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Thu Jan 27 2011 16:11:35

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

By: Ina Steiner

Sponsored Link

Amazon.com's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing fourth quarter and full-year results for 2010, you can view the full release with tables on Amazon.com's Investor Relations website.

Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its fourth quarter ended December 31, 2010.

Operating cash flow increased 6% to $3.50 billion for the trailing twelve months, compared with $3.29 billion for the trailing twelve months ended December 31, 2009. Free cash flow decreased 14% to $2.52 billion for the trailing twelve months, compared with $2.92 billion for the trailing twelve months ended December 31, 2009.

Common shares outstanding plus shares underlying stock-based awards totaled 465 million on December 31, 2010, compared with 461 million a year ago.

Net sales increased 36% to $12.95 billion in the fourth quarter, compared with $9.52 billion in fourth quarter 2009. Excluding the $139 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 37% compared with fourth quarter 2009.

Operating income was $474 million in the fourth quarter, compared with $476 million in fourth quarter 2009. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million.

Net income increased 8% to $416 million in the fourth quarter, or $0.91 per diluted share, compared with net income of $384 million, or $0.85 per diluted share, in fourth quarter 2009.

“Thanks to our customers, we achieved two big milestones,” said Jeff Bezos, founder and CEO of Amazon.com. “We had our first $10 billion quarter, and after selling millions of third-generation Kindles with the new Pearl e-ink display during the quarter, Kindle books have now overtaken paperback books as the most popular format on Amazon.com. Last July we announced that Kindle books had passed hardcovers and predicted that Kindle would surpass paperbacks in the second quarter of this year, so this milestone has come even sooner than we expected – and it’s on top of continued growth in paperback sales.”

Full Year 2010
Net sales increased 40% to $34.20 billion, compared with $24.51 billion in 2009. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year on net sales was $86 million.

Operating income increased 25% to $1.41 billion, compared with $1.13 billion in 2009. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year on operating income was $28 million. In 2009, operating income was negatively impacted by a $51 million legal settlement.

Net income increased 28% to $1.15 billion in 2010, or $2.53 per diluted share, compared with net income of $902 million, or $2.04 per diluted share, in 2009.

Highlights
    * Amazon.com is now selling more Kindle books than paperback books. Since the beginning of the year, for every 100 paperback books Amazon has sold, the Company has sold 115 Kindle books. Additionally, during this same time period the Company has sold three times as many Kindle books as hardcover books. This is across Amazon.com’s entire U.S. book business and includes sales of books where there is no Kindle edition. Free Kindle books are excluded and if included would make the numbers even higher.
    * The Company sold millions of third-generation Kindle devices with the new advanced paper-like Pearl e-ink display in the fourth quarter and the third-generation Kindle eclipsed “Harry Potter and the Deathly Hallows” as the bestselling product in Amazon’s history.
    * The U.S. Kindle Store now has more than 810,000 books including New Releases and 107 of 112 New York Times Bestsellers. Over 670,000 of these books are $9.99 or less, including 74 New York Times Bestsellers. Millions of free, out-of-copyright, pre-1923 books are also available to read on Kindle.
    * Amazon added to its growing list of “Buy Once, Read Everywhere” Kindle apps, launching a Kindle app for Windows Phone 7. In addition, the Kindle for Android app was updated to enable users to buy, read and sync over 100 Kindle newspapers and magazines. All Kindle apps let customers “Buy Once, Read Everywhere”—on Kindle, Kindle 3G, Kindle DX, iPad, iPod touch, iPhone, Mac, PC, BlackBerry and Android-based devices. All Kindle apps are free and incorporate Amazon’s Whispersync technology, which allows readers to seamlessly switch between devices. With Kindle Worry-Free Archive, books purchased from the Kindle Store are automatically backed up online in the Kindle library on Amazon where they can be re-downloaded wirelessly for free, anytime.
    * The Company announced Price Check for iPhone, a new price comparison app that provides shoppers an easy way to compare in-store prices with the low prices from Amazon.com and other online merchants. Shoppers can use the app to scan a barcode, snap a picture, or say or type a product name to instantly see online prices for that item. Over the Black Friday-Cyber Monday weekend, mobile shoppers used Price Check to look up prices over a million times. In December, shoppers used the app more than two million times to check prices.
    * North America segment sales, representing the Company’s U.S. and Canadian sites, were $7.21 billion, up 45% from fourth quarter 2009.
    * International segment sales, representing the Company’s U.K., German, Japanese, French, Chinese and Italian sites, were $5.74 billion, up 26% from fourth quarter 2009. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 29%.
    * Worldwide Media sales grew 12% to $5.23 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 13%.
    * Worldwide Electronics & Other General Merchandise sales grew 60% to $7.39 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 62%.
    * The Company launched Amazon.it, an Italian-language website offering customers a vast selection of books, DVDs, video games, music and consumer electronics at everyday low prices. Amazon.it’s convenient services include Amazon Prime, the membership program with unlimited free guaranteed 2-3 day delivery at an annual fee of 9.99 Euros. The first product sold on Amazon.it was a Canon Pixma printer to a new Prime customer in Turino, Italy.
    * Amazon Web Services (AWS) announced lowered usage pricing on existing Premium Support offerings by 50% and added two new support plans to meet the needs of developers and enterprises of all sizes and technical ability. In addition to the existing Silver and Gold support plans, AWS now offers a Bronze support plan for $49 per month and a Platinum support plan that provides 15 minute response times and dedicated Technical Account Managers.
    * AWS achieved Level 1 Payment Card Industry (PCI) compliance, continuing its commitment to providing the security certifications developers and enterprises care about. Merchants and other service providers can now run their applications on AWS PCI-compliant technology infrastructure to store, process and transmit credit card information in the cloud.
    * AWS launched Elastic Beanstalk, an easy way for developers to quickly deploy applications to AWS and manage applications in the AWS cloud. Elastic Beanstalk automatically scales up and down as needed so developers don’t need to worry about configuring their infrastructure requirements in AWS. Unlike existing application containers or “platform as a service” offerings that force developers to accept infrastructure decisions pre-determined by the vendor, Elastic Beanstalk allows developers to “open the hood” to tinker with the AWS resources powering their applications. AWS customers can now choose to have as much automation or as much control as they wish.

