SEATTLE--(BUSINESS WIRE)--Oct. 25, 2012-- Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its third quarter ended September 30, 2012.

Operating cash flow increased 8% to $3.37 billion for the trailing twelve months, compared with $3.11 billion for the trailing twelve months ended September 30, 2011. Free cash flow decreased 31% to $1.06 billion for the trailing twelve months, compared with $1.53 billion for the trailing twelve months ended September 30, 2011.

Common shares outstanding plus shares underlying stock-based awards totaled 469 million on September 30, 2012, consistent with 469 million one year ago.

Net sales increased 27% to $13.81 billion in the third quarter, compared with $10.88 billion in third quarter 2011. Excluding the $348 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 30% compared with third quarter 2011.

Operating loss was $28 million in the third quarter, compared with operating income of $79 million in third quarter 2011. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating loss was $3 million.

Net loss was $274 million in the third quarter, or $0.60 per diluted share, compared with net income of $63 million, or $0.14 per diluted share, in third quarter 2011. The third quarter 2012 includes a loss of $169 million, or $0.37 per diluted share, related to our equity-method share of the losses reported by LivingSocial, primarily attributable to its impairment charge of certain assets, including goodwill.

“Our approach is to work hard to charge less. Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point,” said Jeff Bezos, founder and CEO of Amazon.com. “And our approach is working – the $199 Kindle Fire HD is the #1 bestselling product across Amazon worldwide. Incredibly, this is true even as measured by unit sales. The next two bestselling products worldwide are our Kindle Paperwhite and our $69 Kindle. We’re selling more of each of these devices than the #4 bestselling product, book three of the Fifty Shades of Grey series. And we haven’t even started shipping our best tablet – the $299 Kindle Fire HD 8.9” ships November 20.”

Highlights

  • Compared to the iPad mini, Kindle Fire HD 8.9” has:

    • 193% more pixels (2,304,000 pixels vs. 786,432 pixels)
    • 56% more pixels-per-inch (254 vs. 163)
    • Watch HD movies and TV – cannot on iPad mini (iPad mini is an SD device)
    • Better audio with dual stereo speakers and Dolby Digital Plus
    • Wi-Fi with dual band, dual antennas + MIMO
    • Costs $30 less
  • Compared to the iPad mini, Kindle Fire HD 7” has:

    • 30% more pixels (1,024,000 vs. 786,432 pixels)
    • 33% more pixels per inch (216 vs. 163)
    • Watch HD movies and TV – cannot on iPad mini (iPad mini is an SD device)
    • Better audio with dual stereo speakers and Dolby Digital Plus
    • Wi-Fi with dual band, dual antennas + MIMO
    • Costs $130 less
  • Amazon.com introduced the fifth generation Kindle e-readers: Kindle Paperwhite is the most advanced e-reader ever constructed with 62% more pixels and 25% increased contrast, a patented built-in front light for reading in all lighting conditions, up to 8 weeks of battery life, and a thin and light design for just $119; Kindle Paperwhite Wi-Fi + 3G — never pay for or hunt for a Wi-Fi hotspot with the all-new top-of-the-line Kindle e-reader with free 3G wireless for just $179; and the new latest generation Kindle, the lightest and smallest Kindle, now with new, improved fonts, faster page turns for just $69.
  • Amazon.co.jp launched the Japanese Kindle Store, offering customers a vast selection of over 50,000 Japanese-language Kindle books. In total, the store offers over one million titles, including the largest selection of bestsellers in English and other languages.
  • Amazon.com announced a new licensing agreement with EPIX for movies including The Avengers, Iron Man 2, The Hunger Games, Super 8, Thor, and more, expanding its catalog of title offerings for Prime Instant Video to more than 30,000 movies and TV episodes.
  • Amazon announced significant updates to Cloud Player, including scan and match technology which provides customers a fast and easy way to get all of their music from their computers to the cloud. Cloud Player customers can then enjoy their music on their favorite devices, including Kindle Fire, iPhone, iPod Touch, Android devices, Sonos home entertainment systems, and any web browser. Amazon also expanded Cloud Player to the U.K., Germany, France, Italy, and Spain.
  • Amazon announced it is hiring for more than 50,000 seasonal positions at its fulfillment centers across the U.S. this holiday season. Amazon employs more than 20,000 people across its 40 U.S. fulfillment centers and pays its full-time, permanent employees 30 percent more than what traditional retail store employees earn.
  • Amazon has announced 19 new fulfillment centers worldwide to be opened in time to support this year’s holiday demand.
  • North America segment sales, representing amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America-focused websites, and including amounts earned from Amazon Web Services (AWS), were $7.88 billion, up 33% from third quarter 2011.
  • International segment sales, representing amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally-focused websites, were $5.92 billion, up 20% from third quarter 2011. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 27%.
  • Worldwide Media sales grew 11% to $4.60 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 14%.
  • Worldwide Electronics and Other General Merchandise sales grew 36% to $8.56 billion. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, sales grew 39%.
  • The NASDAQ OMX Group announced the launch of FinQloud, a cloud computing offering powered by AWS and exclusively designed for the financial services industry. FinQloud provides efficient management and storage of financial data to help market participants streamline operations and meet regulatory compliance requirements without making costly capital expenditures for their underlying infrastructure.
  • AWS announced that more than 300 government agencies and 1,500 education institutions are leveraging AWS for a wide range of uses including big data analytics, high performance computing, web and collaboration applications, archiving and storage, and disaster relief. AWS also announced new services and features available in the AWS GovCloud (U.S.) Region, including the addition of high performance computing capabilities.
  • AWS announced Amazon Glacier, a secure, reliable and extremely low cost storage service designed for data archiving and backup. Amazon Glacier is designed for data that is infrequently accessed, yet still important to retain for future reference, and for which retrieval times of several hours are suitable.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of October 25, 2012. 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.

