AWS
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Amazon on Thursday reported its financial results for the first quarter of 2012. Analysts were looking for a profit of $0.07 per share on $12.86 billion in sales, and Amazon posted earnings of $0.28 per share on revenue of $13.18 billion, crushing expectations. The retailer netted $0.38 per share on revenue of $17.4 billion this past holiday quarter, and $0.44 per share on $9.86 billion in sales during the first quarter last year. The nationwide retailer’s stock had been up and down all week as Wall Street’s concerns over margins continued to rattle investors. Amazon’s operating margin fell 3.7% to 1.5% of global revenue in the fourth quarter and in the first quarter a year ago, Amazon’s margins sat at 3.3%. In the first quarter of 2012, Amazon’s operating margins stayed flat at 1.5%. For the second quarter, Amazon forecasts a profit of $40 million, up from a loss of $260 million in the second quarter last year, on revenue of between $11.9 billion and $13.3 billion. Amazon’s stock was up more than 12% percent during after-hours trading on Thursday. The company’s full press release follows below.
AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 34% TO $13.18 BILLION; 16 OF THE TOP 100 BESTSELLING TITLES ARE EXCLUSIVE TO THE KINDLE STORE
SEATTLE–(BUSINESS WIRE)–Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2012.
“I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store”
Operating cash flow increased 1% to $3.05 billion for the trailing twelve months, compared with $3.03 billion for the trailing twelve months ended March 31, 2011. Free cash flow decreased 39% to $1.15 billion for the trailing twelve months, compared with $1.90 billion for the trailing twelve months ended March 31, 2011.
Common shares outstanding plus shares underlying stock-based awards totaled 464 million on March 31, 2012, compared with 466 million a year ago. During the quarter, the Company repurchased 5.3 million shares, or $960 million, under its previously announced authorization to repurchase up to $2 billion of the Company’s common stock.
Net sales increased 34% to $13.18 billion in the first quarter, compared with $9.86 billion in first quarter 2011. Excluding the $56 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 34% compared with first quarter 2011.
Operating income was $192 million in the first quarter, compared with $322 million in first quarter 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $4 million.
Net income decreased 35% to $130 million in the first quarter, or $0.28 per diluted share, compared with net income of $201 million, or $0.44 per diluted share, in first quarter 2011.
“I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store – you won’t find them anywhere else. They include many of our top bestsellers – in fact, 16 of our top 100 bestselling titles are exclusive to our store,” said Jeff Bezos, founder and CEO of Amazon.com. “If you’re an Amazon Prime member, you don’t even need to buy these titles – you can borrow them for free – with no due dates – from our revolutionary Kindle Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love. Every time you borrow a book, the author gets paid – and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!”
Highlights
- Kindle Fire remains the #1 bestselling, most gifted, and most wished for product across the millions of items available on Amazon.com since launch. In the first quarter, 9 out of 10 of the top sellers on Amazon.com were digital products – Kindle, Kindle books, movies, music and apps.
- Amazon launched Kindle Touch Wi-Fi and Kindle Touch 3G on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es. The full line of Kindle e-ink readers is now available in over 175 countries around the world. Kindle Touch 3G is the most full-featured e-reader with an easy to use touchscreen and the unparalleled convenience of free 3G – no hunting for Wi-Fi spots, simply think of a book and download it. Kindle remains the bestseller on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it and Amazon.es since their launches.
- Amazon introduced a new version of its popular Kindle for iPad app, which is the #5 free iPad app of all time and the #1 free books app on iPad. Millions of customers are using the new Kindle for iPad app, which is optimized for the high resolution display of the newest iPad.
- Amazon announced an In-App Purchasing service, making it easy for Amazon Appstore developers to offer digital content and subscriptions for purchase within apps and games that are available on millions of Kindle Fires and other Android devices. Amazon Appstore’s In-App Purchasing service is simple for developers to integrate and helps monetize their apps and games, while offering customers a seamless and secure 1-Click purchasing experience.
