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Thu Jan 31 2019 16:23:51

Amazon Grows Sales 20 Percent in Fourth Quarter 2018

By: Ina Steiner

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Amazon.com grew fourth quarter sales 20% to $72.4 billion. Among the highlights of its Q4 earnings release, Amazon stated the following:

"Small and medium-sized businesses had their best holiday season ever in Amazon’s stores. More than 50% of units sold in Amazon’s stores this holiday season came from small and medium-sized businesses. Third-party sales are growing faster than first-party sales, and nearly 200,000 small and medium-sized businesses surpassed $100,000 in sales in Amazon’s stores in 2018."

Update: See the accompanying Newsflash article for more information.

Partial press release follows:

Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2018.

Operating cash flow increased 67% to $30.7 billion for the trailing twelve months, compared with $18.4 billion for the trailing twelve months ended December 31, 2017. Free cash flow increased to $19.4 billion for the trailing twelve months, compared with $8.3 billion for the trailing twelve months ended December 31, 2017. Free cash flow less lease principal repayments increased to $11.6 billion for the trailing twelve months, compared with $3.3 billion for the trailing twelve months ended December 31, 2017. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to an inflow of $8.4 billion for the trailing twelve months, compared with an outflow of $1.5 billion for the trailing twelve months ended December 31, 2017.

Common shares outstanding plus shares underlying stock-based awards totaled 507 million on December 31, 2018, compared with 504 million one year ago.

Fourth Quarter 2018
Net sales increased 20% to $72.4 billion in the fourth quarter, compared with $60.5 billion in fourth quarter 2017. Excluding the $801 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 21% compared with fourth quarter 2017.

Operating income increased to $3.8 billion in the fourth quarter, compared with operating income of $2.1 billion in fourth quarter 2017.

Net income increased to $3.0 billion in the fourth quarter, or $6.04 per diluted share, compared with net income of $1.9 billion, or $3.75 per diluted share, in fourth quarter 2017. The fourth quarter 2017 included a provisional tax benefit for the impact of the U.S. Tax Cuts and Jobs Act of 2017 of approximately $789 million.

Full Year 2018
Net sales increased 31% to $232.9 billion, compared with $177.9 billion in 2017. Excluding the $1.3 billion favorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 30% compared with 2017.

Operating income increased to $12.4 billion, compared with operating income of $4.1 billion in 2017.

Net income increased to $10.1 billion, or $20.14 per diluted share, compared with net income of $3.0 billion, or $6.15 per diluted share, in 2017.

“Alexa was very busy during her holiday season. Echo Dot was the best-selling item across all products on Amazon globally, and customers purchased millions more devices from the Echo family compared to last year,” said Jeff Bezos, Amazon founder and CEO. “The number of research scientists working on Alexa has more than doubled in the past year, and the results of the team’s hard work are clear. In 2018, we improved Alexa’s ability to understand requests and answer questions by more than 20% through advances in machine learning, we added billions of facts making Alexa more knowledgeable than ever, developers doubled the number of Alexa skills to over 80,000, and customers spoke to Alexa tens of billions more times in 2018 compared to 2017. We’re energized by and grateful for the response, and you can count on us to keep working hard to bring even more invention to customers.”

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of January 31, 2019, 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.

First Quarter 2019 Guidance
Net sales are expected to be between $56 billion and $60 billion, or to grow between 10% and 18% compared with first quarter 2018. This guidance anticipates an unfavorable impact of approximately 210 basis points from foreign exchange rates.

Operating income is expected to be between $2.3 billion and $3.3 billion, compared with $1.9 billion in first quarter 2018.

This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

See the following link to view the full press release including charts.



Comments (6) | Permalink

Readers Comments

Perminate Link for Amazon Grows Sales 20 Percent in Fourth Quarter 2018   Amazon Grows Sales 20 Percent in Fourth Quarter 2018

by: shut1968 This user has validated their user name.

Thu Jan 31 17:04:02 2019

I find that hard to believe, as a long time AZ seller sales have been slowly going down over the past 3 years this year they are down 15% while Ebay sales (for us) are about 30% higher than last year.

They continue to beat up sellers by forcing free returns for any reason and gating categories so that they (Amazon) and select big merchants have exclusives to them...

Something stinks with this report.

Perminate Link for Amazon Grows Sales 20 Percent in Fourth Quarter 2018   Amazon Grows Sales 20 Percent in Fourth Quarter 2018

by: RL15 This user has validated their user name.

Thu Jan 31 17:17:22 2019

Great job Amazon. Choke on that fleecebay.

Perminate Link for Amazon Grows Sales 20 Percent in Fourth Quarter 2018   Amazon Grows Sales 20 Percent in Fourth Quarter 2018

This user has validated their user name. by: iheartjacksparrow

Thu Jan 31 18:10:06 2019

Devin would sell his family's souls to the devil for a quarter like that.

Perminate Link for Amazon Grows Sales 20 Percent in Fourth Quarter 2018   Amazon Grows Sales 20 Percent in Fourth Quarter 2018

This user has validated their user name. by: RKTOYS

Thu Jan 31 18:17:40 2019

Amazon isn't just taking sales from retailers but "wholesalers" too.  I found sale prices on Amazon to be a far better deal than I was offered elsewhere.  Not that I would ever tolerate their abusive seller platform ever again.

Perminate Link for Amazon Grows Sales 20 Percent in Fourth Quarter 2018   Amazon Grows Sales 20 Percent in Fourth Quarter 2018

by: Moonwishes This user has validated their user name.
Web Site

Mon Feb 4 01:47:18 2019

I had the best November and December for sales in the last several years. And I just realized now that it is February and Holiday return nonsense until Jan. 31 is over and I didn't have a single return unlike last year where I had several buyers that didn't read well enough to understand that they were buying a sewing pattern! I was very happy with both Amazon and eCRATER this year.

Perminate Link for Amazon Grows Sales 20 Percent in Fourth Quarter 2018   Amazon Grows Sales 20 Percent in Fourth Quarter 2018

by: epuise This user has validated their user name.

Mon Feb 4 09:53:58 2019

Amazon is just another Walmart, putting little guys out of business until it's the only 'store' in town.
Then Amazon can do what it likes & you're stuck.



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