Fourth Quarter 2012 Guidance

  • Net sales are expected to be between $20.25 billion and $22.75 billion, or to grow between 16% and 31% compared with fourth quarter 2011.
  • Operating income (loss) is expected to be between $(490) million and $310 million, compared with $260 million in the prior year period.
  • This guidance includes approximately $290 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments 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 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 Paperwhite is the most-advanced e-reader ever constructed with 62% more pixels and 25% increased contrast, a patented built-in front light for reading in all lighting conditions, extra-long battery life, and a thin and light design. The new latest generation Kindle, the lightest and smallest Kindle, now features new, improved fonts and faster page turns. Kindle Fire HD features a stunning custom high-definition display, exclusive Dolby audio with dual stereo speakers, high-end, laptop-grade Wi-Fi with dual-band support and dual-antennas/MIMO for 40% faster throughput than other tablets, enough storage for HD content, and the latest generation processor and graphics engine—and it is available in two display sizes—7” and 8.9”. The large-screen Kindle Fire HD is also available with 4G wireless, and comes with a groundbreaking $49.99 introductory 4G LTE data package. The all-new Kindle Fire features a 20% faster processor, 40% faster performance, twice the memory, and longer battery life.

Amazon and its affiliates operate websites, including www.amazon.comwww.amazon.co.ukwww.amazon.dewww.amazon.co.jpwww.amazon.frwww.amazon.cawww.amazon.cnwww.amazon.it, and www.amazon.es. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

 
AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited)

 

  Three Months Ended
September 30,
 Nine Months Ended
September 30,
 Twelve Months Ended
September 30,
  2012 2011 2012 2011 2012 2011
             
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD $2,335  $2,047  $5,269  $3,777  $2,823  $1,539 
             
OPERATING ACTIVITIES:            
Net income (loss)  (274)  63   (137)  454   40   871 

Adjustments to reconcile net income (loss) to net cash from operating activities:

           

Depreciation of fixed assets, including internal-use software and website development, and other amortization

