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Amazon.com Announces Second Quarter Results

Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2023.

  • Net sales increased 11% to $134.4 billion in the second quarter, compared with $121.2 billion in second quarter 2022. Excluding the $0.3 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with second quarter 2022.
    • North America segment sales increased 11% year-over-year to $82.5 billion.
    • International segment sales increased 10% year-over-year to $29.7 billion.
    • AWS segment sales increased 12% year-over-year to $22.1 billion.
  • Operating income increased to $7.7 billion in the second quarter, compared with $3.3 billion in second quarter 2022.
    • North America segment operating income was $3.2 billion, compared with an operating loss of $0.6 billion in second quarter 2022.
    • International segment operating loss was $0.9 billion, compared with an operating loss of $1.8 billion in second quarter 2022.
    • AWS segment operating income was $5.4 billion, compared with operating income of $5.7 billion in second quarter 2022.
  • Net income was $6.7 billion in the second quarter, or $0.65 per diluted share, compared with a net loss of $2.0 billion, or $0.20 per diluted share, in second quarter 2022.
    • Second quarter 2023 net income includes a pre-tax valuation gain of $0.2 billion included in non-operating expense from the common stock investment in Rivian Automotive, Inc., compared to a pre-tax valuation loss of $3.9 billion from the investment in second quarter 2022.
  • Operating cash flow increased 74% to $61.8 billion for the trailing twelve months, compared with $35.6 billion for the trailing twelve months ended June 30, 2022.
  • Free cash flow improved to an inflow of $7.9 billion for the trailing twelve months, compared with an outflow of $23.5 billion for the trailing twelve months ended June 30, 2022.
  • Free cash flow less principal repayments of finance leases and financing obligations improved to an inflow of $1.9 billion for the trailing twelve months, compared with an outflow of $33.5 billion for the trailing twelve months ended June 30, 2022.
  • Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations improved to an inflow of $6.7 billion for the trailing twelve months, compared with an outflow of $26.1 billion for the trailing twelve months ended June 30, 2022.

“It was another strong quarter of progress for Amazon,” said Andy Jassy, Amazon CEO. “We continued lowering our cost to serve in our fulfillment network, while also providing Prime customers with the fastest delivery speeds we’ve ever recorded. Our AWS growth stabilized as customers started shifting from cost optimization to new workload deployment, and AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models (Trainium and Inferentia chips), customize Large Language Models to build generative AI applications and agents (Bedrock), and write code much more efficiently with CodeWhisperer. We’re also continuing to see strong demand for our advertising services as the team keeps innovating for brands, including the ramp up for Thursday Night Football with the ability for advertisers to tailor their spots by audience and create interactive experiences for consumers. We remain excited about what lies ahead for customers and the company.”

Highlights

Obsessing over the customer experience

Amazon obsesses over how to make customers’ lives better and easier every day. This is true for consumers, sellers, brands, developers, enterprises, and creators. For example, Amazon:

  • Delivered its largest selection of products to U.S. Prime members at the fastest speeds ever in the quarter. The company now offers U.S. Prime members free Same-Day or One-Day Delivery on tens of millions of the most popular items. Across the top 60 largest U.S. metro areas, more than half of Prime member orders arrived the same or next day in the quarter. So far this year, Amazon has delivered more than 1.8 billion units to U.S. Prime members the same or next day—nearly four times the number of units delivered at those speeds by this point in 2019.
  • Held the biggest Prime Day event ever on July 11-12, in the third quarter, as Prime members worldwide purchased more than 375 million items and saved more than $2.5 billion. This year, Amazon offered more deals than any past Prime Day, with Home, Fashion, and Beauty among the top-selling deal categories. This was the largest Prime Day ever for Amazon’s independent sellers, most of which are small and medium-sized businesses, and the first where U.S.-based Prime members could shop deals directly from merchant sites using Buy with Prime.
  • Increased selection in the U.S. Amazon store. Amazon added new beauty and fashion brands, including D’Amelio Footwear, Dyson hair care, IT Cosmetics, Ralph Lauren Fragrances, and Urban Decay, and extended its collaboration with Victoria’s Secret. This marks the first time Victoria’s Secret lingerie and apparel are available through a retail partner in North America. Amazon also expanded its selection of grocery items from brands such as General Mills and Coca-Cola.
  • Announced Amazon Business is one of our fastest growing offerings, with a $35 billion annualized gross sales run rate and serving more than 6 million customers. Amazon Business allows businesses, municipalities, and organizations to procure products like office supplies and other bulk items easily and at discounted prices.
  • Enabled customers worldwide to save more than $1 billion in the last 12 months through Subscribe & Save, a program that helps customers save time and money on regularly scheduled deliveries. Customers select their preferred delivery frequency for eligible products and can cancel or change their subscription at any time. The program has tens of millions of global subscribers with hundreds of millions of subscriptions.
  • Announced that Amazon Day deliveries, which give Prime members the ability to choose a designated day of the week that makes sense for them to receive their orders, saved 136 million boxes in 2022. On top of making deliveries work for customers’ personal schedules, this free Prime benefit uses 30% fewer boxes on average.
  • Released Amazon’s annual U.S. Small Business Empowerment Report for 2022, which detailed that more than 60% of sales in Amazon’s store came from independent sellers, most of which are small and medium-sized businesses. U.S.-based independent sellers sold more than 4.1 billion products and averaged more than $230,000 in sales. Amazon also announced a Small Business Search filter, which helps customers easily discover and shop for products from small businesses and artisans while shopping in Amazon’s store.
  • Marked the 10th anniversary of Amazon.in and announced that Amazon India has enabled cumulative ecommerce exports of over $7 billion. By 2025, Amazon India has a goal to enable cumulative ecommerce exports of $20 billion, digitize 10 million small businesses, and create 2 million jobs in India.
  • Premiered AIR, which launched in more theaters worldwide than any previous Amazon Original film. The film subsequently debuted on Prime Video and ranked No. 3 on Nielsen’s Streaming Top 10 list during the first three days of its release. The company also premiered additional Amazon Original films and series including the final seasons of Tom Clancy’s Jack Ryan and Emmy-winning The Marvelous Mrs. Maisel; the global spy thriller Citadel, which was the No. 1 title on Prime Video in nearly 200 countries and territories during its premiere weekend; and Emmy-nominated Jury Duty, which was the No. 1 title on Freevee during the month it premiered and delivered the highest number of viewers in the U.S. on Freevee in a single month.
  • Earned 68 Primetime Emmy Award nominations, including three nominations in the Outstanding Comedy Series category for Prime Video’s The Marvelous Mrs. Maisel, Freevee’s Jury Duty, and MGM’s Wednesday. Jury Duty became the first advertising-based video-on-demand series nominated in a major Emmy category, while The Marvelous Mrs. Maisel became the most nominated streaming comedy in Emmy history with 80 nominations over its five seasons. Daisy Jones & The Six also earned nine nominations and The Lord of the Rings: The Rings of Power earned six nominations.
  • Grew Prime Video’s international slate of content with more than 40 new local Amazon Originals and live sporting events. Medellín (France) and My Fault (Spain) became the most watched non-English-language local Original titles in Prime Video history outside of their home territories. New global programming also included Deadloch (Australia), Caravana das Drags (Brazil), The Gryphon (Germany), Dahaad (India), Takeshi’s Castle (Japan), De Viaje con los Derbez Season Three (Mexico), and Gangs of Lagos (Nigeria).
  • Launched Amazon MGM Studios Distribution to license Amazon Original and MGM library content to third parties after debuting on Prime Video. This will include movies and TV series, such as Coming 2 America and The Marvelous Mrs. Maisel, among others. Titles available cover a variety of highly marketable formats and genres with distribution rights available.
  • Partnered with Pinterest to display ads on its website for products sold in Amazon’s store, where over 463 million people go each month to find recipes, home, and style inspiration. As Pinterest’s first partner for third-party ads, Amazon will make it easier for customers to discover and buy relevant products on Amazon and provide value for brands and advertisers.
  • Announced new commitments and migrations from AWS customers.
    • Omnicom, a global marketing and communications company, will use AWS generative artificial intelligence (generative AI) and machine learning services, including Amazon Bedrock and Amazon EC2 Trn1n instances powered by AWS Trainium chips, to help accelerate advertising campaign development, including automating activities such as developing creative briefs, media plans, ad creative, audience segmentation, and performance measurement.
    • Royal Philips will use Amazon Bedrock to create a generative AI application that will provide clinical decision support, help enable more accurate diagnoses, and automate administrative tasks.
    • 3M Health Information Systems is using AWS machine learning and generative AI services, including Amazon Bedrock, Amazon Comprehend Medical, and Amazon Transcribe Medical, to accelerate AI innovation in clinical documentation.
    • Old Mutual, an African financial services group, migrated its information technology infrastructure to AWS to help decrease financial transaction processing time by two-thirds and reduce downtime by 50%, as well as leverage AWS machine learning and generative AI services to generate real-time, personalized financial forecasting and recommendations for customers.
    • Experian named AWS as its preferred cloud provider to power its multiyear information technology modernization initiative.
    • Banco Bilbao Vizcaya Argentaria will use AWS analytics and machine learning to transform its internal processes, improve risk management, drive growth, and provide innovative solutions for its customers.
    • Allen Institute is working with AWS to build a first-of-its-kind knowledge hub to advance treatment for brain disorders.
    • Sumitomo Corporation, a global trading and investment company, selected AWS to modernize its SAP service and drive business insights across its 900 subsidiaries.
    • KB Bank in South Korea reduced its operating costs by 20% using Amazon Elastic Kubernetes Service, Amazon Aurora, and Amazon CloudWatch, among other AWS services, to provide 70 key financial services to the bank’s 11 million monthly active users.
    • Acciona, a Spanish infrastructure and renewable energy company, completed the migration of its enterprise resource planning workloads and other core business applications to AWS, resulting in increased data availability and enhanced security.
    • HSBC launched an AI-powered index that uses AWS machine learning services to analyze and learn from data thousands of times faster than humans, enabling the index to automatically adapt its approach as market dynamics change and new information becomes available.
  • AWS continued to expand its infrastructure footprint to meet customer demand, launching AWS Local Zones in Auckland, New Zealand, and Manila, Philippines, and an Amazon CloudFront location in Nigeria.

Inventing on behalf of customers

Amazon is driven by a passion for invention across all of its business areas. The company builds new products and services that customers ask for, and also invents new ones that customers didn’t know they wanted but make their lives or businesses better in some meaningful way. For example, Amazon:

  • Announced new AWS technologies and capabilities that help customers of all sizes take advantage of generative AI, improve productivity, and enhance their security posture. These include:
    • More choice for Amazon Bedrock customers with the addition of Cohere as a foundation model provider and the latest foundation models from Anthropic and Stability AI.
    • Agents for Amazon Bedrock, a capability that makes it easier for developers to create generative-AI based applications that can complete complex tasks and deliver customized, up-to-date answers based on proprietary data.
    • AWS HealthScribe, a new HIPAA-eligible service for healthcare software providers that uses speech recognition and generative AI to automatically create preliminary clinical documentation from patient-clinician conversations.
    • Amazon Elastic Compute Cloud (Amazon EC2) P5 instances, the latest generation instances optimized for generative AI and HPC, powered by NVIDIA H100 Tensor Core GPUs.
    • AWS AppFabric, a service that helps IT and security teams more easily manage and secure applications.
    • The general availability of Amazon Security Lake, which centralizes security data from AWS, on-premises, and other cloud environments, into a purpose-built data lake. This gives customers broad visibility to investigate and respond to security events.
    • New capabilities for Amazon GuardDuty, AWS’s threat detection service that helps protect customers from the latest threats using machine learning, anomaly detection, and integrated threat intelligence. New capabilities include new container runtime protection for Amazon Elastic Kubernetes Service (Amazon EKS), extended coverage for data stored in Amazon Aurora, and support for serverless applications in AWS Lambda.
    • Amazon Aurora I/O-Optimized, a new configuration for Amazon Aurora (AWS’s high-performance, fully-managed relational database service) that offers improved price performance and predictable pricing for customers with input/output (I/O)-intensive applications.
    • The AWS Generative AI Innovation Center to help customers successfully build and deploy generative AI solutions. AWS is investing $100 million in the program, which will connect AWS AI and machine learning experts with customers around the globe to help them envision, design, and launch new generative AI products, services, and processes.
  • Introduced new Echo devices to give customers more choices for how to access Alexa. Echo Pop features a new hardware design with a front-facing directional speaker; Echo Show 5 features a redesigned speaker and new space-themed design for the Echo Show 5 Kids; and wireless Echo Buds deliver high-quality audio and access to Alexa on the go. To date, Amazon has sold more than half a billion Alexa-enabled devices globally.
  • Expanded the Amazon Fire tablet family with the Fire Max 11, Amazon’s biggest and most powerful tablet with an 11-inch display, durable and eco-friendly design, processor that’s almost 50% faster than any other Amazon tablet, 14 hours of battery life, fingerprint recognition, and Alexa integration.
  • Expanded offerings of Alexa Smart Properties—which delivers Alexa experiences in hotels, vacation rentals, apartments, and other properties—to include Atria Management Company, which is bringing Alexa to its senior living facilities across the U.S., and Circa Resort & Casino, which is adding Alexa to all of its hotel rooms in Las Vegas, Nevada.
  • Announced Fire TV Channels, a free ad-supported service that offers Fire TV customers access to content from over 400 providers like NHL, Xbox, and TMZ. Customers can watch live, on-demand, and short-form content in categories such as news, sports, music videos, entertainment, food and cooking, video games, and travel. Fire TV Channels brings together premium free content that spans diverse customer interests from a growing list of household names like ABC News, CBS Sports HQ, FOX Sports, Major League Baseball, NBC News Now, Martha Stewart, and America’s Test Kitchen.
  • Introduced new, more advanced machine learning models to help advertisers reach previously unaddressable audiences with Amazon Ads. The new machine learning models analyze a range of signals to help advertisers predict and reach highly relevant audiences with optimal cost-efficiency, which is critical to reaching desired audiences as the advertising industry moves away from third-party cookies. Performance improvements include an increase in click-through rate, an increase in return on ad spend, and a decrease in cost per impression.
  • Launched Amazon Hub Delivery in the U.S. In this flexible delivery program, Amazon partners with local businesses, such as florists or dry cleaners, to deliver packages for Amazon. Partners receive packages each morning and can make deliveries when it works best for their schedule. Amazon’s goal is to onboard 2,500 partners in 23 states by the end of 2023.

Supporting employees, delivery service partners, communities, and the environment

In addition to its focus on customers, Amazon strives to make every day better for its employees and delivery service partners. Amazon also believes that success and scale bring broad responsibility to help the planet, future generations, and local communities in which the company has a significant presence. For example, the company:

  • Was named the top corporate giver in the Puget Sound metro region by the Puget Sound Business Journal and in the Washington, D.C., metro region by The Washington Business Journal. Amazon was recognized for donations to more than 300 local organizations, supporting equity in education, affordable housing, and regional economic development.
  • Doubled the capacity of Amazon’s Disaster Relief Hub in Atlanta, Georgia, where 2.4 million relief items were pre-positioned ahead of the 2023 hurricane season. Items are distributed in the wake of natural disasters to nonprofits and other aid partners that quickly help communities impacted by hurricanes or other disasters. Amazon also launched a Disaster Relief Hub in Japan, bringing Amazon’s global total number of Disaster Relief hubs to five.
  • Awarded 400 scholarships for students from underserved and underrepresented communities to attend a U.S. college or university through Amazon Future Engineer, the company’s computer science education program. Since launching the program five years ago, Amazon has awarded $38 million in scholarships to 950 U.S. students who are also granted paid internships at Amazon.
  • Committed to hire at least 5,000 displaced refugees in Europe by 2026 and expanded Amazon’s Welcome Door program to Australia, Germany, and Poland. The program, which launched in 2022 in the U.S., provides resources and support to refugee and humanitarian-based immigrant employees.
  • Announced that in 2022 in North America, more than 7 million products were shipped without additional Amazon packaging. This is part of the company’s efforts to reduce excess packaging for customer orders without compromising delivery speed or product care with Amazon’s Ship In Own Container program, where items are shipped without additional packaging.
  • Announced the global expansion of Amazon’s Cancer Advocacy, Resources, Education, and Support (CARES) program by the end of 2023 for all Amazon employees and family members with cancer. CARES helps alleviate stress related to working while sick and helps with accessing the best possible care, benefits management, health system navigation, appointment scheduling, paperwork, and more. The program started in 2022 and operates in 23 countries.
  • Opened Metropolitan Park (“Met Park”), the first phase of Amazon’s second headquarters, in Arlington, Virginia. The 2.1 million-square-foot development includes over 50,000 square feet of retail space that prioritizes local minority- and women-owned businesses, protected bike lanes, over 2.5 acres of public park space, and will operate with zero carbon emissions. Other features include low-carbon concrete, water capture and reuse, and landscaped roofs where plantings will reduce buildings’ energy consumption.
  • Ranked No. 1 on LinkedIn’s Top Companies, an annual list of the most sought-after places to work and grow a career in the U.S., Japan, and Spain; No. 1 on the Harvard CAPS Harris Poll of Most Favorable Institutions, ahead of all other companies and government institutions, including the U.S. military; No. 3 on Boston Consulting Group’s annual Most Innovative Companies report; and No. 3 on Morning Consult’s Most Trusted Brands list. Amazon also ranked in the top 10 for the 15th consecutive year on the Axios Harris Poll 100, an annual ranking of the reputation of the most visible companies in America.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of August 3, 2023, 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 and geopolitical conditions and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, and cloud services, and the various factors detailed below.

