Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Jan 29 2013 16:15:09

Amazon Grows Sales 22 Percent in Fourth Quarter

By: Ina Steiner

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Amazon's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing fourth quarter 2012 earnings, you can view the full release with tables on the Amazon Investor Relations website.

Operating income up 56% year-over-year - above high end of guidance

SEATTLE-Jan. 29, 2013- Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its fourth quarter ended December 31, 2012.

Operating cash flow increased 7% to $4.18 billion for the trailing twelve months, compared with $3.90 billion for the trailing twelve months ended December 31, 2011. Free cash flow decreased 81% to $395 million for the trailing twelve months, compared with $2.09 billion for the trailing twelve months ended December 31, 2011. Free cash flow for the trailing twelve months ended December 31, 2012 includes fourth quarter cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.

Common shares outstanding plus shares underlying stock-based awards totaled 470 million on December 31, 2012, compared with 468 million one year ago.

Net sales increased 22% to $21.27 billion in the fourth quarter, compared with $17.43 billion in fourth quarter 2011. Excluding the $178 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 23% compared with fourth quarter 2011.

Operating income increased 56% to $405 million in the fourth quarter, compared with $260 million in fourth quarter 2011. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $2 million.

Net income decreased 45% to $97 million in the fourth quarter, or $0.21 per diluted share, compared with $177 million, or $0.38 per diluted share, in fourth quarter 2011.

"We're now seeing the transition we've been expecting," said Jeff Bezos, founder and CEO of Amazon.com. "After 5 years, eBooks is a multi-billion dollar category for us and growing fast - up approximately 70% last year. In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5%. We're excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection."

Full Year 2012
Net sales increased 27% to $61.09 billion, compared with $48.08 billion in 2011. Excluding the $854 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales grew 29% compared with 2011.

Operating income decreased 22% to $676 million, compared with $862 million in 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year on operating income was $14 million.

Net loss was $39 million, or $0.09 per diluted share, compared with net income of $631 million, or $1.37 per diluted share, in 2011.

Highlights
    For the second year in a row, Amazon's tablet was the most popular item for customers - Kindle Fire HD continued its run as the #1 best-selling, most gifted, and most wished for product across the millions of items available on Amazon worldwide. At year-end, Kindle Fire HD, Kindle Fire, Kindle Paperwhite and Kindle held the top four spots on the Amazon worldwide best seller charts since launch.

    Amazon announced the launch of AutoRip, a new service that gives customers free MP3 versions of CDs they purchase from Amazon. Additionally, customers who have purchased AutoRip CDs at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries - also automatically and for free.

    Amazon introduced Kindle FreeTime Unlimited, bringing together for the first time all of the types of content kids and parents love - books, games, educational apps, movies and TV shows - into one simple, unlimited, easy-to-use service for kids ages 3-8.

    Amazon's digital media selection has grown to over 23 million movies, TV shows, songs, magazines, books, audiobooks, and popular apps and games in 2012, an increase from 19 million at year-end 2011.

    Amazon.com announced new licensing agreements with Turner Broadcasting, Warner Bros. Domestic Television Distribution, and A+E Networks, for popular television series including Falling Skies, The Closer, Pawn Stars, Storage Wars, and Dance Moms, expanding its catalog of title offerings for Prime Instant Video to more than 36,000 movies and television episodes.

    Amazon launched Kindle Stores for Brazil, Canada, China, and Japan, with a large selection of the most popular books, including thousands of local-language books.

    Amazon announced that 23 KDP authors each sold over 250,000 copies of their books in 2012, and that over 500 KDP Select books have reached the top 100 Kindle best seller lists around the world.

    Amazon announced that for the eighth consecutive year, the company ranks #1 in customer satisfaction during the holiday shopping season according to the ForeSee annual Holiday E-Retail Satisfaction Index. ForeSee surveyed over 24,000 customers between Thanksgiving and Christmas, asking them to rate their satisfaction with the top 100 retailers. For the second year in a row, Amazon's score of 88 is the highest ever attained by any retailer in the study.

    Amazon Web Services (AWS) announced the launch of its newest Asia Pacific Region in Sydney, Australia, now available for multiple services including Amazon Elastic Compute Cloud (EC2), Amazon Simple Storage Service (S3), and Amazon Relational Database Service (RDS). Sydney joins Singapore and Tokyo as the third Region in Asia Pacific and the ninth Region worldwide.

    AWS announced that SAP Business Suite is now certified to run on the AWS cloud platform. Enterprises running SAP Business Suite can now leverage the on-demand, pay as you go AWS platform to support thousands of concurrent users in production without making costly capital expenditures for their underlying infrastructure. AWS also announced that SAP HANA, SAP's in-memory database and platform, is certified to run on AWS and is available for purchase via AWS Marketplace.

    AWS continued its rapid pace of innovation by launching 159 new services and features in 2012. This is nearly double the services and features launched in 2011.

