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Thu Oct 22 2009 16:13:33

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

By: Ina Steiner

Sponsored Link

Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its third quarter ended September 30, 2009.

Operating cash flow was $2.25 billion for the trailing twelve months, compared with $1.27 billion for the trailing twelve months ended September 30, 2008. Free cash flow increased 98% to $1.92 billion for the trailing twelve months, compared with $0.97 billion for the trailing twelve months ended September 30, 2008.

Common shares outstanding plus shares underlying stock-based awards outstanding totaled 451 million on September 30, 2009, compared with 448 million a year ago.

Net sales increased 28% to $5.45 billion in the third quarter, compared with $4.26 billion in third quarter 2008. Excluding the $41 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 29% compared with third quarter 2008.

Operating income increased 62% to $251 million in the third quarter, compared with $154 million in third quarter 2008. Excluding the $10 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 69% compared with third quarter 2008.

Net income increased 68% to $199 million in the third quarter, or $0.45 per diluted share, compared with net income of $118 million, or $0.27 per diluted share, in third quarter 2008.

"Kindle has become the #1 bestselling item by both unit sales and dollars – not just in our electronics store but across all product categories on Amazon.com. It's also the most wished for and the most gifted. We are grateful for and energized by this customer response," said Jeff Bezos, founder and CEO of Amazon.com. "Earlier this week we began shipping the latest generation Kindle. Its 3G wireless works in the U.S. and 100 countries, and we've just lowered its price to $259."

Highlights

    * This week we started shipping Kindle with U.S. & International Wireless and lowered its price to $259 from $279. This newest Kindle is available to ship to customers living outside the U.S. Customers in more than 100 countries around the world, and U.S. customers traveling abroad, can take advantage of Kindle's 3G wireless technology to download a title in 60 seconds or less.

    * The U.S. Kindle Store now has more than 360,000 books, including 101 of 112 New York Times Bestsellers, more than 7,000 blogs, and more than 90 top U.S. and International newspapers and magazines, including: The New York Times, The Wall Street Journal, The Times (U.K.), Le Monde, The Economist, Newsweek, Time, and Fortune. Kindle owners can also select from over 60,000 audiobooks from Audible.com and listen to them directly on their Kindle.

    * The Company announced "Kindle for PC," the free application for reading Kindle books on the PC. Kindle for PC features Amazon's Whispersync technology, which automatically saves and synchronizes customers' bookmarks and last page read across devices, including the Kindle, Kindle DX, iPhone, iPod touch, and PC.

    * North America segment sales, representing the Company's U.S. and Canadian sites, were $2.84 billion, up 23% from third quarter 2008.

    * International segment sales, representing the Company's U.K., German, Japanese, French and Chinese sites, were $2.61 billion, up 33% from third quarter 2008. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, International sales grew 35%.

    * Worldwide Media sales grew 17% to $2.93 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter sales grew 18%.

    * Worldwide Electronics & Other General Merchandise sales grew 44% to $2.36 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter sales grew 45%.

    * Amazon.com launched "Local Express Delivery," a new shipping option giving customers same-day delivery on thousands of items in seven major cities: New York, Philadelphia, Boston, Baltimore, Las Vegas, Seattle and Washington D.C. Amazon Prime members pay just $5.99 per item for the service.

    * The Company continues to expand and enhance free shipping offers across the world. Amazon.co.uk began offering free shipping on all products in the U.K., eliminating the prior threshold of £5; while Amazon.co.jp now offers free same-day delivery service to Amazon Prime customers in the Kanto and Kansai regions of Japan.

    * Items shipped on behalf of sellers who utilized Fulfillment by Amazon (FBA) more than tripled from the prior year. Sellers can still join FBA and take advantage of Amazon's extended delivery promise for the holidays - customers can order items as late as December 23rd and still get them in time for the holidays.

    * Amazon.com expanded its Frustration-Free Packaging program, offering additional items from Fisher-Price, Mattel, Kingston and other leading toy and electronics manufacturers in easy-to-open, environmentally friendly packaging.

    * Amazon Web Services (AWS) launched Amazon Virtual Private Cloud (Amazon VPC), a secure and seamless bridge between a company's existing IT infrastructure and the AWS cloud, enabling enterprises to connect their existing infrastructure to AWS compute resources.

Financial Guidance

The following forward-looking statements reflect Amazon.com's expectations as of October 22, 2009. This guidance excludes the impact of Zappos.com, Inc., including approximately $35 million of expenses primarily related to employee compensation costs, amortization of intangibles and merger-related expenses that would be recognized in the fourth quarter 2009 if the transaction closes as planned. 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.

Fourth Quarter 2009 Guidance

    * Net sales are expected to be between $8.125 billion and $9.125 billion, or to grow between 21% and 36% compared with fourth quarter 2008.

    * Operating income is expected to be between $300 million and $425 million, or to grow between 10% and 56% compared with fourth quarter 2008. This guidance includes approximately $100 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, including its most recent Annual Report on Form 10-K and subsequent filings.

