
% |
63 |
% |
N/A |
||||||
Other |
$ |
51 |
$ |
48 |
$ |
48 |
$ |
51 |
$ |
64 |
25 |
% |
|||||
Other -- TTM |
$ |
172 |
$ |
178 |
$ |
187 |
$ |
198 |
$ |
211 |
22 |
% |
|||||
Supplemental Worldwide Net Sales: |
|||||||||||||||||
Media |
$ |
6,514 |
$ |
5,058 |
$ |
4,397 |
$ |
5,033 |
$ |
7,227 |
11 |
% |
|||||
Media -- Y/Y growth, excluding F/X |
10 |
% |
10 |
% |
11 |
% |
13 |
% |
13 |
% |
N/A |
||||||
Media -- TTM |
$ |
19,942 |
$ |
20,291 |
$ |
20,569 |
$ |
21,002 |
$ |
21,716 |
9 |
% |
|||||
Electronics and other general merchandise |
$ |
13,934 |
$ |
10,214 |
$ |
10,415 |
$ |
11,048 |
$ |
17,126 |
23 |
% |
|||||
Electronics and other general merchandise -- Y/Y growth, excluding F/X |
29 |
% |
30 |
% |
30 |
% |
31 |
% |
24 |
% |
N/A |
||||||
Electronics and other general merchandise -- TTM |
$ |
38,628 |
$ |
40,867 |
$ |
43,121 |
$ |
45,611 |
$ |
48,802 |
26 |
% |
|||||
Electronics and other general merchandise -- TTM % of WW net sales |
63 |
% |
64 |
% |
65 |
% |
65 |
% |
66 |
% |
N/A |
||||||
Other |
$ |
820 |
$ |
798 |
$ |
892 |
$ |
1,011 |
$ |
1,234 |
50 |
% |
|||||
Other -- TTM |
$ |
2,523 |
$ |
2,820 |
$ |
3,158 |
$ |
3,520 |
$ |
3,934 |
56 |
% |
|||||
Balance Sheet |
|||||||||||||||||
Cash and marketable securities |
$ |
11,448 |
$ |
7,895 |
$ |
7,463 |
$ |
7,689 |
$ |
12,447 |
9 |
% |
|||||
Inventory, net -- ending |
$ |
6,031 |
$ |
5,395 |
$ |
5,420 |
$ |
6,068 |
$ |
7,411 |
23 |
% |
|||||
Inventory turnover, average -- TTM |
9.3 |
9.5 |
9.4 |
9.2 |
8.9 |
(4 |
)% |
||||||||||
Property and equipment, net |
$ |
7,060 |
$ |
7,674 |
$ |
8,789 |
$ |
9,991 |
$ |
10,949 |
55 |
% |
|||||
Accounts payable -- ending |
$ |
13,318 |
$ |
8,916 |
$ |
8,990 |
$ |
10,037 |
$ |
15,133 |
14 |
% |
|||||
Accounts payable days -- ending |
76 |
68 |
73 |
75 |
74 |
(3 |
)% |
||||||||||
Other |
|||||||||||||||||
WW shipping revenue |
$ |
832 |
$ |
633 |
$ |
646 |
$ |
721 |
$ |
1,137 |
37 |
% |
|||||
WW shipping costs |
$ |
1,798 |
$ |
1,396 |
$ |
1,364 |
$ |
1,532 |
$ |
2,344 |
27 |
% |
|||||
WW net shipping costs |
$ |
966 |
$ |
763 |
$ |
718 |
$ |
811 |
$ |
1,207 |
19 |
% |
|||||
WW net shipping costs -- % of WW net sales |
4.5 |
% |
4.7 |
% |
4.6 |
% |
4.7 |
% |
4.7 |
% |
N/A |
||||||
Employees (full-time and part-time; excludes contractors & temporary personnel) |
88,400 |
91,300 |
97,000 |
109,800 |
117,300 |
33 |
% |
(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. |
• |
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. |
• |
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. |
• |
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. |
• |
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.amazon.in, www.amazon.com.mx, www.amazon.com.au, 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. |
Amazon.com Investor Relations |
Amazon.com Public Relations |
|
Dave Fildes, 206/266-2171 |
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|
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