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Tue Apr 26 2011 16:15:22

Amazon Net Sales up 38 Percent in Q1 2011

By: Ina Steiner

Sponsored Link

Amazon.com released the following press release announcing first quarter earnings for 2011, it will host a conference call at 5 pm EST with analysts.

Amazon.com Announces First Quarter Sales up 38% to $9.86 Billion; Introduced Kindle with Special Offers for $114

SEATTLE- Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2011.

Operating cash flow increased 9% to $3.03 billion for the trailing twelve months, compared with $2.78 billion for the trailing twelve months ended March 31, 2010. Free cash flow decreased 18% to $1.90 billion for the trailing twelve months, compared with $2.32 billion for the trailing twelve months ended March 31, 2010.

Common shares outstanding plus shares underlying stock-based awards totaled 466 million on March 31, 2011, compared with 463 million a year ago.

Net sales increased 38% to $9.86 billion in the first quarter, compared with $7.13 billion in first quarter 2010. Excluding the $144 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 36% compared with first quarter 2010.

Operating income was $322 million in the first quarter, compared with $394 million in first quarter 2010. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $7 million.

Net income decreased 33% to $201 million in the first quarter, or $0.44 per diluted share, compared with net income of $299 million, or $0.66 per diluted share, in first quarter 2010.

"In the last 90 days, we announced Kindle with Special Offers, Kindle Library Lending, Audible audiobooks on Kindle, Appstore for Android, Amazon for Windows Phone 7, Checkout by Amazon in both Germany and the U.K., a Kindle Store in Germany, Cloud Drive, Cloud Player, and Prime Instant Video – just to call out a few of the things we've been working on," said Jeff Bezos, founder and CEO of Amazon.com. "We love inventing on behalf of customers and have never been more excited about the long-term opportunities."

Highlights

    * Amazon introduced a new member of the Kindle family – Kindle with Special Offers for only $114. Kindle with Special Offers is the same #1 bestselling Kindle, plus special offers and sponsored screensavers designed for Kindle's high-contrast, no glare electronic ink display from sponsors including Buick, Olay, Visa, and Amazon.com Reward Visa Card.

    * The U.S. Kindle Store now has more than 900,000 books, including New Releases and 107 of 110 New York Times Bestsellers. Over 740,000 of these books are $9.99 or less, including 65 New York Times Bestsellers. Millions of free, out-of-copyright, pre-1923 books are also available to read on Kindle. In March, "The Girl with the Dragon Tattoo" by Steig Larsson became the first Kindle book to surpass one million units sold.

    * Amazon.de launched the largest eBookstore in Germany with over 650,000 titles, including more than 25,000 German-language books. Amazon also announced that its series of free "Buy Once, Read Everywhere" apps for the most popular devices including iPad, iPod touch, iPhone, PCs and Android-based devices, are now available in German-language versions for the first time. In addition, in response to customer demand, Amazon is now offering the latest-generation Kindle and Kindle 3G with English user interface directly from Amazon.de.

    * Amazon announced Kindle Library Lending, a new feature launching later this year that will allow Kindle customers to borrow Kindle books from over 11,000 libraries in the United States. Customers will be able to check out a Kindle book from their local library and start reading on any Kindle device or free Kindle app. If they check out the same book again or choose to purchase the book after the library loan period, Whispersync will preserve their notes, highlights and last page read.

    * The Company announced Amazon Cloud Drive, Amazon Cloud Player for Web and Amazon Cloud Player for Android. Together, these services enable customers to securely store music in the cloud and play it on any Android phone, Android tablet, Mac or PC, wherever they are. In addition to music, Cloud Drive allows customers to upload and store all kinds of digital files, including photos, videos and documents – all available via web browser on any computer.

    * Amazon introduced Appstore for Android, where customers can find, discover - test! - and buy Android apps. An innovative new feature called "Test Drive" enables customers to test apps on a simulated Android phone. Since its launch in March, customers have already downloaded millions of apps from the Amazon Appstore for Android.