Third Quarter 2023 Guidance

  • Net sales are expected to be between $138.0 billion and $143.0 billion, or to grow between 9% and 13% compared with third quarter 2022. This guidance anticipates a favorable impact of approximately 120 basis points from foreign exchange rates.
  • Operating income is expected to be between $5.5 billion and $8.5 billion, compared with $2.5 billion in third quarter 2022.
  • This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.

A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at 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 and outcomes 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 or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed 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, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify 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 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, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

Twelve Months Ended

June 30,

 

2022

2023

2022

2023

2022

2023

 

 

 

 

 

 

 

 

 

 

 

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD

$

36,599

 

$

49,734

 

$

36,477

 

$

54,253

 

$

40,667

 

$

37,700

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income (loss)

 

(2,028

)

 

6,750

 

 

(5,872

)

 

9,922

 

 

11,607

 

 

13,072

 

Adjustments to reconcile net income (loss) to net cash from operating activities:

 

 

 

 

 

 

Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other

 

9,716

 

 

11,589

 

 

18,909

 

 

22,712

 

 

37,748

 

 

45,724

 

Stock-based compensation

 

5,209

 

 

7,127

 

 

8,459

 

 

11,875

 

 

15,319

 

 

23,037

 

Non-operating expense (income), net

 

6,104

 

 

47

 

 

14,793

 

 

581

 

 

3,201

 

 

2,754

 

Deferred income taxes

 

(1,955

)

 

(2,744

)

 

(3,956

)

 

(3,216

)

 

(6,670

)

 

(7,408

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Inventories

 

(3,890

)

 

(2,373

)

 

(6,504

)

 

(2,002

)

 

(15,478

)

 

1,910

 

Accounts receivable, net and other

 

(6,799

)

 

(5,167

)

 

(8,315

)

 

(3,646

)

 

(19,761

)

 

(17,228

)

Accounts payable

 

3,699

 

 

3,029

 

 

(5,681

)

 

(8,235

)

 

6,140

 

 

391

 

Accrued expenses and other

 

(1,412

)

 

(1,938

)

 

(7,315

)

 

(7,701

)

 

553

 

 

(1,944

)

Unearned revenue

 

321

 

 

156

 

 

1,657

 

 

974

 

 

2,915

 

 

1,533

 

Net cash provided by (used in) operating activities

 

8,965

 

 

16,476

 

 

6,175

 

 

21,264

 

 

35,574

 

 

61,841

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

(15,724

)

 

(11,455

)

 

(30,675

)

 

(25,662

)

 

(65,358

)

 

(58,632

)

Proceeds from property and equipment sales and incentives

 

1,626

 

 

1,043

 

 

2,835

 

 

2,180

 

 

6,297

 

 

4,669

 

Acquisitions, net of cash acquired, and other

 

(259

)

 

(316

)

 

(6,600

)

 

(3,829

)

 

(7,635

)

 

(5,545

)

Sales and maturities of marketable securities

 

2,608

 

 

1,551

 

 

25,361

 

 

2,666

 

 

53,706

 

 

8,906

 

Purchases of marketable securities

 

(329

)

 

(496

)

 

(2,093

)

 

(834

)

 

(25,590

)

 

(1,306

)

Net cash provided by (used in) investing activities

 

(12,078

)

 

(9,673

)

 

(11,172

)

 

(25,479

)

 

(38,580

)

 

(51,908

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

Common stock repurchased

 

(3,334

)

 

 

 

(6,000

)

 

 

 

(6,000

)

 

 

Proceeds from short-term debt, and other

 

4,865

 

 

4,399

 

 

18,608

 

 

17,179

 

 

23,462

 

 

40,124

 

Repayments of short-term debt, and other

 

(7,610

)

 

(7,641

)

 

(13,841

)

 

(11,244

)

 

(18,417

)

 

(34,957

)

Proceeds from long-term debt

 

12,824

 

 

 

 

12,824

 

 

 

 

13,200

 

 

8,342

 

Repayments of long-term debt

 

(1

)

 

(2,000

)

 

(1

)

 

(3,386

)

 

(1,511

)

 

(4,643

)

Principal repayments of finance leases

 

(2,059

)

 

(1,220

)

 

(4,836

)

 

(2,600

)

 

(9,789

)

 

(5,705

)

Principal repayments of financing obligations

 

(59

)

 

(77

)

 

(138

)

 

(134

)

 

(205

)

 

(244

)

Net cash provided by (used in) financing activities

 

4,626

 

 

(6,539

)

 

6,616

 

 

(185

)

 

740

 

 

2,917

 

Foreign currency effect on cash, cash equivalents, and restricted cash

 

(412

)

 

69

 

 

(396

)

 

214

 

 

(701

)

 

(483

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

1,101

 

 

333

 

 

1,223

 

 

(4,186

)

 

(2,967

)

 

12,367

 

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

$

37,700

 

$

50,067

 

$

37,700

 

$

50,067

 

$

37,700

 

$

50,067

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

Cash paid for interest on debt, net of capitalized interest

$

349

 

$

954

 

$

628

 

$

1,356

 

$

1,271

 

$

2,289

 

Cash paid for operating leases

 

2,088

 

 

2,528

 

 

4,455

 

 

4,995

 

 

7,960

 

 

9,173

 

Cash paid for interest on finance leases

 

95

 

 

77

 

 

202

 

 

158

 

 

437

 

 

330

 

Cash paid for interest on financing obligations

 

55

 

 

41

 

 

113

 

 

100

 

 

198

 

 

194

 

Cash paid for income taxes, net of refunds

 

3,145

 

 

3,735

 

 

3,598

 

 

4,354

 

 

