Amazon.com, Inc. (NASDAQ: AMZN) today announced financial
results for its fourth quarter ended December 31, 2015.
Operating cash flow increased 74% to $11.9 billion for the
trailing twelve months, compared with $6.8 billion for the trailing
twelve months ended December 31, 2014. Free cash flow
increased to $7.3 billion for the trailing twelve months, compared
with $1.9 billion for the trailing twelve months ended
December 31, 2014. Free cash flow less lease principal
repayments increased to $4.7 billion for the trailing twelve
months, compared with $529 million for the trailing twelve months
ended December 31, 2014. Free cash flow less finance lease
principal repayments and assets acquired under capital leases
increased to $2.5 billion for the trailing twelve months, compared
with an outflow of $2.2 billion for the trailing twelve months
ended December 31, 2014.
Common shares outstanding plus shares underlying stock-based
awards totaled 490 million on December 31, 2015, compared
with 483 million one year ago.
Fourth Quarter 2015
Net sales increased 22% to $35.7 billion in the fourth quarter,
compared with $29.3 billion in fourth quarter 2014. Excluding the
$1.2 billion unfavorable impact from year-over-year changes in
foreign exchange rates throughout the quarter, net sales increased
26% compared with fourth quarter 2014.
Operating income increased 88% to $1.1 billion in the fourth
quarter, compared with operating income of $591 million in fourth
quarter 2014.
Net income was $482 million in the fourth quarter, or $1.00 per
diluted share, compared with net income of $214 million, or $0.45
per diluted share, in fourth quarter 2014.
Full Year 2015
Net sales increased 20% to $107.0 billion, compared with $89.0
billion in 2014. Excluding the $5.2 billion unfavorable impact from
year-over-year changes in foreign exchange rates throughout the
year, net sales increased 26% compared with 2014.
Operating income was $2.2 billion, compared with operating
income of $178 million in 2014.
Net income was $596 million, or $1.25 per diluted share,
compared with net loss of $241 million, or $0.52 per diluted share,
in 2014.
“Twenty years ago, I was driving the packages to the post office
myself and hoping we might one day afford a forklift. This year, we
pass $100 billion in annual sales and serve 300 million
customers,” said Jeff Bezos, founder and CEO of
Amazon.com. “And still, measured by the dynamism we see
everywhere in the marketplace and by
the ever-expanding opportunities we see to invent on
behalf of customers, it feels every bit like Day 1.”
Highlights
- Fire TV remains the #1 best-selling
streaming media player in the U.S., having added over 1,000 new
apps, channels, and games since September, including NBC, NBC
Sports, Watch HGTV, Watch Food Network, and Watch Travel
Channel.
- The $50 Fire tablet has been the #1
best-selling, most gifted, and most wished-for product across all
items available on Amazon.com since its introduction 19 weeks
ago.
- The Alexa Skills Kit and Alexa Voice
Service continue to attract innovative companies, with Ford,
Invoxia, Vivint, Alarm.com, and Ooma announcing plans to integrate
their products and services with Alexa. In addition, Alexa
continues to get smarter with new features, including local search
from Yelp, news sources from CNN and Bloomberg, enhanced IFTTT
support, new alarm tones, and customized sports updates.
- Last quarter, developers added over 100
new capabilities to Alexa-enabled devices. Amazon Echo and Fire TV
customers can now play Jeopardy!, get stock quotes with Fidelity,
hear headlines from The Huffington Post, exercise with a
seven-minute workout, and test their Star Wars knowledge with a
trivia quiz from Disney.
- Amazon announced the first devices
available with Amazon Dash Replenishment Service, including
products from Brother, GE, and Gmate. Additionally, new brands and
devices have joined the Dash Replenishment program, including
Purell and Whirlpool.
- In 2015, worldwide paid Prime
memberships increased 51% — 47% in the U.S. and even faster outside
the U.S.
- Prime Video continues to grow
internationally with nearly double the streaming customers compared
with fourth quarter 2014.
- The Prime-exclusive Original Series
Mozart in the Jungle received two Golden Globes for Best Television
Series - Musical or Comedy and Best Performance by an Actor in a
Television Series - Musical or Comedy (Gael García Bernal).
- Over the holidays Prime members made
The Man in The High Castle the most watched series on Prime Video
by 4.5x. The Amazon Original Series received outstanding critical
acclaim, including USA Today calling it the “best new drama of the
season.”
- The second season of hit show
Transparent was named as one of the top television series of
2015 by The New York Times, Variety, IndieWire, and The
New Yorker.