    AWS has lowered prices 24 times since it launched in 2006, including 10 price reductions in 2012.

Financial Guidance
The following forward-looking statements reflect Amazon.com's expectations as of January 29, 2013. 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 2013 Guidance
    Net sales are expected to be between $15.0 billion and $16.6 billion, or to grow between 14% and 26% compared with first quarter 2012.

    Operating income (loss) is expected to be between $(285) million and $65 million, compared to $192 million in the prior year period.

    This guidance includes approximately $285 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.

See Wednesday's Newsflash newsletter, "Amazon Sellers Achieve 40 Percent Unit Growth in Q4 2012," for more on Tuesday's earnings report.




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Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

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

Tue Jan 29 18:11:15 2013

Amazero's international initiatives make ebafia look even more pathetically anemic.

But wait!

Mobile, mobile, mobile!

Same customers; different device.

Nevermind.

Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

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

Tue Jan 29 23:16:26 2013

I’m tired of reading about Amazon’s constant real progress; all I know is Pierre and the rest of eBay’s board of directors should be embarrassed and ashamed of themselves for so long letting this current gaggle of headless turkeys in the eBay executive suite continue to run furiously around and around in circles, continually frightening their batteries of geese that in such a constant frightened state will obviously lay far fewer golden eggs …

eBay / PayPal / Donahoe: Dead Men Walking … http://bit.ly/11F2eas

Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

by: pace306 This user has validated their user name.

Wed Jan 30 11:08:15 2013

Funny article ... they told TWICE something else entirely ....!

Whos lieing to whom?

Amazon Q4 Profits Fall 45%, Posts Full-Year Loss

On Jan 29 2013 - 4:46pm

Seattle – Amazon.com reported a 45 percent decline in net income, to $97 million, for the fourth quarter ended Dec. 31, and lost $39 million for the full year, as it continued to build distribution centers, invest in its fulfillment systems and expand its digital library.

Net sales rose 22 percent during the period, to $21.3 billion, while the cost of sales increased nearly 17 percent to $16.1 billion, fulfillment costs rose 36 percent to $2.3 billion, and technology and content expenses rocketed 56 percent to $1.3 billion.

In North America, net sales rose 23 percent to $12.2 billion and operating income increased 114 percent to $608 million.

Sales within the catchall “CE and other general merchandise” category rose 24 percent to $8.5 billion, while media sales climbed 13 percent to $2.9 billion.

In a statement, founder and CEO Jeff Bezos noted that e-books have become a multi-billion-dollar category for the company, growing 70 percent last year while physical book sales rose just 5 percent. “We’re excited and very grateful to our customers for their response to Kindle and our ever expanding ecosystem and selection,” he said.

For the full year, net sales rose 27 percent to $61 billion on a net loss of $39 million.

Kindle remained the company’s most popular product for the second year in a row in 2012, with Kindle Fire HD, Kindle Fire, Kindle Paperwhite and Kindle holding the top four spots on Amazon’s worldwide best seller charts at year’s end.

http://www.twice.com/articletype/news/amazon-q4-profits-fa
ll-45-posts-full-year-loss/104855

****THEY ARE ALL CROOKS*****

Yes the 4th quarter was good - its call CHRISTMAS .. overall - they tanked - though not as bad as eBay

Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

by: Ebay Seller-Ebay Buyer This user has validated their user name.

Wed Jan 30 19:34:45 2013

I'd cash out both Amazon and Ebay stock now before the moronic Wall Street analysts catch on about the damage the huge USPS international price hike will do to both ebay and Amazon

Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

by: Moonwishes This user has validated their user name.
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Thu Jan 31 10:40:00 2013

Well I kow MY Amazon 4th quarter sales were up 4 times more than the third quarter. I've been very happy to be selling on Amazon again. Years ago I had a promerchant account and never hit the 40 item level to 'come out ahead' in fees paid. I passed that point both in Dec. '12 and once again this Jan, a week or so ago. I have also found that having a Promerchant account allowed me to list items that I couldn't without it (which I wasn't aware of when I first signed up) which in turn increased potential sales greatly. I'm not talking about making my own listings, but being able to literally list on some listings that didn't even have a 'sell on Amazon' button were immediately opened up to me. Wish I had signed up many months earlier. I'm very happy with Amazon currently.  

Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

by: FREDDY This user has validated their user name.

Thu Jan 31 10:58:19 2013

Sales were way down - 60% down on Amazon for month of December. Same products as before.   I guess it all depends on which products you are selling.  

Perminate Link for Amazon Grows Sales 22 Percent in Fourth Quarter   Amazon Grows Sales 22 Percent in Fourth Quarter

by: Digmen1 This user has validated their user name.
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Sat Feb 2 14:43:30 2013

Every where I go socially, people talk about Amazon, they never mention ebay or ebid.net or bonanza.

I tend to think they are getting too big.



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