Amazon.com, Inc. (NASDAQ: AMZN) today announced financial
results for its first quarter ended March 31, 2016.
Operating cash flow increased 44% to $11.3 billion for the
trailing twelve months, compared with $7.8 billion for the trailing
twelve months ended March 31, 2015. Free cash
flow increased to $6.4 billion for the trailing twelve months,
compared with $3.2 billion for the trailing twelve months ended
March 31, 2015. Free cash flow less lease principal repayments
increased to $3.5 billion for the trailing twelve months, compared
with $1.5 billion for the trailing twelve months ended
March 31, 2015. Free cash flow less finance lease principal
repayments and assets acquired under capital leases increased to
$1.6 billion for the trailing twelve months, compared with an
outflow of $1.2 billion for the trailing twelve months ended
March 31, 2015.
Common shares outstanding plus shares underlying stock-based
awards totaled 490 million on March 31, 2016, compared with
483 million one year ago.
Net sales increased 28% to $29.1 billion in the first quarter,
compared with $22.7 billion in first quarter 2015. Excluding the
$210 million unfavorable impact from year-over-year changes in
foreign exchange rates throughout the quarter, net sales increased
29% compared to first quarter 2015.
Operating income was $1.1 billion in the first quarter, compared
with $255 million in first quarter 2015.
Net income was $513 million in the first quarter, or $1.07 per
diluted share, compared with net loss of $57 million, or $0.12 per
diluted share, in first quarter 2015.
“Amazon devices are the top selling products on Amazon, and
customers purchased more than twice as many Fire tablets than first
quarter last year,” said Jeff Bezos, founder and CEO of Amazon.com.
“Earlier this week, the $39 Fire TV Stick became the first product
ever — from any manufacturer — to pass 100,000 customer reviews,
including over 62,000 5 star reviews, also more than any other
product ever sold on Amazon. Echo too is off to an incredible
start, and we can’t yet manage to keep it in stock despite all
efforts. We’re building premium products at non-premium prices, and
we’re thrilled so many customers are responding to our
approach.”
Highlights
- Amazon introduced Kindle Oasis, the
thinnest and lightest Kindle, crafted from the ground up for
readers with an all-new, incredibly thin and light design, plus an
included charging cover that delivers months of battery life.
Kindle Oasis, our eighth generation of Kindle, weighs just 4.6
ounces and is only 3.4 mm at its thinnest point — 30% thinner and
over 20% lighter than any other Kindle.
- Amazon announced two Alexa-enabled
devices: Amazon Echo Dot, a hands-free, voice-controlled device
that uses the same far-field voice recognition as Amazon Echo — for
less than $90; and Amazon Tap, an Alexa-enabled portable Bluetooth
and Wi-Fi speaker for under $130.
- Amazon announced that Spotify Premium
is now available in the U.S. on Echo. Spotify subscribers can
listen to their music on Echo and ask Alexa to play any playlist,
artist, genre, and more from Spotify’s catalog.
- Alexa added hundreds of new skills,
which include requesting a car from Uber, ordering a pizza from
Domino’s, checking your credit balance with Capital One, getting
fitness information from Fitbit, receiving election updates from
NBC News, and many more. Alexa also supports more smart home
devices, including thermostats from Nest, ecobee, Insteon, and
Honeywell so customers can control the temperature in their homes
using only their voice.
- Amazon Dash Button has more than
tripled the lineup of available brands. Customers can now choose
from over 100 Dash Buttons, including Brawny, Doritos, Energizer,
Honest Kids, Peet’s Coffee, Purina, Red Bull, Seventh Generation,
and Starbucks.
- Amazon Studios acquired the rights to
several high-profile films including Woody Allen’s Café Society,
Whit Stillman’s Love & Friendship, and 2016 Sundance Film
Festival titles Manchester by the Sea, Gleason, Author: The JT
Leroy Story, and Wiener-Dog. Following its theatrical run, each
film will become available exclusively to Prime members through
Prime Video.
- Amazon’s second original live-action
kids’ series, Just Add Magic, was the most successful Amazon
Original Kids premiere with the most streams and hours in the first
weekend.
- Prime Music teamed up with Macklemore
& Ryan Lewis to live stream their album release concert for
This Unruly Mess I’ve Made. The live stream was available to all
Amazon customers at no cost.
