Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Apr 23 2015 16:18:52

Amazon Releases First Quarter 2015 Earnings

By: Ina Steiner

Sponsored Link

Amazon's conference call with analysts is at 5:30 pm EST today, here is the company's press release announcing fourth quarter 2015 earnings, you can view the full release with tables on Amazon's investor relations website.

Amazon.com Announces First Quarter Sales up 15% to $22.72 Billion
Amazon.com, Inc. today announced financial results for its first quarter ended March 31, 2015.

Operating cash flow increased 47% to $7.84 billion for the trailing twelve months, compared with $5.35 billion for the trailing twelve months ended March 31, 2014. Free cash flow increased to $3.16 billion for the trailing twelve months, compared with $1.49 billion for the trailing twelve months ended March 31, 2014.

Common shares outstanding plus shares underlying stock-based awards totaled 483 million on March 31, 2015, compared with 476 million one year ago.

Net sales increased 15% to $22.72 billion in the first quarter, compared with $19.74 billion in first quarter 2014. Excluding the $1.3 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 22% compared to first quarter 2014.

Operating income increased 74% to $255 million in the first quarter, compared with operating income of $146 million in first quarter 2014.

Net loss was $57 million in the first quarter, or $0.12 per diluted share, compared with net income of $108 million, or $0.23 per diluted share, in first quarter 2014.

"Amazon Web Services is a $5 billion business and still growing fast — in fact it's accelerating," said Jeff Bezos, founder and CEO of Amazon.com. "Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon. We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence. We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term. We are so grateful to our AWS customers and remain dedicated to inventing on their behalf."

Highlights
Amazon launched Dash Button — a small button that Prime customers can place in their home and use to reorder frequently used household items. Today, customers can chose from 18 popular brands, such as Bounty, Huggies, and Clorox.

Amazon announced the Dash Replenishment Service (DRS), a new service that enables connected devices to order goods from Amazon when supplies are running low — like a coffee maker that automatically orders more coffee beans. By using DRS, device makers are able to leverage Amazon's authentication and payment systems, customer service, and fulfillment network. Early adopters of DRS include Whirlpool, Quirky, Brother, and Brita.

Amazon announced new features for Amazon Fire TV and Fire TV Stick, including X-Ray (now available directly on your HDTV), support for a captive portal to connect to Wi-Fi at a hotel or dorm room, and new shortcuts. Amazon Fire TV also added expandable USB storage and private listening with support for Bluetooth headphones.

In just one year, Amazon Fire TV apps and games selection is up 5x, including Sling TV, Fox Sports Go, Flappy Birds Family, TED, WSJ Live, Crossy Road, and Game of Thrones - A Telltale Game Series.

Fire TV Stick launched in the U.K. and Germany, joining Amazon Fire TV. Pre-orders for Fire TV Stick on Amazon.co.uk and Amazon.de broke all previous records for Amazon devices in the first week of availability.

Amazon Echo continues to get smarter as more customers use it and provide feedback — new features include Pandora integration, home automation, support for sports scores and schedules, traffic reports and route suggestions, and voice control for customers if listening to music via Bluetooth. Amazon has released a limited preview of the Alexa SDK to enable developers, content creators, and service providers to build apps and experiences for Echo.

Amazon launched unlimited cloud storage with Amazon Cloud Drive — two new storage plans for customers to securely store new and existing content collections. The Unlimited Everything Plan provides unlimited storage for photos, videos, movies, music, and files, and the Unlimited Photos Plan provides unlimited photo storage plus 5 GB of additional storage for videos, documents, or other files — all for a low annual fee. Customers can sign up for a free 3-month trial on either plan.

Prime Now has expanded to Miami, Baltimore, Dallas, Atlanta, and Austin. Prime members can choose from tens of thousands of daily essentials through a mobile app. With Prime Now, two-hour delivery is free and one-hour delivery is available for $7.99.

