EX-99.1 2 d336343dex991.htm PRESS RELEASE PRESS RELEASE

Exhibit 99.1

LOGO

AMAZON.COM ANNOUNCES FIRST QUARTER SALES UP 34% TO $13.18 BILLION;

16 OF THE TOP 100 BESTSELLING TITLES ARE EXCLUSIVE TO THE KINDLE STORE

SEATTLE—(BUSINESS WIRE)—April 26, 2012—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2012.

Operating cash flow increased 1% to $3.05 billion for the trailing twelve months, compared with $3.03 billion for the trailing twelve months ended March 31, 2011. Free cash flow decreased 39% to $1.15 billion for the trailing twelve months, compared with $1.90 billion for the trailing twelve months ended March 31, 2011.

Common shares outstanding plus shares underlying stock-based awards totaled 464 million on March 31, 2012, compared with 466 million a year ago. During the quarter, the Company repurchased 5.3 million shares, or $960 million, under its previously announced authorization to repurchase up to $2 billion of the Company’s common stock.

Net sales increased 34% to $13.18 billion in the first quarter, compared with $9.86 billion in first quarter 2011. Excluding the $56 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 34% compared with first quarter 2011.

Operating income was $192 million in the first quarter, compared with $322 million in first quarter 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $4 million.

Net income decreased 35% to $130 million in the first quarter, or $0.28 per diluted share, compared with net income of $201 million, or $0.44 per diluted share, in first quarter 2011.

“I’m excited to announce that we now have more than 130,000 new, in-copyright books that are exclusive to the Kindle Store — you won’t find them anywhere else. They include many of our top bestsellers — in fact, 16 of our top 100 bestselling titles are exclusive to our store,” said Jeff Bezos, founder and CEO of Amazon.com. “If you’re an Amazon Prime member, you don’t even need to buy these titles — you can borrow them for free — with no due dates — from our revolutionary Kindle Owners’ Lending Library. The Kindle Owners’ Lending Library is heavily used by Kindle owners, and it has extremely unusual features that both authors and customers love. Every time you borrow a book, the author gets paid — and we have an inexhaustible supply of each title so you never have to wait in a queue for the book you want. Kindle is the bestselling e-reader in the world by far, and I assure you we’ll keep working hard so that the Kindle Store remains yet another reason to buy a Kindle!”

Highlights

 

   

Kindle Fire remains the #1 bestselling, most gifted, and most wished for product across the millions of items available on Amazon.com since launch. In the first quarter, 9 out of 10 of the top sellers on Amazon.com were digital products – Kindle, Kindle books, movies, music and apps.

 

   

Amazon launched Kindle Touch Wi-Fi and Kindle Touch 3G on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it, and Amazon.es. The full line of Kindle e-ink readers is now available in over 175 countries around the world. Kindle Touch 3G is the most full-featured e-reader with an easy to use touchscreen and the unparalleled convenience of free 3G – no hunting for Wi-Fi spots, simply think of a book and download it. Kindle remains the bestseller on Amazon.co.uk, Amazon.de, Amazon.fr, Amazon.it and Amazon.es since their launches.

 

   

Amazon introduced a new version of its popular Kindle for iPad app, which is the #5 free iPad app of all time and the #1 free books app on iPad. Millions of customers are using the new Kindle for iPad app, which is optimized for the high resolution display of the newest iPad.

 

   

Amazon announced an In-App Purchasing service, making it easy for Amazon Appstore developers to offer digital content and subscriptions for purchase within apps and games that are available on millions of Kindle Fires and other Android devices. Amazon Appstore’s In-App Purchasing service is simple for developers to integrate and helps monetize their apps and games, while offering customers a seamless and secure 1-Click purchasing experience.

 

1


   

Amazon.com announced the launch of the Amazon Instant Video app for PlayStation 3 (PS3), making the PS3 system the first video game console system to offer Amazon Instant Video, and allowing PS3 users to stream Prime Instant Videos and rent or buy the latest movies and TV episodes directly from their PS3. Customers can also access Amazon Instant Video and Prime Instant Video from Kindle Fire, Mac or PC, or on a TV using either a compatible connected device such as a Blu-ray player or a Roku or directly on compatible Smart TVs.

