[July 26, 2018] |
|
Amazon.com Announces Second Quarter Sales up 39% to $52.9 Billion
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for
its second quarter ended June 30, 2018.
Operating cash flow increased 22% to $21.8 billion for the trailing
twelve months, compared with $17.8 billion for the trailing twelve
months ended June 30, 2017. Free cash flow increased to $10.4 billion
for the trailing twelve months, compared with $9.6 billion for the
trailing twelve months ended June 30, 2017. Free cash flow less lease
principal repayments decreased to $4.1 billion for the trailing twelve
months, compared with $5.4 billion for the trailing twelve months ended
June 30, 2017. Free cash flow less finance lease principal repayments
and assets acquired under capital leases decreased to $546 million for
the trailing twelve months, compared with $1.4 billion for the trailing
twelve months ended June 30, 2017.
Common shares outstanding plus shares underlying stock-based awards
totaled 506 million on June 30, 2018, compared with 502 million one year
ago.
Net sales increased 39% to $52.9 billion in the second quarter, compared
with $38.0 billion in second quarter 2017. Excluding the $760 million
favorable impact from year-over-year changes in foreign exchange rates
throughout the quarter, net sales increased 37% compared with second
quarter 2017.
Operating income increased to $3.0 billion in the second quarter,
compared with operating income of $628 million in second quarter 2017.
Net income increased to $2.5 billion in the second quarter, or $5.07 per
diluted share, compared with net income of $197 million, or $0.40 per
diluted share, in second quarter 2017.
"We want customers to be able to use Alexa wherever they are," said Jeff
Bezos, Amazon founder and CEO. "There are now tens of thousands of
developers across more than 150 countries building new devices using the
Alexa Voice Service, and the number of Alexa-enabled devices has more
than tripled in the past year. Our partners are creating a wide variety
of new Alexa-enabled devices and experiences, including soundbars from
Polk and Sonos; headphones from Jabra; smart home devices from ecobee
and First Alert; Windows 10 PCs from Acer, HP, and Lenovo; and cars from
automakers including BMW, Ford, and Toyota."
Highlights
-
Amazon and Best Buy released the first of the next generation Fire TV
Edition smart TVs to customers in the U.S. The new Toshiba 4K TVs are
now available for purchase in Best Buy stores and online at
bestbuy.com and amazon.com, with additional models coming later this
year to customers in the U.S. and Canada.
-
Amazon announced the Fire TV Cube, a 4K Ultra HD streaming media
player with Alexa that allows customers to control the TV with their
voice. Fire TV Cube uses multi-directional infrared technology,
cloud-based protocols, and HDMI CEC to control compatible TVs, sound
bars, cable and satellite boxes, and AV receivers.
-
Amazon introduced the Fire HD 10 Kids Edition, which comes bundled
with a Fire HD 10 tablet, a year of Amazon FreeTime Unlimited, a
kid-proof case, and a two-year worry-free guarantee. Additionally,
Amazon FreeTime Unlimited is now available on iOS devices, offering
kids access to over 10,000 age-appropriate books, movies, and TV shows.
-
Amazon announced Show Mode and the Show Mode Charging Dock for Fire HD
8 and Fire HD 10 tablets. Show Mode offers a hands-free Alexa
experience with full screen visual responses. The Show Mode Charging
Dock automatically switches Fire HD tablets into Show Mode and holds
the device at an adjustable angle while charging.
-
Amazon launched Echo and Alexa in France, offering an all-new Alexa
experience built from the ground up for French customers.
Additionally, Echo Spot launched in India and Japan, allowing
customers to experience Alexa with a screen. Amazon also announced
that Echo and Alexa are coming to Italy, Mexico, and Spain later this
year.
-
Amazon added new Alexa capabilities, including calendaring features,
such as the ability to move meetings via voice; new information on
current events like the Royal Wedding, World Cup, and NBA Playoffs;
Remember This, a new feature which enables Alexa to remember important
information such as birthdays, anniversaries, and more; new ways to
navigate and control video content with Alexa, including integrations
with TiVo, Dish, Netflix, and DirecTV, and new ways for the blind and
visually impaired community to interact with Alexa with the launch of
Tap to Alexa and global expansion of Alexa Captioning.
-
The Alexa Skills store now offers more than 45,000 skills created by
third-party developers, including entertainment and gaming skills like
Jurassic World Revealed, Westworld: The Maze, Skyrim Very Special
Edition, When in Rome, and Hotel Transylvania Stories. Additionally,
customers can now use Alexa to control more than 13,000 smart home
devices from over 2,500 unique brands.
-
Amazon announced Alexa for Hospitality, which brings the convenience
of Alexa to hotels, vacation rentals, and other hospitality locations.
Offered by invitation, Alexa for Hospitality lets hoteliers create new
voice-first experiences so guests can ask Alexa for hotel information,
play music in their room, request guest services, and more.
-
Alexa is available on even more products via the Alexa Voice Service,
including soundbars from Polk and Sonos; headphones from Jabra; smart
home devices from ecobee and First Alert; Windows 10 PCs from Acer,
HP, and Lenovo; and select vehicles from BMW, Ford, and Toyota.
-
Amazon introduced new machine learning tools for developers to make
Alexa skills even more engaging and discoverable, including a feature
that allows U.S. customers to launch skills using more natural phrases
and requests; the ability for developers to turn text into lifelike
speech using Amazon Polly, for free; and the release of the software
development kit for Python that allows developers to more easily build
Alexa skills. Amazon also expanded the ability for developers to earn
money or sell goods and services through their Alexa skills using
in-skill purchasing or Amazon Pay.
-
The Alexa Fund invested in new companies, including Aaptiv,
DefinedCrowd, Novel Effect, Tact.ai, and Sensible Object, and kicked
off the second round of the Alexa Accelerator powered by Techstars, a
program empowering entrepreneurs who are innovating voice technology.
-
Amazon announced an offering that helps entrepreneurs build their own
companies by delivering Amazon packages. Business owners can grow
their companies by accessing Amazon's delivery technology and package
volume, as well as receiving discounts on a suite of assets and
services such as vehicle leases and comprehensive insurance.
Additionally, Amazon committed $1 million to fund startup costs for
eligible military veterans to start their own delivery businesses.
-
Amazon and Ring announced Ring Alarm, a do-it-yourself home security
system that offers professional monitoring for just $10 per month.
-
Amazon Prime Video received 22 Emmy nominations for its original
programming, including 14 nominations for comedy series The
Marvelous Mrs. Maisel.