Amazon Prime celebrated its 10-year anniversary with tens of millions of Prime members around the world. Prime members in the U.S. enjoy unlimited Free Two-Day Shipping on more than 20 million items, unlimited streaming of tens of thousands of movies and TV episodes with Prime Instant Video, more than one million songs and hundreds of playlists with Prime Music, unlimited photo storage with Prime Photos, and access to more than 800,000 books to borrow with the Kindle Owners' Lending Library.

Amazon Studios announced that full seasons of Mad Dogs, The Man in the High Castle, The New Yorker Presents, and children's shows Just Add Magic and The Stinky & Dirty Show will debut exclusively for Prime members in the U.S., U.K., and Germany. Amazon Studios also greenlit second seasons of Mozart in the Jungle and Bosch, as well as original kids series Tumble Leaf, Creative Galaxy, Annedroids, and Gortimer Gibbon's Life on Normal Street.

Amazon introduced Amazon@Purdue, our first staffed on-campus pickup and drop-off location at Purdue University. Amazon Student and Amazon Prime members get Free One-Day Shipping on textbooks and Free One-Day Pickup on over one million items when shipped to the Amazon@Purdue location.

Amazon officially launched Write On by Kindle, an online community where writers and readers share in the creative process. Readers can check out works-in-progress — from short stories to novels — and offer feedback, or they can try their hand at writing a story themselves.

Amazon launched Amazon Home Services, a new marketplace for on-demand professional services, backed by Amazon's Happiness Guarantee. Customers can browse, purchase, and schedule hundreds of professional services directly on Amazon.com in less than 60 seconds. Amazon Home Services features handpicked pros offering upfront pricing on pre-packaged services with helpful reviews from customers that have made verified purchases.

Poppy J. Anderson became the first German author to sell over one million Kindle books using Kindle Direct Publishing (KDP), joining the Kindle Million Club with many other internationally successful KDP authors such as John Locke, J.A. Konrath, and Tina Folsom.

Amazon expanded public fulfillment center tours to the U.K., Germany, France, and Poland. Visit www.amazon.com/fctours for information on available tour locations, dates, and times.

Amazon Prime members in Spain now receive Free One-Day Shipping with their Prime subscription.

Amazon Fashion, which has emerged as a top category on Amazon.in, partnered with the Fashion Design Council of India as the official title sponsor of the 25th edition of India Fashion Week.

Amazon.in launched the Amazon Seller App, a best-in-class mobile app for sellers in India, which makes it easy and convenient for sellers to update inventory, source and list new items on Amazon.in, and respond faster to customer queries.

Amazon.in launched Kirana Now, a pilot service that delivers everyday essentials to customers within two to four hours. This local service utilizes India's vast network of small and medium businesses to achieve quick, easy, and convenient delivery for Amazon.in customers.

Amazon China opened an Amazon international brand flagship store on Tmall, which features thousands of Amazon China's popular, directly imported products. Additionally, Amazon Global Store selection on Amazon.cn has grown to over one million items.

AWS announced Amazon Machine Learning, a fully managed service that makes it easy for any developer to use historical data to build predictive models that can be used for a broad array of purposes, including detecting problematic transactions, preventing customer churn, and improving customer support. Amazon Machine Learning is based on the same proven, highly scalable machine learning technology used by developers across Amazon to generate more than 50 billion predictions a week.

AWS announced AWS Marketplace for Desktop Apps, a new category on the AWS Marketplace that makes it easy for customers to search for and buy applications for their Amazon WorkSpaces cloud-based desktops. Customers can choose from a broad selection of more than 100 applications in eleven categories, and pay by the month for the applications they use. To simplify deployment of these desktop applications, AWS also announced Amazon WorkSpaces Application Manager (Amazon WAM), a new service that packages and delivers applications to Amazon WorkSpaces.

AWS announced the general availability of AWS Lambda, a compute service that runs developers' code in response to events and automatically manages the required compute resources, making it easy to build and manage applications that respond quickly to new information. AWS also launched several new features to make it easy for mobile developers to use Lambda for mobile, tablet, and Internet of Things applications.