4,682

 

 

6,791

 

Assets acquired under operating leases

 

5,101

 

 

4,104

 

 

7,276

 

 

7,730

 

 

23,531

 

 

19,254

 

Property and equipment acquired under finance leases, net of remeasurements and modifications

 

61

 

 

240

 

 

227

 

 

248

 

 

3,579

 

 

696

 

Property and equipment recognized during the construction period of build-to-suit lease arrangements

 

986

 

 

84

 

 

2,351

 

 

215

 

 

6,117

 

 

1,051

 

Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating

 

1,079

 

 

 

 

1,112

 

 

720

 

 

1,243

 

 

4,766

 

AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2022

2023

2022

2023

 

 

 

 

 

 

 

 

 

Net product sales

$

56,575

 

$

59,032

 

$

113,030

 

$

116,013

 

Net service sales

 

64,659

 

 

75,351

 

 

124,648

 

 

145,728

 

Total net sales

 

121,234

 

 

134,383

 

 

237,678

 

 

261,741

 

Operating expenses:

 

 

 

 

Cost of sales

 

66,424

 

 

69,373

 

 

132,923

 

 

137,164

 

Fulfillment

 

20,342

 

 

21,305

 

 

40,613

 

 

42,210

 

Technology and infrastructure

 

18,072

 

 

21,931

 

 

32,914

 

 

42,381

 

Sales and marketing

 

10,086

 

 

10,745

 

 

18,406

 

 

20,917

 

General and administrative

 

2,903

 

 

3,202

 

 

5,497

 

 

6,245

 

Other operating expense (income), net

 

90

 

 

146

 

 

339

 

 

369

 

Total operating expenses

 

117,917

 

 

126,702

 

 

230,692

 

 

249,286

 

Operating income

 

3,317

 

 

7,681

 

 

6,986

 

 

12,455

 

Interest income

 

159

 

 

661

 

 

267

 

 

1,272

 

Interest expense

 

(584

)

 

(840

)

 

(1,056

)

 

(1,663

)

Other income (expense), net

 

(5,545

)

 

61

 

 

(14,115

)

 

(382

)

Total non-operating expense

 

(5,970

)

 

(118

)

 

(14,904

)

 

(773

)

Income (loss) before income taxes

 

(2,653

)

 

7,563

 

 

(7,918

)

 

11,682

 

Benefit (provision) for income taxes

 

637

 

 

(804

)

 

2,059

 

 

(1,752

)

Equity-method investment activity, net of tax

 

(12

)

 

(9

)

 

(13

)

 

(8

)

Net income (loss)

$

(2,028

)

$

6,750

 

$

(5,872

)

$

9,922

 

Basic earnings per share

$

(0.20

)

$

0.66

 

$

(0.58

)

$

0.97

 

Diluted earnings per share

$

(0.20

)

$

0.65

 

$

(0.58

)

$

0.95

 

Weighted-average shares used in computation of earnings per

 

 

 

 

Basic

 

10,175

 

 

10,285

 

 

10,173

 

 

10,268

 

Diluted

 

10,175

 

 

10,449

 

 

10,173

 

 

10,398

 

AMAZON.COM, INC.

Consolidated Statements of Comprehensive Income (Loss)

(in millions)

(unaudited)

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2022

2023

2022

2023

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(2,028

)

$

6,750

$

(5,872

)

$

9,922

Other comprehensive income (loss):

 

 

 

 

Foreign currency translation adjustments, net of tax of $76, $(22), $60, and $(32)

 

(2,186

)

 

264

 

(2,519

)

 

650

Net change in unrealized gains (losses) on available-for-sale debt securities:

 

 

 

 

Unrealized gains (losses), net of tax of $0, $(5), $1, and $(34)

 

(238

)

 

17

 

(900

)

 

112

Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $(5), $0, and $(15)

 

7

 

 

12

 

13

 

 

45

Net unrealized gains (losses) on available-for-sale debt securities

 

(231

)

 

29

 

(887

)

 

157

Total other comprehensive income (loss)

 

(2,417

)

 

293

 

(3,406

)

 

807

Comprehensive income (loss)

$

(4,445

)

$

7,043

$

(9,278

)

$

10,729

AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2022

2023

2022

2023

 

 

 

 

 

 

 

 

 

North America

 

 

 

 

Net sales

$

74,430

 

$

82,546

 

$

143,674

 

$

159,427

 

Operating expenses

 

75,057

 

 

79,335

 

 

145,869

 

 

155,318

 

Operating income (loss)

$

(627

)

$

3,211

 

$

(2,195

)

$

4,109

 

 

 

 

 

 

International

 

 

 

 

Net sales

$

27,065

 

$

29,697

 

$

55,824

 

$

58,820

 

Operating expenses

 

28,836

 

 

30,592

 

 

58,876

 

 

60,962

 

Operating loss

$

(1,771

)

$

(895

)

$

(3,052

)

$

(2,142

)

 

 

 

 

 

AWS

 

 

 

 

Net sales

$

19,739

 

$

22,140

 

$

38,180

 

$

43,494

 

Operating expenses

 

14,024

 

 

16,775

 

 

25,947

 

 

33,006

 

Operating income

$

5,715

 

$

5,365

 

$

12,233

 

$

10,488

 

 

 

 

 

 

Consolidated

 

 

 

 

Net sales

$

121,234

 

$

134,383

 

$

237,678

 

$

261,741

 

Operating expenses

 

117,917

 

 

126,702

 

 

230,692

 

 

249,286

 

Operating income

 

3,317

 

 

7,681

 

 

6,986

 

 

12,455

 

Total non-operating expense

 

(5,970

)

 

(118

)

 

(14,904

)

 

(773

)

Benefit (provision) for income taxes

 

637

 

 

(804

)

 

2,059

 

 

(1,752

)

Equity-method investment activity, net of tax

 

(12

)

 

(9

)

 

(13

)

 

(8

)

Net income (loss)