-
Prime Video and the National Football League renewed their streaming
partnership for Thursday Night Football, which will be available
globally during the 2018 and 2019 seasons to over 100 million Prime
members. Additionally, Prime Video and the Premier League announced
that live and exclusive Premier League football matches will be
available in the U.K. beginning in 2019 at no extra cost to Prime
members.
-
Prime Video debuted the second season of Original Series Goliath,
starring Billy Bob Thornton in his Golden Globe-winning role. Prime
Video continues to launch local Original Series around the world,
including Comicstaan in India, an unscripted series that looks
to discover India's next big comedic sensation; Diablo Guardián
in Mexico, based on an award-winning novel of the same name; and
season two of The Bachelor Japan.
-
Prime Video Channels is now available to Prime members in Japan with
more than 30 channels including J Sports, BBC World News, and Nikkei
CNBC Plus.
-
The fourth annual Prime Day was Amazon's biggest global shopping event
ever, welcoming more new Prime members on July 16th than
any other previous day in Amazon history. Members purchased more than
100 million products, and the best-selling items worldwide were the
Fire TV Stick with Alexa Voice Remote and Echo Dot. Small and
medium-sized businesses selling on Amazon exceeded $1.5 billion in
sales during the Prime Day event. Additionally, Prime members saved
millions of dollars at Whole Foods Market with Prime Day deals.
-
Amazon launched Prime member savings at Whole Foods Market stores
nationwide, offering Prime members 10% off hundreds of sale items and
deep discounts on popular products.
-
Amazon continues to expand grocery delivery from Whole Foods Market to
more than 20 cities in the U.S., offering customers ultrafast delivery
on natural and organic products through Prime Now.
-
Amazon Fashion launched Prime Wardrobe in the U.S., allowing Prime
members to try clothing, shoes, and accessories before they buy.
Customers can choose from eligible styles, have up to seven days to
try them on at home, and are charged only for those items they decide
to keep.
-
Amazon Business expanded to Italy and Spain, and now serves businesses
of all sizes in eight countries across the globe, including the U.S.,
the U.K., Germany, Japan, India, and France. Amazon Business now ships
to business customers in over 70 countries worldwide.
-
Amazon continues to expand Prime member benefits internationally,
launching Prime free same-day delivery in select cities in Italy and
Spain; Prime Music and Prime Reading in Italy, Spain, and France; and
Prime Student in Japan.
-
Amazon launched Prime in Australia, offering members unlimited free
delivery on millions of local and international items, Prime Video,
Prime Reading, Twitch Prime, and access to exclusive deals.
-
Amazon was proud to be the presenting sponsor of the 2018 Special
Olympics USA Games Closing Ceremony in Seattle. Hundreds of Amazonians
volunteered throughout the week at the various sporting events and at
the Closing Ceremony. The 2018 USA Games welcomed more than 4,000
athletes and coaches, including Amazon's own San Antonio fulfillment
center associate Leonard Flowers, who won two silver medals in tennis.
-
Amazon Web Services (AWS) announced several new enterprise customers
during the quarter: Ryanair and Epic Games have gone all-in on AWS;
zulily is moving its infrastructure to AWS to further enhance the
online shopping experience for customers; 21st Century Fox chose AWS
for the vast majority of its workloads to create a consistent set of
digital media capabilities across its brands; Verizon and its
subsidiary Oath selected AWS as its preferred public cloud provider;
Major League Baseball named AWS its official provider for machine
learning, artificial intelligence, and deep learning; and Formula One
is moving the vast majority of its infrastructure from on-premises
data centers to AWS and standardizing on AWS's machine learning and
data analytics services to accelerate its cloud transformation.
-
AWS announced the general availability of Amazon Elastic Container
Service for Kubernetes (Amazon EKS), a fully managed service that
makes it easy to deploy, manage, and scale containerized applications
using Kubernetes on AWS. Amazon EKS removes the complexity of
operating Kubernetes clusters with high availability, automatically
running the Kubernetes management infrastructure across multiple
availability zones to eliminate a single point of failure. Amazon EKS
is certified Kubernetes conformant, so customers can run their
existing Kubernetes applications without any code changes using
existing Kubernetes tooling.
-
AWS announced the general availability of DeepLens, the world's first
deep learning-enabled wireless video camera built to give developers
hands-on experience with machine learning. In addition to built-in
sample projects that run on the device, AWS DeepLens customers can
also create their own models in Amazon SageMaker - a fully-managed
service that enables developers to quickly and easily build, train,
and deploy machine learning models. Thousands of DeepLens devices have
shipped since becoming generally available in June.
-
AWS announced the general availability of Amazon Neptune, a fast,
reliable, and fully-managed graph database service. With Amazon
Neptune, customers can efficiently store and navigate highly-connected
data, allowing developers to create sophisticated, interactive graph
applications that can query billions of relationships with millisecond
latency.
-
AWS announced pay-per-session pricing for Amazon QuickSight, the first
business intelligence service with pay-per-session pricing. Amazon
QuickSight is a fast, cloud-powered, business analytics service that
makes it easy for all users within an organization to build
visualizations, perform ad-hoc analysis, and quickly get business
insights from their data, regardless of their technical skill. With
pay-per-session pricing, any user can have read-only access to
interactive, data driven dashboards in Amazon QuickSight and pay only
when they've accessed these dashboards, making Amazon QuickSight an
even more cost-effective way for customers to make personalized
business analytics available to everyone, whether they have tens,
hundreds, or thousands of users.
-
AWS announced a new Amazon Elastic Compute Cloud (Amazon EC2) instance
for AWS Snowball Edge devices (SBE1). AWS Snowball Edge is a 100TB
data transfer device with on-board storage and compute that can be
used to move large amounts of data into and out of AWS, as a temporary
storage tier for large local data sets, or to support independent
local workloads in remote locations. Customers can now run compute
instances using the same Amazon Machine Images (AMIs) that are used in
Amazon EC2 directly on Snowball Edge devices, expanding the range of
applications available for collecting and processing data in locations
with limited or no network connection such as in certain mining,
military, energy, and manufacturing use cases. SBE1 expands upon
Snowball Edge's existing on-board compute and storage capabilities -
AWS Greengrass running AWS Lambda functions and Amazon Simple Storage
Service (Amazon S3) - to give customers greater choice for operating
their edge environments.
-
AWS announced the general availability of C5d Instances with Local
NVMe Storage and I3 Bare Metal Instances, two new features which are
part of the Amazon EC2 service within AWS's compute portfolio. C5
Instances with Local NVMe Storage bring customers high-speed,
ultra-low latency local storage to compute-intensive C5 instances. I3
Bare Metal Instances provide applications with direct access to the
processor and memory resources of the underlying server, allowing EC2
customers to run applications that benefit from deep performance
analysis tools, specialized workloads that require direct access to
bare metal infrastructure, legacy workloads not supported in virtual
environments, and licensing-restricted business critical applications.