AWS announced the general availability of the Amazon EC2 Container Service, a high-performance container management service that makes it easy to run distributed applications using Docker containers on AWS. AWS also added the ability to use Elastic Block Store ("EBS") and Elastic Load Balancing ("ELB") with the EC2 Container Service, as well as a new, flexible container scheduler that combine to make the EC2 Container Service the best place to run containers in production.

AWS introduced the latest generation of Amazon EC2 Dense-storage (D2) instances, and larger, faster Amazon Elastic Block Storage (Amazon EBS) volumes. To support very large transactional databases and big data analytics, the new Amazon EC2 D2 instances offer up to 48 TB of storage and up to 3,500 MB per second of disk read throughput, while the new Amazon EBS volumes store up to 16 TB and process up to 20,000 input/output operations per second (IOPS).

Financial Guidance
The following forward-looking statements reflect Amazon.com's expectations as of April 23, 2015, 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 consumer spending, world events, the rate of growth of the Internet and online commerce, and the various factors detailed below.

Second Quarter 2015 Guidance
Net sales are expected to be between $20.6 billion and $22.8 billion, or to grow between 7% and 18% compared with second quarter 2014.

Operating income (loss) is expected to be between $(500) million and $50 million, compared to $(15) million in second quarter 2014.

This guidance includes approximately $600 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2:30 p.m. PT/5:30 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 (26) | Leave Comment | Permalink

Readers Comments

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This user has validated their user name. by: iheartjacksparrow

Thu Apr 23 17:16:58 2015

I hope JD takes a "thinking day" to contemplate the disparity in First Quarter Reports between eBay and Amazon.

Perminate Link for Amazon Releases First Quarter 2015 Earnings   Amazon Releases First Quarter 2015 Earnings

by: ajeweler This user has validated their user name.

Thu Apr 23 17:39:46 2015

@iheartjacksparrow
JD think LOL I am not sure he knows how!!  

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by: gizmo This user has validated their user name.

Thu Apr 23 18:22:56 2015

All arrows point the direction some go. Ebay never heeds , or admits wronging the whole venue , & moves in a delirious direction.

Amazon must be doing something correct. Sounds like they took a big chunk of ebays Ars.

All the kings horses & all the kings men , can never put ebay , back together again.

Perminate Link for Amazon Releases First Quarter 2015 Earnings   Amazon Releases First Quarter 2015 Earnings

by: Enough Is Enough! This user has validated their user name.

Thu Apr 23 18:52:22 2015

Notice how ebay's GROSS SALES are up 2%, and Amazon's NET SALES are up 15%??

In real terms, ebay's net sales are down at least 10%, and Amazon's gross sales are up 25% or more.

And while ebay's seller base has become stagnant, Amazon doubled its number of sellers in 2014 alone.

The Ho deserves an early Christmas card from Mr. Bezos....

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This user has validated their user name. by: laurengrace

Thu Apr 23 21:50:37 2015

A lot of the spoiled unreasonable ebay buyers have made their way over to Amazon as well. Definitely not happy about that.

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by: pace306 This user has validated their user name.

Thu Apr 23 22:46:19 2015

To quote Nelson from the Simpsons ... "HA HA!"

$23 million given away to a buffoon, yet eBay STILL cant get it right.

I hear Wenig talking but have yet to see any action .... lets see what he does.

eBay stock is still (to quote the Talking Heads) the same as it ever was, while Amazon climbs and climbs.

If eBay makes investments in its good sellers, theres a chance they can reverse the growing landslide .......

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This user has validated their user name. by: toolguy

Fri Apr 24 04:14:13 2015

Amazon LOST -$57 Million

eBay MADE $626 Million

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by: P.Dorf This user has validated their user name.

Fri Apr 24 06:33:47 2015

Things must be real bad if toolguy's posting so much here.

Irrespective of what you post toolguy, where are consumers spending their money?