  554   278   1,497   724   1,856   894 
Stock-based compensation  217   144   597   397   756   518 
Other operating expense (income), net  40   37   118   112   161   140 
Losses (gains) on sales of marketable securities, net  (4)  (6)  (8)  (4)  (8)  (4)
Other expense (income), net  157   (38)  153   (39)  137   (56)
Deferred income taxes  (36)  34   (117)  68   (50)  116 
Excess tax benefits from stock-based compensation  (66)  -   (190)  (61)  (191)  (84)
Changes in operating assets and liabilities:            
Inventories  (647)  (587)  (25)  (517)  (1,285)  (1,211)
Accounts receivable, net and other  (416)  (75)  164   211   (913)  (320)
Accounts payable  1,223   848   (2,856)  (1,687)  1,828   1,755 
Accrued expenses and other  96   109   (373)  (9)  703   587 
Additions to unearned revenue  472   239   1,251   706   1,609   892 
Amortization of previously unearned revenue  (373)  (249)  (975)  (721)  (1,275)  (984)
Net cash provided by (used in) operating activities  943   797   (901)  (366)  3,368   3,114 
             
INVESTING ACTIVITIES:            

Purchases of fixed assets, including internal-use software and website development

  (716)  (529)  (1,759)  (1,261)  (2,310)  (1,589)
Acquisitions, net of cash acquired, and other  (37)  (48)  (711)  (656)  (759)  (927)
Sales and maturities of marketable securities and other investments  742   1,964   3,731   5,931   4,643   7,043 
Purchases of marketable securities and other investments  (358)  (1,287)  (1,774)  (4,475)  (3,556)  (6,203)
Net cash provided by (used in) investing activities  (369)  100   (513)  (461)  (1,982)  (1,676)
             
FINANCING ACTIVITIES:            
Excess tax benefits from stock-based compensation  66   -   190   61   191   84 
Common stock repurchased  -   -   (960)  -   (1,237)  - 
Proceeds from long-term debt and other  109   9   300   131   343   173 

Repayments of long-term debt, capital lease, and finance lease obligations

  (144)  (91)  (437)  (341)  (537)  (440)
Net cash provided by (used in) financing activities  31   (82)  (907)  (149)  (1,240)  (183)
             
Foreign-currency effect on cash and cash equivalents  40   (39)  32   22   11   29 
Net increase (decrease) in cash and cash equivalents  645   776   (2,289)  (954)  157   1,284 
             
CASH AND CASH EQUIVALENTS, END OF PERIOD $2,980  $2,823  $2,980  $2,823  $2,980  $2,823 
             
SUPPLEMENTAL CASH FLOW INFORMATION:            
Cash paid for interest on long term debt $7  $4  $21  $10  $25  $13 
Cash paid for income taxes (net of refunds)  21   12   60   18   75   31 
Fixed assets acquired under capital leases  207   155   564   566   751   688 
Fixed assets acquired under build-to-suit leases  14   54   46   220   85   234 
 
 
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
 
  

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

  2012 2011 2012 2011
         
Net product sales (1) $11,546  $9,382  $33,586  $26,691 
Net services sales (2)  2,260   1,494   6,239   3,955 
Net sales  13,806   10,876   39,825   30,646 
         
Operating expenses (3):        
Cost of sales  10,319   8,325   29,834   23,457 
Fulfillment  1,510   1,121   4,161   2,917 
Marketing  540   370   1,557   1,037 
Technology and content  1,192   769   3,219   2,047 
General and administrative  230   175   662   474 
Other operating expense (income), net  43   37   121   112 
Total operating expenses  13,834   10,797   39,554   30,044 
         
Income (loss) from operations  (28)  79   271   602 
         
Interest income  10   16   32   47 
Interest expense  (22)  (17)  (65)  (45)
Other income (expense), net  18   52   (31)  57 
Total non-operating income (expense)  6   51   (64)  59 
         
Income (loss) before income taxes  (22)  130   207   661 
         
Provision for income taxes  (83)  (67)  (234)  (205)
Equity-method investment activity, net of tax  (169)  -   (110)  (2)
Net income (loss) $(274) $63  $(137) $454 
         
Basic earnings per share $(0.60) $0.14  $(0.30) $1.00 
         
Diluted earnings per share $(0.60) $0.14  $(0.30) $0.99 
         
         
Weighted average shares used in computation of earnings per share:       
Basic  452   454   452   453 
Diluted  460   461   459   460 
         

(1) Represents revenue from the sale of products and related shipping fees and digital content where we are the seller of record.