- Amazon.com announced the launch of the Amazon Instant Video app for PlayStation 3 (PS3), making the PS3 system the first video game console system to offer Amazon Instant Video, and allowing PS3 users to stream Prime Instant Videos and rent or buy the latest movies and TV episodes directly from their PS3. Customers can also access Amazon Instant Video and Prime Instant Video from Kindle Fire, Mac or PC, or on a TV using either a compatible connected device such as a Blu-ray player or a Roku or directly on compatible Smart TVs.
- Amazon continued to expand its catalog of title offerings for Prime Instant Video, announcing licensing agreements with Discovery Communications and Viacom. Among the programs added are Discovery Channel’s Dirty Jobs, TLC’s Say Yes To The Dress and Animal Planet’s Whale Wars, as well as thousands of TV episodes from MTV, Comedy Central, Nickelodeon, TV Land, Spike, VH1, BET, CMT and Logo. These deals bring the total number of Prime Instant Videos to more than 17,000 movies and TV episodes from partners such as CBS, Fox, NBCUniversal, Sony, Warner Bros., PBS, Disney-ABC and many more.
- North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.43 billion, up 36% from first quarter 2011.
- International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese, Italian and Spanish sites, were $5.76 billion, up 31% from first quarter 2011. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 32%.
- Worldwide Media sales grew 19% to $4.71 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 19%.
- Worldwide Electronics and Other General Merchandise sales grew 43% to $7.97 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 43%.
- Amazon Web Services (AWS) announced that Amazon DynamoDB – the fastest growing AWS service ever – is now available in both the EU (Ireland) and Asia Pacific (Tokyo) Regions. Amazon DynamoDB is a fully managed NoSQL database service that provides extremely fast and predictable performance with seamless scalability.
- AWS lowered prices for the 19th time in five years by reducing reserved instance prices for Amazon EC2 and Amazon RDS, as well as reducing on-demand pricing for Amazon EC2, Amazon RDS, and Amazon ElastiCache.
- AWS launched AWS Marketplace, an online store that makes it easy for customers to find, compare, and immediately start using the software and services they need to build software systems and products, and run their businesses. With AWS Marketplace, software and SaaS providers with offerings that run in the AWS Cloud can benefit from increased awareness, simplified deployment, and automated billing. AWS Marketplace brings the same simple, trusted, and secure online shopping experience that customers enjoy on Amazon.com to software built for the AWS platform, streamlining the process of doing research and purchasing software.
The following forward-looking statements reflect Amazon.com’s expectations as of April 26, 2012, and exclude financial results of the Kiva Systems, Inc. acquisition which we expect to close in second quarter 2012. 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 2012 Guidance
- Net sales are expected to be between $11.9 billion and $13.3 billion, or to grow between 20% and 34% compared with second quarter 2011.
- Operating income (loss) is expected to be between $(260) million and $40 million, or between 229% decline and 80% decline compared with second quarter 2011.
- This guidance includes approximately $260 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.
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 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. The new latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch is a new addition to the Kindle family with an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch 3G is the top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV episodes, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.