- Amazon entered into agreements with Air
Transport Services Group (ATSG) to lease 20 air cargo planes to
support one and two-day delivery for U.S. customers. ATSG will
operate the planes for Amazon.
- Prime Free Same-Day Delivery expanded
to 11 new metro areas and now serves Prime members in 27 metro
areas throughout the U.S.
- Amazon launched Prime Belgium with
unlimited Free One-Day Shipping on millions of items, unlimited
photo storage with Prime Photos, access to more than one million
books to borrow with Kindle Owners’ Lending Library, and early
access to flash sales.
- Amazon was ranked #1 in corporate
reputation among the 100 most visible companies in America,
according to the 23,000-person Harris Poll. Amazon was also ranked
#1 on the Reputation Institute’s U.S. RepTrak 100 list of the most
reputable companies, which is based on more than 83,000
ratings.
- U.K. consumers ranked Amazon #1 in
customer satisfaction in a nationwide poll from the Institute of
Customer Service. And for the second year in a row, customers
selected Amazon.in as India’s most trusted online shopping brand,
according to an annual Trust Research Advisory survey.
- The Amazon Global Store on Amazon.cn
has grown to over 10 million items, providing Chinese customers
with an easier and more convenient shopping experience with
authentic products curated from the Amazon.com website.
- Amazon.in launched Amazon Tatkal, a
studio-on-wheels offering a suite of launch services to sellers,
including registration, imaging and cataloging services, and basic
seller training. Since launching in February, Amazon Tatkal has
reached sellers in 25 cities.
- Handmade at Amazon, featuring genuinely
handcrafted items sold directly from artisans, has increased
selection to nearly 400,000 products from 12,000 artisans in more
than 80 countries.
- Amazon Home Services, providing
customers with a simple way to buy and schedule professional
services, now serves more than 40,000 U.S. zip codes with more than
1,200 service options across 45 categories.
- Amazon launched the Amazon Payments
Partner Program, a global program that offers unique tools and
services to help ecommerce service providers and developers
integrate their merchant customers with Amazon Payments.
- Amazon Business, a B2B offering that
includes features and benefits tailored to businesses, now serves
more than 300,000 businesses ranging from small to Fortune 500
companies.
- Amazon launched Style Code Live, a
daily live show dedicated to fashion and beauty that features
trends and useful tips from style experts, looks that the audience
can shop, and interactive features like live chat. Style Code Live
is hosted by Lyndsey Rodrigues, Rachel Smith, and Frankie Grande,
and has featured guests such as Meghan Trainor, Karolina Kurkova,
Lauren Conrad, Whitney Port, and Molly Sims. The show streams free
for all viewers weeknights at 9 p.m. ET/6 p.m. PT at
www.amazon.com/stylecodelive.
- Amazon Education, TenMarks, and a
coalition of non-profit education and education technology
organizations launched the initiative “With Math I Can” to change
student mindsets about math. The campaign challenges more than
three million teachers and their students to replace the notion of
“I’m not good at math” with “I am working to get better at math.”
Teachers and students can visit www.withmathican.org to learn
more.
- Amazon Web Services (AWS) announced
Amazon Lumberyard, a free, cross-platform, 3D game engine for
developers to create the highest-quality games, connect their games
to compute and storage of the AWS Cloud, and engage fans on Twitch.
Amazon Lumberyard helps developers build beautiful worlds, make
realistic characters, and create stunning real-time effects.
- AWS announced the general availability
of the AWS Database Migration Service, a fully managed service that
allows customers to migrate their production Oracle, SQL Server,
MySQL, MariaDB, and PostgreSQL databases from on-premises data
centers to any of these engines or Amazon Aurora on AWS with
virtually no downtime. So far this year, customers used the AWS
Database Migration Service to move more than 2,000 databases to the
AWS Cloud.
- AWS announced the general availability
of Amazon Inspector, an automated security assessment service that
helps customers improve the security and compliance of their
applications deployed on Amazon Elastic Compute Cloud (Amazon
EC2).
- AWS further enhanced its block storage
service, Amazon Elastic Block Store (Amazon EBS), announcing two
new low-cost hard disk drive (HDD)-backed storage options that
offer customers predictable performance for big data workloads.
Amazon EBS Throughput Optimized HDD (st1) and Cold HDD (sc1)
volumes deliver consistent baseline performance with the ability to
“burst” to higher throughput to meet the performance needs of big
data applications like processing streaming data or performing data
analytics.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of April 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, online commerce, and cloud services, and the
various factors detailed below.