-
AWS announced thousands of enterprise customers are running SAP
workloads on AWS. Businesses of all sizes and across virtually every
industry and geography are running their SAP landscapes on AWS to
simplify infrastructure management, improve time-to-market, lower
costs, and deliver innovation with AWS services integration. Compass
Group, Illumina, AGC Asahi Glass Co., Petronas Lubricants, Sumitomo
Chemical, Visy, Mitsui & Co., Cardinal Health, Bose, Louisiana
Pacific, Citco, Thermo Fisher, Contact Energy, Mercury, Del Monte, L&T
Infotech, Edelweiss General Insurance, Oppo Electronics, Videocon, and
BR Distribuidora are just a few of the customers running SAP solutions
on AWS.
-
In its second year of availability, the number of databases migrated
to AWS using the AWS Database Migration Service has grown to more than
80,000 databases.
-
AWS announced the general availability of Amazon Sumerian, a new
managed service that allows developers to create and publish augmented
reality (AR), virtual reality (VR), and 3D applications quickly and
easily without requiring any specialized programming or 3D graphics
expertise. With Amazon Sumerian, customers can build VR, AR, and 3D
experiences for a wide variety of popular hardware systems including
mobile devices, head-mounted displays, digital signs, and web browsers.
Financial Guidance
The following forward-looking statements reflect Amazon.com's
expectations as of July 26, 2018, 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.
Third Quarter 2018 Guidance
-
Net sales are expected to be between $54.0 billion and $57.5 billion,
or to grow between 23% and 31% compared with third quarter 2017. This
guidance anticipates an unfavorable impact of approximately 30 basis
points from foreign exchange rates.
-
Operating income is expected to be between $1.4 billion and $2.4
billion, compared with $347 million in third quarter 2017.
-
This guidance assumes, among other things, that no additional business
acquisitions, investments, 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 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 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, 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, 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 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 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 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,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD
|
|
$
|
16,301
|
|
|
$
|
17,616
|
|
|
$
|
19,934
|
|
|
$
|
21,856
|
|
|
$
|
12,977
|
|
|
$
|
13,851
|
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
197
|
|
|
2,534
|
|
|
921
|
|
|
4,163
|
|
|
1,922
|
|
|
6,275
|
|
Adjustments to reconcile net income 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
|
|
2,633
|
|
|
3,630
|
|
|
5,068
|
|
|
7,301
|
|
|
9,448
|
|
|
13,711
|
|
Stock-based compensation
|
|
1,158
|
|
|
1,468
|
|
|
1,952
|
|
|
2,651
|
|
|
3,615
|
|
|
4,914
|
|
Other operating expense, net
|
|
60
|
|
|
85
|
|
|
102
|
|
|
141
|
|
|
164
|
|
|
240
|
|
Other expense (income), net
|
|
(120
|
)
|
|
110
|
|
|
(160
|
)
|
|
(75
|
)
|
|
(162
|
)
|
|
(207
|
)
|
Deferred income taxes
|
|
376
|
|
|
(139
|
)
|
|
354
|
|
|
3
|
|
|
(8
|
)
|
|
(380
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
(682
|
)
|
|
(1,090
|
)
|
|
265
|
|
|
1,130
|
|
|
(1,874
|
)
|
|
(2,717
|
)
|
Accounts receivable, net and other
|
|
(1,221
|
)
|
|
(1,364
|
)
|
|
(257
|
)
|
|
(336
|
)
|
|
(2,925
|
)
|
|
(4,859
|
)
|
Accounts payable
|
|
2,088
|
|
|
2,703
|
|
|
(4,777
|
)
|
|
(7,513
|
)
|
|
5,046
|
|
|
4,364
|
|
Accrued expenses and other
|
|
(252
|
)
|
|
(205
|
)
|
|
(1,657
|
)
|
|
(2,430
|
)
|
|
1,039
|
|
|
(491
|
)
|
Unearned revenue
|
|
(387
|
)
|
|
(283
|
)
|
|
419
|
|
|
623
|
|
|
1,537
|
|
|
943
|
|
Net cash provided by (used in) operating activities
|
|
3,850
|
|
|
7,449
|
|
|
2,230
|
|
|
5,658
|
|
|
17,802
|
|
|
21,793
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment, including internal-use software
and website development
|
|
(3,113
|
)
|
|
(3,243
|
)
|
|
(5,261
|
)
|
|
(6,341
|
)
|
|
(9,763
|
)
|
|
(13,035
|
)
|
Proceeds from property and equipment incentives
|
|
612
|
|
|
294
|
|
|
899
|
|
|
665
|
|
|
1,556
|
|
|
1,663
|
|
Acquisitions, net of cash acquired, and other
|
|
(633
|
)
|
|
(866
|
)
|
|
(678
|
)
|
|
(879
|
)
|
|
(765
|
)
|
|
(14,173
|
)
|
Sales and maturities of marketable securities
|
|
2,070
|
|
|
1,660
|
|
|
3,980
|
|
|
4,337
|
|
|
6,530
|
|
|
10,034
|
|
Purchases of marketable securities
|
|
(4,210
|
)
|
|
(537
|
)
|
|
(5,564
|
)
|
|
(1,007
|
)
|
|
(10,731
|
)
|
|