- Amazon Studios released its first
Original Movie Chi-Raq, directed by Spike Lee, to rave
reviews. The film has been included in 2015 “Best Films” lists
from LA Weekly, The New Yorker, The Washington
Post, Los Angeles Times, Slant, and Vulture.
- Amazon launched the Streaming Partners
Program, an over-the-top streaming subscription program that gives
Prime members the option to add SHOWTIME, STARZ, and dozens more
video subscriptions to their Prime membership.
- In the fourth quarter, Prime Music
streaming hours more than tripled in the U.S. compared with fourth
quarter 2014.
- Prime Music launched in Germany and
Japan, offering Prime members more than one million songs and
hundreds of playlists at no additional cost to their
membership.
- Since launching in December 2014 with
one location, Prime Now has grown to more than 25 metropolitan
areas across the U.S., U.K., Italy, and Japan.
- Prime Same Day launched in the U.K. and
Germany, offering Prime members unlimited free same-day delivery on
a million items.
- Amazon Pantry launched in the U.K.,
allowing Prime members to purchase daily essentials in everyday
sizes and have items delivered for a low, flat-rate fee.
- In 2015, Fulfillment by Amazon (FBA)
shipped over one billion units on behalf of sellers. The number of
active sellers using FBA grew more than 50%.
- In the fourth quarter, FBA units
represented nearly 50% of total third-party units.
- Payment volume from Pay with Amazon
grew more than 150% year-over-year in 2015, giving Amazon shoppers
a secure way to pay on thousands of websites using information
already stored in their Amazon accounts.
- Amazon China launched the Amazon Global
Store (AGS) 2.0 customer experience, which provides customers an
easier and more convenient shopping experience through single
login, unified shopping cart, and local payment. Additionally, AGS
selection has grown to over nine million items.
- Amazon.in was the top e-commerce
site in India throughout the fourth quarter, including
the busy Diwali shopping season, according to global analytics firm
comScore.
- Downloads of the Amazon.in mobile
shopping app grew faster in the fourth quarter than any other
e-commerce app in India, according to app analytics firm App
Annie.
- Sellers on Amazon.in sold more in the
fourth quarter than in all four quarters combined in 2014.
- Amazon Fashion, East Dane, and MyHabit
return as the lead sponsor for the second season of New York
Fashion Week: Men’s, hosted by The Council of Fashion Designers of
America.
- Amazon Launchpad, a program that helps
startups launch, market, and distribute their products, has worked
with leading venture capital firms, startup accelerators, and
crowd-funding platforms to help more than 500 startups launch over
750 products in the U.S., U.K., and China.
- Amazon entered into an agreement to
support the construction and operation of Amazon Wind Farm U.S.
Central, which is expected to generate approximately 320,000
megawatt hours (MWh) of wind energy on an annual basis. Amazon
Wind Farm U.S. Central, combined with Amazon’s previously announced
projects, Amazon Wind Farm Fowler Ridge, Amazon Solar Farm U.S.
East in Virginia, and Amazon Wind Farm U.S. East in North Carolina,
will be responsible for delivering more than 1.6 million MWh of
additional renewable energy annually, roughly equivalent to the
amount of energy required to power 150,000 U.S. homes for a
year.
- Only eight months after launch, Amazon
Business, a marketplace with features and benefits tailored to
businesses, serves more than 200,000 businesses ranging from small
businesses to Fortune 500 companies.
- Amazon Web Services (AWS) announced the
launch of its Asia Pacific (Seoul) Region in Korea and its plans to
open a new region in Canada. The AWS Cloud is now available
from 32 Availability Zones across 12 geographic regions worldwide,
with another five AWS Regions (and 11 Availability Zones) in
Canada, China, India, Ohio, and the U.K. expected to be available
in the coming year.
- AWS announced the general availability
of Amazon WorkMail, a secure, managed business email and
calendaring service with support for existing desktop and mobile
email clients.
- AWS announced the general availability
of AWS IoT, a managed cloud platform that lets billions of
connected devices — such as mobile phones, cars, factory floors,
aircraft engines, sensor grids, and more — easily and securely
interact with cloud applications and other devices. AWS IoT can
support trillions of messages, and can process, route, and keep
track of those messages to AWS endpoints and other devices reliably
and securely, even when the devices aren’t connected.
- AWS announced AWS Certificate Manager
(ACM), a new service that enables customers to easily provision,
manage, and deploy Secure Sockets Layer/Transport Layer Security
(SSL/TLS) certificates for use with AWS services. SSL/TLS
certificates are used to secure network communications and
establish the identity of websites over the Internet. Certificates,
which typically cost between $45 and $499, are provided to AWS
customers free of charge through ACM and are verified by Amazon’s
certificate authority, Amazon Trust Services.
