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Thu Jan 28 2010 16:25:43

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

By: Ina Steiner

Sponsored Link

Amazon.com's press release dated 1/28/10 follows. 
Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its fourth quarter ended December 31, 2009.

Operating cash flow was $3.29 billion in 2009, compared with $1.70billion in 2008. Free cash flow increased 114% to $2.92 billion in 2009, compared with $1.36 billion in 2008.

Common shares outstanding plus shares underlying stock-based awards outstanding totaled 461 million on December 31, 2009, compared with 446 million a year ago.

Net sales increased 42% to $9.52 billion in the fourth quarter, compared with $6.70 billion in fourth quarter 2008. Excluding the $354 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 37% compared with fourth quarter 2008.

Operating income increased 75% to $476 million in the fourth quarter, compared with $272 million in fourth quarter 2008. Excluding the $31 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 63% compared with fourth quarter 2008.

Net income increased 71% to $384 million in the fourth quarter, or $0.85 per diluted share, compared with net income of $225 million, or $0.52 per diluted share, in fourth quarter 2008.

"Millions of people now own Kindles," said Jeff Bezos, founder and CEO of Amazon.com. "And Kindle owners read, a lot. When we have both editions, we sell 6 Kindle books for every 10 physical books. This is year-to-date and includes only paid books - free Kindle books would make the number even higher. It's been an exciting 27 months."

Full Year 2009
Net sales increased 28% to $24.51 billion, or 29% excluding the $182 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, compared with $19.17 billion in 2008.

Operating income increased 34% to $1.13 billion, or 39% excluding the $40 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, compared with $842 million in 2008. Included in 2009 operating income is the impact of our settlement with Toysrus.com LLC for $51 million. In 2008, operating income included a $53 million non-cash gain recognized on the sale of the Company's European DVD rental assets.

Net income increased 40% to $902 million in 2009, or $2.04 per diluted share, compared with net income of $645 million, or $1.49 per diluted share, in 2008.

Highlights
  • Kindle and Kindle DX are available for immediate shipment to over 100 countries. Additionally, the Kindle for iPhone App is now available from the Apple App Store in more than 60 countries. Customers around the world can now synchronize reading between their Kindle, Kindle DX, personal computer, iPhone, iPod touch and soon, Blackberry, Mac and iPad.
  • The U.S. Kindle Store now has more than 410,000 books, including 100 of 112 New York Times Bestsellers, more than 8,000 blogs, and more than 130 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, The New Yorker, Newsweek, and Time.
  • The Company announced that authors and publishers around the world can now use the self-service Kindle Digital Text Platform (DTP) to upload and sell books in English, German and French to customers worldwide in the Kindle Store.
  • Amazon.com announced a new 70 percent royalty option for Kindle DTP, enabling authors and publishers to earn more royalties. Beginning June 30, authors and publishers who select the new royalty option will receive 70 percent of list price, net of delivery costs.
  • The Company introduced Kindle Development Kit, which gives developers access to programming interfaces, tools and documentation to build and upload active content for Kindle.
  • North America segment sales, representing the Company's U.S. and Canadian sites, were $4.96 billion, up 36% from fourth quarter 2008.
  • International segment sales, representing the Company's U.K., German, Japanese, French and Chinese sites, were $4.56 billion, up 49% from fourth quarter 2008. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, International sales grew 37%.
  • Worldwide Media sales grew 29% to $4.68 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 23%.
  • Worldwide Electronics & Other General Merchandise sales grew 60% to $4.61 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 54%.The Company completed its acquisition of Zappos.com on November 1, 2009. Zappos.com contributed approximately $200 million to fourth quarter revenue.
  • Amazon Relational Database Service (Amazon RDS), a new web service that makes it easy to set up, operate and scale relational databases in the cloud, was introduced by Amazon Web Services (AWS). Amazon RDS provides cost-efficient and resizable capacity while automating time-consuming database administration tasks, freeing users to focus on their application and their business.
  • AWS introduced Spot Instances for Amazon EC2, a new option that allows customers to purchase and consume Amazon EC2 compute resources. With Spot Instances, customers bid on unused Amazon EC2 capacity and run those instances for as long as their bid exceeds the current Spot Price. Spot Instances can enable lower costs and provide significant short-term capacity for customers with flexibility in when their applications can run.
  • Both Amazon EC2 and Amazon S3 lowered pricing during the quarter. Amazon EC2 lowered prices up to 15% for all On-demand instance families and sizes, while Amazon S3 introduced new pricing tiers that will reduce storage cost for multi-petabyte customers by more than 15%.
Separately, the Company is announcing that its Board of Directors has authorized the Company to repurchase up to $2 billion of the Company's common stock. The program allows the Company to opportunistically repurchase its shares from time to time when it believes that doing so would enhance long-term shareholder value. The repurchase authorization does not have a fixed expiration. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions or a combination of the foregoing. This stock repurchase authorization replaces the previous $1 billion stock repurchase authorization, approved by the Board of Directors in 2008.