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; Computers & Office; Electronics; Home & Garden; Grocery, Health & Beauty; Toys, Kids & Baby; Apparel, Shoes & Jewelry; 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. Examples of the services offered by Amazon Web Services are Amazon Elastic Compute Cloud (Amazon EC2), Amazon Simple Storage Service (Amazon S3), Amazon Elastic Block Store, Amazon SimpleDB, Amazon Simple Queue Service (Amazon SQS), Amazon Flexible Payments Service (Amazon FPS), Amazon Mechanical Turk and Amazon CloudFront.

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, and www.amazon.cn.




Comments (42) | Permalink

Readers Comments

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Patricia

Thu Oct 22 16:17:28 2009

I really do think Amazon should send John Donahoe a big bouquet of flowers and some cheap champagne along with a thank you note!  I knew they were going to have a successful third quarter report - just like I knew Ebay's would be yet another decline swathed in excuses. ;-)

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: ROTFLMAO at FUBAR DONHO

Thu Oct 22 16:34:08 2009

BUT BUT BUT... Ebay's only down 29%! How is that bad? They eked out 2% profit by holding squeezing & outright stealing, and you point to 28% higher sales as bad? HAHAHAHAHAHAHA!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: x_powerseller

Thu Oct 22 16:46:24 2009

We stopped selling on eBay almost a year ago.  

Amazon is one of the venues we have been selling on since,  aside from our own websites.  

Simply put, Amazon knows EXACTLY how to make it, while eBay knows EXACTLY how to break it with the maniac J.D. at the top!

The demise of eBay now is music to my ears.  I wish eBay nothing, but continued failure under the devil J.D’s management.   The sooner the better though!  

Maybe, shareholders will wake up one of these days and kick J.D. to the curb along with Norrington and the fat useless, liar “ Griff”

eBay sucks and Amazon rocks!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: joe

Thu Oct 22 16:49:50 2009


I bet John Donahore literally $hits when Amazon reports earnings.



Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Ebay DIE victoriously!

Thu Oct 22 16:52:31 2009

Some songs for JD to cry in his beer with:
Who's Sorry Now?
He Who Laughs Last, Laughs Hardest
The Harder They Come, The Harder They Fall
Walk Away, Renee
Baby, Come Back
And of course:
Daydream Believer!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Ebay DIE victoriously!

Thu Oct 22 16:53:21 2009

Ooops forgot one:
Dancin On Your Grave!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Chriss

Thu Oct 22 16:53:56 2009

This is a prime example that Wall Street analysts treat eBay like a "special needs" child. Set the bar a little lower, if they don't quite achieve their goals, pat them on the head and reward them anyway. Nice try, eBay!

How does Sandeep Aggarwal still have a job after upgrading eBay to $32 today after seeing how Amazon crunched expectations today. Up over $12 in after hours trading! Watch and learn, eBay - this is how ecommerce is done.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Ex powerseller, now sells on AMAZON!

Thu Oct 22 17:13:24 2009

Sanddab is a well known Ebay apologist, and totally discredited. Nothing will change while the moron is still CEO.

Hey Hey, Ho Ho,
John Donahoe must GO GO GO!
Nananana, Nananana, Hey Hey Hey Goodbye!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: joe

Thu Oct 22 17:20:38 2009


Amazon stock price after hours 106.43

EBAY stock price after hours 23.86

amazon up 12.98 per share, thats 52 % of ebays stock value.

Donahoe is sicker than hell over this one, and he deserves every moment of pain...



Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Ebay Pays My Minimum Monthly Payment

Thu Oct 22 17:22:54 2009


Nothing but good news from Amazon. The trend will continue.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Buck Efay, Huh Huh Huh!!!

Thu Oct 22 18:12:10 2009

The Trend will actually accelerate in Q4. Momentum is totally on Amazon's side now. Even the analysts are wondering what can Ebay do to restore trust & bring back sellers, because without sellers, Ebay is nothing. How can this company rise from the ashes of 2 years of idiocy? FIRE JOHN DONAHOE, GET RID OF BEST MATCH &TRS, Make the Diamonds pay fees & compete fairly, then we'll see a change in things.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Chris

Thu Oct 22 18:32:16 2009

The contrast couldn't be more striking with Ebay's situation: Amazon's profits up 69% whereas Ebay's are 29% down for Q3. Somehow the financial crisis appears to affect only Ebay but not Amazon!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Daisy

Thu Oct 22 18:59:36 2009

This is pretty hopeless for Ebay. They better sell Paypal before Ebay's core becomes completely irrelevent. Surely, Wall Street knows something's not right.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: matza

Thu Oct 22 19:16:38 2009

Boy best match did a number on 'em.

Confused and disrupted everyone, buyers and sellers. Killed auctions crushed the excitement and cost all involved plenty.

They are still running it..lol!!!