- AWS launched EC2 Scheduled Reserved
Instances, allowing customers to reserve capacity for their
applications that run on a part-time, recurring basis with a daily,
weekly, or monthly schedule over the course of a one-year
term.
- AWS announced 722 significant new
services and features in 2015, a 40% increase over 2014.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of January 28, 2016, and are subject to
substantial uncertainty. 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 customer spending, world events, the rate of growth
of the Internet and online commerce, and the various factors
detailed below.
First Quarter 2016 Guidance
- Net sales are expected to be between
$26.5 billion and $29.0 billion, or to grow between 17% and 28%
compared with first quarter 2015.
- Operating income is expected to be
between $100 million and $700 million, compared with $255 million
in first quarter 2015.
- This guidance includes approximately
$600 million for stock-based compensation and other operating
expense (income), net. 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.
A conference call will be webcast live today at 2:00 p.m.
PT/5:00 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, sortation, delivery,
and data center optimization, risks of inventory management,
seasonality, the degree to which the Company enters into,
maintains, and develops commercial agreements, acquisitions and
strategic transactions, payments risks, 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, 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, which may contain material information about us, and you
may subscribe to be notified of new information posted to this
site.
About Amazon
Amazon.com opened on the World Wide Web in July 1995. The
company is guided by four principles: customer obsession rather
than competitor focus, passion for invention, commitment to
operational excellence, and long-term thinking. Customer reviews,
1-Click shopping, personalized recommendations, Prime, Fulfillment
by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets,
Fire TV, Amazon Echo, and Alexa are some of the products and
services pioneered by Amazon. For more information, visit
www.amazon.com/about.
AMAZON.COM, INC. Consolidated Statements of Cash
Flows (in millions) Three
Months Ended Twelve Months Ended
December 31, December 31, 2015
2014 2015
2014
(unaudited) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $ 10,709
$ 5,258 $ 14,557 $ 8,658 OPERATING ACTIVITIES: Net income (loss)
482 214 596 (241 ) 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, including capitalized content costs 1,752
1,379 6,281 4,746 Stock-based compensation 606 408 2,119 1,497
Other operating expense (income), net 35 36 155 129 Losses (gains)
on sales of marketable securities, net 1 — 5 (3 ) Other expense
(income), net 79 78 245 62 Deferred income taxes 190 185 81 (316 )
Excess tax benefits from stock-based compensation 93 115 (119 ) (6
) Changes in operating assets and liabilities: Inventories (1,343 )
(1,139 ) (2,187 ) (1,193 ) Accounts receivable, net and other
(1,178 ) (1,104 ) (1,755 ) (1,039 ) Accounts payable 6,140 5,053
4,294 1,759 Accrued expenses and other 1,836 1,451 913 706
Additions to unearned revenue 2,422 1,378 7,401 4,433 Amortization
of previously unearned revenue (2,303 ) (1,339 ) (6,109 ) (3,692 )
Net cash provided by (used in) operating activities 8,812 6,715
11,920 6,842 INVESTING ACTIVITIES: Purchases of property and
equipment, including internal-use software and website development,
net (1,309 ) (1,144 ) (4,589 ) (4,893 ) Acquisitions, net of cash
acquired, and other (317 ) (53 ) (795 ) (979 ) Sales and maturities
of marketable securities 1,135 355 3,025 3,349 Purchases of
marketable securities (1,359 ) (1,623 ) (4,091 ) (2,542 ) Net cash
provided by (used in) investing activities (1,850 ) (2,465 ) (6,450
) (5,065 ) FINANCING ACTIVITIES: Excess tax benefits from
stock-based compensation (93 ) (115 ) 119 6 Proceeds from long-term
debt and other 93 5,981 353 6,359 Repayments of long-term debt and
other (940 ) (183 ) (1,652 ) (513 ) Principal repayments of capital
lease obligations (724 ) (406 ) (2,462 ) (1,285 ) Principal
repayments of finance lease obligations (26 ) (68 ) (121 ) (135 )
Net cash provided by (used in) financing activities (1,690 ) 5,209
(3,763 ) 4,432 Foreign-currency effect on cash and cash equivalents
(91 ) (160 ) (374 ) (310 ) Net increase (decrease) in cash and cash
equivalents 5,181 9,299 1,333 5,899