$

(2,028

)

$

6,750

 

$

(5,872

)

$

9,922

 

 

 

 

 

 

Segment Highlights:

 

 

 

 

Y/Y net sales growth (decline):

 

 

 

 

North America

 

10

%

 

11

%

 

9

%

 

11

%

International

 

(12

)

 

10

 

 

(9

)

 

5

 

AWS

 

33

 

 

12

 

 

35

 

 

14

 

Consolidated

 

7

 

 

11

 

 

7

 

 

10

 

Net sales mix:

 

 

 

 

North America

 

62

%

 

61

%

 

60

%

 

61

%

International

 

22

 

 

22

 

 

24

 

 

22

 

AWS

 

16

 

 

17

 

 

16

 

 

17

 

Consolidated

 

100

%

 

100

%

 

100

%

 

100

%

AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

(unaudited)

 

 

December 31, 2022

June 30, 2023

 

 

 

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

$

53,888

 

$

49,529

 

Marketable securities

 

16,138

 

 

14,441

 

Inventories

 

34,405

 

 

36,587

 

Accounts receivable, net and other

 

42,360

 

 

39,925

 

Total current assets

 

146,791

 

 

140,482

 

Property and equipment, net

 

186,715

 

 

193,784

 

Operating leases

 

66,123

 

 

70,332

 

Goodwill

 

20,288

 

 

22,785

 

Other assets

 

42,758

 

 

50,224

 

Total assets

$

462,675

 

$

477,607

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

Accounts payable

$

79,600

 

$

69,481

 

Accrued expenses and other

 

62,566

 

 

64,235

 

Unearned revenue

 

13,227

 

 

14,522

 

Total current liabilities

 

155,393

 

 

148,238

 

Long-term lease liabilities

 

72,968

 

 

75,822

 

Long-term debt

 

67,150

 

 

63,092

 

Other long-term liabilities

 

21,121

 

 

21,853

 

Commitments and contingencies

 

 

Stockholders’ equity:

 

 

Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding)

 

 

 

 

Common stock ($0.01 par value; 100,000 shares authorized; 10,757 and 10,828 shares issued; 10,242 and 10,313 shares outstanding)

 

108

 

 

108

 

Treasury stock, at cost

 

(7,837

)

 

(7,837

)

Additional paid-in capital

 

75,066

 

 

86,896

 

Accumulated other comprehensive income (loss)

 

(4,487

)

 

(3,680

)

Retained earnings

 

83,193

 

 

93,115

 

Total stockholders’ equity

 

146,043

 

 

168,602

 

Total liabilities and stockholders’ equity

$

462,675

 

$

477,607

 

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

 

 

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Y/Y %

Change

Cash Flows and Shares

 

 

 

 

 

 

 

Operating cash flow -- trailing twelve months (TTM)

$

39,324

 

$

35,574

 

$

39,665

 

$

46,752

 

$

54,330

 

$

61,841

 

74%

Operating cash flow -- TTM Y/Y growth (decline)

 

(41

)%

 

(40

)%

 

(27

)%

 

1

%

 

38

%

 

74

%

N/A

Purchases of property and equipment, net of proceeds from sales and incentives -- TTM

$

57,951

 

$

59,061

 

$

59,351

 

$

58,321

 

$

57,649

 

$

53,963

 

(9)%

Principal repayments of finance leases -- TTM

$

10,534

 

$

9,789

 

$

8,561

 

$

7,941

 

$

6,544

 

$

5,705

 

(42)%

Principal repayments of financing obligations -- TTM

$

174

 

$

205

 

$

233

 

$

248

 

$

226

 

$

244

 

19%

Equipment acquired under finance leases -- TTM (1)

$

2,764

 

$

1,621

 

$

868

 

$

299

 

$

285

 

$

269

 

(83)%

Principal repayments of all other finance leases -- TTM (2)

$

714

 

$

751

 

$

706

 

$

670

 

$

625

 

$

631

 

(16)%

Free cash flow -- TTM (3)

$

(18,627

)

$

(23,487

)

$

(19,686

)

$

(11,569

)

$

(3,319

)

$

7,878

 

N/A

Free cash flow less principal repayments of finance leases and financing obligations -- TTM (4)

$

(29,335

)

$

(33,481

)

$

(28,480

)

$

(19,758

)

$

(10,089

)

$

1,929

 

N/A

Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations -- TTM (5)

$

(22,279

)

$

(26,064

)

$

(21,493

)

$

(12,786

)

$

(4,455

)

$

6,734

 

N/A

Common shares and stock-based awards outstanding

 

10,454

 

 

10,551

 

 

10,597

 

 

10,627

 

 

10,625

 

 

10,794

 

2%

Common shares outstanding

 

10,171

 

 

10,183

 

 

10,198

 

 

10,242

 

 

10,258

 

 

10,313

 

1%

Stock-based awards outstanding

 

283

 

 

368

 

 

399

 

 

384

 

 

367

 

 

481

 

31%

Stock-based awards outstanding -- % of common shares outstanding

 

2.8

%

 

3.6

%

 

3.9

%

 

3.8

%

 

3.6

%

 

4.7

%

N/A

Results of Operations

 

 

 

 

 

 

 

Worldwide (WW) net sales

$

116,444

 

$

121,234

 

$

127,101

 

$

149,204

 

$

127,358

 

$

134,383

 

11%

WW net sales -- Y/Y growth, excluding F/X

 

9

%

 

10

%

 

19

%

 

12

%

 

11

%

 

11

%

N/A

WW net sales -- TTM

$

477,748

 

$

485,902

 

$

502,191

 

$

513,983

 

$

524,897

 

$

538,046

 

11%

WW net sales -- TTM Y/Y growth, excluding F/X

 

14

%

 

11

%

 

12

%

 

13

%

 

13

%

 

13

%

N/A

Operating income

$

3,669

 

$

3,317

 

$

2,525

 

$

2,737

 

$

4,774

 

