Thursday, April 22, 2010
AMZN earnings 2010 - amazon earnings report transcript April 2010- NASDAQ:AMZN
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amzn earnings 2010 - amazon earnings report transcript April 2010:
Traders do not seem to like the outlook of Amazon(NASDAQ:AMZN) compared to the past. The stock is down in Nasdaq After Hours Trading session. It would be interesting to see how Nasdaq 100 will deal with not good news for two major stocks (Microsoft and Amazon). The article below contains numbers.
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SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2010.
Operating cash flow was $2.78 billion for the trailing twelve months, compared with $1.76billion for the trailing twelve months ended March 31, 2009. Free cash flow increased 62% to $2.32 billion for the trailing twelve months, compared with $1.43 billion for the trailing twelve months ended March 31, 2009.
Common shares outstanding plus shares underlying stock-based awards totaled 463 million on March 31, 2010, compared with 447 million a year ago.
Net sales increased 46% to $7.13 billion in the first quarter, compared with $4.89 billion in first quarter 2009. Excluding the $185 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with first quarter 2009.
Operating income increased 62% to $394 million in the first quarter, compared with $244 million in first quarter 2009. Excluding the $15 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 56% compared with first quarter 2009.
Net income increased 68% to $299 million in the first quarter, or $0.66 per diluted share, compared with net income of $177 million, or $0.41 per diluted share, in first quarter 2009.
“We remain heads-down focused on customers,” said Jeff Bezos, founder and CEO of Amazon.com. “Amazon Prime has just celebrated its fifth anniversary, adoption of Amazon Web Services continues to accelerate, Kindle remains our #1 bestselling product, and earlier this week, Kindle selection reached 500,000 titles.”
Highlights
* North America segment sales, representing the Company’s U.S. and Canadian sites, were $3.78 billion, up 47% from first quarter 2009.
* International segment sales, representing the Company’s U.K., German, Japanese, French and Chinese sites, were $3.35 billion, up 45% from first quarter 2009. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 37%.
* Worldwide Media sales grew 26% to $3.43 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 22%.
* Worldwide Electronics & Other General Merchandise sales grew 72% to $3.51 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 68%.
* Amazon Prime, a program that allows customers to take advantage of unlimited expedited shipping for a low annual fee, celebrated its fifth anniversary. In the last five years, we have introduced Amazon Prime to customers in the U.S., Japan, the United Kingdom, Germany, and France.
* Amazon WebStore introduced new capabilities and a self-service toolset that improve flexibility and control over a Seller’s site design, branding, and catalog offering. Amazon WebStore incorporates Amazon’s expertise, and makes building and operating an eCommerce business fast, easy and low cost.
* Amazon Web Services (AWS) introduced Amazon Simple Notification Service (Amazon SNS), a new offering that provides developers with a highly scalable, flexible, and cost-effective capability to publish messages from an application and immediately deliver them to subscribers or other applications.
* During the quarter, AWS lowered pricing for outbound data transfer by up to 40%. By aggregating total Data Transfer Out usage across multiple services, customers can reach higher tiers and lower pricing more quickly.
* AWS announced the availability of Reserved Instances with Windows for Amazon EC2. Customers running Windows Server can choose to pay a low, upfront fee to guarantee the right to run a compute instance at a significantly discounted hourly price.
* The Company announced that authors and publishers around the world can now use the self-service Kindle Digital Text Platform (DTP) to upload and make available their books in Spanish, Portuguese and Italian to customers worldwide in the Kindle Store. Authors and publishers already have the ability to upload and make available their books in English, French and German.
* The U.S. Kindle Store now has more than 500,000 books, including 100 of 111 New York Times Bestsellers, more than 9,000 blogs, and more than 175 top U.S. and International newspapers and magazines, including: The New York Times, Le Monde, USA Today, The Times (U.K.), The Economist, Fortune, Newsweek, and Time.
* Kindle, the #1 bestselling product on Amazon, is available for immediate shipment for $259 and comes with 3G wireless with no annual contract or monthly fees. Kindle weighs only 10.2 ounces and reads like real paper without glare – even in bright sunlight.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of April 22, 2010. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.
Second Quarter 2010 Guidance
* Net sales are expected to be between $6.1 billion and $6.7 billion, or to grow between 31% and 44% compared with second quarter 2009.
* Operating income is expected to be between $220 million and $320 million, or to grow between 39% and 102% compared with second quarter 2009. The second quarter 2009 results include the impact of our settlement with Toysrus.com LLC for $51 million, substantially all of which was expensed during the quarter.
* This guidance includes approximately $130 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.
A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the 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 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, including its most recent Annual Report on Form 10-K and subsequent filings.
About Amazon.com
Amazon.com, Inc. (NASDAQ:AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers 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 and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.
Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.amazon.cn. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2010 2009 2010 2009
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 3,444
$ 2,769 $ 1,701 $ 1,496
OPERATING ACTIVITIES:
Net income 299 177 1,024 679
Adjustments to reconcile net income to net cash from operating activities:
Depreciation of fixed assets, including internal-use software and website development, and other amortization
119 87 411 309
Stock-based compensation 87 67 360 288
Other operating expense (income), net 26 11 118 (19 )
Losses (gains) on sales of marketable securities, net - (2 ) (2 ) (1 )
Other expense (income), net (6 ) 2 (23 ) (30 )
Deferred income taxes (20 ) - 63 14
Excess tax benefits from stock-based compensation (86 ) (49 ) (141 ) (145 )
Changes in operating assets and liabilities:
Inventories 321 107 (317 ) (273 )
Accounts receivable, net and other 454 167 (195 ) (190 )
Accounts payable (1,892 ) (1,129 ) 1,096 686
Accrued expenses and other (361 ) (122 ) 60 249
Additions to unearned revenue 188 206 1,036 576
Amortization of previously unearned revenue (227 ) (107 ) (710 ) (386 )
Net cash provided by (used in) operating activities (1,098 ) (585 ) 2,780 1,757
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website development
(140 ) (55 ) (458 ) (326 )
Acquisitions, net of cash acquired, and other (19 ) (15 ) (43 ) (155 )
Sales and maturities of marketable securities and other investments 872 314 2,524 1,348
Purchases of marketable securities and other investments (1,255 ) (391 ) (4,755 ) (1,686 )
Net cash provided by (used in) investing activities (542 ) (147 ) (2,732 ) (819 )
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation 86 49 141 145
Common stock repurchased - - - (100 )
Proceeds from long-term debt and other 62 3 124 48
Repayments of long-term debt and capital lease obligations (61 ) (343 ) (168 ) (673 )
Net cash provided by (used in) financing activities 87 (291 ) 97 (580 )
Foreign-currency effect on cash and cash equivalents (47 ) (45 ) (2 ) (153 )
Net increase (decrease) in cash and cash equivalents (1,600 ) (1,068 ) 143 205
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,844 $ 1,701 $ 1,844 $ 1,701
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
2010 2009
Net sales $ 7,131 $ 4,889
Operating expenses (1):
Cost of sales 5,501 3,741
Fulfillment 546 422
Marketing 201 128
Technology and content 366 275
General and administrative 97 68
Other operating expense (income), net 26 11
Total operating expenses 6,737 4,645
Income from operations 394 244
Interest income 11 12
Interest expense (7 ) (12 )
Other income (expense), net 3 4
Total non-operating income (expense) 7 4
Income before income taxes 401 248
Provision for income taxes (100 ) (69 )
Equity-method investment activity, net of tax (2 ) (2 )
Net income $ 299 $ 177
Basic earnings per share $ 0.67 $ 0.41
Diluted earnings per share $ 0.66 $ 0.41
Weighted average shares used in computation of earnings per share:
Basic 445 429
Diluted 454 437
__________________________
(1) Includes stock-based compensation as follows:
Fulfillment $ 18 $ 15
Marketing 5 4
Technology and content 47 36
General and administrative 17 12
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
March 31,
2010 2009
North America
Net sales $ 3,780 $ 2,578
Operating expenses:
Cost of sales 2,761 1,884
Direct segment operating expenses (1) 746 544
Segment operating income $ 273 $ 150
International
Net sales $ 3,351 $ 2,311
Operating expenses:
Cost of sales 2,740 1,857
Direct segment operating expenses (1) 377 282
Segment operating income $ 234 $ 172
Consolidated
Net sales $ 7,131 $ 4,889
Operating expenses:
Cost of sales 5,501 3,741
Direct segment operating expenses 1,123 826
Segment operating income 507 322
Stock-based compensation (87 ) (67 )
Other operating income (expense), net (26 ) (11 )
Income from operations 394 244
Total non-operating income (expense), net 7 4
Provision for income taxes (100 ) (69 )
Equity-method investment activity, net of tax (2 ) (2 )
Net income $ 299 $ 177
Segment Highlights:
Y/Y net sales growth:
North America 47 % 21 %
International 45 15
Consolidated 46 18
Y/Y segment operating income growth:
North America 81 % 15 %
International 37 34
Consolidated 58 25
Net sales mix:
North America 53 % 53 %
International 47 47
__________________________
(1) A significant majority of our costs for "Technology and content" are incurred in the United States and most of these costs are allocated to our North America segment.
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
Three Months Ended
March 31,
2010 2009
North America
Media $ 1,597 $ 1,305
Electronics and other general merchandise 2,024 1,172
Other 159 101
Total North America 3,780 2,578
International
Media 1,833 1,418
Electronics and other general merchandise 1,489 874
Other 29 19
Total International 3,351 2,311
Consolidated
Media 3,430 2,723
Electronics and other general merchandise 3,513 2,046
Other 188 120
Total Consolidated $ 7,131 $ 4,889