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, and www.amazon.es. 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,
2012
2011
2012
2011
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
$
5,269
$
3,777
$
2,641
$
1,844
OPERATING ACTIVITIES:
Net income
130
201
561
1,054
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
457
202
1,338
652
Stock-based compensation
160
110
605
448
Other operating expense (income), net
46
33
168
112
Losses (gains) on sales of marketable securities, net
(2
)
2
(8
)
1
Other expense (income), net
15
37
(78
)
(36
)
Deferred income taxes
(38
)
15
83
38
Excess tax benefits from stock-based compensation
(40
)
(46
)
(56
)
(219
)
Changes in operating assets and liabilities:
Inventories
747
343
(1,374
)
(997
)
Accounts receivable, net and other
746
359
(479
)
(170
)
Accounts payable
(4,258
)
(2,649
)
1,388
1,641
Accrued expenses and other
(529
)
(183
)
721
697
Additions to unearned revenue
397
210
1,252
709
Amortization of previously unearned revenue
(269
)
(220
)
(1,070
)
(897
)
Net cash provided by (used in) operating activities
(2,438
)
(1,586
)
3,051
3,033
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website development
(386
)
(298
)
(1,899
)
(1,138
)
Acquisitions, net of cash acquired, and other
(50
)
(139
)
(615
)
(473
)
Sales and maturities of marketable securities and other investments
1,738
1,939
6,641
5,318
Purchases of marketable securities and other investments
(852
)
(1,112
)
(5,997
)
(6,135
)
Net cash provided by (used in) investing activities
450
390
(1,870
)
(2,428
)
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation
40
46
56
219
Common stock repurchased
(960
)
-
(1,237
)
-
Proceeds from long-term debt and other
68
89
154
168
Repayments of long-term debt, capital lease, and finance lease obligations
(153
)
(111
)
(483
)
(295
)
Net cash provided by (used in) financing activities
(1,005
)
24
(1,510
)
92
Foreign-currency effect on cash and cash equivalents
12
36
(24
)
100
Net increase (decrease) in cash and cash equivalents
(2,981
)
(1,136
)
(353
)
797
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
2,288
$
2,641
$
2,288
$
2,641
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long term debt
$
6
$
3
$
17
$
12
Cash paid for income taxes (net of refunds)
19
7
45
79
Fixed assets acquired under capital leases
149
181
721
526
Fixed assets acquired under build-to-suit leases
17
69
207
182
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
2012
2011
Net product sales (1)
$
11,249
$
8,698
Net services sales (2)
1,936
1,159
Net sales
13,185
9,857
Operating expenses (3):
Cost of sales
10,027
7,608
Fulfillment
1,295
855
Marketing
480
327
Technology and content
945
579
General and administrative
200
133
Other operating expense (income), net
46
33
Total operating expenses
12,993
9,535
Income from operations
192
322
Interest income
12
15
Interest expense
(21
)
(12
)
Other income (expense), net
(99
)
(18
)
Total non-operating income (expense)
(108
)
(15
)
Income before income taxes
84
307
Provision for income taxes
(43
)
(89
)
Equity-method investment activity, net of tax
89
(17
)
Net income
$
130
$
201
Basic earnings per share
$
0.29
$
0.44
Diluted earnings per share
$
0.28
$
0.44
Weighted average shares used in computation of earnings per share:
Basic
453
451
Diluted
460
459
(1) Represents revenue from the sale of products and related shipping fees and digital content where we are the seller of record.
(2) Represents third-party seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail activities.
(3) Includes stock-based compensation as follows:
Fulfillment
$
37
$
24
Marketing
12
7
Technology and content