Donohole is a doofis. He doesn't understand how human beings think or respond to changes in marketplaces.

To change something familiar and simple into a manipulated, seller favoritism, bogus unfair and unbalanced piece of rubbish, this is what you get.

I've said it before and I'll say it again. Best Match was the HO'S biggest mistake at the worst possible time and no matter how long the HO has to go...1 year or 50 years his plan will never be successful.

Now on with the decline.


Funny Amazon was up what ebay was down. Hmmm interesting.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Ebay: DIE victoriously

Thu Oct 22 20:45:13 2009

Every real collector knows the best deals are from the guy set up way in the back of the show, maybe still unpacking, and runs to them first, then works their way up to the big boys with the expensive toys. Ebay has successfully destroyed all the small fry & sucked all the value out of the Ebay proposition. I know people that were Ebay addicts, they'd wake up & search & shop many times a day hoping. They'd buy stuff they didn't even want, because they were already there. Well, those people are all gone. All the auctions created a buzz & still are the best way to sell rare and one of a kind goods. Dummyho, in his rush to be OverWalmartazon, was too stupid to see all those segments are well served, perhaps too many sellers already, that's why these companies are dropping like flies. Instead of embracing the Quirky old Ebay, this idiot arrogantly decided he knew best, because he has no idea of the rush collectors & sellers of the unique gert. We are so stupid, we will lose money & time looking for useless junk. That is what made Ebay great, all us weirdos. Now Ebay is just another shiny mall, filled with the same carp that can be found anywhere, and even more expensive due to Ebay forcing us to fold in postage, insurance & 25% in selling fees. Ebay has destroyed their value, and the world is responding accordingly, by not wasting their time shopping there. If Ebay wants to play games & hide our stuff, well, by jingo I'll just sell it elsewhere. Screw them. Can't wait til Ebay fails now.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: RicRoe

Thu Oct 22 20:46:31 2009

Memo to the eBay Board Of Directors

You have been listening to your overpaid ineffective CEO and the plethora of excuses he offers for why eBay continues to fail.

You have heard all his assorted plans that were supposed to restore buyer trust and confidence in the marketplace.

It is painfully obvious John Donahoe does not have the first clue as to how to reverse the tailspin his leadership and changes have brought eBay.

Buyers have been voting with mouse clicks for a year now, yet you accept Donahoe's excuse that the recession is the problem.

Obviously the sales figures at Amazon tell quite the different story, as does the expanding success of smaller marketplaces, all at eBay's expense. Amazon has been eating eBay's lunch, and smaller sites like ecrater, bonanzle, etsy, etc.. have been getting fat on the leftovers.

It is about time the screams of eBay sellers were heard, not dismissed as ''noise''.

It's time that buyers abandonment of eBay is constructively addressed, not disruptively ignored.

It's long past time the eBay Board of Directors stopped accepting the excuses for eBay's failures and hands it's failed CEO his golden parachute.

Better yet, terminate John Donahoe for cause and withhold his golden parachute.

Either way, it is long past the time to change ineffective leadership at eBay. The recent results reported by both eBay and Amazon illustrate the point.

Before the eBay marketplace is completely and irreversibly destroyed, it is time to appoint a new CEO who is tasked with reversing the horrendous changes that have brought eBay to it's knees.

Give the new CEO a free hand to replace any and all current management, the power to reverse any and all unpopular changes and begin the process of salvaging what little is left of what was once the world's most successful online marketplace.

eBay does not need to be Costco. eBay does not need to be Amazon Lite. eBay does not need to be a liquidator.

What eBay needs to be is the successful thriving platform it was only a few years ago before eBay started fixing things which were not broken.

For Christmas, all we are asking for is competent leadership, not the Bain Pain which is choking the life out of eBay.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: FIRE JD NOW!

Thu Oct 22 20:53:54 2009

Ebay has all the momentum! Going Faster & faster DOWNHILL! Time for a change! FIRE JD NOW! Nothing will change with this idiot in charge.

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Whew! Sally That Girl!

Thu Oct 22 21:15:42 2009

Ebays excuse why the numbers are sooooo bad. "It's the recession"

Amazons excuse why the numbers are sooooo good. "It's the recession"

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Major Major

Thu Oct 22 21:25:16 2009

Good thing there's not loads of people looking to sell stuff right now! I bet they wish they had an open honest venue. I bet that guy that wanted me to sell his $10,000 worth of stuff on Ebay wishes I still sold there! I bet he also wishes I didn't tell him every way he was about to get hosed if he tried! I bet he wishes he could return his video professor How to sell on Ebay DVD as SNAD!

Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)   Amazon.com Press Release on Third Quarter Earnings (Sales up 28%)

by: Ben

Thu Oct 22 21:30:08 2009

Wonderful - I always hated Ebay´s amateur approach (can you imagine a lot of powersellers in Germany did not even pay income taxes or had even a business license) and I just love Amazon - easy and steady growth - clean business, happy customers....

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