Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu July 23 2015 16:49:45

Amazon Sales Up 20 Percent in Second Quarter

By: Ina Steiner

Sponsored Link

Amazon's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing second quarter 2015 earnings, you can view the full release with tables on Amazon's investor relations website.

Amazon.com Announces Second Quarter Sales up 20% to $23.18 Billion
SEATTLE - Jul. 23, 2015 - Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2015.

Operating cash flow increased 69% to $8.98 billion for the trailing twelve months, compared with $5.33 billion for the trailing twelve months ended June 30, 2014. Free cash flow increased to $4.37 billion for the trailing twelve months, compared with $1.04 billion for the trailing twelve months ended June 30, 2014.

Common shares outstanding plus shares underlying stock-based awards totaled 488 million on June 30, 2015, compared with 480 million one year ago.

Net sales increased 20% to $23.18 billion in the second quarter, compared with $19.34 billion in second quarter 2014. Excluding the $1.39 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 27% compared to second quarter 2014.

Operating income was $464 million in the second quarter, compared with operating loss of $15 million in second quarter 2014.

Net income was $92 million in the second quarter, or $0.19 per diluted share, compared with net loss of $126 million, or $0.27 per diluted share, in second quarter 2014.

“The teams at Amazon have been working hard for customers,” said Jeff Bezos, founder and CEO of Amazon.com. “We unveiled Amazon Business, opened Amazon Mexico, launched Prime free same-day, rolled out our ninth Prime Now city, broke our Black Friday record with the first-ever Prime Day, received 11 Emmy nominations for Transparent, debuted six new kids pilots, brought Echo to general availability, introduced the Alexa Skills Kit and Alexa Voice Service, opened FBA Small and Light, continued to double down on our fastest growing geography — India, launched 350 significant AWS features and services so far this year (ahead of last year’s pace), introduced AWS Educate, and entered into agreements for new solar and wind farms — enough to exceed our 2016 goal of 40% renewable energy.”

Highlights
Amazon celebrated Prime Day on July 15th, a global shopping event that offered Prime members more deals than Black Friday. More new members tried Prime worldwide than any single day in Amazon history. Customers purchased more units on Prime Day than Black Friday 2014, and saved millions of dollars on deals around the world. Sellers using Fulfillment by Amazon (FBA) also benefited, experiencing record-breaking unit sales on Prime Day.

Amazon launched Prime free same-day delivery in 14 U.S. metro areas, serving more than 500 cities and towns. Prime members can choose from over one million items and order as late as noon to receive their order on the same day, for free.

Prime Now expanded to three additional cities including London, the first international location to offer the service. Prime Now is available in nine cities, bringing Prime members one-hour delivery on thousands of daily essentials.

Amazon Echo, the first device designed entirely around your voice, moved to general availability in the U.S. Customer response to Echo has been overwhelmingly positive with over 14,000 5-star reviews and an average customer rating of 4.5 stars.

Amazon announced the Alexa Fund — named for Alexa, the cloud-based voice service that powers Echo — which will invest up to $100 million to support developers, manufacturers, and start-ups of all sizes to create new experiences designed around the human voice.
Amazon opened the Alexa Voice Service to third-party hardware makers, giving them the tools to integrate Alexa into internet-connected devices.

Amazon introduced the Alexa Skills Kit, a free SDK that makes it fast and easy for developers to create new voice-driven capabilities for Alexa.

Amazon introduced the new Kindle Paperwhite with twice the pixels of the previous Paperwhite, the exclusive Bookerly font, and a new typesetting engine for more beautiful pages.

Amazon announced the expansion of the Fire HD Kids Edition tablet to the U.K. and Germany. Fire HD Kids Edition is the first tablet built from the ground up for kids, and comes with a two-year worry-free guarantee and access to thousands of kid-friendly books, videos, educational apps, and games.

Amazon Fire TV now offers nearly 2,000 channels, apps, and games. Popular new additions include STARZ Play, Candy Crush Saga, and Popcornflix.

Amazon Original Series Transparent is the most nominated Comedy Series at this year’s Emmys with 11 nominations, including Outstanding Comedy Series and Lead Actor, Comedy (Jeffrey Tambor).

Amazon Original Series Tumble Leaf won five Daytime Emmy Awards, including Outstanding Preschool Children’s Animated Program.

Amazon Studios launched six new pilots for kids and debuted a second season of Annedroids on Prime Instant Video.

Amazon announced Amazon Business, a new business-to-business marketplace that offers hundreds of millions of products.