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 15,890 $ 14,557
$ 15,890 $ 14,557 SUPPLEMENTAL CASH FLOW
INFORMATION: Cash paid for interest on long-term debt $ 148 $ 36 $
325 $ 91 Cash paid for interest on capital and finance lease
obligations 44 29 153 86 Cash paid for income taxes (net of
refunds) 73 30 273 177 Property and equipment acquired under
capital leases 1,332 1,214 4,717 4,008 Property and equipment
acquired under build-to-suit leases 163 214 544 920
AMAZON.COM, INC. Consolidated Statements of
Operations (in millions, except per share data)
Three Months Ended
Twelve Months Ended December 31, December 31,
2015 2014 2015
2014 (unaudited) Net product sales $ 26,618 $ 23,102 $
79,268 $ 70,080 Net service sales 9,129 6,226 27,738
18,908 Total net sales 35,747 29,328 107,006 88,988
Operating expenses (1): Cost of sales 24,341 20,671 71,651 62,752
Fulfillment 4,546 3,424 13,410 10,766 Marketing 1,755 1,526 5,254
4,332 Technology and content 3,571 2,635 12,540 9,275 General and
administrative 390 442 1,747 1,552 Other operating expense
(income), net 36 39 171 133 Total
operating expenses 34,639 28,737 104,773
88,810 Income from operations 1,108 591 2,233 178 Interest
income 13 8 50 39 Interest expense (115 ) (74 ) (459 ) (210 ) Other
income (expense), net (68 ) (96 ) (256 ) (118 ) Total non-operating
income (expense) (170 ) (162 ) (665 ) (289 ) Income (loss) before
income taxes 938 429 1,568 (111 ) Provision for income taxes (453 )
(205 ) (950 ) (167 ) Equity-method investment activity, net of tax
(3 ) (10 ) (22 ) 37 Net income (loss) $ 482 $ 214
$ 596 $ (241 ) Basic earnings per share $ 1.03
$ 0.46 $ 1.28 $ (0.52 ) Diluted earnings per share $
1.00 $ 0.45 $ 1.25 $ (0.52 ) Weighted-average
shares used in computation of earnings per share: Basic 470
464 467 462
Diluted
481 472 477 462
______________________________
(1) Includes stock-based compensation as follows: Fulfillment $ 137
$ 97 $ 482 $ 375 Marketing 57 34 190 125 Technology and content 364
226 1,224 804 General and administrative 48 51 223 193
AMAZON.COM, INC. Consolidated Statements of
Comprehensive Income (Loss) (in millions)
Three Months Ended
Twelve Months Ended December 31,
December 31, 2015 2014
2015 2014 (unaudited) Net income (loss)
$ 482 $ 214 $ 596 $ (241 ) Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $7, $(3),
$10, and $(3) (40 ) (116 ) (210 ) (325 ) Net change in unrealized
gains (losses) on available-for-sale securities: Unrealized gains
(losses), net of tax of $1, $1, $(5), and $1 (9 ) 2 (7 ) 2
Reclassification adjustment for losses (gains) included in “Other
income (expense), net,” net of tax of $0, $(1), $0, and $(1) 1
(2 ) 5 (3 ) Net unrealized gains (losses) on
available-for-sale securities (8 ) — (2 ) (1 ) Total other
comprehensive income (loss) (48 ) (116 ) (212 ) (326 )
Comprehensive income (loss) $ 434 $ 98 $ 384 $
(567 )
AMAZON.COM, INC. Segment
Information (in millions)
Three Months Ended Twelve Months Ended
December 31, December 31, 2015
2014 2015 2014 (unaudited)
North
America Net sales $ 21,501 $ 17,333 $ 63,708 $ 50,834 Segment
operating expenses (1) 20,498 16,600 60,957
49,542 Segment operating income (loss) $ 1,003 $ 733
$ 2,751 $ 1,292
International Net sales
$ 11,841 $ 10,575 $ 35,418 $ 33,510 Segment operating expenses (1)
11,781 10,510 35,509 33,654 Segment
operating income (loss) $ 60 $ 65 $ (91 ) $ (144 )
AWS Net sales $ 2,405 $ 1,420 $ 7,880 $ 4,644 Segment
operating expenses (1) 1,718 1,180 6,017 3,984
Segment operating income (loss) $ 687 $ 240 $
1,863 $ 660
Consolidated Net sales $ 35,747 $
29,328 $ 107,006 $ 88,988 Segment operating expenses (1) 33,997
28,290 102,483 87,180 Segment operating
income (loss) 1,750 1,038 4,523 1,808 Stock-based compensation (606
) (408 ) (2,119 ) (1,497 ) Other operating income (expense), net
(36 ) (39 ) (171 ) (133 ) Income from operations 1,108 591 2,233
178 Total non-operating income (expense) (170 ) (162 ) (665 ) (289
) Provision for income taxes (453 ) (205 ) (950 ) (167 )
Equity-method investment activity, net of tax (3 ) (10 ) (22 ) 37
Net income (loss) $ 482 $ 214 $ 596 $
(241 )
Segment Highlights: Y/Y net sales growth: North
America 24 % 21 % 25 % 23 % International 12 3 6 12 AWS 69 47 70 49
Consolidated 22 15 20 20 Net sales mix: North America 60 % 59 % 60
% 57 % International 33 36 33 38 AWS 7 5 7 5
Consolidated 100 % 100 % 100 % 100 %
______________________________
(1) Excludes stock-based compensation and
“Other operating expense (income), net,” which are not allocated to
segments.