Second Quarter 2016 Guidance
- Net sales are expected to be between
$28.0 billion and $30.5 billion, or to grow between 21% and 32%
compared with second quarter 2015.
- Operating income is expected to be
between $375 million and $975 million, compared with $464 million
in second quarter 2015.
- This guidance includes approximately
$825 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 and services
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) (unaudited)
Three Months Ended March 31, Twelve Months
Ended March 31, 2016 2015
2016 2015 CASH AND CASH EQUIVALENTS, BEGINNING
OF PERIOD $ 15,890 $ 14,557 $ 10,237 $ 5,074 OPERATING ACTIVITIES:
Net income (loss) 513 (57 ) 1,166 (405 ) 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 1,827 1,426 6,682 5,162 Stock-based
compensation 544 407 2,257 1,582 Other operating expense (income),
net 43 44 155 139 Losses (gains) on sales of marketable securities,
net 2 1 6 (3 ) Other expense (income), net (52 ) 91 102 203
Deferred income taxes 11 (2 ) 94 (136 ) Excess tax benefits from
stock-based compensation (207 ) (22 ) (305 ) 94 Changes in
operating assets and liabilities: Inventories 769 721 (2,138 )
(1,172 ) Accounts receivable, net and other 412 441 (1,784 ) (1,324
) Accounts payable (5,770 ) (4,249 ) 2,773 2,184 Accrued expenses
and other (956 ) (940 ) 893 500 Additions to unearned revenue 2,814
1,803 8,412 5,144 Amortization of previously unearned revenue
(2,110 ) (1,163 ) (7,055 ) (4,123 ) Net cash provided by (used in)
operating activities (2,160 ) (1,499 ) 11,258 7,845 INVESTING
ACTIVITIES: Purchases of property and equipment, including
internal-use software and website development, net (1,179 ) (871 )
(4,897 ) (4,684 ) Acquisitions, net of cash acquired, and other (16
) (365 ) (446 ) (1,345 ) Sales and maturities of marketable
securities 1,138 375 3,788 3,131 Purchases of marketable securities
(636 ) (986 ) (3,741 ) (3,091 ) Net cash provided by (used in)
investing activities (693 ) (1,847 ) (5,296 ) (5,989 ) FINANCING
ACTIVITIES: Excess tax benefits from stock-based compensation 207
22 305 (94 ) Proceeds from long-term debt and other 9 183 179 6,478
Repayments of long-term debt and other (175 ) (316 ) (1,512 ) (760
) Principal repayments of capital lease obligations (801 ) (502 )
(2,761 ) (1,537 ) Principal repayments of finance lease obligations
(29 ) (39 ) (111 ) (132 ) Net cash provided by (used in) financing
activities (789 ) (652 ) (3,900 ) 3,955 Foreign-currency effect on
cash and cash equivalents 222 (322 ) 171 (648 ) Net
increase (decrease) in cash and cash equivalents (3,420 ) (4,320 )
2,233 5,163 CASH AND CASH EQUIVALENTS, END OF PERIOD
$ 12,470 $ 10,237 $ 12,470 $ 10,237
SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on
long-term debt $ 2 $ 17 $ 310 $ 90 Cash paid for interest on
capital and finance lease obligations 47 32 168 102 Cash paid for
income taxes (net of refunds) 139 55 357 194 Property and equipment
acquired under capital leases 875 954 4,638 4,246 Property and
equipment acquired under build-to-suit leases 351 103 793 897
AMAZON.COM, INC. Consolidated Statements of
Operations (in millions, except per share data)
(unaudited) Three Months Ended March
31, 2016 2015 Net product sales $ 20,581 $
17,084 Net service sales 8,547 5,633 Total net sales
29,128 22,717 Operating expenses (1): Cost of sales 18,866 15,395
Fulfillment 3,687 2,759 Marketing 1,436 1,083 Technology and
content 3,526 2,754 General and administrative 497 427 Other
operating expense (income), net 45 44 Total operating
expenses 28,057 22,462 Operating income 1,071 255
Interest income 21 11 Interest expense (117 ) (115 ) Other income
(expense), net 81 (130 ) Total non-operating income