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This user has validated their user name. by: Rexford

Fri Apr 24 07:16:52 2015

pace306 says "$23 million given away to a buffoon"

LOL......Carl Icahn must have gotten everything that he wanted and promised to keep silent because I never heard a peep out of him over the $23M giveaway.

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by: Volvo351 This user has validated their user name.

Fri Apr 24 07:45:45 2015

Things are going so well for The River that they need a new CEO to handle all that growth. I nominate The Hoe..he'll bring it to a HALT in no time.

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by: Enough Is Enough! This user has validated their user name.

Fri Apr 24 08:59:53 2015

@toolguy

What's with all the rosy "pro ebay" posts???

Is this really Griff in disguise???

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by: ajeweler This user has validated their user name.

Fri Apr 24 09:00:07 2015

toolguy
Amazon LOST -$57 Million (invested in adverting for its sellers)

eBay MADE $626 Million (stealing from its sellers)

you must be under the "golden parachute  group" and the only one making money off that "thief's paradise" BTW say tell JD your posting great stuff here

in addition for someone making so much money with no SNADS you have lots of free time to post HMMMMM

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This user has validated their user name. by: toolguy

Fri Apr 24 09:43:02 2015

Who pushes more product for third party sellers? Amazon or eBay?

Amazon had $22 billion in revenue

eBay had $4.45 Billion in revenue, 1/2 of that would be Paypal so eBay had about $2.25 Billion in revenue. At 10% fees that would equal about $22.5 Billion in sales from third party sellers.

Amazon had $22 Billion in sales, that includes sales from Amazon and third party sellers combined.

So what I see is they have about the same amount in sales but eBay's sales are all third party as Amazons is not.

So for third party sellers eBay brings in more buyers.

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This user has validated their user name. by: iheartjacksparrow

Fri Apr 24 13:10:34 2015

@toolguy - Since we all know eBay "cooks the books," if they reported the true figures, their actual losses would probably be in the billions.

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This user has validated their user name. by: Rexford

Fri Apr 24 13:35:25 2015

Stop feeding the troll peeps.

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by: Frank Abagnale This user has validated their user name.

Fri Apr 24 16:12:52 2015

Ebay stock price 1 year ago $54
Ebay stock price today $59

Amazon stock price 1 year ago $304
Amazon stock price today $455

John Osborne listings on Ebay 0  

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by: Wes Dodd This user has validated their user name.

Fri Apr 24 16:16:08 2015

The article misses one important thing though - Amazon made a profit of $165 million (on AWS revenue of $1.57 billio) from AWS, and still lost $57 million because of the retail side of the business. So if it wasn't for AWS, Amazon would have lost #322 million on the retail side, not $57 million. In Q1 2014, Amazon reported a profit of $108 million total. So their retail side is losing money at a faster rate than last year.

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

Fri Apr 24 16:28:31 2015

And even more demonstrative of the cretinous Johnny Ho’s destructive capabilities …

Ebay stock price August 2007 $40
Ebay stock price today $59

Amazon stock price August 2007 $40
Amazon stock price today $455

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid … http://bit.ly/11F2eas

Perminate Link for Amazon Releases First Quarter 2015 Earnings   Amazon Releases First Quarter 2015 Earnings

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

Fri Apr 24 16:34:44 2015

And, Hillary Clinton has just announced that she is going to have lunch at the home of this incompetent, destructive, narcissistic, sociopathic, habitual criminal, John Joseph Donahoe II (aka Johnny Ho) ...

Goes to demonstrate that all these politicians actually live in another world—of shysters, apparently ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid … http://bit.ly/11F2eas

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by: Bloggo This user has validated their user name.

Fri Apr 24 21:17:43 2015

"that would equal about $22.5 Billion in sales from third party sellers" Wrong! You're only about 7.5 Billion dollars off.

PayPal net total payment volume (TPV) grew 18% in the first quarter to $61 billion, with Merchant Services volume up 26% and on-eBay volume down 1%. Payment volume through eBay Marketplaces was $15 billion

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