(8,173
|
)
|
Net cash provided by (used in) investing activities
|
|
(5,274
|
)
|
|
(2,692
|
)
|
|
(6,624
|
)
|
|
(3,225
|
)
|
|
(13,173
|
)
|
|
(23,684
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt and other
|
|
49
|
|
|
96
|
|
|
70
|
|
|
221
|
|
|
612
|
|
|
16,380
|
|
Repayments of long-term debt and other
|
|
(48
|
)
|
|
(149
|
)
|
|
(88
|
)
|
|
(351
|
)
|
|
(170
|
)
|
|
(1,564
|
)
|
Principal repayments of capital lease obligations
|
|
(1,228
|
)
|
|
(1,284
|
)
|
|
(2,060
|
)
|
|
(3,297
|
)
|
|
(4,003
|
)
|
|
(6,037
|
)
|
Principal repayments of finance lease obligations
|
|
(47
|
)
|
|
(57
|
)
|
|
(85
|
)
|
|
(129
|
)
|
|
(170
|
)
|
|
(244
|
)
|
Net cash provided by (used in) financing activities
|
|
(1,274
|
)
|
|
(1,394
|
)
|
|
(2,163
|
)
|
|
(3,556
|
)
|
|
(3,731
|
)
|
|
8,535
|
|
Foreign currency effect on cash, cash equivalents, and restricted
cash
|
|
248
|
|
|
(443
|
)
|
|
474
|
|
|
(197
|
)
|
|
(24
|
)
|
|
41
|
|
Net increase (decrease) in cash, cash equivalents, and restricted
cash
|
|
(2,450
|
)
|
|
2,920
|
|
|
(6,083
|
)
|
|
(1,320
|
)
|
|
874
|
|
|
6,685
|
|
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD
|
|
$
|
13,851
|
|
|
$
|
20,536
|
|
|
$
|
13,851
|
|
|
$
|
20,536
|
|
|
$
|
13,851
|
|
|
$
|
20,536
|
|
SUPPLEMENTAL CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest on long-term debt
|
|
$
|
146
|
|
|
$
|
168
|
|
|
$
|
150
|
|
|
$
|
450
|
|
|
$
|
295
|
|
|
$
|
628
|
|
Cash paid for interest on capital and finance lease obligations
|
|
62
|
|
|
125
|
|
|
123
|
|
|
254
|
|
|
234
|
|
|
449
|
|
Cash paid for income taxes, net of refunds
|
|
447
|
|
|
300
|
|
|
693
|
|
|
813
|
|
|
879
|
|
|
1,077
|
|
Property and equipment acquired under capital leases
|
|
2,724
|
|
|
2,335
|
|
|
4,612
|
|
|
4,605
|
|
|
8,019
|
|
|
9,631
|
|
Property and equipment acquired under build-to-suit leases
|
|
748
|
|
|
795
|
|
|
1,948
|
|
|
1,536
|
|
|
2,575
|
|
|
3,128
|
|
______________________________
As a result of the adoption of new accounting guidance, we
retrospectively adjusted our consolidated statements of cash flows
to add restricted cash to cash and cash equivalents.
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Statements of Operations
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net product sales
|
|
$
|
24,745
|
|
|
$
|
31,864
|
|
|
$
|
48,479
|
|
|
$
|
63,468
|
|
Net service sales
|
|
13,210
|
|
|
21,022
|
|
|
25,190
|
|
|
40,460
|
|
Total net sales
|
|
37,955
|
|
|
52,886
|
|
|
73,669
|
|
|
103,928
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
23,451
|
|
|
30,632
|
|
|
45,891
|
|
|
61,367
|
|
Fulfillment
|
|
5,158
|
|
|
7,932
|
|
|
9,855
|
|
|
15,724
|
|
Marketing
|
|
2,229
|
|
|
2,901
|
|
|
4,150
|
|
|
5,600
|
|
Technology and content
|
|
5,549
|
|
|
7,247
|
|
|
10,363
|
|
|
14,006
|
|
General and administrative
|
|
874
|
|
|
1,111
|
|
|
1,669
|
|
|
2,177
|
|
Other operating expense, net
|
|
66
|
|
|
80
|
|
|
109
|
|
|
143
|
|
Total operating expenses
|
|
37,327
|
|
|
49,903
|
|
|
72,037
|
|
|
99,017
|
|
Operating income
|
|
628
|
|
|
2,983
|
|
|
1,632
|
|
|
4,911
|
|
Interest income
|
|
44
|
|
|
94
|
|
|
83
|
|
|
173
|
|
Interest expense
|
|
(143
|
)
|
|
(343
|
)
|
|
(282
|
)
|
|
(673
|
)
|
Other income (expense), net
|
|
137
|
|
|
(129
|
)
|
|
185
|
|
|
109
|
|
Total non-operating income (expense)
|
|
38
|
|
|
(378
|
)
|
|
(14
|
)
|
|
(391
|
)
|
Income before income taxes
|
|
666
|
|
|
2,605
|
|
|
1,618
|
|
|
4,520
|
|
Provision for income taxes
|
|
(467
|
)
|
|
(74
|
)
|
|
(695
|
)
|
|
(361
|
)
|
Equity-method investment activity, net of tax
|
|
(2
|
)
|
|
3
|
|
|
(2
|
)
|
|
4
|
|
Net income
|
|
$
|
197
|
|
|
$
|
2,534
|
|
|
$
|
921
|
|
|
$
|
4,163
|
|
Basic earnings per share
|
|
$
|
0.41
|
|
|
$
|
5.21
|
|
|
$
|
1.93
|
|
|
$
|
8.58
|
|
Diluted earnings per share
|
|
$
|
0.40
|
|
|
$
|
5.07
|
|
|
$
|
1.87
|
|
|
$
|
8.34
|
|
Weighted-average shares used in computation of earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
479
|
|
|
486
|
|
|
478
|
|
|
485
|
|
Diluted
|
|
492
|
|
|
500
|
|
|
491
|
|
|
499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Statements of Comprehensive Income
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
197
|
|
|
$
|
2,534
|
|
|
$
|
921
|
|
|
$
|
4,163
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of tax of $(2), $(1),
$(15), and $17
|
|
194
|
|
|
(466
|
)
|
|
381
|
|
|
(411
|
)
|
Net change in unrealized gains (losses) on available-for-sale debt
securities:
|
|
|
|
|
|
|
|
|
Unrealized gains (losses), net of tax of $3, $0, $2, and $9
|
|
(6
|
)
|
|
1
|
|
|
(8
|
)
|
|
(40
|
)
|
Reclassification adjustment for losses (gains) included in "Other