85
61
General and administrative
26
18
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
(unaudited)
Three Months Ended
March 31,
2012
2011
Net income
$
130
$
201
Other comprehensive income:
Foreign currency translation adjustments, net of tax of $(38) and $(7)
137
135
Change in unrealized gains on available-for-sale securities, net of tax of $(2) and $(5)
5
(11
)
Total other comprehensive income
142
124
Comprehensive income
$
272
$
325
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
March 31,
2012
2011
North America
Net sales
$
7,427
$
5,465
Segment operating expenses (1)
7,078
5,175
Segment operating income
$
349
$
290
International
Net sales
$
5,758
$
4,392
Segment operating expenses (1)
5,709
4,217
Segment operating income
$
49
$
175
Consolidated
Net sales
$
13,185
$
9,857
Segment operating expenses (1)
12,787
9,392
Segment operating income
398
465
Stock-based compensation
(160
)
(110
)
Other operating income (expense), net
(46
)
(33
)
Income from operations
192
322
Total non-operating income (expense)
(108
)
(15
)
Provision for income taxes
(43
)
(89
)
Equity-method investment activity, net of tax
89
(17
)
Net income
$
130
$
201
Segment Highlights:
Y/Y net sales growth:
North America
36
%
45
%
International
31
31
Consolidated
34
38
Y/Y segment operating income growth (decline):
North America
20
%
6
%
International
(72
)
(25
)
Consolidated
(15
)
(8
)
Net sales mix:
North America
56
%
55
%
International
44
45
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,
2012
2011
North America
Media
$
2,197
$
1,885
Electronics and other general merchandise
4,772
3,303
Other (1)
458
277
Total North America
$
7,427
$
5,465
International
Media
$
2,513
$
2,073
Electronics and other general merchandise
3,203
2,285
Other (1)
42
34
Total International
$
5,758
$
4,392
Consolidated
Media
$
4,710
$
3,958
Electronics and other general merchandise
7,975
5,588
Other (1)
500
311
Total Consolidated
$
13,185
$
9,857
Y/Y Net Sales Growth:
North America:
Media
17
%
18
%
Electronics and other general merchandise
44
63
Other
66
74
Total North America
36
45
International:
Media
21
%
13
%
Electronics and other general merchandise
40
54
Other
24
15
Total International
31
31
Consolidated:
Media
19
%
15
%
Electronics and other general merchandise
43
59
Other
61
65
Total Consolidated
34
38
Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
International:
Media
22
%
9
%
Electronics and other general merchandise
42
49
Other
26
12
Total International
32
27
Consolidated:
Media
19
%
13
%
Electronics and other general merchandise
43
57
Other
61
64
Total Consolidated
34
36
Consolidated Net Sales Mix:
Media
36
%
40
%
Electronics and other general merchandise
60
57
Other
4
3
100
%
100
%
(1) Includes non-retail activities, such as AWS, miscellaneous marketing and promotional activities, co-branded credit card agreements, and other seller sites.
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
March 31,
December 31,
2012
2011
ASSETS
(unaudited)
Current assets:
Cash and cash equivalents
$
2,288
$
5,269
Marketable securities
3,427
4,307
Inventories
4,255
4,992
Accounts receivable, net and other
1,813
2,571
Deferred tax assets
371
351
Total current assets
12,154
17,490
Fixed assets, net
4,653
4,417
Deferred tax assets
27
28
Goodwill
1,970
1,955
Other assets
1,535
1,388
Total assets
$
20,339
$
25,278
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
6,886
$
11,145
Accrued expenses and other
3,602
3,751
Total current liabilities
10,488
14,896
Long-term liabilities
2,580
2,625
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 — 474 and 473
Outstanding shares — 450 and 455
5
5
Treasury stock, at cost