    * Amazon added a new benefit for Amazon Prime members in the United States: unlimited, commercial-free, instant streaming of more than 5,000 movies and TV shows. Amazon Prime's unlimited free Two-Day Shipping has already attracted millions of members, and this new benefit is being added at no additional cost – Prime membership will continue to be $79 per year.

    * North America segment sales, representing the Company's U.S. and Canadian sites, were $5.47 billion, up 45% from first quarter 2010.

    * International segment sales, representing the Company's U.K., German, Japanese, French, Chinese and Italian sites, were $4.39 billion, up 31% from first quarter 2010. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 27%.

    * Worldwide Media sales grew 15% to $3.96 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 13%.

    * Worldwide Electronics and Other General Merchandise sales grew 59% to $5.59 billion. Excluding the favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 57%.

    * Amazon announced the availability of Checkout by Amazon (CBA) for Germany and the U.K., making it easy for millions of Amazon customers to purchase securely on another retailer's website using their Amazon account credentials.

    * Amazon Web Services (AWS) continued to expand globally with the launch of the Asia Pacific (Tokyo) Region. Additionally, AWS began offering Basic and Premium support in Japanese, providing businesses and developers with one-on-one fast-response support from AWS engineers fluent in Japanese.

Financial Guidance
The following forward-looking statements reflect Amazon.com's expectations as of April 26, 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. While this guidance includes our current estimate of second quarter effects from the Japan earthquake and related events, including sales trends to date, impacts from events of this nature are inherently uncertain and we are not able to accurately forecast all potential ramifications.

Second Quarter 2011 Guidance

    * Net sales are expected to be between $8.85 billion and $9.65 billion, or to grow between 35% and 47% compared with second quarter 2010.

    * Operating income is expected to be between $95 million and $245 million, or between 65% decline and 9% decline compared with second quarter 2010.

    * This guidance includes approximately $180 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

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

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

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

About Amazon.com
Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com, Inc. seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon's developer customers with access to in-the-cloud infrastructure services based on Amazon's own back-end technology platform, which developers can use to enable virtually any type of business. Kindle, Kindle 3G, Kindle with Special Offers and Kindle DX are the revolutionary portable readers that wirelessly download books, magazines, newspapers, blogs and personal documents to a crisp, high-resolution electronic ink display that looks and reads like real paper. Kindle 3G and Kindle DX utilize the same 3G wireless technology as advanced cell phones, so users never need to hunt for a Wi-Fi hotspot. Kindle is the #1 bestselling product across the millions of items sold on Amazon.

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




Comments (32) | Permalink

Readers Comments

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: Foxtrot Gifts
Web Site

Tue Apr 26 16:28:15 2011

Impressive! It looks like it's time for me to get on the ball and start selling at Amazon.com too!

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: STOP IMPOSING YOUR FAILED INNOVATION ON US JD

Tue Apr 26 16:33:58 2011

Way to go Donahoe !

You have done wonders for Amazon since 2008

Making lots and lots of sellers jump over there

And no matter how bad you  copy it, most will not jump back to eBay, those sellers liked it the way it was, left to make a point, and Amazon grew by leaps and bounds

Now to late for them to jump back, no matter how much you try to make eBay Amazon Jr.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: My Own Website Not Quite Paying My Bills Yet

Tue Apr 26 16:46:52 2011


"You have done wonders for Amazon since 2008

Making lots and lots of sellers jump over there"

And buyers too!!!

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: another side of the coin

Tue Apr 26 16:47:08 2011

Tomorrow by the end of the day, JD will be so dizzy with all his spinning, he will probably have the paramedics standing by just in case.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: rookies

Tue Apr 26 17:06:06 2011

Of course, none of you mention that Amazon MISSED projections - by a mile. Ebay should easily exceed earnings tomorrow, so put that in your pipe and smoke it.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: pp

Tue Apr 26 17:20:09 2011

hi rookies....err Griff...see your slavemaster's not kicked you out yet.

No doubt fleecebay will spin it's results to the hilt. Underpredict their Q earnings, to make sure they just scrape by.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: My Own Website Not Quite Paying My Bills Yet

Tue Apr 26 17:28:13 2011


The fact that "the projections" expected a 38% increase tells you something. Why aren't these same people expecting the same from Ebay? What's their "projection" for Ebay? 12%?