(expense) (15 ) (234 ) Income (loss) before income taxes 1,056 21
Provision for income taxes (475 ) (71 ) Equity-method investment
activity, net of tax (68 ) (7 ) Net income (loss) $ 513 $
(57 ) Basic earnings per share $ 1.09 $ (0.12 ) Diluted
earnings per share $ 1.07 $ (0.12 ) Weighted-average shares
used in computation of earnings per share: Basic 471 465
Diluted 481 465 _____________ (1) Includes
stock-based compensation as follows: Fulfillment $ 116 $ 90
Marketing 56 35 Technology and content 317 233 General and
administrative 55 49
AMAZON.COM, INC. Consolidated
Statements of Comprehensive Income (Loss) (in millions)
(unaudited) Three Months Ended March
31, 2016 2015 Net income (loss) $ 513 $
(57 ) Other comprehensive income (loss): Foreign currency
translation adjustments, net of tax of $(24) and $(1) 102 (243 )
Net change in unrealized gains (losses) on available-for-sale
securities: Unrealized gains (losses), net of tax of $0 and $0 6 1
Reclassification adjustment for losses (gains) included in “Other
income (expense), net,” net of tax of $(1) and $0 1 1
Net unrealized gains (losses) on available-for-sale securities 7
2 Total other comprehensive income (loss) 109
(241 ) Comprehensive income (loss) $ 622 $ (298 )
AMAZON.COM, INC. Segment Information (in
millions) (unaudited) Three Months
Ended March 31, 2016 2015 North
America Net sales $ 16,996 $ 13,406 Segment operating expenses
16,072 12,889 Segment operating income (loss) before
stock-based compensation and other 924 517 Stock-based compensation
and other 336 263 Operating income (loss) $ 588
$ 254
International Net sales $ 9,566 $ 7,745
Segment operating expenses 9,546 7,821 Segment
operating income (loss) before stock-based compensation and other
20 (76 ) Stock-based compensation and other 141 118
Operating income (loss) $ (121 ) $ (194 )
AWS Net sales $
2,566 $ 1,566 Segment operating expenses 1,850 1,301
Segment operating income (loss) before stock-based compensation and
other 716 265 Stock-based compensation and other 112 70
Operating income (loss) $ 604 $ 195
Consolidated Net sales $ 29,128 $ 22,717 Segment operating
expenses 27,468 22,011 Segment operating income
(loss) before stock-based compensation and other 1,660 706
Stock-based compensation and other 589 451 Operating
income (loss) 1,071 255 Total non-operating income (expense) (15 )
(234 ) Provision for income taxes (475 ) (71 ) Equity-method
investment activity, net of tax (68 ) (7 ) Net income (loss) $ 513
$ (57 )
Segment Highlights: Y/Y net sales growth:
North America 27 % 24 % International 24 (2 ) AWS 64 49
Consolidated 28 15 Net sales mix: North America 58 % 59 %
International 33 34 AWS 9 7 Consolidated 100 % 100 %
AMAZON.COM, INC. Supplemental Net Sales
Information (in millions) (unaudited)
Three Months Ended March 31, 2016
2015 Net Sales: North America Media $ 3,208 $ 2,969
Electronics and other general merchandise 13,511 10,250 Other (1)
277 187 Total North America $ 16,996 $ 13,406
International Media $ 2,480 $ 2,320 Electronics and other
general merchandise 7,034 5,378 Other (1) 52 47 Total
International $ 9,566 $ 7,745 Year-over-year
Percentage Growth: North America Media 8 % 5 % Electronics and
other general merchandise 32 31 Other 48 22 Total North America 27
24 International Media 7 % (12 )% Electronics and other general
merchandise 31 4 Other 12 (12 ) Total International 24 (2 )
Year-over-year Percentage Growth, excluding the effect of foreign
exchange rates: North America Media 8 % 5 % Electronics and other
general merchandise 32 31 Other 48 22 Total North America 27 24
International Media 9 % 2 % Electronics and other general
merchandise 33 21 Other 15 2 Total International 26 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) March