(1,837
)
(877
)
Additional paid-in capital
7,192
6,990
Accumulated other comprehensive loss
(174
)
(316
)
Retained earnings
2,085
1,955
Total stockholders’ equity
7,271
7,757
Total liabilities and stockholders’ equity
$
20,339
$
25,278
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Y/Y %
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Change
Cash Flows and Shares
Operating cash flow — trailing twelve months (TTM)
$
3,033
$
3,205
$
3,114
$
3,903
$
3,051
1
%
Purchases of fixed assets (incl. internal-use software & website development) — TTM
$
1,138
$
1,374
$
1,589
$
1,811
$
1,899
67
%
Free cash flow (operating cash flow less purchases of fixed assets) — TTM
$
1,895
$
1,831
$
1,525
$
2,092
$
1,152
(39
%)
Free cash flow — TTM Y/Y growth
(18
%)
(8
%)
(17
%)
(17
%)
(39
%)
N/A
Invested capital (1)
$
7,931
$
8,551
$
9,147
$
9,680
$
10,006
N/A
Return on invested capital (2)
24
%
21
%
17
%
22
%
12
%
N/A
Common shares and stock-based awards outstanding
466
468
469
468
464
-
Common shares outstanding
452
454
455
455
450
-
Stock-based awards outstanding
14
15
14
14
13
(4
%)
Stock-based awards outstanding — % of common shares outstanding
3.1
%
3.2
%
3.2
%
3.0
%
2.9
%
N/A
Results of Operations
Worldwide (WW) net sales
$
9,857
$
9,913
$
10,876
$
17,431
$
13,185
34
%
WW net sales — Y/Y growth, excluding F/X
36
%
44
%
39
%
34
%
34
%
N/A
WW net sales — TTM
$
36,931
$
40,278
$
43,594
$
48,077
$
51,404
39
%
WW net sales — TTM Y/Y growth, excluding F/X
39
%
39
%
39
%
37
%
37
%
N/A
Operating income
$
322
$
201
$
79
$
260
$
192
(40
%)
Operating income — Y/Y growth, excluding F/X
(20
%)
(36
%)
(77
%)
(48
%)
(38
%)
N/A
Operating margin — % of WW net sales
3.3
%
2.0
%
0.7
%
1.5
%
1.5
%
N/A
Operating income — TTM
$
1,334
$
1,265
$
1,076
$
862
$
732
(45
%)
Operating income — TTM Y/Y growth, excluding F/X
7
%
(7
%)
(25
%)
(44
%)
(50
%)
N/A
Operating margin — TTM % of WW net sales
3.6
%
3.1
%
2.5
%
1.8
%
1.4
%
N/A
Net income
$
201
$
191
$
63
$
177
$
130
(35
%)
Net income per diluted share
$
0.44
$
0.41
$
0.14
$
0.38
$
0.28
(35
%)
Net income — TTM
$
1,054
$
1,038
$
871
$
631
$
561
(47
%)
Net income per diluted share — TTM
$
2.30
$
2.26
$
1.89
$
1.37
$
1.22
(47
%)
Segments
North America Segment:
Net sales
$
5,465
$
5,406
$
5,932
$
9,902
$
7,427
36
%
Net sales — Y/Y growth, excluding F/X
45
%
50
%
44
%
37
%
36
%
N/A
Net sales — TTM
$
20,392
$
22,208
$
24,014
$
26,705
$
28,667
41
%
Operating income
$
290
$
214
$
144
$
285
$
349
20
%
Operating margin — % of North America net sales
5.3
%
4.0
%
2.4
%
2.9
%
4.7
%
N/A
Operating income — TTM
$
972
$
986
$
943
$
933
$
991
2
%
Operating income — TTM Y/Y growth, excluding F/X
17
%
9
%
1
%
(2
%)
2
%
N/A
Operating margin — TTM % of North America net sales
4.8
%
4.4
%
3.9
%
3.5
%
3.5
%
N/A
International Segment:
Net sales
$
4,392
$
4,507
$
4,944
$
7,529
$
5,758
31
%
Net sales — Y/Y growth, excluding F/X
27
%
36
%
33
%
29
%
32
%
N/A
Net sales — TTM
$
16,539
$
18,070
$
19,580
$
21,372
$
22,737
37
%
Net sales — TTM % of WW net sales
45
%
45
%
45
%
44
%
44
%
N/A
Operating income
$
175
$
172
$
116
$
177
$
49
(72
%)
Operating margin — % of International net sales
4.0
%
3.8
%
2.4
%
2.4
%
0.9
%
N/A
Operating income — TTM
$
922
$
888
$
790
$
640
$
515
(44
%)
Operating income — TTM Y/Y growth, excluding F/X
4
%
(7
%)
(23
%)
(41
%)
(49
%)
N/A
Operating margin — TTM % of International net sales
5.6
%
4.9
%
4.0
%
3.0
%
2.3
%
N/A
Consolidated Segments:
Operating expenses (3)
$
9,392
$
9,527
$
10,616
$
16,969
$
12,787
36
%
Operating expenses — TTM (3)
$
35,037
$
38,404
$
41,860
$
46,504
$
49,899
42
%
Operating income
$
465
$
386
$
260
$
462
$
398
(15
%)