$

7,681

 

132%

F/X impact -- favorable

$

126

 

$

165

 

$

357

 

$

213

 

$

139

 

$

104

 

N/A

Operating income -- Y/Y growth (decline), excluding F/X

 

(60

)%

 

(59

)%

 

(55

)%

 

(27

)%

 

26

%

 

128

%

N/A

Operating margin -- % of WW net sales

 

3.2

%

 

2.7

%

 

2.0

%

 

1.8

%

 

3.7

%

 

5.7

%

N/A

Operating income -- TTM

$

19,683

 

$

15,298

 

$

12,971

 

$

12,248

 

$

13,353

 

$

17,717

 

16%

Operating income -- TTM Y/Y growth (decline), excluding F/X

 

(30

)%

 

(49

)%

 

(57

)%

 

(54

)%

 

(37

)%

 

10

%

N/A

Operating margin -- TTM % of WW net sales

 

4.1

%

 

3.1

%

 

2.6

%

 

2.4

%

 

2.5

%

 

3.3

%

N/A

Net income (loss)

$

(3,844

)

$

(2,028

)

$

2,872

 

$

278

 

$

3,172

 

$

6,750

 

N/A

Net income (loss) per diluted share

$

(0.38

)

$

(0.20

)

$

0.28

 

$

0.03

 

$

0.31

 

$

0.65

 

N/A

Net income (loss) -- TTM

$

21,413

 

$

11,607

 

$

11,323

 

$

(2,722

)

$

4,294

 

$

13,072

 

13%

Net income (loss) per diluted share -- TTM

$

2.08

 

$

1.13

 

$

1.10

 

$

(0.27

)

$

0.42

 

$

1.26

 

12%

______________________________

(1)

For the twelve months ended June 30, 2022 and 2023, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $3,579 million and $696 million.

(2)

For the twelve months ended June 30, 2022 and 2023, this amount relates to property included in “Principal repayments of finance leases” of $9,789 million and $5,705 million.

(3)

Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”

(4)

Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by “Principal repayments of finance leases” and “Principal repayments of financing obligations.”

(5)

Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment acquired under finance leases, which is included in “Property and equipment acquired under finance leases, net of remeasurements and modifications,” principal repayments of all other finance lease liabilities, which is included in “Principal repayments of finance leases,” and “Principal repayments of financing obligations.”

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions)

(unaudited)

 

 

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Y/Y %

Change

Segments

 

 

 

 

 

 

 

North America Segment:

 

 

 

 

 

 

 

Net sales

$

69,244

 

$

74,430

 

$

78,843

 

$

93,363

 

$

76,881

 

$

82,546

 

11%

Net sales -- Y/Y growth, excluding F/X

 

8

%

 

10

%

 

20

%

 

14

%

 

11

%

 

11

%

N/A

Net sales -- TTM

$

284,711

 

$

291,591

 

$

304,877

 

$

315,880

 

$

323,517

 

$

331,633

 

14%

Operating income (loss)

$

(1,568

)

$

(627

)

$

(412

)

$

(240

)

$

898

 

$

3,211

 

N/A

F/X impact -- favorable (unfavorable)

$

42

 

$

61

 

$

95

 

$

76

 

$

41

 

$

(7

)

N/A

Operating income (loss) -- Y/Y growth (decline), excluding F/X

 

(147

)%

 

(122

)%

 

(158

)%

 

53

%

 

N/A

 

 

N/A

 

N/A

Operating margin -- % of North America net sales

 

(2.3

)%

 

(0.8

)%

 

(0.5

)%

 

(0.3

)%

 

1.2

%

 

3.9

%

N/A

Operating income (loss) -- TTM

$

2,253

 

$

(1,521

)

$

(2,813

)

$

(2,847

)

$

(381

)

$

3,457

 

N/A

Operating margin -- TTM % of North America net sales

 

0.8

%

 

(0.5

)%

 

(0.9

)%

 

(0.9

)%

 

(0.1

)%

 

1.0

%

N/A

International Segment:

 

 

 

 

 

 

 

Net sales

$

28,759

 

$

27,065

 

$

27,720

 

$

34,463

 

$

29,123

 

$

29,697

 

10%

Net sales -- Y/Y growth (decline), excluding F/X

 

0

%

 

(1

)%

 

12

%

 

5

%

 

9

%

 

10

%

N/A

Net sales -- TTM

$

125,897

 

$

122,241

 

$

120,816

 

$

118,007

 

$

118,371

 

$

121,003

 

(1)%

Operating loss

$

(1,281

)

$

(1,771

)

$

(2,466

)

$

(2,228

)

$

(1,247

)

$

(895

)

(49)%

F/X impact -- favorable (unfavorable)

$

(79

)

$

(231

)

$

(216

)

$

(331

)

$

(174

)

$

32

 

N/A

Operating loss -- Y/Y growth (decline), excluding F/X

 

(196

)%

 

(526

)%

 

147

%

 

17

%

 

(16

)%

 

(48

)%

N/A

Operating margin -- % of International net sales

 

(4.5

)%

 

(6.5

)%

 

(8.9

)%

 

(6.5

)%

 

(4.3

)%

 

(3.0

)%

N/A

Operating loss -- TTM

$

(3,457

)

$

(5,590

)

$

(7,145

)

$

(7,746

)

$

(7,712

)

$

(6,836

)

22%

Operating margin -- TTM % of International net sales

 

(2.7

)%

 

(4.6

)%

 

(5.9

)%

 

(6.6

)%

 

(6.5

)%

 

(5.6

)%

N/A

AWS Segment:

 

 

 

 

 

 

 

Net sales

$

18,441

 

$

19,739

 

$

20,538

 

$

21,378

 

$

21,354

 

$

22,140

 

12%

Net sales -- Y/Y growth, excluding F/X

 

37

%

 

33

%

 

28

%

 

20

%

 

16

%

 

12

%

N/A

Net sales -- TTM

$

67,140

 