31, 2016 December 31, 2015 (unaudited)
ASSETS
Current assets: Cash and cash equivalents $ 12,470 $ 15,890
Marketable securities 3,389 3,918 Inventories 9,582 10,243 Accounts
receivable, net and other 5,072 5,654 Total current
assets 30,513 35,705 Property and equipment, net 23,308 21,838
Goodwill 3,785 3,759 Other assets 3,522 3,445 Total
assets $ 61,128 $ 64,747
LIABILITIES AND
STOCKHOLDERS’ EQUITY
Current liabilities: Accounts payable $ 14,990 $ 20,397 Accrued
expenses and other 9,431 10,372 Unearned revenue 3,766 3,118
Total current liabilities 28,187 33,887 Long-term debt 8,219
8,227 Other long-term liabilities 9,966 9,249 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 — 495 and 494 Outstanding shares — 472 and 471 5 5 Treasury
stock, at cost (1,837 ) (1,837 ) Additional paid-in capital 14,144
13,394 Accumulated other comprehensive loss (614 ) (723 ) Retained
earnings 3,058 2,545 Total stockholders’ equity
14,756 13,384 Total liabilities and stockholders’
equity $ 61,128 $ 64,747
AMAZON.COM,
INC. Supplemental Financial Information and Business
Metrics (in millions, except per share data)
(unaudited) Q1 2015 Q2
2015 Q3 2015 Q4 2015 Q1
2016 Y/Y %
Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) $ 7,845 $ 8,980
$ 9,823 $ 11,920 $ 11,258 44 % Operating cash flow -- TTM Y/Y
growth (decline) 47 % 69 % 72 % 74 % 44 % N/A Purchases of property
and equipment, including internal-use software and website
development, net -- TTM $ 4,684 $ 4,607 $ 4,424 $ 4,589 $ 4,897 5 %
Principal repayments of capital lease obligations -- TTM $ 1,537 $
1,832 $ 2,144 $ 2,462 $ 2,761 80 % Principal repayments of finance
lease obligations -- TTM $ 132 $ 155 $ 163 $ 121 $ 111 (16 )%
Property and equipment acquired under capital leases -- TTM $ 4,246
$ 4,710 $ 4,599 $ 4,717 $ 4,638 9 % Free cash flow -- TTM (1) $
3,161 $ 4,373 $ 5,399 $ 7,331 $ 6,361 101 % Free cash flow less
lease principal repayments -- TTM (2) $ 1,492 $ 2,386 $ 3,092 $
4,748 $ 3,489 134 % Free cash flow less finance lease principal
repayments and assets acquired under capital leases -- TTM (3) $
(1,217 ) $ (492 ) $ 637 $ 2,493 $ 1,612 N/A Invested capital (4)
24,040 26,478 28,860 31,393 32,824 37 % Common shares and
stock-based awards outstanding 483 488 489 490 490 1 % Common
shares outstanding 466 468 469 471 472 1 % Stock-based awards
outstanding 17 20 20 19 18 4 % Stock-based awards outstanding -- %
of common shares outstanding 3.8 % 4.4 % 4.3 % 4.1 % 3.9 % N/A
Results of Operations Worldwide (WW) net sales $ 22,717 $
23,185 $ 25,358 $ 35,747 $ 29,128 28 % WW net sales -- Y/Y growth,
excluding F/X 22 % 27 % 30 % 26 % 29 % N/A WW net sales -- TTM $
91,963 $ 95,808 $ 100,588 $ 107,006 $ 113,418 23 % WW net sales --
TTM Y/Y growth (decline), excluding F/X 20 % 22 % 24 % 26 % 28 %
N/A Operating income (loss) $ 255 $ 464 $ 406 $ 1,108 $ 1,071 320 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 90 %
N/A N/A 84 % 300 % N/A Operating margin -- % of WW net sales 1.1 %
2.0 % 1.6 % 3.1 % 3.7 % N/A Operating income (loss) -- TTM $ 287 $
765 $ 1,715 $ 2,233 $ 3,049 964 % Operating income/loss -- TTM Y/Y
growth (decline), excluding F/X (56 )% 35 % N/A N/A 933 % N/A
Operating margin -- TTM % of WW net sales 0.3 % 0.8 % 1.7 % 2.1 %
2.7 % N/A Net income (loss) $ (57 ) $ 92 $ 79 $ 482 $ 513 N/A Net
income (loss) per diluted share $ (0.12 ) $ 0.19 $ 0.17 $ 1.00 $
1.07 N/A Net income (loss) -- TTM $ (405 ) $ (188 ) $ 328 $ 596 $
1,166 N/A Net income (loss) per diluted share -- TTM $ (0.88 ) $
(0.41 ) $ 0.69 $ 1.25 $ 2.43 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) 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.