 

   

Amazon continued to expand its catalog of title offerings for Prime Instant Video, announcing licensing agreements with Discovery Communications and Viacom. Among the programs added are Discovery Channel’s Dirty Jobs, TLC’s Say Yes To The Dress and Animal Planet’s Whale Wars, as well as thousands of TV episodes from MTV, Comedy Central, Nickelodeon, TV Land, Spike, VH1, BET, CMT and Logo. These deals bring the total number of Prime Instant Videos to more than 17,000 movies and TV episodes from partners such as CBS, Fox, NBCUniversal, Sony, Warner Bros., PBS, Disney-ABC and many more.

 

   

North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.43 billion, up 36% from first quarter 2011.

 

   

International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese, Italian and Spanish sites, were $5.76 billion, up 31% from first quarter 2011. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 32%.

 

   

Worldwide Media sales grew 19% to $4.71 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 19%.

 

   

Worldwide Electronics and Other General Merchandise sales grew 43% to $7.97 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 43%.

 

   

Amazon Web Services (AWS) announced that Amazon DynamoDB – the fastest growing AWS service ever – is now available in both the EU (Ireland) and Asia Pacific (Tokyo) Regions. Amazon DynamoDB is a fully managed NoSQL database service that provides extremely fast and predictable performance with seamless scalability.

 

   

AWS lowered prices for the 19th time in five years by reducing reserved instance prices for Amazon EC2 and Amazon RDS, as well as reducing on-demand pricing for Amazon EC2, Amazon RDS, and Amazon ElastiCache.

 

   

AWS launched AWS Marketplace, an online store that makes it easy for customers to find, compare, and immediately start using the software and services they need to build software systems and products, and run their businesses. With AWS Marketplace, software and SaaS providers with offerings that run in the AWS Cloud can benefit from increased awareness, simplified deployment, and automated billing. AWS Marketplace brings the same simple, trusted, and secure online shopping experience that customers enjoy on Amazon.com to software built for the AWS platform, streamlining the process of doing research and purchasing software.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of April 26, 2012, and exclude financial results of the Kiva Systems, Inc. acquisition which we expect to close in second quarter 2012. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

Second Quarter 2012 Guidance

 

   

Net sales are expected to be between $11.9 billion and $13.3 billion, or to grow between 20% and 34% compared with second quarter 2011.

 

   

Operating income (loss) is expected to be between $(260) million and $40 million, or between 229% decline and 80% decline compared with second quarter 2011.

 

2


   

This guidance includes approximately $260 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, government regulation and taxation, payments and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

About Amazon.com

Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. The new latest generation Kindle is the lightest, most compact Kindle ever and features the same 6-inch, most advanced electronic ink display that reads like real paper even in bright sunlight. Kindle Touch is a new addition to the Kindle family with an easy-to-use touch screen that makes it easier than ever to turn pages, search, shop, and take notes – still with all the benefits of the most advanced electronic ink display. Kindle Touch 3G is the top of the line e-reader and offers the same new design and features of Kindle Touch, with the unparalleled added convenience of free 3G. Kindle Fire is the Kindle for movies, TV episodes, music, books, magazines, apps, games and web browsing with all the content, free storage in the Amazon Cloud, Whispersync, Amazon Silk (Amazon’s new revolutionary cloud-accelerated web browser), vibrant color touch screen, and powerful dual-core processor.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, and www.amazon.es. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

 

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AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
    Twelve Months Ended
March 31,
 
     2012     2011     2012     2011  

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

   $ 5,269      $ 3,777      $ 2,641      $ 1,844   

OPERATING ACTIVITIES:

        

Net income

     130        201        561        1,054   

Adjustments to reconcile net income to net cash from operating activities:

        

Depreciation of fixed assets, including internal-use software and website development, and other amortization