income (expense), net," net of tax of $0, $0, $0, and $0
|
|
2
|
|
|
1
|
|
|
5
|
|
|
1
|
|
Net unrealized gains (losses) on available-for-sale debt securities
|
|
(4
|
)
|
|
2
|
|
|
(3
|
)
|
|
(39
|
)
|
Total other comprehensive income (loss)
|
|
190
|
|
|
(464
|
)
|
|
378
|
|
|
(450
|
)
|
Comprehensive income
|
|
$
|
387
|
|
|
$
|
2,070
|
|
|
$
|
1,299
|
|
|
$
|
3,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Segment Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
|
|
|
|
Net sales
|
$
|
22,370
|
|
|
$
|
32,169
|
|
|
$
|
43,362
|
|
|
$
|
62,894
|
|
Operating expenses
|
21,934
|
|
|
30,334
|
|
|
42,330
|
|
|
59,910
|
|
Operating income
|
$
|
436
|
|
|
$
|
1,835
|
|
|
$
|
1,032
|
|
|
$
|
2,984
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
|
|
Net sales
|
$
|
11,485
|
|
|
$
|
14,612
|
|
|
$
|
22,546
|
|
|
$
|
29,487
|
|
Operating expenses
|
12,209
|
|
|
15,106
|
|
|
23,752
|
|
|
30,603
|
|
Operating income (loss)
|
$
|
(724
|
)
|
|
$
|
(494
|
)
|
|
$
|
(1,206
|
)
|
|
$
|
(1,116
|
)
|
|
|
|
|
|
|
|
|
AWS
|
|
|
|
|
|
|
|
Net sales
|
$
|
4,100
|
|
|
$
|
6,105
|
|
|
$
|
7,761
|
|
|
$
|
11,547
|
|
Operating expenses
|
3,184
|
|
|
4,463
|
|
|
5,955
|
|
|
8,504
|
|
Operating income
|
$
|
916
|
|
|
$
|
1,642
|
|
|
$
|
1,806
|
|
|
$
|
3,043
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Net sales
|
$
|
37,955
|
|
|
$
|
52,886
|
|
|
$
|
73,669
|
|
|
$
|
103,928
|
|
Operating expenses
|
37,327
|
|
|
49,903
|
|
|
72,037
|
|
|
99,017
|
|
Operating income
|
628
|
|
|
2,983
|
|
|
1,632
|
|
|
4,911
|
|
Total non-operating income (expense)
|
38
|
|
|
(378
|
)
|
|
(14
|
)
|
|
(391
|
)
|
Provision for income taxes
|
(467
|
)
|
|
(74
|
)
|
|
(695
|
)
|
|
(361
|
)
|
Equity-method investment activity, net of tax
|
(2
|
)
|
|
3
|
|
|
(2
|
)
|
|
4
|
|
Net income
|
$
|
197
|
|
|
$
|
2,534
|
|
|
$
|
921
|
|
|
$
|
4,163
|
|
|
|
|
|
|
|
|
|
Segment Highlights:
|
|
|
|
|
|
|
|
Y/Y net sales growth:
|
|
|
|
|
|
|
|
North America
|
27
|
%
|
|
44
|
%
|
|
25
|
%
|
|
45
|
%
|
International
|
17
|
|
|
27
|
|
|
16
|
|
|
31
|
|
AWS
|
42
|
|
|
49
|
|
|
42
|
|
|
49
|
|
Consolidated
|
25
|
|
|
39
|
|
|
24
|
|
|
41
|
|
Net sales mix:
|
|
|
|
|
|
|
|
North America
|
59
|
%
|
|
61
|
%
|
|
59
|
%
|
|
61
|
%
|
International
|
30
|
|
|
28
|
|
|
31
|
|
|
28
|
|
AWS
|
11
|
|
|
11
|
|
|
10
|
|
|
11
|
|
Consolidated
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Consolidated Balance Sheets
|
(in millions, except per share data)
|
|
|
|
|
|
December 31, 2017
|
|
June 30, 2018
|
|
|
|
(unaudited)
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
$
|
20,522
|
|
|
$
|
19,823
|
|
Marketable securities
|
10,464
|
|
|
7,227
|
|
Inventories
|
16,047
|
|
|
14,824
|
|
Accounts receivable, net and other
|
13,164
|
|
|
12,607
|
|
Total current assets
|
60,197
|
|
|
54,481
|
|
Property and equipment, net
|
48,866
|
|
|
54,768
|
|
Goodwill
|
13,350
|
|
|
13,944
|
|
Other assets
|
8,897
|
|
|
10,907
|
|
Total assets
|
$
|
131,310
|
|
|
$
|
134,100
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$
|
34,616
|
|
|
$
|
27,657
|
|
Accrued expenses and other
|
18,170
|
|
|
17,140
|
|
Unearned revenue
|
5,097
|
|
|
6,004
|
|
Total current liabilities
|
57,883
|
|
|
50,801
|
|
Long-term debt
|
24,743
|
|
|
24,638
|
|
Other long-term liabilities
|
20,975
|
|
|
23,666
|
|
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 - 507 and 511
|
|
|
|
Outstanding shares - 484 and 487
|
5
|
|
|
5
|
|
Treasury stock, at cost
|
(1,837
|
)
|
|
(1,837
|
)
|
Additional paid-in capital
|
21,389
|
|
|
24,028
|
|
Accumulated other comprehensive loss
|
(484
|
)
|
|
(934
|
)
|
Retained earnings
|
8,636
|
|
|
13,733
|
|
Total stockholders' equity
|
27,709
|
|
|
34,995
|
|
Total liabilities and stockholders' equity
|
$
|
131,310
|
|
|
$
|
134,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions, except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017
|
|
Q2 2017
|
|
Q3 2017
|
|
Q4 2017
|
|
Q1 2018
|
|
Q2 2018
|
|
Y/Y %
Change
|
Cash Flows and Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow -- trailing twelve months (TTM) (1)
|
|
$
|
17,547
|
|
|
$
|
17,802
|
|
|
$
|
16,996
|
|
|
$
|
18,365
|
|
|
$
|
18,194
|
|
|
$
|
21,793
|
|
|
22
|
%
|
Operating cash flow -- TTM Y/Y growth
|
|
52
|
%
|
|
36
|
%
|
|
13
|
%
|
|
7
|
%
|
|
4
|
%
|
|
22
|
%
|
|
N/A
|
Purchases of property and equipment, including internal-use software
and website development, net of proceeds from property and equipment
incentives -- TTM
|
|
$
|
7,417
|
|
|
$
|
8,207
|
|
|
$
|
9,027
|
|
|
$
|
10,058
|
|
|
$
|
10,924
|
|
|
$
|
11,372
|
|
|
39
|
%
|