(3) 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.
(4) Average Total Assets minus Current
Liabilities (excluding current portion of Long-Term Debt and
current portion of capital lease obligations and finance lease
obligations) over five quarter ends.
AMAZON.COM, INC. Supplemental Financial
Information and Business Metrics (in millions)
(unaudited) Q1 2015 Q2
2015 Q3 2015 Q4 2015 Q1
2016 Y/Y %Change Segments
North America Segment: Net sales $
13,406 $ 13,796 $ 15,006 $ 21,501 $ 16,996 27 % Net sales -- Y/Y
growth, excluding F/X 24 % 26 % 29 % 24 % 27 % N/A Net sales -- TTM
$ 53,432 $ 56,233 $ 59,540 $ 63,708 $ 67,299 26 % Segment operating
income (loss) before stock-based compensation and other: Operating
income (loss) $ 517 $ 703 $ 528 $ 1,003 $ 924 79 % Operating
income/loss -- Y/Y growth (decline), excluding F/X 77 % 111 % N/A
36 % 78 % N/A Operating margin -- % of North America net sales 3.9
% 5.1 % 3.5 % 4.7 % 5.4 % N/A Operating income (loss) -- TTM $
1,520 $ 1,893 $ 2,480 $ 2,751 $ 3,157 108 % Operating margin -- TTM
% of North America net sales 2.8 % 3.4 % 4.2 % 4.3 % 4.7 % N/A
Operating income (loss): Operating income (loss) $ 254 $ 348 $ 186
$ 636 $ 588 131 % Operating income/loss -- Y/Y growth (decline),
excluding F/X 129 % N/A Operating margin -- % of North America net
sales 1.9 % 2.5 % 1.2 % 3.0 % 3.5 % N/A Operating income (loss) --
TTM $ 1,425 $ 1,759 232 % Operating margin -- TTM % of North
America net sales 2.2 % 2.6 % N/A International Segment: Net sales
$ 7,745 $ 7,565 $ 8,267 $ 11,841 $ 9,566 24 % Net sales -- Y/Y
growth, excluding F/X 14 % 22 % 24 % 22 % 26 % N/A Net sales -- TTM
$ 33,371 $ 33,598 $ 34,154 $ 35,418 $ 37,239 12 % Segment operating
income (loss) before stock-based compensation and other: Operating
income (loss) $ (76 ) $ (19 ) $ (56 ) $ 60 $ 20 N/A Operating
income/loss -- Y/Y growth (decline), excluding F/X N/A N/A N/A 65 %
N/A N/A Operating margin -- % of International net sales (1.0 )%
(0.2 )% (0.7 )% 0.5 % 0.2 % N/A Operating income (loss) -- TTM $
(188 ) $ (205 ) $ (86 ) $ (91 ) $ 6 N/A Operating margin -- TTM %
of International net sales (0.6 )% (0.6 )% (0.3 )% (0.3 )% — % N/A
Operating income (loss): Operating income (loss) $ (194 ) $ (189 )
$ (208 ) $ (108 ) $ (121 ) (38 )% Operating income/loss -- Y/Y
growth (decline), excluding F/X (27 )% N/A Operating margin -- % of
International net sales (2.5 )% (2.5 )% (2.5 )% (0.9 )% (1.3 )% N/A
Operating income (loss) -- TTM $ (699 ) $ (626 ) (10 )% Operating
margin -- TTM % of International net sales (2.0 )% (1.7 )% N/A
AMAZON.COM, INC. Supplemental Financial
Information and Business Metrics (in millions)
(unaudited) Q1 2015 Q2
2015 Q3 2015 Q4 2015 Q1
2016 Y/Y %Change Segments
(continued) AWS Segment: Net
sales $ 1,566 $ 1,824 $ 2,085 $ 2,405 $ 2,566 64 % Net sales -- Y/Y
growth, excluding F/X 49 % 81 % 78 % 69 % 64 % N/A Net sales -- TTM
$ 5,160 $ 5,977 $ 6,894 $ 7,880 $ 8,880 72 % Net sales -- TTM % of
WW net sales 6 % 6 % 7 % 7 % 8 % N/A Segment operating income
(loss) before stock-based compensation and other: Operating income
(loss) $ 265 $ 391 $ 521 $ 687 $ 716 170 % Operating income/loss --
Y/Y growth (decline), excluding F/X (13 )% 314 % 353 % 161 % 161 %