AMAZON.COM, INC. Supplemental Net Sales
Information (in millions)
Three Months Ended Twelve Months Ended
December 31, December 31, 2015
2014 2015 2014 (unaudited) Net
Sales: North America Media $ 3,931 $ 3,544 $ 12,483 $ 11,567
Electronics and other general merchandise 17,325 13,529 50,401
38,517 Other (1) 245 260 824 750 Total
North America $ 21,501 $ 17,333 $ 63,708 $
50,834 International Media $ 3,292 $ 3,406 $ 10,026 $ 10,938
Electronics and other general merchandise 8,491 7,109 25,196 22,369
Other (1) 58 60 196 203 Total
International $ 11,841 $ 10,575 $ 35,418 $
33,510 Year-over-year Percentage Growth: North America Media
11 % 1 % 8 % 7 % Electronics and other general merchandise 28 27 31
28 Other (6 ) 28 10 22 Total North America 24 21 25 23
International Media (3 )% (8 )% (8 )% — % Electronics and other
general merchandise 19 10 13 19 Other (3 ) (6 ) (3 ) (3 ) Total
International 12 3 6 12 Year-over-year Percentage Growth, excluding
the effect of foreign exchange rates: North America Media 12 % 1 %
8 % 7 % Electronics and other general merchandise 28 27 31 29 Other
(6 ) 28 10 22 Total North America 24 21 26 23 International Media 5
% (1 )% 4 % 2 % Electronics and other general merchandise 31 19 29
21 Other 5 1 10 (3 ) Total International 22 12 21 14
______________________________
(1) Includes sales from non-retail
activities, such as certain advertising services and our co-branded
credit card agreements.
AMAZON.COM, INC. Consolidated Balance
Sheets (in millions, except per share data)
December 31, 2015
December 31, 2014 ASSETS Current assets:
Cash and cash equivalents $ 15,890 $ 14,557 Marketable securities
3,918 2,859 Inventories 10,243 8,299 Accounts receivable, net and
other 6,423 5,612 Total current assets 36,474 31,327
Property and equipment, net 21,838 16,967 Goodwill 3,759 3,319
Other assets 3,373 2,892 Total assets $ 65,444
$ 54,505
LIABILITIES AND STOCKHOLDERS’
EQUITY Current liabilities: Accounts payable $ 20,397 $
16,459 Accrued expenses and other 10,384 9,807 Unearned revenue
3,118 1,823 Total current liabilities 33,899 28,089
Long-term debt 8,235 8,265 Other long-term liabilities 9,926 7,410
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 — 494 and 488 Outstanding
shares — 471 and 465 5 5 Treasury stock, at cost (1,837 ) (1,837 )
Additional paid-in capital 13,394 11,135 Accumulated other
comprehensive loss (723 ) (511 ) Retained earnings 2,545
1,949 Total stockholders’ equity 13,384 10,741
Total liabilities and stockholders’ equity $ 65,444 $ 54,505
AMAZON.COM, INC. Supplemental
Financial Information and Business Metrics (in millions,
except per share data) (unaudited)
Y/Y % Q4
2014 Q1 2015 Q2 2015
Q3 2015 Q4 2015
Change Cash Flows and Shares Operating cash
flow -- trailing twelve months (TTM) $ 6,842 $ 7,845 $ 8,980 $
9,823 $ 11,920 74 % Operating cash flow -- TTM Y/Y growth (decline)
25 % 47 % 69 % 72 % 74 % N/A Purchases of property and equipment,
including internal-use software and website development, net -- TTM
$ 4,893 $ 4,684 $ 4,607 $ 4,424 $ 4,589
(6
)%
Principal repayments of capital lease obligations -- TTM $ 1,285 $