Operating margin — % of Consolidated sales
4.7
%
3.9
%
2.4
%
2.7
%
3.0
%
N/A
Operating income — TTM
$
1,894
$
1,874
$
1,734
$
1,573
$
1,505
(21
%)
Operating income — TTM Y/Y growth, excluding F/X
10
%
1
%
(11
%)
(21
%)
(22
%)
N/A
Operating margin — TTM % of Consolidated net sales
5.1
%
4.7
%
4.0
%
3.3
%
2.9
%
N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Y/Y %
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Q1 2012
Change
Supplemental
Supplemental North America Segment Net Sales:
Media
$
1,885
$
1,585
$
1,927
$
2,562
$
2,197
17
%
Media — Y/Y growth, excluding F/X
18
%
19
%
21
%
8
%
17
%
N/A
Media — TTM
$
7,170
$
7,430
$
7,767
$
7,959
$
8,270
15
%
Electronics and other general merchandise
$
3,303
$
3,496
$
3,635
$
6,881
$
4,772
44
%
Electronics and other general merchandise — Y/Y growth, excluding F/X
63
%
67
%
56
%
51
%
44
%
N/A
Electronics and other general merchandise — TTM
$
12,277
$
13,683
$
14,992
$
17,315
$
18,784
53
%
Electronics and other general merchandise — TTM % of North America net sales
60
%
62
%
62
%
65
%
66
%
N/A
Other
$
277
$
325
$
370
$
459
$
458
66
%
Other — TTM
$
945
$
1,095
$
1,255
$
1,431
$
1,613
71
%
Supplemental International Segment Net Sales:
Media
$
2,073
$
2,075
$
2,226
$
3,447
$
2,513
21
%
Media — Y/Y growth, excluding F/X
9
%
20
%
17
%
18
%
22
%
N/A
Media — TTM
$
8,247
$
8,772
$
9,238
$
9,820
$
10,261
24
%
Electronics and other general merchandise
$
2,285
$
2,398
$
2,681
$
4,032
$
3,203
40
%
Electronics and other general merchandise — Y/Y growth, excluding F/X
49
%
53
%
51
%
41
%
42
%
N/A
Electronics and other general merchandise — TTM
$
8,162
$
9,162
$
10,199
$
11,397
$
12,314
51
%
Electronics and other general merchandise — TTM % of International net sales
49
%
51
%
52
%
53
%
54
%
N/A
Other
$
34
$
34
$
37
$
50
$
42
24
%
Other — TTM
$
130
$
136
$
143
$
155
$
162
26
%
Supplemental Worldwide Net Sales:
Media
$
3,958
$
3,660
$
4,153
$
6,009
$
4,710
19
%
Media — Y/Y growth, excluding F/X
13
%
20
%
19
%
14
%
19
%
N/A
Media — TTM
$
15,417
$
16,202
$
17,005
$
17,779
$
18,531
20
%
Electronics and other general merchandise
$
5,588
$
5,894
$
6,316
$
10,913
$
7,975
43
%
Electronics and other general merchandise — Y/Y growth, excluding F/X
57
%
62
%
54
%
47
%
43
%
N/A
Electronics and other general merchandise — TTM
$
20,439
$
22,845
$
25,191
$
28,712
$
31,098
52
%
Electronics and other general merchandise — TTM % of WW net sales
55
%
57
%
58
%
60
%
60
%
N/A
Other
$
311
$
359
$
407
$
509
$
500
61
%
Other — TTM
$
1,075
$
1,231
$
1,398
$
1,586
$
1,775
65
%
Balance Sheet
Cash and marketable securities
$
6,881
$
6,355
$
6,326
$
9,576
$
5,715
(17
%)
Inventory, net — ending
$
2,888
$
3,229
$
3,770
$
4,992
$
4,255
47
%
Inventory turnover, average — TTM
11.6
11.3
10.8
10.3
10.4
(10
%)
Fixed assets, net
$
2,902
$
3,470
$
3,999
$
4,417
$
4,653
60
%
Accounts payable — ending
$
5,540
$
5,721
$
6,552
$
11,145
$
6,886
24
%
Accounts payable days — ending
66
69
72
74
62
(5
%)
Other
WW shipping revenue
$
330
$
331
$
360
$
531
$
461
40
%
WW shipping costs
$
786
$
820
$
918
$
1,466
$
1,129
44
%
WW net shipping costs
$
456
$
489
$
558
$
935
$
668
47
%
WW net shipping costs — % of WW net sales
4.6
%
4.9
%
5.1
%
5.4
%
5.1
%
N/A
Employees (full-time and part-time; excludes contractors & temporary personnel)
37,900
43,200
51,300
56,200
65,600
73
%
(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 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.
- 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.
- 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 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.
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