  

(2) Represents third-party seller fees earned (including commissions) and related shipping fees, digital content subscriptions, and non-retail activities.

  
(3) Includes stock-based compensation as follows:  
Fulfillment $56  $35  $149  $91 
Marketing  16   10   43   27 
Technology and content  112   75   310   211 
General and administrative  33   24   95   68 
 
 
AMAZON.COM, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
(unaudited)
 
  Three Months Ended
September 30,
 Nine Months Ended
September 30,
  2012 2011 2012 2011
         
Net income (loss) $(274) $63  $(137) $454 
         
Other comprehensive income (loss):        
Foreign currency translation adjustments, net of tax of $4, $16, $(17) and $17  30   (212)  16   (46)

Change in unrealized gains on available-for-sale securities, net of tax of $0, $0, $(2) and $3

  2   2   4   (5)
Total other comprehensive income (loss)  32   (210)  20   (51)
         
Comprehensive income (loss) $(242) $(147) $(117) $403 
 
 
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2012  2011  2012  2011 
North America            
Net sales $7,884   $5,932   $22,638   $16,804  
Segment operating expenses (1)  7,593    5,788    21,655    16,156  
Segment operating income $291   $144   $983   $648  
             
International            
Net sales $5,922   $4,944   $17,187   $13,842  
Segment operating expenses (1)  5,981    4,828    17,181    13,379  
Segment operating income (loss) $(59)  $116   $6   $463  
             
Consolidated            
Net sales $13,806   $10,876   $39,825   $30,646  
Segment operating expenses (1)  13,574    10,616    38,836    29,535  
Segment operating income  232    260    989    1,111  
Stock-based compensation  (217)   (144)   (597)   (397) 
Other operating income (expense), net  (43)   (37)   (121)   (112) 
Income (loss) from operations  (28)   79    271    602  
Total non-operating income (expense)  6    51    (64)   59  
Provision for income taxes  (83)   (67)   (234)   (205) 
Equity-method investment activity, net of tax  (169)   -    (110)   (2) 
Net income (loss) $(274)  $63   $(137)  $454  
             
Segment Highlights:            
Y/Y net sales growth:            
North America  33 %  44 %  35 %  46 %
International  20    44    24    42  
Consolidated  27    44    30    44  
Y/Y segment operating income growth (decline):            
North America  102 %  (23)%  52 %  (2)%
International  (151)   (46)   (99)   (29) 
Consolidated  (11)   (35)   (11)   (15) 
Net sales mix:            
North America  57 %  55 %  57 %  55 %
International  43    45    43    45  
   100 %  100 %  100 %  100 %
             

(1) Represents operating expenses, excluding stock-based compensation and "Other operating expense (income), net," which are not allocated to segments.

 
 
AMAZON.COM, INC.
Supplemental Net Sales Information
(in millions)
(unaudited)
 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
  2012  2011  2012  2011 
North America            
Media $2,215  $1,927  $6,285  $5,397 
Electronics and other general merchandise  5,061   3,635   14,771   10,435 
Other (1)  608   370   1,582   972 
Total North America $7,884  $5,932  $22,638  $16,804 
             
International            
Media $2,385  $2,226  $7,142  $6,373 
Electronics and other general merchandise  3,497   2,681   9,924   7,364 
Other (1)  40   37   121   105 
Total International $5,922  $4,944  $17,187  $13,842 
             
Consolidated            
Media $4,600  $4,153  $13,427  $11,770 
Electronics and other general merchandise  8,558   6,316   24,695   17,799 
Other (1)  648   407   1,703   1,077 
Total Consolidated $13,806  $10,876  $39,825  $30,646 
             
Y/Y Net Sales Growth:            
North America:            
Media  15%  21%  16%  20%
Electronics and other general merchandise  39   56   42   62 
Other  64   77   63   79 
Total North America  33   44   35   46 
             
International:            
Media  7%  27%  12%  24%
Electronics and other general merchandise  30   63   35   63 
Other  7   21   15   20 
Total International  20   44   24   42 
             