1,537 $ 1,832 $ 2,144 $ 2,462 92 % Principal repayments of finance
lease obligations -- TTM $ 135 $ 132 $ 155 $ 163 $ 121 (11 )%
Property and equipment acquired under capital leases -- TTM $ 4,008
$ 4,246 $ 4,710 $ 4,599 $ 4,717 18 % Free cash flow -- TTM (1) $
1,949 $ 3,161 $ 4,373 $ 5,399 $ 7,331 276 % Invested capital (2) $
21,021 $ 23,090 $ 25,289 $ 27,425 $ 29,694 41 % Free cash flow less
lease principal repayments -- TTM (3) $ 529 $ 1,492 $ 2,386 $ 3,092
$ 4,748 797 % Free cash flow less finance lease principal
repayments and assets acquired under capital leases -- TTM (4) $
(2,194 ) $ (1,217 ) $ (492 ) $ 637 $ 2,493 N/A Common shares and
stock-based awards outstanding 483 483 488 489 490 1 % Common
shares outstanding 465 466 468 469 471 1 % Stock-based awards
outstanding 18 17 20 20 19 7 % Stock-based awards outstanding -- %
of common shares outstanding 3.8 % 3.8 % 4.4 % 4.3 % 4.1 % N/A
Results of Operations Worldwide (WW) net sales $ 29,328 $
22,717 $ 23,185 $ 25,358 $ 35,747 22 % WW net sales -- Y/Y growth,
excluding F/X 18 % 22 % 27 % 30 % 26 % N/A WW net sales -- TTM $
88,988 $ 91,963 $ 95,808 $ 100,588 $ 107,006 20 % WW net sales --
TTM Y/Y growth, excluding F/X 20 % 20 % 22 % 24 % 26 % N/A
Operating income (loss) $ 591 $ 255 $ 464 $ 406 $ 1,108 88 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 22 %
90 % N/A N/A 84 % N/A Operating margin -- % of WW net sales 2.0 %
1.1 % 2.0 % 1.6 % 3.1 % N/A Operating income (loss) -- TTM $ 178 $
287 $ 765 $ 1,715 $ 2,233 N/A Operating income/loss -- TTM Y/Y
growth (decline), excluding F/X (79 )% (56 )% 35 % N/A N/A N/A
Operating margin -- TTM % of WW net sales 0.2 % 0.3 % 0.8 % 1.7 %
2.1 % N/A Net income (loss) $ 214 $ (57 ) $ 92 $ 79 $ 482 125 % Net
income (loss) per diluted share $ 0.45 $ (0.12 ) $ 0.19 $ 0.17 $
1.00 121 % Net income (loss) -- TTM $ (241 ) $ (405 ) $ (188 ) $
328 $ 596 N/A Net income (loss) per diluted share -- TTM $ (0.52 )
$ (0.88 ) $ (0.41 ) $ 0.69 $ 1.25 N/A
______________________________
(1) Free cash flow is cash flow from
operations reduced by “Purchases of property and equipment,
including internal-use software and website development, net” which
is included in cash flow from investing activities.
(2) Average Total Assets minus Current
Liabilities (excluding current portion of Long-Term Debt) over five
quarter ends.
(3) Free cash flow less lease principal
repayments is free cash flow reduced by “Principal repayments of
capital lease obligations,” and “Principal repayments of finance
lease obligations,” which are included in cash flow from financing
activities.
(4) Free cash flow less finance lease
principal repayments and assets acquired under capital leases is
free cash flow reduced by “Principal repayments of finance lease
obligations,” which are included in cash flow from financing
activities, and property and equipment acquired under capital
leases. In this measure, property and equipment acquired under
capital leases is reflected as if these assets had been purchased
with cash, which is not the case as these assets have been
leased.