Comments (59) | Permalink

Readers Comments

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: JoeS

Thu Jan 28 16:28:44 2010

Looks like Jeff Bezos continues to take John Donahoe's lunch money.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: more than that

Thu Jan 28 16:32:08 2010

not only Donahoes lunch money, come march they'll be taking the rest of the reputable sellers too.
Look for this to be a banner year in Amazon growth.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: My Own Website Not Quite Paying My Bills Yet

Thu Jan 28 16:47:14 2010


Amazon's 42% sales growth just crushes Ebay's 16% sale growth for the 4th quarter. Expect the trend to continue.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: joe

Thu Jan 28 16:59:02 2010

WOW, Jeff kicked butt big time, let me see was that 1.2 billion more than eBay...hehehe

Amazons next quarter will be just as big because Jeff is going to be picking up the balance of good sellers coming off ebays steep fee increases.

John John John your such and idiot...

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: Skeptical

Thu Jan 28 18:29:01 2010

And Donahoe had the audacity to equate eBay's status with Amazon's.  He must be really feeling the heat today.  But we know how busy they've been on eBay lately.  Instead of figuring out how to get more BUYERS, they've been noodling their calculators to see how they could squeeze more fees out of the SELLERS.  Unbelievable!

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: EventHorizon1984

Thu Jan 28 18:36:11 2010

http://static.businessinsider.com/image/747a6c798cd9894915f6a300/jeffb
ezos-screaming-tbi.jpg

//

''We
tried it once your way.''
''Are you game for a rematch?''
''I'm laughing at the superior intellect.''
Admiral James Kirk, Star Trek: The Wrath of Khan (1982)

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: pp

Thu Jan 28 18:43:50 2010

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

read it & weep JD, screwing the sellers even more ain't gonna get you anywhere near 9.5B, but i guess you're just trying to protect your golden parachute

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: My Own Website Not Quite Paying My Bills Yet

Thu Jan 28 18:52:00 2010


Where's Ebay Elite? I wonder how his portfolio is doing now. EBay shares are lower today than they were on Monday.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: just a peon

Thu Jan 28 20:53:56 2010


lmao

that is all.

lmao

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: RicRoe

Thu Jan 28 21:19:16 2010

Amazon owns inventory, even has hot, and unique must have products which they are essentially the sole distribution point for.

It's CEO knows how to manage a company, grow sales, and please customers without constant changes to systems and policies and fee increases.

Then there is John Donahoe and eBay... trying to carbon copy Amazon but without the inventory, without unique and exclusive must have products, and with a dismissive attitude toward their customers.

Sales at John Donahoe's eBay have declined precipitously and now require massive increases in fees in a desperate attempt to grow revenue.  

It seems like eBay has decided that if they can not generate revenue from high sales levels, they will simply keep increasing fees to replace the volume.

John Donahoe's eBay is more concerned with appeasing Wall Street than with pleasing customers.

Neophyte CEO John Donahoe has attempted to carbon copy a competitor who is innovating, and succeeding.

Amazon is actively accepting third party sellers. Donahoe's eBay is working feverishly at alienating sellers.

In his rush to appease Wall Street, John Donahoe is promoting Amazon's growth by alienating eBay sellers at an unprecedented rates. Each departing seller leaves and takes buyers with them.

Amazon as a platform offers buyers and sellers a consistent experience. Donahoe's eBay offers buyers and sellers a platform built on quicksand.

John Donahoe has made a complete mess out of eBay. His three year plan seems to be working though...that is if you are Jeff Bezos at Amazon.