Consolidated:            
Media  11%  24%  14%  22%
Electronics and other general merchandise  36   59   39   62 
Other  59   70   58   70 
Total Consolidated  27   44   30   44 
             
Y/Y Net Sales Growth Excluding Effect of Exchange Rates:            
International:            
Media  12%  17%  15%  15%
Electronics and other general merchandise  39   51   41   51 
Other  13   13   20   13 
Total International  27   33   29   32 
             
Consolidated:            
Media  14%  19%  16%  17%
Electronics and other general merchandise  39   54   41   58 
Other  60   69   59   69 
Total Consolidated  30   39   32   40 
             
Consolidated Net Sales Mix:            
Media  33%  38%  34%  38%
Electronics and other general merchandise  62   58   62   58 
Other  5   4   4   4 
   100%  100%  100%  100%
             

(1) Includes non-retail activities, such as AWS in the North America segment, advertising services, our co-branded credit card agreements, and other seller sites in both segments.

 
 
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
 
  September 30,
2012
 December 31,
2011
ASSETS (unaudited)  
Current assets:    
Cash and cash equivalents $2,980  $5,269 
Marketable securities  2,268   4,307 
Inventories  5,065   4,992 
Accounts receivable, net and other  2,392   2,571 
Deferred tax assets  413   351 
Total current assets  13,118   17,490 
Fixed assets, net  5,662   4,417 
Deferred tax assets  38   28 
Goodwill  2,540   1,955 
Other assets  1,476   1,388 
Total assets $22,834  $25,278 
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $8,369  $11,145 
Accrued expenses and other  4,236   3,751 
Total current liabilities  12,605   14,896 
Long-term liabilities  2,676   2,625 
     
Commitments and contingencies    
     
Stockholders' equity:    
Preferred stock, $0.01 par value:    
Authorized shares — 500    
Issued and outstanding shares — none  -   - 
Common stock, $0.01 par value:    
Authorized shares — 5,000    
Issued shares — 476 and 473    
Outstanding shares — 453 and 455  5   5 
Treasury stock, at cost  (1,837)  (877)
Additional paid-in capital  7,863   6,990 
Accumulated other comprehensive loss  (296)  (316)
Retained earnings  1,818   1,955 
Total stockholders' equity  7,553   7,757 
Total liabilities and stockholders' equity $22,834  $25,278 
 
 
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
 
  Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Y/Y %
Change
Cash Flows and Shares            
Operating cash flow -- trailing twelve months (TTM) $3,114 $3,903 $3,051 $3,222 $3,368 8%
Purchases of fixed assets (incl. internal-use software & website development) -- TTM $1,589 $1,811 $1,899 $2,123 $2,310 45%
Free cash flow (operating cash flow less purchases of fixed assets) -- TTM $1,525 $2,092 $1,152 $1,099 $1,058 (31%)
Free cash flow -- TTM Y/Y growth (decline)  (17%)  (17%)  (39%)  (40%)  (31%) N/A
Invested capital (1) $9,147 $9,680 $10,006 $10,250 $10,392 N/A
Return on invested capital (2)  17%  22%  12%  11%  10% N/A
             
Common shares and stock-based awards outstanding  469  468  464  468  469 0%
Common shares outstanding  455  455  450  452  453 0%
Stock-based awards outstanding  14  14  13  16  16 12%
Stock-based awards outstanding -- % of common shares outstanding  3.2%  3.0%  2.9%  3.6%  3.6% N/A
             
Results of Operations            
Worldwide (WW) net sales $10,876 $17,431 $13,185 $12,834 $13,806 27%
WW net sales -- Y/Y growth, excluding F/X  39%  34%  34%  32%  30% N/A
WW net sales -- TTM $43,594 $48,077 $51,404 $54,325 $57,256 31%
WW net sales -- TTM Y/Y growth, excluding F/X  39%  37%  37%  35%  33% N/A
             