     457        202        1,338        652   

Stock-based compensation

     160        110        605        448   

Other operating expense (income), net

     46        33        168        112   

Losses (gains) on sales of marketable securities, net

     (2     2        (8     1   

Other expense (income), net

     15        37        (78     (36

Deferred income taxes

     (38     15        83        38   

Excess tax benefits from stock-based compensation

     (40     (46     (56     (219

Changes in operating assets and liabilities:

        

Inventories

     747        343        (1,374     (997

Accounts receivable, net and other

     746        359        (479     (170

Accounts payable

     (4,258     (2,649     1,388        1,641   

Accrued expenses and other

     (529     (183     721        697   

Additions to unearned revenue

     397        210        1,252        709   

Amortization of previously unearned revenue

     (269     (220     (1,070     (897
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (2,438     (1,586     3,051        3,033   

INVESTING ACTIVITIES:

        

Purchases of fixed assets, including internal-use software and website development

     (386     (298     (1,899     (1,138

Acquisitions, net of cash acquired, and other

     (50     (139     (615     (473

Sales and maturities of marketable securities and other investments

     1,738        1,939        6,641        5,318   

Purchases of marketable securities and other investments

     (852     (1,112     (5,997     (6,135
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     450        390        (1,870     (2,428

FINANCING ACTIVITIES:

        

Excess tax benefits from stock-based compensation

     40        46        56        219   

Common stock repurchased

     (960     —          (1,237     —     

Proceeds from long-term debt and other

     68        89        154        168   

Repayments of long-term debt, capital lease, and finance lease obligations

     (153     (111     (483     (295
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (1,005     24        (1,510     92   

Foreign-currency effect on cash and cash equivalents

     12        36        (24     100   
  

 

 

   

 

 

   

 

 

   

 

 

 
Net increase (decrease) in cash and cash equivalents      (2,981     (1,136     (353     797   

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 2,288      $ 2,641      $ 2,288      $ 2,641   
  

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

        

Cash paid for interest on long term debt

   $ 6      $ 3      $ 17      $ 12   

Cash paid for income taxes (net of refunds)

     19        7        45        79   

Fixed assets acquired under capital leases

     149        181        721        526   

Fixed assets acquired under build-to-suit leases

     17        69        207        182   


AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

 

000000000 000000000
     Three Months Ended
March 31,
 
     2012     2011  

Net product sales (1)

   $ 11,249      $ 8,698   

Net services sales (2)

     1,936        1,159   
  

 

 

   

 

 

 

Net sales

     13,185        9,857   

Operating expenses (3):

    

Cost of sales

     10,027        7,608   

Fulfillment

     1,295        855   

Marketing

     480        327   

Technology and content

     945        579   

General and administrative

     200        133   

Other operating expense (income), net

     46        33   
  

 

 

   

 

 

 

Total operating expenses

     12,993        9,535   
  

 

 

   

 

 

 

Income from operations

     192        322   

Interest income

     12        15   

Interest expense

     (21     (12

Other income (expense), net

     (99     (18
  

 

 

   

 

 

 

Total non-operating income (expense)

     (108     (15
  

 

 

   

 

 

 

Income before income taxes

     84        307   

Provision for income taxes

     (43     (89

Equity-method investment activity, net of tax

     89        (17
  

 

 

   

 

 

 

Net income

   $ 130      $ 201   
  

 

 

   

 

 

 

Basic earnings per share

   $ 0.29      $ 0.44   
  

 

 

   

 

 

 

Diluted earnings per share

   $ 0.28      $ 0.44   
  

 

 

   

 

 

 

Weighted average shares used in computation of earnings per share:

    

Basic

     453        451   
  

 

 

   

 

 

 

Diluted

     460        459   
  

 

 

   

 

 

 

 

(1) Represents revenue from the sale of products and related shipping fees and digital content where we are the seller of record.
(2) Represents third-party seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail activities.
(3) Includes stock-based compensation as follows:

 

000000000 000000000

Fulfillment

   $     37       $     24   

Marketing

     12         7   

Technology and content

     85         61   

General and administrative

     26         18   


AMAZON.COM, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
 
     2012      2011  

Net income

   $ 130       $ 201   

Other comprehensive income:

     

Foreign currency translation adjustments, net of tax of $(38) and $(7)

     137         135   

Change in unrealized gains on available-for-sale securities, net of tax of $(2) and $(5)

     5         (11
  

 

 

    

 

 

 

Total other comprehensive income

     142         124   
  

 

 

    

 

 

 

Comprehensive income

   $ 272       $ 325   
  

 

 

    

 

 

 


AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
 
     2012     2011  

North America

    

Net sales

   $ 7,427      $ 5,465   

Segment operating expenses (1)

     7,078        5,175   
  

 

 

   

 

 

 

Segment operating income

   $ 349      $ 290   
  

 

 

   

 

 

 

International

    

Net sales

   $ 5,758      $ 4,392   

Segment operating expenses (1)

     5,709        4,217   
  

 

 

   

 

 

 

Segment operating income

   $ 49      $ 175   
  

 

 

   

 

 

 

Consolidated

    

Net sales

   $ 13,185      $ 9,857   

Segment operating expenses (1)

     12,787        9,392   
  

 

 

   

 

 

 

Segment operating income

     398        465   

Stock-based compensation

     (160     (110

Other operating income (expense), net

     (46     (33
  

 

 

   

 

 

 

Income from operations

     192        322   

Total non-operating income (expense)

     (108     (15

Provision for income taxes

     (43     (89

Equity-method investment activity, net of tax

     89        (17
  

 

 

   

 

 

 

Net income

   $ 130      $ 201   
  

 

 

   

 

 

 

Segment Highlights:

    

Y/Y net sales growth:

    

North America

     36     45

International

     31        31   

Consolidated

     34        38   

Y/Y segment operating income growth (decline):

    

North America

     20     6

International

     (72     (25

Consolidated

     (15     (8

Net sales mix:

    

North America

     56     55

International

     44        45   
  

 

 

   

 

 

 

 

     100     100
  

 

 

   

 

 

 
(1) Represents operating expenses, excluding stock-based compensation and “Other operating expense (income), net,” which are not allocated to segments.


AMAZON.COM, INC.

Supplemental Net Sales Information

(in millions)

(unaudited)

 

     Three Months Ended
March 31,
 
     2012     2011  

North America

    

Media

   $ 2,197      $ 1,885   

Electronics and other general merchandise

     4,772        3,303   

Other (1)

     458        277   
  

 

 

   

 

 

 

Total North America

   $ 7,427      $ 5,465   
  

 

 

   

 

 

 

International

    

Media

   $ 2,513      $ 2,073   

Electronics and other general merchandise

     3,203        2,285   

Other (1)

     42        34   
  

 

 

   

 

 

 

Total International

   $ 5,758      $ 4,392   
  

 

 

   

 

 

 

Consolidated

    

Media

   $ 4,710      $ 3,958   

Electronics and other general merchandise

     7,975        5,588   

Other (1)

     500        311   
  

 

 

   

 

 

 

Total Consolidated

   $ 13,185      $ 9,857   
  

 

 

   

 

 

 

Y/Y Net Sales Growth:

    

North America:

    

Media

     17     18

Electronics and other general merchandise

     44        63   

Other

     66        74   

Total North America

     36        45   

International:

    

Media

     21     13

Electronics and other general merchandise

     40        54   

Other

     24        15   

Total International

     31        31   

Consolidated:

    

Media

     19     15

Electronics and other general merchandise

     43        59   

Other

     61        65   

Total Consolidated

     34        38   

Y/Y Net Sales Growth Excluding Effect of Exchange Rates:

    

International:

    

Media

     22     9

Electronics and other general merchandise

     42        49   

Other

     26        12   

Total International

     32        27   

Consolidated:

    

Media

     19     13

Electronics and other general merchandise

     43        57   

Other

     61        64   

Total Consolidated

     34        36   

Consolidated Net Sales Mix:

    

Media

     36     40

Electronics and other general merchandise

     60        57   

Other

     4        3   
  

 

 

   

 

 

 
     100     100
  

 

 

   

 

 

 

 

(1) Includes non-retail activities, such as AWS, miscellaneous marketing and promotional activities, co-branded credit card agreements, and other seller sites.


AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

 

     March 31,
2012
    December 31,
2011
 
     (unaudited  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 2,288      $ 5,269   

Marketable securities

     3,427        4,307   

Inventories

     4,255        4,992   

Accounts receivable, net and other

     1,813        2,571   

Deferred tax assets

     371        351   
  

 

 

   

 

 

 

Total current assets

     12,154        17,490   

Fixed assets, net

     4,653        4,417   

Deferred tax assets

     27        28   

Goodwill

     1,970        1,955   

Other assets

     1,535        1,388   
  

 

 

   

 

 

 

Total assets

   $ 20,339      $ 25,278   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 6,886      $ 11,145   

Accrued expenses and other

     3,602        3,751   
  

 

 

   

 

 

 

Total current liabilities

     10,488        14,896   

Long-term liabilities

     2,580        2,625   

Commitments and contingencies

    

Stockholders’ equity:

    

Preferred stock, $0.01 par value:

    

Authorized shares — 500

    

Issued and outstanding shares — none

     —          —     

Common stock, $0.01 par value:

    

Authorized shares — 5,000

    

Issued shares — 474 and 473

    

Outstanding shares — 450 and 455

     5        5   

Treasury stock, at cost

     (1,837     (877

Additional paid-in capital

     7,192        6,990   

Accumulated other comprehensive loss

     (174     (316

Retained earnings

     2,085        1,955   
  

 

 

   

 

 

 

Total stockholders’ equity

     7,271        7,757   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 20,339      $ 25,278   
  

 

 

   

 

 

 


AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

 

     Q1 2011     Q2 2011     Q3 2011     Q4 2011     Q1 2012     Y/Y %
Change
 

Cash Flows and Shares

            

Operating cash flow — trailing twelve months (TTM)

   $ 3,033      $ 3,205      $ 3,114      $ 3,903      $ 3,051        1

Purchases of fixed assets (incl. internal-use software & website development) — TTM

   $ 1,138      $ 1,374      $ 1,589      $ 1,811      $ 1,899        67

Free cash flow (operating cash flow less purchases of fixed assets) — TTM

   $ 1,895      $ 1,831      $ 1,525      $ 2,092      $ 1,152        (39 %) 

Free cash flow — TTM Y/Y growth

     (18 %)      (8 %)      (17 %)      (17 %)      (39 %)      N/A   

Invested capital (1)

   $ 7,931      $ 8,551      $ 9,147      $ 9,680      $ 10,006        N/A   

Return on invested capital (2)

     24     21     17     22     12     N/A   

Common shares and stock-based awards outstanding

     466        468        469        468        464        —     

Common shares outstanding

     452        454        455        455        450        —     

Stock-based awards outstanding

     14        15        14        14        13        (4 %) 

Stock-based awards outstanding — % of common shares outstanding

     3.1     3.2     3.2     3.0     2.9     N/A   

Results of Operations

            

Worldwide (WW) net sales

   $ 9,857      $ 9,913      $ 10,876      $ 17,431      $ 13,185        34

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

     36     44     39     34     34     N/A   

WW net sales — TTM

   $ 36,931      $ 40,278      $ 43,594      $ 48,077      $ 51,404        39

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

     39     39     39     37     37     N/A   

Operating income

   $ 322      $ 201      $ 79      $ 260      $ 192        (40 %) 

Operating income — Y/Y growth, excluding F/X

     (20 %)      (36 %)      (77 %)      (48 %)      (38 %)      N/A   

Operating margin — % of WW net sales

     3.3     2.0     0.7     1.5     1.5     N/A   

Operating income — TTM

   $ 1,334      $ 1,265      $ 1,076      $ 862      $ 732        (45 %) 

Operating income — TTM Y/Y growth, excluding F/X

     7     (7 %)      (25 %)      (44 %)      (50 %)      N/A   

Operating margin — TTM % of WW net sales

     3.6     3.1     2.5     1.8     1.4     N/A   

Net income

   $ 201      $ 191      $ 63      $ 177      $ 130        (35 %) 