AMAZON.COM, INC. Supplemental Financial
Information and Business Metrics (in millions)
(unaudited)
Y/Y % Q4
2014 Q1 2015 Q2 2015
Q3 2015 Q4 2015
Change Segments North America Segment: Net
sales $ 17,333 $ 13,406 $ 13,796 $ 15,006 $ 21,501 24 % Net sales
-- Y/Y growth, excluding F/X 21 % 24 % 26 % 29 % 24 % N/A Net sales
-- TTM $ 50,834 $ 53,432 $ 56,233 $ 59,540 $ 63,708 25 % Operating
income (loss) $ 733 $ 517 $ 703 $ 528 $ 1,003 37 % Operating
income/loss -- Y/Y growth (decline), excluding F/X 77 % 111 % N/A
36 % N/A Operating margin -- % of North America net sales 4.2 % 3.9
% 5.1 % 3.5 % 4.7 % N/A Operating income (loss) -- TTM $ 1,292 $
1,520 $ 1,893 $ 2,480 $ 2,751 113 % Operating margin -- TTM % of
North America net sales 2.5 % 2.8 % 3.4 % 4.2 % 4.3 % N/A
International Segment: Net sales $ 10,575 $ 7,745 $ 7,565 $ 8,267 $
11,841 12 % Net sales -- Y/Y growth, excluding F/X 12 % 14 % 22 %
24 % 22 % N/A Net sales -- TTM $ 33,510 $ 33,371 $ 33,598 $ 34,154
$ 35,418 6 % Net sales -- TTM % of WW net sales 38 % 36 % 35 % 34 %
33 % N/A Operating income (loss) $ 65 $ (76 ) $ (19 ) $ (56 ) $ 60
(7 )% Operating income/loss -- Y/Y growth (decline), excluding F/X
N/A N/A N/A 65 % N/A Operating margin -- % of International net
sales 0.6 % (1.0 )% (0.2 )% (0.7 )% 0.5 % N/A Operating income
(loss) -- TTM $ (144 ) $ (188 ) $ (205 ) $ (86 ) $ (91 ) (36 )%
Operating margin -- TTM % of International net sales (0.4 )% (0.6
)% (0.6 )% (0.3 )% (0.3 )% N/A AWS Segment: Net sales $ 1,420 $
1,566 $ 1,824 $ 2,085 $ 2,405 69 % Net sales -- Y/Y growth,
excluding F/X 47 % 49 % 81 % 78 % 69 % N/A Net sales -- TTM $ 4,644
$ 5,160 $ 5,977 $ 6,894 $ 7,880 70 % Net sales -- TTM % of WW net
sales 5 % 6 % 6 % 7 % 7 % N/A Operating income (loss) $ 240 $ 265 $
391 $ 521 $ 687 186 % Operating income/loss -- Y/Y growth
(decline), excluding F/X (13 )% 314 % 353 % 161 % N/A Operating
margin -- % of AWS net sales 16.9 % 16.9 % 21.4 % 25.0 % 28.5 % N/A
Operating income (loss) -- TTM $ 660 $ 680 $ 993 $ 1,417 $ 1,863
182 % Operating margin -- TTM % of AWS net sales 14.2 % 13.2 % 16.6
% 20.6 % 23.6 % N/A Consolidated Segments: Operating expenses (5) $
28,290 $ 22,011 $ 22,110 $ 24,365 $ 33,997 20 % Operating expenses
-- TTM (5) $ 87,180 $ 89,951 $ 93,126 $ 96,777 $ 102,483 18 %
Operating income (loss) $ 1,038 $ 706 $ 1,075 $ 993 $ 1,750 69 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 22 %
45 % 168 % N/A 67 % N/A Operating margin -- % of Consolidated sales
3.5 % 3.1 % 4.6 % 3.9 % 4.9 % N/A Operating income (loss) -- TTM $
1,808 $ 2,012 $ 2,682 $ 3,811 $ 4,523 150 % Operating income/loss
-- TTM Y/Y growth (decline), excluding F/X (10 )% (1 )% 34 % 134 %
149 % N/A Operating margin -- TTM % of Consolidated net sales 2.0 %
2.2 % 2.8 % 3.8 % 4.2 % N/A
______________________________
(5) Represents cost of sales, fulfillment,
marketing, technology and content, and general and administrative
operating expenses, excluding stock-based compensation.