Operating income (loss) $79 $260 $192 $107 $(28) (135%)
Operating income -- Y/Y growth (decline), excluding F/X  (77%)  (48%)  (38%)  (34%)  (137%) N/A
Operating margin -- % of WW net sales  0.7%  1.5%  1.5%  0.8%  (0.2%) N/A
Operating income -- TTM $1,076 $862 $732 $637 $531 (51%)
Operating income -- TTM Y/Y growth (decline), excluding F/X  (25%)  (44%)  (50%)  (50%)  (48%) N/A
Operating margin -- TTM % of WW net sales  2.5%  1.8%  1.4%  1.2%  0.9% N/A
             
Net income (loss) $63 $177 $130 $7 $(274) (533%)
Net income (loss) per diluted share $0.14 $0.38 $0.28 $0.01 $(0.60) (534%)
Net income -- TTM $871 $631 $561 $377 $40 (95%)
Net income per diluted share -- TTM $1.89 $1.37 $1.22 $0.82 $0.09 (95%)
             
Segments            
North America Segment:            
Net sales $5,932 $9,902 $7,427 $7,326 $7,884 33%
Net sales -- Y/Y growth, excluding F/X  44%  37%  36%  36%  33% N/A
Net sales -- TTM $24,014 $26,705 $28,667 $30,587 $32,540 36%
Operating income $144 $285 $349 $344 $291 102%
Operating margin -- % of North America net sales  2.4%  2.9%  4.7%  4.7%  3.7% N/A
Operating income -- TTM $943 $933 $991 $1,120 $1,268 34%
Operating income -- TTM Y/Y growth, excluding F/X  1%  (2%)  2%  14%  34% N/A
Operating margin -- TTM % of North America net sales  3.9%  3.5%  3.5%  3.7%  3.9% N/A
             
International Segment:            
Net sales $4,944 $7,529 $5,758 $5,508 $5,922 20%
Net sales -- Y/Y growth, excluding F/X  33%  29%  32%  28%  27% N/A
Net sales -- TTM $19,580 $21,372 $22,737 $23,738 $24,716 26%
Net sales -- TTM % of WW net sales  45%  44%  44%  44%  43% N/A
Operating income (loss) $116 $177 $49 $16 $(59) (151%)
Operating margin -- % of International net sales  2.4%  2.4%  0.9%  0.3%  (1.0%) N/A
Operating income -- TTM $790 $640 $515 $359 $183 (77%)
Operating income -- TTM Y/Y growth (decline), excluding F/X  (23%)  (41%)  (49%)  (57%)  (68%) N/A
Operating margin -- TTM % of International net sales  4.0%  3.0%  2.3%  1.5%  0.7% N/A
             
Consolidated Segments:            
Operating expenses (3) $10,616 $16,969 $12,787 $12,474 $13,574 28%
Operating expenses -- TTM (3) $41,860 $46,504 $49,899 $52,846 $55,805 33%
Operating income $260 $462 $398 $360 $232 (11%)
Operating margin -- % of Consolidated sales  2.4%  2.7%  3.0%  2.8%  1.7% N/A
Operating income -- TTM $1,734 $1,573 $1,505 $1,480 $1,451 (16%)
Operating income -- TTM Y/Y growth (decline), excluding F/X  (11%)  (21%)  (22%)  (21%)  (15%) N/A
Operating margin -- TTM % of Consolidated net sales  4.0%  3.3%  2.9%  2.7%  2.5% N/A
 
 
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except inventory turnover, accounts payable days and employee data)
(unaudited)
 
  Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Y/Y %
Change
Supplemental            
Supplemental North America Segment Net Sales:            
Media $1,927 $2,562 $2,197 $1,874 $2,215 15%
Media -- Y/Y growth, excluding F/X  21%  8%  17%  18%  15% N/A
Media -- TTM $7,767 $7,959 $8,270 $8,559 $8,847 14%
Electronics and other general merchandise $3,635 $6,881 $4,772 $4,937 $5,061 39%
Electronics and other general merchandise -- Y/Y growth, excluding F/X  56%  51%  44%  41%  39% N/A
Electronics and other general merchandise -- TTM $14,992 $17,315 $18,784 $20,226 $21,652 44%
Electronics and other general merchandise -- TTM % of North America net sales  62%  65%  66%  66%  67% N/A
Other $370 $459 $458 $515 $608 64%
Other -- TTM $1,255 $1,431 $1,613 $1,802 $2,041 63%
             