Y/Y Net Sales Growth:
North America:
Media 22 % 8 %
Electronics and other general merchandise 73 42
Other 57 7
Total North America 47 21
International:
Media 29 % 6 %
Electronics and other general merchandise 70 34
Other 57 14
Total International 45 15
Consolidated:
Media 26 % 7 %
Electronics and other general merchandise 72 38
Other 57 8
Total Consolidated 46 18
Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
International:
Media 23 % 17 %
Electronics and other general merchandise 61 50
Other 47 40
Total International 37 28
Consolidated:
Media 22 % 13 %
Electronics and other general merchandise 68 46
Other 56 11
Total Consolidated 42 25
Consolidated Net Sales Mix:
Media 48 % 56 %
Electronics and other general merchandise 49 42
Other 3 2
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
March 31, December 31,
2010 2009
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 1,844 $ 3,444
Marketable securities 3,219 2,922
Inventories 1,820 2,171
Accounts receivable, net and other 815 988
Deferred tax assets 266 272
Total current assets 7,964 9,797
Fixed assets, net 1,436 1,290
Deferred tax assets 16 18
Goodwill 1,234 1,234
Other assets 1,392 1,474
Total assets $ 12,042 $ 13,813
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,619 $ 5,605
Accrued expenses and other 1,574 1,759
Total current liabilities 5,193 7,364
Long-term debt 131 109
Other long-term liabilities 1,100 1,083
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value:
Authorized shares -- 500
Issued and outstanding shares -- none - -
Common stock, $0.01 par value:
Authorized shares -- 5,000
Issued shares -- 462 and 461
Outstanding shares -- 446 and 444 5 5
Treasury stock, at cost (600 ) (600 )
Additional paid-in capital 5,887 5,736
Accumulated other comprehensive loss (145 ) (56 )
Retained earnings 471 172
Total stockholders' equity 5,618 5,257
Total liabilities and stockholders' equity $ 12,042 $ 13,813
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Y/Y %
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) $ 1,757 $ 1,878 $ 2,253 $ 3,293 $ 2,780 58 %
Purchases of fixed assets (incl. internal-use software & website development) -- TTM $ 326 $ 336 $ 337 $ 373 $ 458 40 %
Free cash flow (operating cash flow less purchases of fixed assets) -- TTM $ 1,431 $ 1,542 $ 1,916 $ 2,920 $ 2,322 62 %
Free cash flow -- TTM Y/Y growth 82 % 89 % 98 % 114 % 62 % N/A
Invested capital (1) $ 3,501 $ 3,666 $ 3,847 $ 4,449 $ 5,104 N/A
Return on invested capital (2) 41 % 42 % 50 % 66 % 45 % N/A
Common shares and stock-based awards outstanding 447 451 451 461 463 4 %
Common shares outstanding 429 432 433 444 446 4 %
Stock-based awards outstanding 17 19 18 17 18 4 %
Stock-based awards outstanding -- % of common shares outstanding 4.0 % 4.4 % 4.2 % 3.8 % 4.0 % N/A
Results of Operations
Worldwide (WW) net sales $ 4,889 $ 4,651 $ 5,449 $ 9,519 $ 7,131 46 %
WW net sales -- Y/Y growth, excluding F/X 25 % 20 % 29 % 37 % 42 % N/A
WW net sales -- TTM $ 19,921 $ 20,509 $ 21,693 $ 24,509 $ 26,750 34 %
WW net sales -- TTM Y/Y growth, excluding F/X 27 % 24 % 24 % 29 % 33 % N/A
Operating income (3) $ 244 $ 159 $ 251 $ 476 $ 394 62 %
Operating income -- Y/Y growth (decrease), excluding F/X 39 % (13 )% 69 % 63 % 56 % N/A
Operating margin -- % of WW net sales 5.0 % 3.4 % 4.6 % 5.0 % 5.5 % N/A
Operating income -- TTM (3) (4) $ 887 $ 829 $ 925 $ 1,129 $ 1,279 44 %
Operating income -- TTM Y/Y growth, excluding F/X 30 % 13 % 22 % 39 % 44 % N/A
Operating margin -- TTM % of WW net sales 4.5 % 4.0 % 4.3 % 4.6 % 4.8 % N/A
Net income (3) $ 177 $ 142 $ 199 $ 384 $ 299 68 %
Net income per diluted share $ 0.41 $ 0.32 $ 0.45 $ 0.85 $ 0.66 62 %
Net income -- TTM (3) (4) $ 679 $ 663 $ 743 $ 902 $ 1,024 51 %
Net income per diluted share -- TTM $ 1.56 $ 1.52 $ 1.69 $ 2.04 $ 2.30 47 %
Segments
North America Segment:
Net sales $ 2,578 $ 2,451 $ 2,843 $ 4,956 $ 3,780 47 %
Net sales -- Y/Y growth, excluding F/X 22 % 13 % 24 % 36 % 46 % N/A
Net sales -- TTM $ 10,681 $ 10,963 $ 11,503 $ 12,828 $ 14,030 31 %
Operating income $ 150 $ 125 $ 156 $ 278 $ 273 81 %
Operating margin -- % of North America net sales 5.8 % 5.1 % 5.5 % 5.6 % 7.2 % N/A
Operating income -- TTM $ 464 $ 494 $ 562 $ 709 $ 832 79 %
Operating income -- TTM Y/Y growth, excluding F/X 5 % 8 % 20 % 59 % 79 % N/A
Operating margin -- TTM % of North America net sales 4.4 % 4.5 % 4.9 % 5.5 % 5.9 % N/A
International Segment:
Net sales $ 2,311 $ 2,200 $ 2,606 $ 4,563 $ 3,351 45 %
Net sales -- Y/Y growth, excluding F/X 28 % 28 % 35 % 37 % 37 % N/A
Net sales -- TTM $ 9,240 $ 9,546 $ 10,190 $ 11,681 $ 12,720 38 %
Net sales -- TTM % of WW net sales 46 % 47 % 47 % 48 % 48 % N/A
Operating income $ 172 $ 179 $ 194 $ 319 $ 234 37 %
Operating margin -- % of International net sales 7.4 % 8.1 % 7.4 % 7.0 % 7.0 % N/A
Operating income -- TTM $ 692 $ 722 $ 773 $ 863 $ 925 34 %
Operating income -- TTM Y/Y growth, excluding F/X 52 % 49 % 49 % 41 % 33 % N/A
Operating margin -- TTM % of International net sales 7.5 % 7.6 % 7.6 % 7.4 % 7.3 % N/A
Consolidated Segments:
Operating expenses (5) $ 4,567 $ 4,347 $ 5,099 $ 8,922 $ 6,624 45 %
Operating expenses -- TTM (5) $ 18,765 $ 19,293 $ 20,358 $ 22,937 $ 24,993 33 %
Operating income $ 322 $ 304 $ 350 $ 597 $ 507 58 %
Operating margin -- % of consolidated sales 6.6 % 6.5 % 6.4 % 6.3 % 7.1 % N/A
Operating income -- TTM $ 1,156 $ 1,216 $ 1,335 $ 1,572 $ 1,757 52 %
Operating income -- TTM Y/Y growth, excluding F/X 28 % 29 % 35 % 48 % 51 % N/A
Operating margin -- TTM % of consolidated net sales 5.8 % 5.9 % 6.2 % 6.4 % 6.6 % N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Y/Y %
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Change
Supplemental
Supplemental North America Segment Net Sales:
Media $ 1,305 $ 1,148 $ 1,412 $ 2,099 $ 1,597 22 %
Media -- Y/Y growth, excluding F/X 9 % 0 % 14 % 19 % 22 % N/A
Media -- TTM $ 5,450 $ 5,449 $ 5,616 $ 5,964 $ 6,255 15 %
Electronics and other general merchandise $ 1,172 $ 1,187 $ 1,293 $ 2,662 $ 2,024 73 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 42 % 29 % 36 % 54 % 73 % N/A
Electronics and other general merchandise -- TTM $ 4,776 $ 5,043 $ 5,385 $ 6,314 $ 7,166 50 %
Electronics and other general merchandise -- TTM % of North America net sales 45 % 46 % 47 % 49 % 51 % N/A
Other $ 101 $ 116 $ 138 $ 195 $ 159 57 %
Other -- TTM $ 455 $ 471 $ 502 $ 550 $ 608 34 %
Supplemental International Segment Net Sales:
Media $ 1,418 $ 1,294 $ 1,517 $ 2,580 $ 1,833 29 %
Media -- Y/Y growth, excluding F/X 17 % 12 % 22 % 26 % 23 % N/A
Media -- TTM $ 5,814 $ 5,849 $ 6,118 $ 6,810 $ 7,225 24 %
Electronics and other general merchandise $ 874 $ 882 $ 1,064 $ 1,947 $ 1,489 70 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 50 % 60 % 58 % 56 % 61 % N/A
Electronics and other general merchandise -- TTM $ 3,330 $ 3,603 $ 3,977 $ 4,768 $ 5,382 62 %
Electronics and other general merchandise -- TTM % of International net sales 36 % 38 % 39 % 41 % 42 % N/A
Other $ 19 $ 24 $ 25 $ 36 $ 29 57 %
Other -- TTM $ 96 $ 94 $ 95 $ 103 $ 114 18 %
Supplemental Worldwide Net Sales:
Media $ 2,723 $ 2,442 $ 2,929 $ 4,679 $ 3,430 26 %
Media -- Y/Y growth, excluding F/X 13 % 7 % 18 % 23 % 22 % N/A
Media -- TTM $ 11,264 $ 11,298 $ 11,734 $ 12,774 $ 13,480 20 %
Electronics and other general merchandise $ 2,046 $ 2,069 $ 2,357 $ 4,609 $ 3,513 72 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 46 % 41 % 45 % 54 % 68 % N/A
Electronics and other general merchandise -- TTM $ 8,106 $ 8,646 $ 9,362 $ 11,082 $ 12,548 55 %
Electronics and other general merchandise -- TTM % of WW net sales 41 % 42 % 43 % 45 % 47 % N/A
Other $ 120 $ 140 $ 163 $ 231 $ 188 57 %
Other -- TTM $ 551 $ 565 $ 597 $ 653 $ 722 31 %
Balance Sheet
Cash and marketable securities (6) $ 3,025 $ 3,504 $ 4,304 $ 6,672 $ 5,381 78 %
Inventory, net -- ending $ 1,266 $ 1,325 $ 1,617 $ 2,171 $ 1,820 44 %
Inventory turnover, average -- TTM 12.5 12.4 12.1 12.2 12.6 1 %
Fixed assets, net $ 889 $ 981 $ 1,086 $ 1,290 $ 1,436 61 %
Accounts payable -- ending $ 2,380 $ 2,508 $ 3,354 $ 5,605 $ 3,619 52 %
Accounts payable days -- ending 57 65 72 68 59 3 %
Other
WW shipping revenue $ 190 $ 185 $ 208 $ 341 $ 248 30 %
WW shipping costs $ 358 $ 332 $ 388 $ 696 $ 518 45 %
WW net shipping costs $ 168 $ 147 $ 180 $ 355 $ 270 61 %
WW net shipping costs -- % of WW net sales 3.4 % 3.1 % 3.3 % 3.7 % 3.8 % N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 20,600 21,000 21,700 24,300 26,100 27 %
(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
(2) TTM Free Cash Flow divided by Invested Capital.
(3) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.
(4) Q2 2008 includes a $53 million non-cash gain recognized on the sale of our European DVD rental assets.
(5) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.
(6) Includes restricted cash, classified within "Other Assets" on our consolidated balance sheet, of: $295 million Q1 2009, $292 million Q2 2009, $303 million Q3 2009, $306 million in Q4 2009 and $318 million in Q1 2010.
Amazon.com, Inc.
Certain Definitions
Customer Accounts
* References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer’s initial order is shipped or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.
Seller Accounts
* References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.
Registered Developers
* References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.
Units
* References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon.com domains worldwide – such as www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca and www.amazon.cn, as well as Amazon.com-owned items sold through non-Amazon.com domains. Units sold do not include units associated with certain of our acquisitions or Amazon.com gift certificates.
Source: Amazon.com, Inc.
Traders do not seem to like the outlook of Amazon(NASDAQ:AMZN) compared to the past. The stock is down in Nasdaq After Hours Trading session. It would be interesting to see how Nasdaq 100 will deal with not good news for two major stocks (Microsoft and Amazon). The article below contains numbers.