N/A Operating margin -- % of AWS net sales 16.9 % 21.4 % 25.0 %
28.5 % 27.9 % N/A Operating income (loss) -- TTM $ 680 $ 993 $
1,417 $ 1,863 $ 2,315 241 % Operating margin -- TTM % of AWS net
sales 13.2 % 16.6 % 20.6 % 23.6 % 26.1 % N/A Operating income
(loss): Operating income (loss) $ 195 $ 305 $ 428 $ 580 $ 604 210 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 198 %
N/A Operating margin -- % of AWS net sales 12.4 % 16.7 % 20.5 %
24.1 % 23.5 % N/A Operating income (loss) -- TTM $ 1,507 $ 1,916
325 % Operating margin -- TTM % of AWS net sales 19.1 % 21.6 % N/A
Consolidated Segments Before Stock-Based Compensation and Other:
Operating income (loss) $ 706 $ 1,075 $ 993 $ 1,750 $ 1,660 135 %
Operating income/loss -- Y/Y growth (decline), excluding F/X 45 %
168 % N/A 67 % 128 % N/A Operating margin -- % of Consolidated net
sales 3.1 % 4.6 % 3.9 % 4.9 % 5.7 % N/A Operating income (loss) --
TTM $ 2,012 $ 2,682 $ 3,811 $ 4,523 $ 5,478 172 % Operating margin
-- TTM % of Consolidated net sales 2.2 % 2.8 % 3.8 % 4.2 % 4.8 %
N/A
AMAZON.COM, INC. Supplemental Financial
Information and Business Metrics (in millions, except
inventory turnover, accounts payable days and employee data)
(unaudited) Q1 2015 Q2
2015 Q3 2015 Q4 2015 Q1
2016 Y/Y %
Change
Supplemental Supplemental
North America Segment Net Sales: Media $ 2,969 $ 2,620 $ 2,963 $
3,931 $ 3,208 8 % Media -- Y/Y growth, excluding F/X 5 % 7 % 9 % 12
% 8 % N/A Media -- TTM $ 11,711 $ 11,867 $ 12,096 $ 12,483 $ 12,722
9 % Electronics and other general merchandise $ 10,250 $ 10,987 $
11,840 $ 17,325 $ 13,511 32 % Electronics and other general
merchandise -- Y/Y growth, excluding F/X 31 % 32 % 35 % 28 % 32 %
N/A Electronics and other general merchandise -- TTM $ 40,938 $
43,559 $ 46,606 $ 50,401 $ 53,663 31 % Electronics and other
general merchandise -- TTM % of North America net sales 77 % 77 %
78 % 79 % 80 % N/A Other $ 187 $ 189 $ 203 $ 245 $ 277 48 %
Supplemental International Segment Net Sales: Media $ 2,320 $ 2,094
$ 2,320 $ 3,292 $ 2,480 7 % Media -- Y/Y growth, excluding F/X 2 %
3 % 6 % 5 % 9 % N/A Media -- TTM $ 10,615 $ 10,329 $ 10,140 $
10,026 $ 10,186 (4 )% Electronics and other general merchandise $
5,378 $ 5,425 $ 5,901 $ 8,491 $ 7,034 31 % Electronics and other
general merchandise -- Y/Y growth, excluding F/X 21 % 31 % 32 % 31
% 33 % N/A Electronics and other general merchandise -- TTM $
22,559 $ 23,072 $ 23,814 $ 25,196 $ 26,851 19 % Electronics and
other general merchandise -- TTM % of International net sales 68 %
69 % 70 % 71 % 72 % N/A Other $ 47 $ 46 $ 46 $ 58 $ 52 12 %
Balance Sheet Cash and marketable securities -- ending $
13,781 $ 14,001 $ 14,428 $ 19,808 $ 15,859 15 % Inventory, net --
ending $ 7,369 $ 7,470 $ 8,981 $ 10,243 $ 9,582 30 % Inventory
turnover, average -- TTM 8.8 8.9 8.6 8.5 8.6 (2 )% Property and
equipment, net -- ending $ 17,736 $ 19,479 $ 20,636 $ 21,838 $
23,308 31 % Accounts payable -- ending $ 11,917 $ 12,391 $ 14,437 $
20,397 $ 14,990 26 % Accounts payable days -- ending 70 74 79 77 72
4 %
Other WW shipping revenue $ 1,299 $ 1,399 $ 1,494 $
2,328 $ 1,820 40 % WW shipping revenue -- Y/Y growth 53 % 57 % 43 %
37 % 40 % N/A WW shipping costs $ 2,309 $ 2,340 $ 2,720 $ 4,170 $
3,275 42 % WW shipping costs -- Y/Y growth 26 % 29 % 35 % 37 % 42 %