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of January 27, 2011. 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.

First Quarter 2011 Guidance
    * Net sales are expected to be between $9.1 billion and $9.9 billion, or to grow between 28% and 39% compared with first quarter 2010.
    * Operating income is expected to be between $260 million and $385 million, or between 34% decline and 2% decline compared with first quarter 2010.
    * This guidance includes approximately $140 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.




Comments (35) | Permalink

Readers Comments

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: walter

Thu Jan 27 16:23:28 2011

Must be the weak economy.

Oh wait that's only in the country where Ebay is located.

Sure looks a whole lot better than 4-5%

Thanks to Dononoodle and his best match kaboodle Amazon is guaranteed to have a banner 2011

Dononoodle might get a few percent up or down. Maybe best match will do him in real nice this year where they have to offer everything free but still be able to manipulate EVERYONE.

What a BOZOHOE!!

Equal opportunity ebay :)

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: hmmmm

Thu Jan 27 16:33:50 2011

Where are the eBay Cheerleaders now?

You notice there are never any Amazon cheerleaders?

hmmm

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

This user has validated their user name. by: Ina

Thu Jan 27 16:39:55 2011

Interesting to note that Amazon.com North America segment sales were $7.21 billion, up 45%, while eBay Marketplaces' U.S. Non-Vehicle GMV was $5.58 billion, up 5% in Q4-2010 year over year.

Wish Amazon would reveal how many $139-$189 Kindles and Kindle content contributed to that number.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Rick1313

Thu Jan 27 17:00:55 2011

To the first two posters on this thread...

You cannot compare Amazon and eBay straight up. They do not operate in the same manner.

A proper comparison would be the the figures Amazon has as a third party service as that is how eBay operates.

Read Ina's post, third from the top, to get an idea what I am talking about.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Average Bowler

Thu Jan 27 17:17:42 2011

''Wish Amazon would reveal how many $139-$189 Kindles and Kindle content contributed to that number.''

That would be interesting to know... but somehow I doubt that the Kindle and Kindle-content are solely responsible for such a HUGE difference between eBay's and Amazon's 4th-quarter figures.

Even if we don't have the granular details of these figures, the numbers clearly indicate that Amazon is doing it right... and eBay CONTINUES to get it all WRONG!

Failure after failure, misstep after misstep, the eBay exec/s continue to push blindly ahead... so arrogantly confident... and unpersuaded by their track history of complete incompetence.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Money

Thu Jan 27 17:17:50 2011

One comparison you can always make between companies is how much money did they make.