Please pay attention to these items:
1. This blog contains hundreds of articles, but are available to members only. If you can not locate the articles, it means that you need to become a member to locate them. Among the information we share are results from our proprietary models that determine major market turning points. An example of the most notable turning points that were timed with great accuracy live on this site, is the stock market bottom of March 06, 2009. Here is the link to that post of that day: http://financialtraders.blogspot.com/2009/03/dow-spy-stock-market-bottom-march-6.html
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SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2010.
Operating cash flow was $2.78 billion for the trailing twelve months, compared with $1.76billion for the trailing twelve months ended March 31, 2009. Free cash flow increased 62% to $2.32 billion for the trailing twelve months, compared with $1.43 billion for the trailing twelve months ended March 31, 2009.
Common shares outstanding plus shares underlying stock-based awards totaled 463 million on March 31, 2010, compared with 447 million a year ago.
Net sales increased 46% to $7.13 billion in the first quarter, compared with $4.89 billion in first quarter 2009. Excluding the $185 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 42% compared with first quarter 2009.
Operating income increased 62% to $394 million in the first quarter, compared with $244 million in first quarter 2009. Excluding the $15 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 56% compared with first quarter 2009.
Net income increased 68% to $299 million in the first quarter, or $0.66 per diluted share, compared with net income of $177 million, or $0.41 per diluted share, in first quarter 2009.
“We remain heads-down focused on customers,” said Jeff Bezos, founder and CEO of Amazon.com. “Amazon Prime has just celebrated its fifth anniversary, adoption of Amazon Web Services continues to accelerate, Kindle remains our #1 bestselling product, and earlier this week, Kindle selection reached 500,000 titles.”
Highlights
* North America segment sales, representing the Company’s U.S. and Canadian sites, were $3.78 billion, up 47% from first quarter 2009.
* International segment sales, representing the Company’s U.K., German, Japanese, French and Chinese sites, were $3.35 billion, up 45% from first quarter 2009. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 37%.
* Worldwide Media sales grew 26% to $3.43 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 22%.
* Worldwide Electronics & Other General Merchandise sales grew 72% to $3.51 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 68%.
* Amazon Prime, a program that allows customers to take advantage of unlimited expedited shipping for a low annual fee, celebrated its fifth anniversary. In the last five years, we have introduced Amazon Prime to customers in the U.S., Japan, the United Kingdom, Germany, and France.
* Amazon WebStore introduced new capabilities and a self-service toolset that improve flexibility and control over a Seller’s site design, branding, and catalog offering. Amazon WebStore incorporates Amazon’s expertise, and makes building and operating an eCommerce business fast, easy and low cost.
* Amazon Web Services (AWS) introduced Amazon Simple Notification Service (Amazon SNS), a new offering that provides developers with a highly scalable, flexible, and cost-effective capability to publish messages from an application and immediately deliver them to subscribers or other applications.
* During the quarter, AWS lowered pricing for outbound data transfer by up to 40%. By aggregating total Data Transfer Out usage across multiple services, customers can reach higher tiers and lower pricing more quickly.
* AWS announced the availability of Reserved Instances with Windows for Amazon EC2. Customers running Windows Server can choose to pay a low, upfront fee to guarantee the right to run a compute instance at a significantly discounted hourly price.
* The Company announced that authors and publishers around the world can now use the self-service Kindle Digital Text Platform (DTP) to upload and make available their books in Spanish, Portuguese and Italian to customers worldwide in the Kindle Store. Authors and publishers already have the ability to upload and make available their books in English, French and German.
* The U.S. Kindle Store now has more than 500,000 books, including 100 of 111 New York Times Bestsellers, more than 9,000 blogs, and more than 175 top U.S. and International newspapers and magazines, including: The New York Times, Le Monde, USA Today, The Times (U.K.), The Economist, Fortune, Newsweek, and Time.
* Kindle, the #1 bestselling product on Amazon, is available for immediate shipment for $259 and comes with 3G wireless with no annual contract or monthly fees. Kindle weighs only 10.2 ounces and reads like real paper without glare – even in bright sunlight.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of April 22, 2010. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.
Second Quarter 2010 Guidance
* Net sales are expected to be between $6.1 billion and $6.7 billion, or to grow between 31% and 44% compared with second quarter 2009.
* Operating income is expected to be between $220 million and $320 million, or to grow between 39% and 102% compared with second quarter 2009. The second quarter 2009 results include the impact of our settlement with Toysrus.com LLC for $51 million, substantially all of which was expensed during the quarter.
* This guidance includes approximately $130 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.
A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the 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 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, including its most recent Annual Report on Form 10-K and subsequent filings.
About Amazon.com
Amazon.com, Inc. (NASDAQ:AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers 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 and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.
Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, and www.amazon.cn. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)
Three Months Ended Twelve Months Ended
March 31, March 31,
2010 2009 2010 2009
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 3,444
$ 2,769 $ 1,701 $ 1,496
OPERATING ACTIVITIES:
Net income 299 177 1,024 679
Adjustments to reconcile net income to net cash from operating activities:
Depreciation of fixed assets, including internal-use software and website development, and other amortization
119 87 411 309
Stock-based compensation 87 67 360 288
Other operating expense (income), net 26 11 118 (19 )
Losses (gains) on sales of marketable securities, net - (2 ) (2 ) (1 )
Other expense (income), net (6 ) 2 (23 ) (30 )
Deferred income taxes (20 ) - 63 14
Excess tax benefits from stock-based compensation (86 ) (49 ) (141 ) (145 )
Changes in operating assets and liabilities:
Inventories 321 107 (317 ) (273 )
Accounts receivable, net and other 454 167 (195 ) (190 )
Accounts payable (1,892 ) (1,129 ) 1,096 686
Accrued expenses and other (361 ) (122 ) 60 249
Additions to unearned revenue 188 206 1,036 576
Amortization of previously unearned revenue (227 ) (107 ) (710 ) (386 )
Net cash provided by (used in) operating activities (1,098 ) (585 ) 2,780 1,757
INVESTING ACTIVITIES:
Purchases of fixed assets, including internal-use software and website development
(140 ) (55 ) (458 ) (326 )
Acquisitions, net of cash acquired, and other (19 ) (15 ) (43 ) (155 )
Sales and maturities of marketable securities and other investments 872 314 2,524 1,348
Purchases of marketable securities and other investments (1,255 ) (391 ) (4,755 ) (1,686 )
Net cash provided by (used in) investing activities (542 ) (147 ) (2,732 ) (819 )
FINANCING ACTIVITIES:
Excess tax benefits from stock-based compensation 86 49 141 145
Common stock repurchased - - - (100 )
Proceeds from long-term debt and other 62 3 124 48
Repayments of long-term debt and capital lease obligations (61 ) (343 ) (168 ) (673 )
Net cash provided by (used in) financing activities 87 (291 ) 97 (580 )
Foreign-currency effect on cash and cash equivalents (47 ) (45 ) (2 ) (153 )
Net increase (decrease) in cash and cash equivalents (1,600 ) (1,068 ) 143 205
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,844 $ 1,701 $ 1,844 $ 1,701
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
2010 2009
Net sales $ 7,131 $ 4,889
Operating expenses (1):
Cost of sales 5,501 3,741
Fulfillment 546 422
Marketing 201 128
Technology and content 366 275
General and administrative 97 68
Other operating expense (income), net 26 11
Total operating expenses 6,737 4,645
Income from operations 394 244
Interest income 11 12
Interest expense (7 ) (12 )
Other income (expense), net 3 4
Total non-operating income (expense) 7 4
Income before income taxes 401 248
Provision for income taxes (100 ) (69 )
Equity-method investment activity, net of tax (2 ) (2 )
Net income $ 299 $ 177
Basic earnings per share $ 0.67 $ 0.41
Diluted earnings per share $ 0.66 $ 0.41
Weighted average shares used in computation of earnings per share:
Basic 445 429
Diluted 454 437
__________________________
(1) Includes stock-based compensation as follows:
Fulfillment $ 18 $ 15
Marketing 5 4
Technology and content 47 36
General and administrative 17 12
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
March 31,
2010 2009
North America
Net sales $ 3,780 $ 2,578
Operating expenses:
Cost of sales 2,761 1,884
Direct segment operating expenses (1) 746 544
Segment operating income $ 273 $ 150
International
Net sales $ 3,351 $ 2,311
Operating expenses:
Cost of sales 2,740 1,857
Direct segment operating expenses (1) 377 282
Segment operating income $ 234 $ 172
Consolidated
Net sales $ 7,131 $ 4,889
Operating expenses:
Cost of sales 5,501 3,741
Direct segment operating expenses 1,123 826
Segment operating income 507 322
Stock-based compensation (87 ) (67 )
Other operating income (expense), net (26 ) (11 )
Income from operations 394 244
Total non-operating income (expense), net 7 4
Provision for income taxes (100 ) (69 )
Equity-method investment activity, net of tax (2 ) (2 )
Net income $ 299 $ 177
Segment Highlights:
Y/Y net sales growth:
North America 47 % 21 %
International 45 15
Consolidated 46 18
Y/Y segment operating income growth:
North America 81 % 15 %
International 37 34
Consolidated 58 25
Net sales mix:
North America 53 % 53 %
International 47 47
__________________________
(1) A significant majority of our costs for "Technology and content" are incurred in the United States and most of these costs are allocated to our North America segment.
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
Three Months Ended
March 31,
2010 2009
North America
Media $ 1,597 $ 1,305
Electronics and other general merchandise 2,024 1,172
Other 159 101
Total North America 3,780 2,578
International
Media 1,833 1,418
Electronics and other general merchandise 1,489 874
Other 29 19
Total International 3,351 2,311