Amazon introduced the FBA Small and Light program, a new fulfillment solution for fast-moving, small, and light products that increases free shipping selection for customers and provides a low-cost shipping option for sellers.

The Council of Fashion Designers of America held the inaugural showcase for American men’s fashion, New York Fashion Week: Men’s, which was presented by Amazon Fashion, East Dane, and MyHabit.

Amazon announced the launch of its Mexico physical goods store, Amazon.com.mx, with the largest selection in Mexico and more categories, items, and features than any previous Amazon launch anywhere in the world. Amazon also launched Selling on Amazon and FBA in Mexico, allowing third-party sellers to list and sell their products at Amazon.com.mx.

Amazon announced the Global Selling Program for sellers in India, which enables them to access hundreds of millions of customers around the world.

Amazon.in introduced Sunday delivery across 100 cities in India for all FBA products at no additional cost.

Amazon India continues to be Amazon’s fastest growing geography in sales, and India’s largest online store with over 25 million products.

Amazon Prime members in Italy now receive free one-day shipping on more than one million items with their Prime subscription.

Amazon hosted its first-ever “Amazon Academy” in Berlin. Over 250 sellers, software developers, and authors from across Germany gathered to share their experiences and ideas on how to build thriving businesses and careers with Amazon’s platforms. Additional Amazon Academy events are scheduled for this fall across Europe.

Amazon has tripled the selection available on the Amazon Global Store on Amazon.cn, allowing Chinese customers to choose from three million products curated from the U.S. Amazon website.

Amazon Web Services (AWS) announced that it will open a new region in India in 2016, which will enable customers to run workloads in India and serve Indian end-users with even better latency.

AWS announced that the EU (Frankfurt) region, which opened in October 2014, is AWS’ fastest growing international region to date.

AWS announced AWS Educate, a free program that helps educators and students use real-world cloud technology in the classroom to prepare students for the cloud workforce.

AWS entered into separate agreements to support the construction and operation of Amazon Solar Farm U.S. East and Amazon Wind Farm U.S. East. These are expected to generate approximately 170,000 megawatt hours (MWh) of solar power and 670,000 MWh of wind energy on an annual basis. The energy generated from these facilities will be delivered into the electrical grids that power both current and future AWS data centers.

AWS announced Amazon API Gateway, a new fully managed service that makes it easy for AWS customers to create, publish, maintain, monitor, and secure APIs at any scale.

AWS Device Farm is a new service that helps mobile app developers quickly and securely test their apps on smartphones, tablets, and other devices to improve the quality of their Android and Fire OS apps.

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of July 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 customer spending, world events, the rate of growth of the Internet and online commerce, and the various factors detailed below.

Third Quarter 2015 Guidance
Net sales are expected to be between $23.3 billion and $25.5 billion, or to grow between 13% and 24% compared with third quarter 2014.

Operating income (loss) is expected to be between $(480) million and $70 million, compared to $(544) million in third quarter 2014.

This guidance includes approximately $580 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 2:00 p.m. PT/5:00 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.

UPDATE: See the Newsflash story for coverage of the Amazon earnings call.




Comments (21) | Leave Comment | Permalink

Readers Comments

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

This user has validated their user name. by: LDS Brother

Thu Jul 23 18:37:45 2015

I have said this before, in my opinion John Donahoe was the MVP for Amazon, really the best asset Amazon could of ever wished for !

Donahoes seller extermination sent those sellers plus ones not exterminated over to Amazon !

Cassini finished it off !

And Wenig, stop trying to copy Amazon, can't you see the Buyers and Sellers hate eBay ?

eBay is NEVER coming back to glory, John Donahoe burnt that bridge many times over !

So please eBay, don't see Amazon up by 20% and go try to concoct more schemes to copy Amazon in a pathetic way !

Game over eBay and sellers, it is time for eBay to close the internet doors forever !

And yes Donahoe failed as CEO for eBay, but he redeemed himself with Amazon, as I do not believe for a minute, that had Donahoe not massacred us sellers and changed eBay so much when he took over in 2008 Amazon would of been the popular site it is !

All that credit to Amazon's success I believe truly belongs to John Donahoe !

I thought a true CEO is hired to build the company they were hired for, not destroy it and build the competition into a juggernaut !

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

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

Thu Jul 23 19:28:02 2015

Amazon shares jump 15% ...

PYPL ~$37; EBAY ~$29; AMZN ~$567—LOL ...