$

72,070

 

$

76,498

 

$

80,096

 

$

83,009

 

$

85,410

 

19%

Operating income

$

6,518

 

$

5,715

 

$

5,403

 

$

5,205

 

$

5,123

 

$

5,365

 

(6)%

F/X impact -- favorable

$

163

 

$

335

 

$

478

 

$

468

 

$

272

 

$

79

 

N/A

Operating income -- Y/Y growth (decline), excluding F/X

 

53

%

 

28

%

 

1

%

 

(10

)%

 

(26

)%

 

(8

)%

N/A

Operating margin -- % of AWS net sales

 

35.3

%

 

29.0

%

 

26.3

%

 

24.3

%

 

24.0

%

 

24.2

%

N/A

Operating income -- TTM

$

20,887

 

$

22,409

 

$

22,929

 

$

22,841

 

$

21,446

 

$

21,096

 

(6)%

Operating margin -- TTM % of AWS net sales

 

31.1

%

 

31.1

%

 

30.0

%

 

28.5

%

 

25.8

%

 

24.7

%

N/A

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except employee data)

(unaudited)

 

 

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Q1 2023

Q2 2023

Y/Y %

Change

Net Sales

 

 

 

 

 

 

 

Online stores (1)

$

51,129

 

$

50,855

 

$

53,489

 

$

64,531

 

$

51,096

 

$

52,966

 

4%

Online stores -- Y/Y growth (decline), excluding F/X

 

(1

)%

 

0

%

 

13

%

 

2

%

 

3

%

 

5

%

N/A

Physical stores (2)

$

4,591

 

$

4,721

 

$

4,694

 

$

4,957

 

$

4,895

 

$

5,024

 

6%

Physical stores -- Y/Y growth, excluding F/X

 

16

%

 

13

%

 

10

%

 

6

%

 

7

%

 

7

%

N/A

Third-party seller services (3)

$

25,335

 

$

27,376

 

$

28,666

 

$

36,339

 

$

29,820

 

$

32,332

 

18%

Third-party seller services -- Y/Y growth, excluding F/X

 

9

%

 

13

%

 

23

%

 

24

%

 

20

%

 

18

%

N/A

Subscription services (4)

$

8,410

 

$

8,716

 

$

8,903

 

$

9,189

 

$

9,657

 

$

9,894

 

14%

Subscription services -- Y/Y growth, excluding F/X

 

13

%

 

14

%

 

14

%

 

17

%

 

17

%

 

14

%

N/A

Advertising services (5)

$

7,877

 

$

8,757

 

$

9,548

 

$

11,557

 

$

9,509

 

$

10,683

 

22%

Advertising services -- Y/Y growth, excluding F/X

 

25

%

 

21

%

 

30

%

 

23

%

 

23

%

 

22

%

N/A

AWS

$

18,441

 

$

19,739

 

$

20,538

 

$

21,378

 

$

21,354

 

$

22,140

 

12%

AWS -- Y/Y growth, excluding F/X

 

37

%

 

33

%

 

28

%

 

20

%

 

16

%

 

12

%

N/A

Other (6)

$

661

 

$

1,070

 

$

1,263

 

$

1,253

 

$

1,027

 

$

1,344

 

26%

Other -- Y/Y growth, excluding F/X

 

28

%

 

135

%

 

168

%

 

80

%

 

57

%

 

26

%

N/A

 

 

 

 

 

 

 

 

Stock-based Compensation Expense

 

 

 

 

 

 

 

Cost of sales

$

146

 

$

213

 

$

190

 

$

208

 

$

165

 

$

251

 

18%

Fulfillment

$

498

 

$

763

 

$

727

 

$

757

 

$

603

 

$

932

 

22%

Technology and infrastructure

$

1,645

 

$

2,814

 

$

3,036

 

$

3,126

 

$

2,574

 

$

4,043

 

44%

Sales and marketing

$

665

 

$

990

 

$

1,128

 

$

1,092

 

$

993

 

$

1,303

 

32%

General and administrative

$

296

 

$

429

 

$

475

 

$

423

 

$

413

 

$

598

 

39%

Total stock-based compensation expense

$

3,250

 

$

5,209

 

$

5,556

 

$

5,606

 

$

4,748

 

$

7,127

 

37%

Other

 

 

 

 

 

 

 

WW shipping costs

$

19,560

 

$

19,304

 

$

19,942

 

$

24,714

 

$

19,937

 

$

20,418

 

6%

WW shipping costs -- Y/Y growth

 

14

%

 

9

%

 

10

%

 

4

%

 

2

%

 

6

%

N/A

WW paid units -- Y/Y growth (7)

 

0

%

 

1

%

 

11

%

 

8

%

 

8

%

 

9

%

N/A

WW seller unit mix -- % of WW paid units (7)

 

55

%

 

57

%

 

58

%

 

59

%

 

59

%

 

60

%

N/A

Employees (full-time and part-time; excludes contractors & temporary personnel)

 

1,622,000

 

 

1,523,000

 

 

1,544,000

 

 

1,541,000

 

 

1,465,000

 

 

1,461,000

 

(4)%

Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth (decline)

 

28

%

 

14

%

 

5

%

 

(4

)%

 

(10

)%

 

(4

)%

N/A

________________________

(1)

Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”

(2)

Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”

(3)

Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.

(4)

Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.

(5)

Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.

(6)

Includes sales related to various other offerings, such as certain licensing and distribution of video content, health care services, and shipping services, and our co-branded credit card agreements.

(7)

Excludes the impact of Whole Foods Market.

Amazon.com, Inc.

Certain Definitions

Customer Accounts

  • References to customers mean customer accounts established when a customer places an order through one of our stores. 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 customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID 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 in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards.

 

Contacts

Amazon Investor Relations

Dave Fildes, amazon-ir@amazon.com

amazon.com/ir

Amazon Public Relations

Dan Perlet, amazon-pr@amazon.com

amazon.com/pr

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