Consolidated
Media 3,430 2,723
Electronics and other general merchandise 3,513 2,046
Other 188 120
Total Consolidated $ 7,131 $ 4,889
Y/Y Net Sales Growth:
North America:
Media 22 % 8 %
Electronics and other general merchandise 73 42
Other 57 7
Total North America 47 21
International:
Media 29 % 6 %
Electronics and other general merchandise 70 34
Other 57 14
Total International 45 15
Consolidated:
Media 26 % 7 %
Electronics and other general merchandise 72 38
Other 57 8
Total Consolidated 46 18
Y/Y Net Sales Growth Excluding Effect of Exchange Rates:
International:
Media 23 % 17 %
Electronics and other general merchandise 61 50
Other 47 40
Total International 37 28
Consolidated:
Media 22 % 13 %
Electronics and other general merchandise 68 46
Other 56 11
Total Consolidated 42 25
Consolidated Net Sales Mix:
Media 48 % 56 %
Electronics and other general merchandise 49 42
Other 3 2
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
March 31, December 31,
2010 2009
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 1,844 $ 3,444
Marketable securities 3,219 2,922
Inventories 1,820 2,171
Accounts receivable, net and other 815 988
Deferred tax assets 266 272
Total current assets 7,964 9,797
Fixed assets, net 1,436 1,290
Deferred tax assets 16 18
Goodwill 1,234 1,234
Other assets 1,392 1,474
Total assets $ 12,042 $ 13,813
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,619 $ 5,605
Accrued expenses and other 1,574 1,759
Total current liabilities 5,193 7,364
Long-term debt 131 109
Other long-term liabilities 1,100 1,083
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value:
Authorized shares -- 500
Issued and outstanding shares -- none - -
Common stock, $0.01 par value:
Authorized shares -- 5,000
Issued shares -- 462 and 461
Outstanding shares -- 446 and 444 5 5
Treasury stock, at cost (600 ) (600 )
Additional paid-in capital 5,887 5,736
Accumulated other comprehensive loss (145 ) (56 )
Retained earnings 471 172
Total stockholders' equity 5,618 5,257
Total liabilities and stockholders' equity $ 12,042 $ 13,813
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Y/Y %
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) $ 1,757 $ 1,878 $ 2,253 $ 3,293 $ 2,780 58 %
Purchases of fixed assets (incl. internal-use software & website development) -- TTM $ 326 $ 336 $ 337 $ 373 $ 458 40 %
Free cash flow (operating cash flow less purchases of fixed assets) -- TTM $ 1,431 $ 1,542 $ 1,916 $ 2,920 $ 2,322 62 %
Free cash flow -- TTM Y/Y growth 82 % 89 % 98 % 114 % 62 % N/A
Invested capital (1) $ 3,501 $ 3,666 $ 3,847 $ 4,449 $ 5,104 N/A
Return on invested capital (2) 41 % 42 % 50 % 66 % 45 % N/A
Common shares and stock-based awards outstanding 447 451 451 461 463 4 %
Common shares outstanding 429 432 433 444 446 4 %
Stock-based awards outstanding 17 19 18 17 18 4 %
Stock-based awards outstanding -- % of common shares outstanding 4.0 % 4.4 % 4.2 % 3.8 % 4.0 % N/A
Results of Operations
Worldwide (WW) net sales $ 4,889 $ 4,651 $ 5,449 $ 9,519 $ 7,131 46 %
WW net sales -- Y/Y growth, excluding F/X 25 % 20 % 29 % 37 % 42 % N/A
WW net sales -- TTM $ 19,921 $ 20,509 $ 21,693 $ 24,509 $ 26,750 34 %
WW net sales -- TTM Y/Y growth, excluding F/X 27 % 24 % 24 % 29 % 33 % N/A
Operating income (3) $ 244 $ 159 $ 251 $ 476 $ 394 62 %
Operating income -- Y/Y growth (decrease), excluding F/X 39 % (13 )% 69 % 63 % 56 % N/A
Operating margin -- % of WW net sales 5.0 % 3.4 % 4.6 % 5.0 % 5.5 % N/A
Operating income -- TTM (3) (4) $ 887 $ 829 $ 925 $ 1,129 $ 1,279 44 %
Operating income -- TTM Y/Y growth, excluding F/X 30 % 13 % 22 % 39 % 44 % N/A
Operating margin -- TTM % of WW net sales 4.5 % 4.0 % 4.3 % 4.6 % 4.8 % N/A
Net income (3) $ 177 $ 142 $ 199 $ 384 $ 299 68 %
Net income per diluted share $ 0.41 $ 0.32 $ 0.45 $ 0.85 $ 0.66 62 %
Net income -- TTM (3) (4) $ 679 $ 663 $ 743 $ 902 $ 1,024 51 %
Net income per diluted share -- TTM $ 1.56 $ 1.52 $ 1.69 $ 2.04 $ 2.30 47 %
Segments
North America Segment:
Net sales $ 2,578 $ 2,451 $ 2,843 $ 4,956 $ 3,780 47 %
Net sales -- Y/Y growth, excluding F/X 22 % 13 % 24 % 36 % 46 % N/A
Net sales -- TTM $ 10,681 $ 10,963 $ 11,503 $ 12,828 $ 14,030 31 %
Operating income $ 150 $ 125 $ 156 $ 278 $ 273 81 %
Operating margin -- % of North America net sales 5.8 % 5.1 % 5.5 % 5.6 % 7.2 % N/A
Operating income -- TTM $ 464 $ 494 $ 562 $ 709 $ 832 79 %
Operating income -- TTM Y/Y growth, excluding F/X 5 % 8 % 20 % 59 % 79 % N/A
Operating margin -- TTM % of North America net sales 4.4 % 4.5 % 4.9 % 5.5 % 5.9 % N/A
International Segment:
Net sales $ 2,311 $ 2,200 $ 2,606 $ 4,563 $ 3,351 45 %
Net sales -- Y/Y growth, excluding F/X 28 % 28 % 35 % 37 % 37 % N/A
Net sales -- TTM $ 9,240 $ 9,546 $ 10,190 $ 11,681 $ 12,720 38 %
Net sales -- TTM % of WW net sales 46 % 47 % 47 % 48 % 48 % N/A
Operating income $ 172 $ 179 $ 194 $ 319 $ 234 37 %
Operating margin -- % of International net sales 7.4 % 8.1 % 7.4 % 7.0 % 7.0 % N/A
Operating income -- TTM $ 692 $ 722 $ 773 $ 863 $ 925 34 %