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 Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Massachusets Howler This user has validated their user name.

Thu Jul 23 21:51:45 2015

Lol!
LMAO!
Stop trying ebay.
This is called Acceleration.
Paypal is FLOUNDERING too.
And LOOK at all the recent ebay downgrades- totally expected and predicted.
MH

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: pace306 This user has validated their user name.

Thu Jul 23 23:19:18 2015

Amazon, as bad as they can be in some areas, continues to push its sales SPECIFICALLY via its 3rd party sellers - which brings them great numbers, quarter after quarter after quarter.

eBay, continues to harass, annoy, and steal from its sellers time after time after time. eBay, is so busy thinking up new ways to separate sellers from their wallets, that ACTUAL SALES suffer.

With 32,000+ employees it shouldnt be so hard to increase sales. Certainly a few of them could actually make a positive difference in eBays performance. Its not like eBay provides stellar customer service, or that eBay helps individual sellers or even advertises anywhere.

Of course eBay is totally done a disservice by the continued hiring for key positions, people who have no experience at all in online sales, ecommerce, big box stores, retail, wholesale or manufacturing. These people - Wenig, Sweetum, Burke - all have less then zero experience in any field even closely related to running eBay. So, its no wonder eBay doesnt succeed.

Me? Im not surprised Amazon has great numbers - to them Im not noise. To them Im valued, to them Im important (as a 3p seller). eBay - take one of JD's thinking days and learn something from them!
 

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

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

Thu Jul 23 23:34:46 2015

Nobody is surprised. Nobody.

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Fred Turnip This user has validated their user name.

Fri Jul 24 03:08:08 2015

This is confirmed in my sales also.

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Volvo351 This user has validated their user name.

Fri Jul 24 09:02:50 2015

Note to Amazon BoD: Don't make the mistake, five years from now, of hiring an over-priced "Bainiac" who will "...let go of a very successful past.."

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Volvo351 This user has validated their user name.

Fri Jul 24 09:07:41 2015

@Philip - funny looking at those stock prices - first note that PayPig is only a few bucks higher than Devil Wingnut's operation ..oh..I guess that's b/c The Hoe runs PayPig, or at least they have this anchor tied to their ankles. Second, The River hasn't watered down the price with stock splits.

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

This user has validated their user name. by: FEEbay

Fri Jul 24 10:55:22 2015

bwahahahahahahahahahahahahaha
bwahahahahahahahahahahahahaha
bwah
ahahahahahahahahahahahaha
(sigh)

bwahahahahahahahahahahahahaha

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: ajeweler This user has validated their user name.

Fri Jul 24 11:05:34 2015

this is no surprise as freebay gives products away at the expense of its sellers, they learn hard but mostly all that can move go to amazon were they grow and prosper amazon is strict with sales but does not micro manage every aspect of its sellers and micro manage. freebay manage sellers income and expenses I consider them bookies legal bookies

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Orwellwasright This user has validated their user name.

Fri Jul 24 12:10:24 2015


Amazon innovates

Ebay Issues generic rah rah meaningless statements about how they are going to turn the company around, then focuses on new ways to victimize their desperate and dispirited sellers .

Also, has anyone noticed ebay has been "turning the company around" for about seven years now?

No wonder everyone in the towers seems dizzy

BUT I am so happy I can now gain greater insights into the defect extermination policy.. Sort of like being able to watch your own evisceration

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: RCL This user has validated their user name.

Fri Jul 24 12:25:52 2015

Pay Pal floundering? No way.

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

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

Fri Jul 24 13:28:12 2015

@ Volvo351,

Both eBay and Amazon have watered down their stock prices with stock splits but neither has done so since before the GFC, and immediately prior to the GFC in August 2007, both eBay and Amazon had a stock price of ~$40; so, the reality is eBay’s marketplace and its stockholders have been effectively going backwards since the cretinous Johnny Ho was already effectively in control of eBay in August 2007 …

PYPL ~$37; EBAY ~$28; AMZN ~$548—LOL ...

@RCL,

“Pay Pal floundering? No way.”—Give it time; it will eventually flounder; even without the cretinous Johnny Ho steering at the head of the boardroom table (Ho, Ho, Ho), “PreyPay” will still eventually be buried by the more professional operators now offering similar services …

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 Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

This user has validated their user name. by: silent anarchy

Fri Jul 24 23:38:55 2015

I am surprised ebays "TOOL" cheerleaders have not responded (protected ebay) yet. Maybe they are not in the  "HAUS" ?