Jeff Bezos has a huge appetite for happy customers, sales and profits. His appetite is being fed by John Donahoe and eBay as the exclusive caterers.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: another side of the coin

Thu Jan 28 21:31:17 2010

JD just doesn't get it. Every time he kicks another seller, they go to Amazon and other venues. Reminds me of ''It's a Wonderful Life''. ''Every time a bell rings an angel gets his wings''. Think of the bell as the closing bell at the stock exchange for Amazon.

So all this abuse by eBay, sellers are being rewarded at Amazon. JD did you ever hear of the expression you can catch more bees with honey than with vinegar?  

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: o.c.d.collectibles

Thu Jan 28 21:31:58 2010

I wonder what advice Jeff Bezos would give John Donahoe, had he been given the chance, to do so? Even this late in the game, what kind of advice do you think he would give him?

any takers?

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: RicRoe

Thu Jan 28 22:08:15 2010

@o.c.d.

Jeff Bezos would likely tell John Donahoe that he is doing a great job killing eBay, keep up the good work, and stick to that destructive innovation.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: Loops

Thu Jan 28 22:46:24 2010

Ebay wanted to be like Amazon and that is why we always measure Ebay against Amazon. If Ebay stayed Ebay they would have been entirely different niches and measuring or comparing them wouldn't make much sense.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: joe

Thu Jan 28 23:02:56 2010

Hurray for Jeff...excellent job growing Amazon sales.

John Donahoe needs to rethink eBay, based on todays economy, ebay should have 150 million ''REAL'' registered users.

Each and everyone one would be selling tons of unique stuff to bring in some extra cash.

Thereby bringing more buyers to eBay for those unique items and more.

But OLD BRAINLESS JOHN just can't grasp this point...

IT'S HOW EBAY GREW...can you understand now OLD BRAINLESS JOHN...

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: another side of the coin

Thu Jan 28 23:12:30 2010

JD thinks he still works at Bain. Qualified CEO's BUILD up the company. Bain and the likes DESTROY businesses to maximize profit. JD does not have the skills, knowledge and qualifications to run eBay. He detests and looks down on what eBay is all about. Since he cannot be CEO of Amazon, he'll do his best at trying to change eBay into something, anything then a loved, successful auction flea market. Such an arrogant, spoiled brat.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: Fruity

Thu Jan 28 23:20:55 2010

I can just see Jeff and his cute kitty cat laugh. I can't wait to watch squawkbox

Here's Jeff Bezos, he's a rocket man!!
http://www.youtube.com/watch?v=wJC9nfVdAcE

Its going to be so enjoyable to see how Ebay and Buy try to take market share.

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: Fruity

Thu Jan 28 23:21:30 2010

I wonder if ebay would be perturbed if we all showed up on the ebay boards with our jeff bezos avatars. lol

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: skeptical

Thu Jan 28 23:38:12 2010

This fantastic Amazon news is giving me a vision of eBay falling through a trap door along with all of the carp they've come up with over the years to torture their sellers -- including this week's package of Pay eBay More Money.  Hey, JD, now will you tell us what you wouldn't tell us last week?   Break out the eBay numbers so that we can see how much ebay.com did without Kijiji, stubhub, etc.  Why are you protecting and shielding these numbers?  Lets have the comparison between the ecommerce sites ebay.com and Amazon, not including the whole Paypal sleight of hand reporting.  

Amazon.com Q4-2009 Sales up 42% to $9.5 Billion   Amazon.com Q4-2009 Sales up 42% to $9.5 Billion

by: Stephen

Fri Jan 29 00:32:59 2010

The better Amazon continues to do, the more eBay is going to continue to increase their take rate on the existing eBay seller base.

eBay knows it can't compete with Amazon's increasing market share, so they are going to continue to raise fees and create future policies that will guide ebay seller behaviour in ways that will ultimately create more revenue for ebay, down the road. Sellers will only get squeezed more, mark my words. Four years ago, Bill Cobb, called it ''resetting the balance'' when they raised fees substantially. JD pretty much used the same words for this fee increase. So, expect this to keep happening to us, over and over and over....

If your true online net sales rely on eBay, you shouldn't be too happy that Amazon is taking over. It can only mean that eBay will continue to charge you more, not less.

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