Operating income -- TTM Y/Y growth, excluding F/X 52 % 49 % 49 % 41 % 33 % N/A
Operating margin -- TTM % of International net sales 7.5 % 7.6 % 7.6 % 7.4 % 7.3 % N/A
Consolidated Segments:
Operating expenses (5) $ 4,567 $ 4,347 $ 5,099 $ 8,922 $ 6,624 45 %
Operating expenses -- TTM (5) $ 18,765 $ 19,293 $ 20,358 $ 22,937 $ 24,993 33 %
Operating income $ 322 $ 304 $ 350 $ 597 $ 507 58 %
Operating margin -- % of consolidated sales 6.6 % 6.5 % 6.4 % 6.3 % 7.1 % N/A
Operating income -- TTM $ 1,156 $ 1,216 $ 1,335 $ 1,572 $ 1,757 52 %
Operating income -- TTM Y/Y growth, excluding F/X 28 % 29 % 35 % 48 % 51 % N/A
Operating margin -- TTM % of consolidated net sales 5.8 % 5.9 % 6.2 % 6.4 % 6.6 % N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
Y/Y %
Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Change
Supplemental
Supplemental North America Segment Net Sales:
Media $ 1,305 $ 1,148 $ 1,412 $ 2,099 $ 1,597 22 %
Media -- Y/Y growth, excluding F/X 9 % 0 % 14 % 19 % 22 % N/A
Media -- TTM $ 5,450 $ 5,449 $ 5,616 $ 5,964 $ 6,255 15 %
Electronics and other general merchandise $ 1,172 $ 1,187 $ 1,293 $ 2,662 $ 2,024 73 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 42 % 29 % 36 % 54 % 73 % N/A
Electronics and other general merchandise -- TTM $ 4,776 $ 5,043 $ 5,385 $ 6,314 $ 7,166 50 %
Electronics and other general merchandise -- TTM % of North America net sales 45 % 46 % 47 % 49 % 51 % N/A
Other $ 101 $ 116 $ 138 $ 195 $ 159 57 %
Other -- TTM $ 455 $ 471 $ 502 $ 550 $ 608 34 %
Supplemental International Segment Net Sales:
Media $ 1,418 $ 1,294 $ 1,517 $ 2,580 $ 1,833 29 %
Media -- Y/Y growth, excluding F/X 17 % 12 % 22 % 26 % 23 % N/A
Media -- TTM $ 5,814 $ 5,849 $ 6,118 $ 6,810 $ 7,225 24 %
Electronics and other general merchandise $ 874 $ 882 $ 1,064 $ 1,947 $ 1,489 70 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 50 % 60 % 58 % 56 % 61 % N/A
Electronics and other general merchandise -- TTM $ 3,330 $ 3,603 $ 3,977 $ 4,768 $ 5,382 62 %
Electronics and other general merchandise -- TTM % of International net sales 36 % 38 % 39 % 41 % 42 % N/A
Other $ 19 $ 24 $ 25 $ 36 $ 29 57 %
Other -- TTM $ 96 $ 94 $ 95 $ 103 $ 114 18 %
Supplemental Worldwide Net Sales:
Media $ 2,723 $ 2,442 $ 2,929 $ 4,679 $ 3,430 26 %
Media -- Y/Y growth, excluding F/X 13 % 7 % 18 % 23 % 22 % N/A
Media -- TTM $ 11,264 $ 11,298 $ 11,734 $ 12,774 $ 13,480 20 %
Electronics and other general merchandise $ 2,046 $ 2,069 $ 2,357 $ 4,609 $ 3,513 72 %
Electronics and other general merchandise -- Y/Y growth, excluding F/X 46 % 41 % 45 % 54 % 68 % N/A
Electronics and other general merchandise -- TTM $ 8,106 $ 8,646 $ 9,362 $ 11,082 $ 12,548 55 %
Electronics and other general merchandise -- TTM % of WW net sales 41 % 42 % 43 % 45 % 47 % N/A
Other $ 120 $ 140 $ 163 $ 231 $ 188 57 %
Other -- TTM $ 551 $ 565 $ 597 $ 653 $ 722 31 %
Balance Sheet
Cash and marketable securities (6) $ 3,025 $ 3,504 $ 4,304 $ 6,672 $ 5,381 78 %
Inventory, net -- ending $ 1,266 $ 1,325 $ 1,617 $ 2,171 $ 1,820 44 %
Inventory turnover, average -- TTM 12.5 12.4 12.1 12.2 12.6 1 %
Fixed assets, net $ 889 $ 981 $ 1,086 $ 1,290 $ 1,436 61 %
Accounts payable -- ending $ 2,380 $ 2,508 $ 3,354 $ 5,605 $ 3,619 52 %
Accounts payable days -- ending 57 65 72 68 59 3 %
Other
WW shipping revenue $ 190 $ 185 $ 208 $ 341 $ 248 30 %
WW shipping costs $ 358 $ 332 $ 388 $ 696 $ 518 45 %
WW net shipping costs $ 168 $ 147 $ 180 $ 355 $ 270 61 %
WW net shipping costs -- % of WW net sales 3.4 % 3.1 % 3.3 % 3.7 % 3.8 % N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 20,600 21,000 21,700 24,300 26,100 27 %
(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
(2) TTM Free Cash Flow divided by Invested Capital.
(3) Q2 2009 includes the impact of our settlement with Toysrus.com LLC for $51 million.
(4) Q2 2008 includes a $53 million non-cash gain recognized on the sale of our European DVD rental assets.
(5) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.
(6) Includes restricted cash, classified within "Other Assets" on our consolidated balance sheet, of: $295 million Q1 2009, $292 million Q2 2009, $303 million Q3 2009, $306 million in Q4 2009 and $318 million in Q1 2010.
Amazon.com, Inc.
Certain Definitions
Customer Accounts
* References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer’s initial order is shipped or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.
Seller Accounts
* References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.
Registered Developers
* References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.
Units
* References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon.com domains worldwide – such as www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca and www.amazon.cn, as well as Amazon.com-owned items sold through non-Amazon.com domains. Units sold do not include units associated with certain of our acquisitions or Amazon.com gift certificates.
Source: Amazon.com, Inc.
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