AMAZON.COM, INC. Supplemental Financial
Information and Business Metrics (in millions, except
inventory turnover, accounts payable days and employee data)
(unaudited)
Y/Y % Q4
2014 Q1 2015 Q2 2015
Q3 2015 Q4 2015
Change Supplemental Supplemental North America
Segment Net Sales: Media $ 3,544 $ 2,969 $ 2,620 $ 2,963 $ 3,931 11
% Media -- Y/Y growth, excluding F/X 1 % 5 % 7 % 9 % 12 % N/A Media
-- TTM $ 11,567 $ 11,711 $ 11,867 $ 12,096 $ 12,483 8 % Electronics
and other general merchandise $ 13,529 $ 10,250 $ 10,987 $ 11,840 $
17,325 28 % Electronics and other general merchandise -- Y/Y
growth, excluding F/X 27 % 31 % 32 % 35 % 28 % N/A Electronics and
other general merchandise -- TTM $ 38,517 $ 40,938 $ 43,559 $
46,606 $ 50,401 31 % Electronics and other general merchandise --
TTM % of North America net sales 76 % 77 % 77 % 78 % 79 % N/A Other
$ 260 $ 187 $ 189 $ 203 $ 245 (6 )% Supplemental International
Segment Net Sales: Media $ 3,406 $ 2,320 $ 2,094 $ 2,320 $ 3,292 (3
)% Media -- Y/Y growth, excluding F/X (1 )% 2 % 3 % 6 % 5 % N/A
Media -- TTM $ 10,938 $ 10,615 $ 10,329 $ 10,140 $ 10,026 (8 )%
Electronics and other general merchandise $ 7,109 $ 5,378 $ 5,425 $
5,901 $ 8,491 19 % Electronics and other general merchandise -- Y/Y
growth, excluding F/X 19 % 21 % 31 % 32 % 31 % N/A Electronics and
other general merchandise -- TTM $ 22,369 $ 22,559 $ 23,072 $
23,814 $ 25,196 13 % Electronics and other general merchandise --
TTM % of International net sales 67 % 68 % 69 % 70 % 71 % N/A Other
$ 60 $ 47 $ 46 $ 46 $ 58 (3 )%
Balance Sheet Cash and
marketable securities -- ending $ 17,416 $ 13,781 $ 14,001 $ 14,428
$ 19,808 14 % Inventory, net -- ending $ 8,299 $ 7,369 $ 7,470 $
8,981 $ 10,243 23 % Inventory turnover, average -- TTM 8.6 8.8 8.9
8.6 8.5 (2 )% Property and equipment, net -- ending $ 16,967 $
17,736 $ 19,479 $ 20,636 $ 21,838 29 % Accounts payable -- ending $
16,459 $ 11,917 $ 12,391 $ 14,437 $ 20,397 24 % Accounts payable
days -- ending 73 70 74 79 77 5 %
Other WW shipping revenue
$ 1,701 $ 1,299 $ 1,399 $ 1,494 $ 2,328 37 % WW shipping revenue -
% of net sales (6) 6.1 % 6.1 % 6.6 % 6.4 % 7.0 % N/A WW shipping
costs $ 3,049 $ 2,309 $ 2,340 $ 2,720 $ 4,170 37 % WW shipping
costs - % of net sales (6) 10.9 % 10.9 % 11.0 % 11.7 % 12.5 % N/A
WW net shipping costs $ 1,348 $ 1,010 $ 941 $ 1,226 $ 1,842 37 % WW
net shipping costs -- % of WW net sales (6) 4.8 % 4.8 % 4.4 % 5.3 %
5.5 % N/A WW paid units -- Y/Y growth 20 % 20 % 22 % 26 % 26 % N/A
WW seller unit mix -- % of WW paid units 43 % 44 % 45 % 46 % 47 %
N/A Employees (full-time and part-time; excludes contractors &
temporary personnel) 154,100 165,000 183,100 222,400 230,800 50 %
______________________________
(6) Includes North America and
International segment net sales.
Amazon.com, Inc.Certain
Definitions
Customer Accounts
- References to customers mean customer
accounts, which are unique e-mail addresses, established either
when a customer places an order or when a customer orders from
other sellers on our websites. Customer accounts exclude certain
customers, including customers associated with certain of our
acquisitions, Amazon Payments customers, AWS customers, and the
customers of select companies with whom we have a technology
alliance or marketing and promotional relationship. Customers are
considered active when they have placed an order during the
preceding twelve-month period.
Seller Accounts
- References to sellers means seller
accounts, which are established when a seller receives an order
from a customer account. Sellers are considered active when they
have received an order from a customer during the preceding
twelve-month period.
AWS Customers
- References to AWS customers mean unique
AWS customer accounts, which are unique e-mail addresses that are
eligible to use AWS services. This includes AWS accounts in the AWS
free tier. Multiple users accessing AWS services via one account
are counted as a single account. Customers are considered active
when they have had AWS usage activity during the preceding
one-month period.
Units
- References to units mean physical and
digital units sold (net of returns and cancellations) by us and
sellers at Amazon domains worldwide — for example www.amazon.com,
www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr,
www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es,
www.amazon.com.br, www.amazon.in, www.amazon.com.mx,
www.amazon.com.au, www.amazon.nl, 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 AWS, certain acquisitions, rental businesses,
or advertising businesses, or Amazon gift cards.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160128006357/en/
Amazon.com, Inc.Investor RelationsPhil Hardin,
206-266-2171www.amazon.com/irorPublic RelationsTy Rogers,
206-266-7180www.amazon.com/pr
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