Principal repayments of capital lease obligations -- TTM
|
|
$
|
3,891
|
|
|
$
|
4,003
|
|
|
$
|
4,331
|
|
|
$
|
4,799
|
|
|
$
|
5,981
|
|
|
$
|
6,037
|
|
|
51
|
%
|
Principal repayments of finance lease obligations -- TTM
|
|
$
|
155
|
|
|
$
|
170
|
|
|
$
|
175
|
|
|
$
|
200
|
|
|
$
|
235
|
|
|
$
|
244
|
|
|
44
|
%
|
Property and equipment acquired under capital leases -- TTM
|
|
$
|
6,717
|
|
|
$
|
8,019
|
|
|
$
|
8,905
|
|
|
$
|
9,637
|
|
|
$
|
10,020
|
|
|
$
|
9,631
|
|
|
20
|
%
|
Free cash flow -- TTM (1) (2)
|
|
$
|
10,130
|
|
|
$
|
9,595
|
|
|
$
|
7,969
|
|
|
$
|
8,307
|
|
|
$
|
7,270
|
|
|
$
|
10,421
|
|
|
9
|
%
|
Free cash flow less lease principal repayments -- TTM (1) (3)
|
|
$
|
6,084
|
|
|
$
|
5,422
|
|
|
$
|
3,463
|
|
|
$
|
3,308
|
|
|
$
|
1,054
|
|
|
$
|
4,140
|
|
|
(24
|
)%
|
Free cash flow less finance lease principal repayments and assets
acquired under capital leases -- TTM (1) (4)
|
|
$
|
3,258
|
|
|
$
|
1,406
|
|
|
$
|
(1,111
|
)
|
|
$
|
(1,530
|
)
|
|
$
|
(2,985
|
)
|
|
$
|
546
|
|
|
(61
|
)%
|
Invested capital (5)
|
|
$
|
42,114
|
|
|
$
|
45,537
|
|
|
$
|
52,690
|
|
|
$
|
60,368
|
|
|
$
|
68,377
|
|
|
$
|
76,600
|
|
|
68
|
%
|
Common shares and stock-based awards outstanding
|
|
497
|
|
|
502
|
|
|
503
|
|
|
504
|
|
|
504
|
|
|
506
|
|
|
1
|
%
|
Common shares outstanding
|
|
478
|
|
|
480
|
|
|
482
|
|
|
484
|
|
|
485
|
|
|
487
|
|
|
1
|
%
|
Stock-based awards outstanding
|
|
20
|
|
|
22
|
|
|
21
|
|
|
20
|
|
|
19
|
|
|
19
|
|
|
(12
|
)%
|
Stock-based awards outstanding -- % of common shares outstanding
|
|
4.1
|
%
|
|
4.5
|
%
|
|
4.4
|
%
|
|
4.2
|
%
|
|
3.9
|
%
|
|
3.9
|
%
|
|
N/A
|
Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide (WW) net sales
|
|
$
|
35,714
|
|
|
$
|
37,955
|
|
|
$
|
43,744
|
|
|
$
|
60,453
|
|
|
$
|
51,042
|
|
|
$
|
52,886
|
|
|
39
|
%
|
WW net sales -- Y/Y growth, excluding F/X
|
|
24
|
%
|
|
26
|
%
|
|
33
|
%
|
|
36
|
%
|
|
39
|
%
|
|
37
|
%
|
|
N/A
|
WW net sales -- TTM
|
|
$
|
142,572
|
|
|
$
|
150,123
|
|
|
$
|
161,154
|
|
|
$
|
177,866
|
|
|
$
|
193,194
|
|
|
$
|
208,125
|
|
|
39
|
%
|
WW net sales -- TTM Y/Y growth, excluding F/X
|
|
26
|
%
|
|
26
|
%
|
|
27
|
%
|
|
31
|
%
|
|
34
|
%
|
|
36
|
%
|
|
N/A
|
Operating income
|
|
$
|
1,005
|
|
|
$
|
628
|
|
|
$
|
347
|
|
|
$
|
2,127
|
|
|
$
|
1,927
|
|
|
$
|
2,983
|
|
|
375
|
%
|
F/X impact -- favorable (unfavorable)
|
|
$
|
(31
|
)
|
|
$
|
(38
|
)
|
|
$
|
(39
|
)
|
|
$
|
(33
|
)
|
|
$
|
(29
|
)
|
|
$
|
42
|
|
|
N/A
|
Operating income -- Y/Y growth (decline), excluding F/X
|
|
(3
|
)%
|
|
(48
|
)%
|
|
(33
|
)%
|
|
72
|
%
|
|
95
|
%
|
|
369
|
%
|
|
N/A
|
Operating margin -- % of WW net sales
|
|
2.8
|
%
|
|
1.7
|
%
|
|
0.8
|
%
|
|
3.5
|
%
|
|
3.8
|
%
|
|
5.6
|
%
|
|
N/A
|
Operating income -- TTM
|
|
$
|
4,120
|
|
|
$
|
3,462
|
|
|
$
|
3,234
|
|
|
$
|
4,106
|
|
|
$
|
5,028
|
|
|
$
|
7,384
|
|
|
113
|
%
|
Operating income -- TTM Y/Y growth (decline), excluding F/X
|
|
34
|
%
|
|
(9
|
)%
|
|
(17
|
)%
|
|
1
|
%
|
|
25
|
%
|
|
115
|
%
|
|
N/A
|
Operating margin -- TTM % of WW net sales
|
|
2.9
|
%
|
|
2.3
|
%
|
|
2.0
|
%
|
|
2.3
|
%
|
|
2.6
|
%
|
|
3.5
|
%
|
|
N/A
|
Net income
|
|
$
|
724
|
|
|
$
|
197
|
|
|
$
|
256
|
|
|
$
|
1,856
|
|
|
$
|
1,629
|
|
|
$
|
2,534
|
|
|
N/A
|
Net income per diluted share
|
|
$
|
1.48
|
|
|
$
|
0.40
|
|
|
$
|
0.52
|
|
|
$
|
3.75
|
|
|
$
|
3.27
|
|
|
$
|
5.07
|
|
|
N/A
|
Net income -- TTM
|
|
$
|
2,583
|
|
|
$
|
1,922
|
|
|
$
|
1,926
|
|
|
$
|
3,033
|
|
|
$
|
3,938
|
|
|
$
|
6,275
|
|
|
226
|
%
|
Net income per diluted share -- TTM
|
|
$
|
5.31
|
|
|
$
|
3.94
|
|
|
$
|
3.94
|
|
|
$
|
6.15
|
|
|
$
|
7.90
|
|
|
$
|
12.63
|
|
|
221
|
%
|
______________________________
(1)
|
|
As a result of the adoption of new accounting guidance, we
retrospectively adjusted our consolidated statements of cash flows
to add restricted cash to cash and cash equivalents.
|
(2)
|
|
Free cash flow is cash flow from operations reduced by "Purchases of
property and equipment, including internal-use software and website
development, net of proceeds from property and equipment
incentives," which both are included in cash flow from investing
activities.
|
(3)
|
|
Free cash flow less lease principal repayments is free cash flow
reduced by "Principal repayments of capital lease obligations," and
"Principal repayments of finance lease obligations," which are
included in cash flow from financing activities.
|
(4)
|
|
Free cash flow less finance lease principal repayments and assets
acquired under capital leases is free cash flow reduced by
"Principal repayments of finance lease obligations," which is
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.