Net income per diluted share

   $ 0.44      $ 0.41      $ 0.14      $ 0.38      $ 0.28        (35 %) 

Net income — TTM

   $ 1,054      $ 1,038      $ 871      $ 631      $ 561        (47 %) 

Net income per diluted share — TTM

   $ 2.30      $ 2.26      $ 1.89      $ 1.37      $ 1.22        (47 %) 

Segments

            

North America Segment:

            

Net sales

   $ 5,465      $ 5,406      $ 5,932      $ 9,902      $ 7,427        36

Net sales — Y/Y growth, excluding F/X

     45     50     44     37     36     N/A   

Net sales — TTM

   $ 20,392      $ 22,208      $ 24,014      $ 26,705      $ 28,667        41

Operating income

   $ 290      $ 214      $ 144      $ 285      $ 349        20

Operating margin — % of North America net sales

     5.3     4.0     2.4     2.9     4.7     N/A   

Operating income — TTM

   $ 972      $ 986      $ 943      $ 933      $ 991        2

Operating income — TTM Y/Y growth, excluding F/X

     17     9     1     (2 %)      2     N/A   

Operating margin — TTM % of North America net sales

     4.8     4.4     3.9     3.5     3.5     N/A   

International Segment:

            

Net sales

   $ 4,392      $ 4,507      $ 4,944      $ 7,529      $ 5,758        31

Net sales — Y/Y growth, excluding F/X

     27     36     33     29     32     N/A   

Net sales — TTM

   $ 16,539      $ 18,070      $ 19,580      $ 21,372      $ 22,737        37

Net sales — TTM % of WW net sales

     45     45     45     44     44     N/A   

Operating income

   $ 175      $ 172      $ 116      $ 177      $ 49        (72 %) 

Operating margin — % of International net sales

     4.0     3.8     2.4     2.4     0.9     N/A   

Operating income — TTM

   $ 922      $ 888      $ 790      $ 640      $ 515        (44 %) 

Operating income — TTM Y/Y growth, excluding F/X

     4     (7 %)      (23 %)      (41 %)      (49 %)      N/A   

Operating margin — TTM % of International net sales

     5.6     4.9     4.0     3.0     2.3     N/A   

Consolidated Segments:

            

Operating expenses (3)

   $ 9,392      $ 9,527      $ 10,616      $ 16,969      $ 12,787        36

Operating expenses — TTM (3)

   $ 35,037      $ 38,404      $ 41,860      $ 46,504      $ 49,899        42

Operating income

   $ 465      $ 386      $ 260      $ 462      $ 398        (15 %) 

Operating margin — % of Consolidated sales

     4.7     3.9     2.4     2.7     3.0     N/A   

Operating income — TTM

   $ 1,894      $ 1,874      $ 1,734      $ 1,573      $ 1,505        (21 %) 

Operating income — TTM Y/Y growth, excluding F/X

     10     1     (11 %)      (21 %)      (22 %)      N/A   

Operating margin — TTM % of Consolidated net sales

     5.1     4.7     4.0     3.3     2.9     N/A   


AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except inventory turnover, accounts payable days and employee data)

(unaudited)

 

     Q1 2011     Q2 2011     Q3 2011     Q4 2011     Q1 2012     Y/Y %
Change
 

Supplemental

            

Supplemental North America Segment Net Sales:

            

Media

   $ 1,885      $ 1,585      $ 1,927      $ 2,562      $ 2,197        17

Media — Y/Y growth, excluding F/X

     18     19     21     8     17     N/A   

Media — TTM

   $ 7,170      $ 7,430      $ 7,767      $ 7,959      $ 8,270        15

Electronics and other general merchandise

   $ 3,303      $ 3,496      $ 3,635      $ 6,881      $ 4,772        44

Electronics and other general merchandise — Y/Y growth, excluding F/X

     63     67     56     51     44     N/A   

Electronics and other general merchandise — TTM

   $ 12,277      $ 13,683      $ 14,992      $ 17,315      $ 18,784        53

Electronics and other general merchandise — TTM % of North America net sales

     60     62     62     65     66     N/A   

Other

   $ 277      $ 325      $ 370      $ 459      $ 458        66

Other — TTM

   $ 945      $ 1,095      $ 1,255      $ 1,431      $ 1,613        71

Supplemental International Segment Net Sales:

            

Media

   $ 2,073      $ 2,075      $ 2,226      $ 3,447      $ 2,513        21

Media — Y/Y growth, excluding F/X

     9     20     17     18     22     N/A   

Media — TTM

   $ 8,247      $ 8,772      $ 9,238      $ 9,820      $ 10,261        24

Electronics and other general merchandise

   $ 2,285      $ 2,398      $ 2,681      $ 4,032      $ 3,203        40

Electronics and other general merchandise — Y/Y growth, excluding F/X

     49     53     51     41     42     N/A   

Electronics and other general merchandise — TTM

   $ 8,162      $ 9,162      $ 10,199      $ 11,397      $ 12,314        51

Electronics and other general merchandise — TTM % of International net sales

     49     51     52     53     54     N/A   

Other

   $ 34      $ 34      $ 37      $ 50      $ 42        24

Other — TTM

   $ 130      $ 136      $ 143      $ 155      $ 162        26

Supplemental Worldwide Net Sales:

            

Media

   $ 3,958      $ 3,660      $ 4,153      $ 6,009      $ 4,710        19

Media — Y/Y growth, excluding F/X

     13     20     19     14     19     N/A   

Media — TTM

   $ 15,417      $ 16,202      $ 17,005      $ 17,779      $ 18,531        20

Electronics and other general merchandise

   $ 5,588      $ 5,894      $ 6,316      $ 10,913      $ 7,975        43

Electronics and other general merchandise — Y/Y growth, excluding F/X

     57     62     54     47     43     N/A   

Electronics and other general merchandise — TTM

   $ 20,439      $ 22,845      $ 25,191      $ 28,712      $ 31,098        52

Electronics and other general merchandise — TTM % of WW net sales

     55     57     58     60     60     N/A   

Other

   $ 311      $ 359      $ 407      $ 509      $ 500        61

Other — TTM

   $ 1,075      $ 1,231      $ 1,398      $ 1,586      $ 1,775        65

Balance Sheet

            

Cash and marketable securities

   $ 6,881      $ 6,355      $ 6,326      $ 9,576      $ 5,715        (17 %) 

Inventory, net — ending

   $ 2,888      $ 3,229      $ 3,770      $ 4,992      $ 4,255        47

Inventory turnover, average — TTM

     11.6        11.3        10.8        10.3        10.4        (10 %) 

Fixed assets, net

   $ 2,902      $ 3,470      $ 3,999      $ 4,417      $ 4,653        60

Accounts payable — ending

   $ 5,540      $ 5,721      $ 6,552      $ 11,145      $ 6,886        24

Accounts payable days — ending

     66        69        72        74        62        (5 %) 

Other

            

WW shipping revenue

   $ 330      $ 331      $ 360      $ 531      $ 461        40

WW shipping costs

   $ 786      $ 820      $ 918      $ 1,466      $ 1,129        44

WW net shipping costs

   $ 456      $ 489      $ 558      $ 935      $ 668        47

WW net shipping costs — % of WW net sales

     4.6     4.9     5.1     5.4     5.1     N/A   

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

     37,900        43,200        51,300        56,200        65,600        73

 

(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
(2) TTM Free Cash Flow divided by Invested Capital.
(3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.


Amazon.com, Inc.

Certain Definitions

Customer Accounts

 

   

References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer places an order or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

Seller Accounts

 

   

References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

Registered Developers

 

   

References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.

Units

 

   

References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers at Amazon 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.diapers.com, www.endless.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 certain acquisitions, rental businesses, web services or advertising businesses, or Amazon gift certificates.

 

Contacts:

  

Amazon.com Investor Relations

Sean Boyle, 206/266-2171

www.amazon.com/ir

  

Amazon.com Public Relations

Mary Osako, 206/266-7180