Supplemental International Segment Net Sales:            
Media $2,226 $3,447 $2,513 $2,245 $2,385 7%
Media -- Y/Y growth, excluding F/X  17%  18%  22%  12%  12% N/A
Media -- TTM $9,238 $9,820 $10,261 $10,431 $10,590 15%
Electronics and other general merchandise $2,681 $4,032 $3,203 $3,224 $3,497 30%
Electronics and other general merchandise -- Y/Y growth, excluding F/X  51%  41%  42%  42%  39% N/A
Electronics and other general merchandise -- TTM $10,199 $11,397 $12,314 $13,139 $13,956 37%
Electronics and other general merchandise -- TTM % of International net sales  52%  53%  54%  55%  56% N/A
Other $37 $50 $42 $39 $40 7%
Other -- TTM $143 $155 $162 $168 $170 19%
             
Supplemental Worldwide Net Sales:            
Media $4,153 $6,009 $4,710 $4,119 $4,600 11%
Media -- Y/Y growth, excluding F/X  19%  14%  19%  15%  14% N/A
Media -- TTM $17,005 $17,779 $18,531 $18,990 $19,437 14%
Electronics and other general merchandise $6,316 $10,913 $7,975 $8,161 $8,558 36%
Electronics and other general merchandise -- Y/Y growth, excluding F/X  54%  47%  43%  42%  39% N/A
Electronics and other general merchandise -- TTM $25,191 $28,712 $31,098 $33,365 $35,608 41%
Electronics and other general merchandise -- TTM % of WW net sales  58%  60%  60%  61%  62% N/A
Other $407 $509 $500 $554 $648 59%
Other -- TTM $1,398 $1,586 $1,775 $1,970 $2,211 58%
             
Balance Sheet            
Cash and marketable securities $6,326 $9,576 $5,715 $4,970 $5,248 (17%)
Inventory, net -- ending $3,770 $4,992 $4,255 $4,380 $5,065 34%
Inventory turnover, average -- TTM  10.8  10.3  10.4  10.1  9.7 (10%)
Fixed assets, net $3,999 $4,417 $4,653 $5,097 $5,662 42%
             
Accounts payable -- ending $6,552 $11,145 $6,886 $7,072 $8,369 28%
Accounts payable days -- ending  72  74  62  68  75 3%
             
Other            
WW shipping revenue $360 $531 $461 $469 $517 44%
WW shipping costs $918 $1,466 $1,129 $1,054 $1,153 26%
WW net shipping costs $558 $935 $668 $585 $636 14%
WW net shipping costs -- % of WW net sales  5.1%  5.4%  5.1%  4.6%  4.6% N/A
             
             
Employees (full-time and part-time; excludes contractors & temporary personnel)  51,300  56,200  65,600  69,100  81,400 59%
 
(1) Average Total Assets minus Current Liabilities (excluding current portion of Long Term Debt) over five quarter ends.
(2) TTM Free Cash Flow divided by Invested Capital.

(3) Represents cost of sales, fulfillment, marketing, technology and content, and general and administrative operating expenses, excluding stock-based compensation.

 
 

Amazon.com, Inc.
Certain Definitions

Customer Accounts

  • References to customers mean customer accounts, which are unique e-mail addresses, established either when a customer places an order or when a customer orders from other sellers on our websites. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Enterprise Solutions program customers, Amazon.com Payments customers, Amazon Web Services customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

Seller Accounts

  • References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Seller accounts exclude Amazon Enterprise Solutions sellers. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

Registered Developers

  • References to registered developers mean cumulative registered developer accounts, which are established when potential developers enroll with Amazon Web Services and receive a developer access key.

Units

 

Source: Amazon.com, Inc.

Amazon.com
Investor Relations:
Sean Boyle, 206-266-2171
www.amazon.com/ir
or
Public Relations:
Mary Osako, 206-266-7180