|
(5)
|
|
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 2017
|
|
Q2 2017
|
|
Q3 2017
|
|
Q4 2017
|
|
Q1 2018
|
|
Q2 2018
|
|
Y/Y %
Change
|
Segments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
20,992
|
|
|
$
|
22,370
|
|
|
$
|
25,446
|
|
|
$
|
37,302
|
|
|
$
|
30,725
|
|
|
$
|
32,169
|
|
|
44
|
%
|
Net sales -- Y/Y growth, excluding F/X
|
|
23
|
%
|
|
27
|
%
|
|
35
|
%
|
|
42
|
%
|
|
46
|
%
|
|
44
|
%
|
|
N/A
|
Net sales -- TTM
|
|
$
|
83,781
|
|
|
$
|
88,476
|
|
|
$
|
95,048
|
|
|
$
|
106,110
|
|
|
$
|
115,843
|
|
|
$
|
125,642
|
|
|
42
|
%
|
Operating Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
596
|
|
|
$
|
436
|
|
|
$
|
112
|
|
|
$
|
1,692
|
|
|
$
|
1,149
|
|
|
$
|
1,835
|
|
|
321
|
%
|
F/X impact -- favorable (unfavorable)
|
|
$
|
4
|
|
|
$
|
11
|
|
|
$
|
(12
|
)
|
|
$
|
(8
|
)
|
|
$
|
(10
|
)
|
|
$
|
1
|
|
|
N/A
|
Operating income -- Y/Y growth (decline), excluding F/X
|
|
1
|
%
|
|
(40
|
)%
|
|
(51
|
)%
|
|
108
|
%
|
|
95
|
%
|
|
321
|
%
|
|
N/A
|
Operating margin -- % of North America net sales
|
|
2.8
|
%
|
|
1.9
|
%
|
|
0.4
|
%
|
|
4.5
|
%
|
|
3.7
|
%
|
|
5.7
|
%
|
|
N/A
|
Operating income -- TTM
|
|
$
|
2,369
|
|
|
$
|
2,102
|
|
|
$
|
1,960
|
|
|
$
|
2,837
|
|
|
$
|
3,390
|
|
|
$
|
4,788
|
|
|
128
|
%
|
Operating margin -- TTM % of North America net sales
|
|
2.8
|
%
|
|
2.4
|
%
|
|
2.1
|
%
|
|
2.7
|
%
|
|
2.9
|
%
|
|
3.8
|
%
|
|
N/A
|
International Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
11,061
|
|
|
$
|
11,485
|
|
|
$
|
13,714
|
|
|
$
|
18,038
|
|
|
$
|
14,875
|
|
|
$
|
14,612
|
|
|
27
|
%
|
Net sales -- Y/Y growth, excluding F/X
|
|
21
|
%
|
|
22
|
%
|
|
28
|
%
|
|
22
|
%
|
|
21
|
%
|
|
21
|
%
|
|
N/A
|
Net sales -- TTM
|
|
$
|
45,477
|
|
|
$
|
47,119
|
|
|
$
|
50,224
|
|
|
$
|
54,297
|
|
|
$
|
58,111
|
|
|
$
|
61,239
|
|
|
30
|
%
|
Operating income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
$
|
(481
|
)
|
|
$
|
(724
|
)
|
|
$
|
(936
|
)
|
|
$
|
(919
|
)
|
|
$
|
(622
|
)
|
|
$
|
(494
|
)
|
|
32
|
%
|
F/X impact -- favorable (unfavorable)
|
|
$
|
(32
|
)
|
|
$
|
(59
|
)
|
|
$
|
(13
|
)
|
|
$
|
20
|
|
|
$
|
70
|
|
|
$
|
86
|
|
|
N/A
|
Operating income/loss -- Y/Y growth (decline), excluding F/X
|
|
272
|
%
|
|
393
|
%
|
|
71
|
%
|
|
93
|
%
|
|
44
|
%
|
|
20
|
%
|
|
N/A
|
Operating margin -- % of International net sales
|
|
(4.4
|
)%
|
|
(6.3
|
)%
|
|
(6.8
|
)%
|
|
(5.1
|
)%
|
|
(4.2
|
)%
|
|
(3.4
|
)%
|
|
N/A
|
Operating income (loss) -- TTM
|
|
$
|
(1,644
|
)
|
|
$
|
(2,233
|
)
|
|
$
|
(2,629
|
)
|
|
$
|
(3,062
|
)
|
|
$
|
(3,202
|
)
|
|
$
|
(2,971
|
)
|
|
33
|
%
|
Operating margin -- TTM % of International net sales
|
|
(3.6
|
)%
|
|
(4.7
|
)%
|
|
(5.2
|
)%
|
|
(5.6
|
)%
|
|
(5.5
|
)%
|
|
(4.9
|
)%
|
|
N/A
|
AWS Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,661
|
|
|
$
|
4,100
|
|
|
$
|
4,584
|
|
|
$
|
5,113
|
|
|
$
|
5,442
|
|
|
$
|
6,105
|
|
|
49
|
%
|
Net sales -- Y/Y growth, excluding F/X
|
|
43
|
%
|
|
42
|
%
|
|
42
|
%
|
|
44
|
%
|
|
48
|
%
|
|
49
|
%
|
|
N/A
|
Net sales -- TTM
|
|
$
|
13,314
|
|
|
$
|
14,529
|
|
|
$
|
15,882
|
|
|
$
|
17,459
|
|
|
$
|
19,240
|
|
|
$
|
21,244
|
|
|
46
|
%
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
890
|
|
|
$
|
916
|
|
|
$
|
1,171
|
|
|
$
|
1,354
|
|
|
$
|
1,400
|
|
|
$
|
1,642
|
|
|
79
|
%
|
F/X impact -- favorable (unfavorable)
|
|
$
|
(3
|
)
|
|
$
|
10
|
|
|
$
|
(14
|
)
|
|
$
|
(45
|
)
|
|
$
|
(89
|
)
|
|
$
|
(45
|
)
|
|
N/A
|
Operating income -- Y/Y growth, excluding F/X
|
|
48
|
%
|
|
26
|
%
|
|
38
|
%
|
|
51
|
%
|
|
67
|
%
|
|
84
|
%
|
|
N/A
|
Operating margin -- % of AWS net sales
|
|
24.3
|
%
|
|
22.3
|
%
|
|
25.5
|
%
|
|
26.5
|
%
|
|
25.7
|
%
|
|
26.9
|
%
|
|
N/A
|
Operating income -- TTM
|
|
$
|
3,395
|
|
|
$
|
3,593
|
|
|
$
|
3,903
|
|
|
$
|
4,331
|
|
|
$
|
4,840
|
|
|
$
|
5,567
|
|
|
55
|
%
|
Operating margin -- TTM % of AWS net sales
|
|
25.5
|
%
|
|
24.7
|
%
|
|
24.6
|
%
|
|
24.8
|
%
|
|
25.2
|
%
|
|
26.2
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMAZON.COM, INC.