Who made more money, Amazon or Ebay?

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: how true

Thu Jan 27 19:54:34 2011

"You cannot compare Amazon and eBay straight up. They do not operate in the same manner."

Truer words were never spoken. However, from many of those disenfranchised by eBay, the difference seems to boil down to:

Amazon has a functioning management with proven results in recent years. eBay has dis-functional management that believes in disruptive innovation and has far poorer results during the same period.

So I agree that you can't compare the two.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

This user has validated their user name. by: Philip Cohen

Thu Jan 27 20:03:19 2011

Hey, when are all you guys going to come to terms with the fact that the sociopathic headless turkeys currently driving the eBay Marketplace down the toilet are all mainly Bain & Co-type consultants; clearly, none of them have got a clue about “marketing” or database management; their only skill is the ability to suck the last milliliter of blood out of an otherwise healthy patient.

“Today we’re dealing with phase two or phase three of disruptive innovation. We’ve had the disruption, now we must disrupt our own disruption.”—John Donahoe (2007).

And, if you ever have the need to make yourself violently sick, read this bit of sycophantic regurgitation on the life story of John “Turkey” Donahoe:

http://forums.ebay.com/db2/topic/Seller-Central/5-Days
-Straight/520194234&#msg515604118

eBay/PayPal/Donahoe:
Dead Men Walking.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: comparison?

Thu Jan 27 20:36:55 2011

While you cant make a straigh apples to apples comparison between ebay and amazon, there is one thing these numbers show and show quite dramatically.

People are shopping, and spending money. Its not the economy thats dragging ebay down.
People are shopping on amazon because they can trust amazon. They have a competent management staff and good customer service.
Along with the knack of bringing the buyers in.

Ebay no longer has any of that. Quite the opposite in fact, JD has a knack of pushing people away. And it shows in the lack of buyers, and the increase of scammers.
It shows that no matter how much spin ebay puts on thier reports, the numbers will always come back and smack them in the face.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: My Own Website Not Quite Paying My Bills Yet

Thu Jan 27 21:43:45 2011


The Ebay cheerleaders are not here because they're busy learning a new chant:

Gimme an A, gimme an M, gimme an A, gimme a Z, gimme an O, gimme an N, wha da ya got??????  

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

This user has validated their user name. by: Ming the Merciless

Thu Jan 27 23:20:58 2011

It certainly isn't the economy causing ebafia's lackluster marketplace showing.

It's The Ho. The ebafia BoD is negligent and delinquent in protecting ebafia's shareholders and should be removed for cause.

It's time for a little grassroots disruption of The Great Disruptor.

Would anyone else be willing to buy 10 shares of ebafia stock and attend the ebafia shareholders' meeting?

Off topic, but fascinating. The other day I received a call from the East Coast asking me to given them my proxy for Board members in the PreyPal money market scheme. The woman I should have received paperwork which I had not and still haven't received.

I told her I voted against all managemtn sponsored resolutions and all BoD members up for election.

She then told me I couldn't vote because I hadn't received the paperwork.

These people are nothing more than white collar criminal banksters worthy of life in prioson sentences.

Let the Disruption begin.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

This user has validated their user name. by: Philip Cohen

Thu Jan 27 23:59:09 2011

“EBay CEO Donahoe bears his own work-life struggles”
by Patricia Sellers (sycophant extraordinaire)

If ever you accidentally swallow poison and need to make yourself violently sick, read this classic bit of sycophancy. The eBay Dept of Spin is clearly getting desperate if it thinks that such nonsense can save eBay from the incompetence of its current management.

http://postcards.blogs.fortune.cnn.com/2011/01/26/e
bay-ceo-donahoe-bears-his-own-work-life-struggles/?section=magazines_fortune

And
“she” lives in Geneva, undoubtedly, because she too has had enough of this arrogant, incompetent, headless turkey.

eBay/PayPal/Donahoe: Dead Men Walking.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Digby
Web Site

Fri Jan 28 00:28:43 2011

Gee I'd love to be a fly on JD office ceiling tomorrow when he goes to work and turns on his Blackberry to read the news.

I'd better send him one of my coffee mug holders, cos he's going to need it!


Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: summer in the city

Fri Jan 28 01:01:03 2011


Compaq
Daimler/Chrysler
Enron
Sun Microsystems
Webvan
Worldcom
Countrywide

Ebay

A
ll
ruined by their CEO's.