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Volvo351 This user has validated their user name.

Sat Jul 25 09:22:32 2015

@RCL A co. that steals from its customers should be "floundering." Where, besides PayPig, does a customer PAY A FEE, only to ASSUME RISK?  Here's how it works: If you are LUCKY you get 97% of the gross sale; if you are victimized by the scammer, with the able assistance of the The Hoe & PayPig, you get WORSE THAN NOTHING - you're out your item and your shipping charge.

Doesn't make sense? Now you're catching on.

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

This user has validated their user name. by: toolguy

Sat Jul 25 10:08:03 2015

I DON'T do Amazon so this has nothing to do with me or my eBay.

Congrats to those that own Amazon stock, you have done very well.

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

by: Troy Stiffler This user has validated their user name.

Sat Jul 25 13:22:44 2015

I have some problems with Amazon.

1.  Their FBA system has an unacceptable lost/damaged rate.  They pay back "retailers" at full cost.  But us "refurbished" or "surplus" sellers are left in the dirt.

2.  Like Ebay, Amazon's feedback system is broken.  And they don't know how to fix it.

3.  Their catalog is horrible.  I sell a lot of pro tools.  And most of their products have 5-7 different products associated.  "Junk dropshippers" go in and manipulate the system, to get their "own" listing.  And they toy with EAN #'s.  I once sent Amazon customer service a spreadsheet with 1000 products, and 7000 duplicates.  They said they couldn't do anything about it.  It was really sad for me, as I was excited about working with them to clean up their catalog.  And that spreadsheet took 20+ hours to generate.

Their platform is nowhere near as broken as Ebay's.  And, like Ebay, they're too big and clunky to reform.  

Perminate Link for Amazon Sales Up 20 Percent in Second Quarter   Amazon Sales Up 20 Percent in Second Quarter

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

Sun Jul 26 00:50:53 2015

The single biggest difference in Ebay and Amazon for sellers is that Amazon has no listing fees and Ebay has listing fees.  Ebay seems to have copied everything Amazon does except for this costly fee that ebay continues to have. Ebay runs their promos and plays their games with sellers, while Amazon makes it clear--no listing fees...period--. And that is probably the single biggest reason why so many great sellers have left ebay for amazon.  And now Amazon is cutting into ebay sales in categories they never should have had any traction

Sports cards on Amazon have grown from 300,000 or so 3 years ago to over 4,000,000 and the same with vinyl records and coins and other categories that Ebay used to have all the buyers for.  These were ebay dominated categories that now have buyers searching both ebay and Amazon. And I've noticed the larger dealers in these categories on Amazon are now getting many feedbacks; instead of just an occasional feedback.  This never should have happened.  It's not just the listing fees, but Ebay's basic attitude towards sellers from 2007 to 2014 and other bad policy's of ebay.  But listing fee is one that has knocked out tons of ebay sellers as seller's % of sales of items listed continues to drop. Unless Ebay wakes up and copies Amazon by removing listing fees; ebay will continue to lose more and more excellent sellers and more and more buyers as well.  I personally have thousands of sports cards I've waited to sell and now that Amazon has sports card buyers; I'm strongly considering Amazon.  I never would have considered Amazon until about a year ago which is when I noticed a huge jump in sports cards on Amazon. And then to my surprise I bought some rare cards on Amazon that were priced fairly and that I could not find in NM condition on ebay. Why take pictures and write descriptions of 1,000's of cards and other items and then get hammered with ebay's listing fees or ebay's ridiculous high cost of having a store, when you can list as many as you want  and have them run continuously on Amazon, without ever paying listing fee?  I believe this is the mindset of tons of great sellers who have quit ebay for Amazon

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by: Massachusets Howler This user has validated their user name.

Sun Jul 26 11:26:22 2015

CAN'T do Amazon is more like it as no used.
MH

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

Mon Jul 27 01:45:09 2015

My sales on Amazon have grown this year over last year. Yeah! Between Amazon and ecrater this is a much better year than last. I'm a 3P seller on Amazon and happy to be, but I don't do FBA. I can't figure out how the sellers make any money using that system, at least not with the things I sell. As long as I have room in my house I won't be paying Amazon to store my stuff while it waits to sell.

As to the complaints of problems with product pages I frequently send posts to Amazon telling them what is wrong with individual pages and what needs fixed and stay with it until they are fixed.

I'm very happy for Amazon and sure wish I had a couple 100 shares of the company!

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