|
Supplemental Financial Information and Business Metrics
|
(in millions, except employee data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2017
|
|
Q2 2017
|
|
Q3 2017
|
|
Q4 2017
|
|
Q1 2018
|
|
Q2 2018
|
|
Y/Y %
Change
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online stores (1)
|
|
$
|
22,826
|
|
|
$
|
23,754
|
|
|
$
|
26,392
|
|
|
$
|
35,383
|
|
|
$
|
26,939
|
|
|
$
|
27,165
|
|
|
14
|
%
|
Online stores - Y/Y growth, excluding F/X
|
|
16
|
%
|
|
18
|
%
|
|
22
|
%
|
|
17
|
%
|
|
13
|
%
|
|
12
|
%
|
|
N/A
|
Physical stores (2)
|
|
|
|
|
|
$
|
1,276
|
|
|
$
|
4,522
|
|
|
$
|
4,263
|
|
|
$
|
4,312
|
|
|
N/A
|
Third-party seller services (3)
|
|
$
|
6,438
|
|
|
$
|
6,991
|
|
|
$
|
7,928
|
|
|
$
|
10,523
|
|
|
$
|
9,265
|
|
|
$
|
9,702
|
|
|
39
|
%
|
Third-party seller services - Y/Y growth, excluding F/X
|
|
36
|
%
|
|
40
|
%
|
|
40
|
%
|
|
38
|
%
|
|
39
|
%
|
|
36
|
%
|
|
N/A
|
Subscription services (4)
|
|
$
|
1,939
|
|
|
$
|
2,165
|
|
|
$
|
2,441
|
|
|
$
|
3,177
|
|
|
$
|
3,102
|
|
|
$
|
3,408
|
|
|
57
|
%
|
Subscription services - Y/Y growth, excluding F/X
|
|
52
|
%
|
|
53
|
%
|
|
59
|
%
|
|
47
|
%
|
|
56
|
%
|
|
55
|
%
|
|
N/A
|
AWS
|
|
$
|
3,661
|
|
|
$
|
4,100
|
|
|
$
|
4,584
|
|
|
$
|
5,113
|
|
|
$
|
5,442
|
|
|
$
|
6,105
|
|
|
49
|
%
|
AWS - Y/Y growth, excluding F/X
|
|
43
|
%
|
|
42
|
%
|
|
42
|
%
|
|
44
|
%
|
|
48
|
%
|
|
49
|
%
|
|
N/A
|
Other (5)
|
|
$
|
850
|
|
|
$
|
945
|
|
|
$
|
1,123
|
|
|
$
|
1,735
|
|
|
$
|
2,031
|
|
|
$
|
2,194
|
|
|
132
|
%
|
Other - Y/Y growth, excluding F/X
|
|
58
|
%
|
|
53
|
%
|
|
58
|
%
|
|
60
|
%
|
|
132
|
%
|
|
129
|
%
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based Compensation Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
$
|
8
|
|
|
$
|
12
|
|
|
$
|
13
|
|
|
$
|
14
|
|
|
$
|
15
|
|
|
$
|
19
|
|
|
55
|
%
|
Fulfillment
|
|
$
|
163
|
|
|
$
|
261
|
|
|
$
|
230
|
|
|
$
|
256
|
|
|
$
|
244
|
|
|
$
|
320
|
|
|
22
|
%
|
Marketing
|
|
$
|
94
|
|
|
$
|
133
|
|
|
$
|
135
|
|
|
$
|
148
|
|
|
$
|
161
|
|
|
$
|
190
|
|
|
42
|
%
|
Technology and content
|
|
$
|
441
|
|
|
$
|
633
|
|
|
$
|
595
|
|
|
$
|
637
|
|
|
$
|
631
|
|
|
$
|
788
|
|
|
25
|
%
|
General and administrative
|
|
$
|
86
|
|
|
$
|
119
|
|
|
$
|
112
|
|
|
$
|
124
|
|
|
$
|
132
|
|
|
$
|
151
|
|
|
27
|
%
|
Total stock-based compensation expense
|
|
$
|
792
|
|
|
$
|
1,158
|
|
|
$
|
1,085
|
|
|
$
|
1,179
|
|
|
$
|
1,183
|
|
|
$
|
1,468
|
|
|
27
|
%
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WW shipping costs
|
|
$
|
4,383
|
|
|
$
|
4,568
|
|
|
$
|
5,401
|
|
|
$
|
7,368
|
|
|
$
|
6,069
|
|
|
$
|
5,990
|
|
|
31
|
%
|
WW shipping costs -- Y/Y growth
|
|
34
|
%
|
|
36
|
%
|
|
39
|
%
|
|
31
|
%
|
|
38
|
%
|
|
31
|
%
|
|
N/A
|
WW paid units -- Y/Y growth (6)
|
|
24
|
%
|
|
27
|
%
|
|
25
|
%
|
|
23
|
%
|
|
22
|
%
|
|
17
|
%
|
|
N/A
|
WW seller unit mix -- % of WW paid units (6)
|
|
50
|
%
|
|
51
|
%
|
|
50
|
%
|
|
51
|
%
|
|
52
|
%
|
|
53
|
%
|
|
N/A
|
Employees (full-time and part-time; excludes contractors & temporary
personnel)
|
|
351,000
|
|
|
382,400
|
|
|
541,900
|
|
|
566,000
|
|
|
563,100
|
|
|
575,700
|
|
|
51
|
%
|
Employees (full-time and part-time; excludes contractors & temporary
personnel) -- Y/Y growth
|
|
43
|
%
|
|
42
|
%
|
|
77
|
%
|
|
66
|
%
|
|
60
|
%
|
|
51
|
%
|
|
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, music, videos, games, and software. These product sales
include digital products sold on a transactional basis. Digital
product 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.
|
(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
membership, as well as audiobook, e-book, digital video, digital
music, and other non-AWS subscription services.
|
(5)
|
|
Primarily includes sales of advertising services, as well as sales
related to our other service offerings.
|
(6)
|
|
Excludes the impact of Whole Foods Market.
|
|
|
|
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 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 at Amazon domains
worldwide 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: https://www.businesswire.com/news/home/20180726005861/en/
[ Back To TMCnet.com's Homepage ]
|