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: D
Web Site

Tue Apr 26 17:48:32 2011

Yes its going to be great fun to read what JD has to say.

"Paypal sales are up again ?
ebay sales we don't want to tell you what they are so we are continuing to hide them amongst everything else."

Amazon seem to be adding new services and inventing things.

Ebay seem to be buying companies and adding more China sellers.



Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

This user has validated their user name. by: Anonymous Annie

Tue Apr 26 17:49:35 2011

rookies taunts us with: ''Of course, none of you mention that Amazon MISSED projections - by a mile. Ebay should easily exceed earnings tomorrow, so put that in your pipe and smoke it.''

What are you? Twelve?

The sad (and odd) fact is that if eBay had been projected to have a 6-million-dollar LOSS... but then reported ''only'' a 5-million-dollar loss, it would be heralded as a big SUCCESS!

No doubt JD would be bragging about how eBay's ''earnings'' were one million dollars BETTER than expected.

Face it, Rookie. eBay is in a downward death spiral. Nothing can stop it. Not the hype, not the word games, not the numbers games.



Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: Sayonara eBay

Tue Apr 26 17:51:18 2011

     
It will be interesting to watch how JD tries to spin 'up 5%' to a huge victory for eBay over Amazon's 38 percent.  

Last quarter he barely mentioned the US Marketplace but focused on Paypal and Mobile apps.

This year, he'll talk about Paypal, Mobile, Milo, GSI, and Where.

Maybe the US marketplace will get some kind of off-hand mention.

I wonder if he'll mention that the Three-Year Turnaround has FAILED.

eBay still counts on free any price auctions to buck up the revenue right before each quarter ends.  

The mega and brand sellers can't carry eBay on their own yet.  That's why eBay had to PURCHASE a new direction for the site.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

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

Tue Apr 26 18:59:47 2011

Scott Wingo's projecting 4% growth for the eBay Marketplace.

http://seekingalpha.com/article/265437-ebay-earnin
gs-preview

Enron
/ eBay / PayPal / Donahoe: Dead Men Walking.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

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

Tue Apr 26 21:26:41 2011

Two other reasons Amazon consistently outperforms ebay is that they don't have a half baked 'seller advocate' and highly censored fantasy based radio shows.

This is where WE get to hang up on you, Griff.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

This user has validated their user name. by: Anonymous Annie

Tue Apr 26 21:46:11 2011

MTM said: ''This is where WE get to hang up on you, Griff.''

LOL! You know, I remember my ''early days'' at eBay and how much I appreciated the practical advice and comments from that fellow. In all honestly, I think he did provide good tips, insights, hints... and was a valuable service to all sellers... both old and new.

These days, it's an absolute JOKE. It's truly pathetic. It's as though he doesn't have a single thought in his head that hasn't already been scripted by some flunkie at eBay who ALSO doesn't have a clue with regard to the ACTUAL policy-du-jour is.

I guess if you throw enough money at someone... eventually you'll find the right price that they're willing to sell their soul and their integrity.

Pity that with all the money he's making (apparently) they don't have enough to give for DECENT production values. OMG! It's worse than a 5-watt high-school radio station. There are ''pirate'' radio stations broadcasting from someone's mother's basement that have better quality that that nonsense!

And while they're at it... have they ever thought of hiring someone who can actually FORMAT a *readable* newsletter. (Or perhaps I should say ''newsletter''.)

Can we talk about the clumsy way that one must try to access the show? It's SO 1995!! Come on... it's 2011. Get with the program!

Although for the LIFE of me, I can't imagine WHY someone would actually WANT to listen to that tripe... but assuming they did, it really should be ''one-click'' access to bring up the player.

This nonsense that requires a dozen clicks to log-in and navigate through multiple sections before being able to click on the pop-up streaming player is absurd!

That show is completely worthless. It's an antique. A relic of the past. Lies. Propaganda! ~~ PRAVDA!

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

This user has validated their user name. by: Ric

Tue Apr 26 22:37:29 2011

@rookies "Of course, none of you mention that Amazon MISSED projections - by a mile. Ebay should easily exceed earnings tomorrow, so put that in your pipe and smoke it."