Cites: http://247wallst.com/2010/04/27/the-worst-american-ceos-in-history/>

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Lawrence A Dickerson

Fri Jan 28 01:10:30 2011

Same people spouting the same rhetoric week after week and quarter after quarter.

Amazon did publish the numbers of Kindles it sold last quarter.They have been quite transparent and are expected to hit $200 per share on the stock market.

For you naysayers to keep comparing  the likes of Amazon with eBay and expecting different results.Try contrasting for a change to see the different agendas with the same results,net profit.

It's no wonder the few who constantly find fault also are  doing terrible on the bottom line.Truthfully,with all the information Mr. and Mrs. Steiner give hotweir blog there is no excuse for not implementing some of it after doing your own research.I think that's the problem,you don't want to do anything for yourselves yet are in expectation of raking in  bundles of cash.

Did anybody watch and listen to President Obama's State of The Union Address?Have you ever thought to implement  those procedures that can apply towards you,the small business person?

It's time you stopped walking on your knuckles and started standing tall just like that gorilla on MSNBC.What a handsome dude he is.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Ebay Pays Their Bills

Fri Jan 28 01:36:26 2011

by: Lawrence A Dickerson   +http://tinyurl.com/lawrenceadickerson+
Fri Jan 28 01:10:30 2011
Same people spouting the same rhetoric week after week and quarter after quarter.

by: Money  +http://tinyurl.com/ebaymineramazon+
Thu Jan 27 17:17:50 2011
One comparison you can always make between companies is how much money did they make.
Who made more money, Amazon or Ebay?

by: Ebay Pays My Bills  +z50com+
23-Dec-10 03:25 pm
I have a real job :-(
I had no choice
I'm a grounds keeper at the local race track

Don't you and manure shoveller get tired of shovelling the same rhetoric day after day?

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Smitty This user has validated their user name.

Fri Jan 28 01:45:57 2011

@ Lawrence A Dickerson

''Truthfully,with all the information Mr. and Mrs. Steiner give hotweir blog there is no excuse for not implementing some of it after doing your own research.''

Please explain the ''hotweir blog'', so that I can decipher your gibberish.

As far as the,

''It's time you stopped walking on your knuckles and started standing tall just like that gorilla on MSNBC.What a handsome dude he is.''

Please explain who you are referring to as a ''gorilla'' on MSNBC.

BTW, your ''walking on your knuckles'' comment has given you about as much credibility as us hard working sellers usually reserve for grief.

Smitty

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: Smitty This user has validated their user name.

Fri Jan 28 01:47:34 2011

Back in 2007, when Meg decided to butt heads with Google, I knew this would be the result.

Her and the Bain sycophants on her staff, appeared to think they could push Google around. The funny thing is that she and her cohorts thought that the move had worked.

It also appeared to have worked, for about 48 hours.

From watching them all these years, I get the impression that all Bain consultants are quite shortsighted.

To the best of my knowledge, Mr Bezos never asked Bain and Company for any assistance in running Amazon.

That is why we are seeing these current results. The rise of Amazon and the decline of ebay will just continue year after year, until ebay is like Montgomery Ward in our memories.

The beast is dying and it started the day they decided to kick sand in Google's face.

Amazon never made that mistake.

Smitty

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: OldEbayer

Fri Jan 28 03:55:00 2011

Ebay and Amazon were different. However, at a point Ebay management decided that Ebay should be more like Amazon and get rid of the 'fleamarket' sellers. In the last three years they have aspired to become more like Amazon without taking into account what made Ebay successful in the first place. So we now always compare Ebay and Amazon because ebay management wanted it to be like this. In this comparison I'm afraid the copycat (Ebay) will always come second best since they are trying to be something that they are not.

Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion   Amazon Announces Q4 2010 Sales up 36% to $12.95 Billion

by: John

Fri Jan 28 07:55:08 2011

I compare Amazon and eBay as corporate models designed to make money. Different MO's but still their bottom line. I never buy on eBay anymore and have bought on Amazon.

In some cases I have not purchased directly from Amazon but from private sellers using Amazon because their prices were better. Amazon competes with their sellers. eBay does not.

If you do not like what Amazon has you are free to look at other sellers using their site, No best match, Free from glitches, No clutter, Easy to use. That is how I see Amazon's site, Open competition, between themselves and other sellers, big and small alike,  and that is one of the reasons why it is doing so well.

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