N/A WW net shipping costs $ 1,010 $ 941 $ 1,226 $ 1,842 $ 1,455 44
% WW net shipping costs -- Y/Y growth 3 % 2 % 26 % 37 % 44 % N/A WW
paid units -- Y/Y growth 20 % 22 % 26 % 26 % 27 % N/A WW seller
unit mix -- % of WW paid units 44 % 45 % 46 % 47 % 48 % N/A
Employees (full-time and part-time; excludes contractors &
temporary personnel) 165,000 183,100 222,400 230,800 245,200 49 %
AMAZON.COM, INC. Supplemental Segment Financial
Information
In Q1 2016, we began allocating
stock-based compensation and “Other operating expense (income),
net” to our segment results. In our segment results, these amounts
are combined and titled “Stock-based compensation and other.” These
revised segment results reflect the way the Company evaluates its
business performance and manages its operations.
Two years of historical financial
information on reportable segments and reconciliation to
consolidated net income (loss) using the new segment presentation
is as follows (in millions):
Year Ended Three Months Ended
Year Ended December 31, 2015
December 31, 2015 September 30,
2015 June 30, 2015 March
31, 2015 December 31, 2014 North
America Net sales $ 63,708 $ 21,501 $ 15,006 $ 13,796 $ 13,406
$ 50,834 Segment operating expenses 60,957 20,498
14,478 13,093 12,889 49,542 Segment
operating income (loss) before stock-based compensation and other
2,751 1,003 528 703 517 1,292 Stock-based compensation and other
1,326 367 342 355 263 932
Operating income (loss) $ 1,425 $ 636 $ 186 $
348 $ 254 $ 360
International Net sales
$ 35,418 $ 11,841 $ 8,267 $ 7,565 $ 7,745 $ 33,510 Segment
operating expenses 35,509 11,781 8,323 7,584
7,821 33,654 Segment operating income (loss)
before stock-based compensation and other (91 ) 60 (56 ) (19 ) (76
) (144 ) Stock-based compensation and other 608 168
152 170 118 496 Operating income (loss)
$ (699 ) $ (108 ) $ (208 ) $ (189 ) $ (194 ) $ (640 )
AWS
Net sales $ 7,880 $ 2,405 $ 2,085 $ 1,824 $ 1,566 $ 4,644 Segment
operating expenses 6,017 1,718 1,564 1,433
1,301 3,984 Segment operating income (loss)
before stock-based compensation and other 1,863 687 521 391 265 660
Stock-based compensation and other 356 107 93
86 70 202 Operating income (loss) $ 1,507
$ 580 $ 428 $ 305 $ 195 $ 458
Consolidated Net sales $ 107,006 $ 35,747 $ 25,358 $
23,185 $ 22,717 $ 88,988 Segment operating expenses 102,483
33,997 24,365 22,110 22,011 87,180
Segment operating income (loss) before stock-based
compensation and other 4,523 1,750 993 1,075 706 1,808 Stock-based
compensation and other 2,290 642 587 611
451 1,630 Operating income (loss) 2,233 1,108
406 464 255 178 Total non-operating income (expense) (665 ) (170 )
(159 ) (102 ) (234 ) (289 ) Provision for income taxes (950 ) (453
) (161 ) (266 ) (71 ) (167 ) Equity-method investment activity, net
of tax (22 ) (3 ) (7 ) (4 ) (7 ) 37 Net income (loss) $ 596
$ 482 $ 79 $ 92 $ (57 ) $ (241 )
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/20160428006852/en/
Amazon.com Investor RelationsDarin Manney,
206-266-2171www.amazon.com/irorAmazon.com Public RelationsTy
Rogers, 206-266-7180www.amazon.com/pr
Amazon.com (NASDAQ:AMZN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Amazon.com (NASDAQ:AMZN)
Historical Stock Chart
From Apr 2023 to Apr 2024