Yeah, Amazon missed projections, SO WHAT!!! Amazon has continued to prove what JD has had wrong all this time.... JD might meet or exceed projections, but sales are NOT GROWING at any significant rate despite the addition of all the Diamond Sellers.

Buyers are on Main Street. Sellers are on Main Street. Amazon has focused on this and sales continue to grow by double digits - significantly outpacing eBay's lackluster single digit growth.

Over at eBay, where the focus in on Wall Street, buyers are ambivalent, sellers are extremely unhappy, sales are dismal, and the alleged "plan" shows no meaningful indication of success.

One of these days, JD will awaken to the fact that constantly increasing fees does not replace lost volume. Instead, constantly increasing fees serves only to drive sellers out of the marketplace.

Since sellers are also among eBay's most active buyers, sales volume takes a double hit with each fee increase and with each alienated seller.

One day, JD will wake up and realize that if he had not ignored Main Street, or taken it for granted, Wall Street would have beaten a path to his door.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

This user has validated their user name. by: Anonymous Annie

Tue Apr 26 23:58:14 2011

Ric observes: ''Yeah, Amazon missed projections, SO WHAT!!!''

Essentially... if you set the bar LOW enough, then anyone can be a ''success''. ~ Some companies give bonuses for OUTSTANDING performance. Other companies give bonuses for ''perfect attendance'' and not being late.

Clowns like ''Rookie'' take great delight when eBay meets the LOWEST expectations. ~ That type of attitude among eBay worshipers, cheerleaders and execs reveals much more about the the company (and their philosophy) than they hope we realize.

Truly pathetic!

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: Lawrence A Dickerson

Wed Apr 27 00:51:18 2011

Yet once again you folks are comparing apples to oranges.It is impossible to compare Amazon and eBay.You forget all the years that Amazon did not turn a profit.Did you see their shareholders run and complain.Not on your life.They understood the long run picture and the profitable years ahead.

EBay does not sell a blessed thing,it's companies provide a service not merchandise except for ticket sales.It's always the same people claiming the same doom that never materializes.

Overall eBay has held it's own in this downturn economy and that is a major plus.If I were you naysayers I would be buying stock every month and wait for the economy to rejuvenate and it will.

Those of that are so unhappy,leave.get your serenity back selling on some other web site.You won't be missed and in fact your withdrawal from eBay will not make a blip on the radar.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: My Own Website Not Quite Paying My Bills Yet

Wed Apr 27 01:58:47 2011


"Overall eBay has held it's own in this downturn economy".

You're absolutely right about that but Amazon's business increased 38% in the same "downturn economy". If anybody is a "naysayer" then I guess you are.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: STOP IMPOSING YOUR FAILED INNOVATION ON US JD

Wed Apr 27 07:07:39 2011

"You know, I remember my ''early days'' at eBay and how much I appreciated the practical advice and comments from that fellow. In all honestly, I think he did provide good tips, insights, hints... and was a valuable service to all sellers... both old and new."

Well now he has TOTALLY had JD's will IMPOSED on him 100% what do you expect ?

JD is a control freak, I guess that is what you have to be to get ahead

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

by: Money

Wed Apr 27 08:04:09 2011

How does a news article about Amazon turn into a discussion about ebay?

How about some comment on the situation at Amazon. They sell 38% more stuff and somehow make 34% less money? Almost $100 million less than first quarter 2010.

They already sell at under a 4% margin.

Could it be all that free shipping?

Amazon is the #1 enemy of the small seller - a direct competitor that is cutting margins so low that only a mega corp like Amazon can compete. They throw you a few scraps while taking all the meat, and you applaud them.

Ebay might be a dirty dying dog, but Amazon is a hungry dragon that will swallow you all.

Amazon Net Sales up 38 Percent in Q1 2011   Amazon Net Sales up 38 Percent in Q1 2011

This user has validated their user name. by: Ina

Wed Apr 27 08:25:07 2011

Any thoughts as to why the "Seller units as a percentage of total units" metric always hovers around 30%?

Is this organic, or is there a reason why Amazon.com might want to limit the percentage of third-party sales?

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