Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2023.
“It was another strong quarter of progress for Amazon,” said Andy Jassy, Amazon CEO. “We continued lowering our cost to serve in our fulfillment network, while also providing Prime customers with the fastest delivery speeds we’ve ever recorded. Our AWS growth stabilized as customers started shifting from cost optimization to new workload deployment, and AWS has continued to add to its meaningful leadership position in the cloud with a slew of generative AI releases that make it much easier and more cost-effective for companies to train and run models (Trainium and Inferentia chips), customize Large Language Models to build generative AI applications and agents (Bedrock), and write code much more efficiently with CodeWhisperer. We’re also continuing to see strong demand for our advertising services as the team keeps innovating for brands, including the ramp up for Thursday Night Football with the ability for advertisers to tailor their spots by audience and create interactive experiences for consumers. We remain excited about what lies ahead for customers and the company.”
Highlights
Obsessing over the customer experience
Amazon obsesses over how to make customers’ lives better and easier every day. This is true for consumers, sellers, brands, developers, enterprises, and creators. For example, Amazon:
Inventing on behalf of customers
Amazon is driven by a passion for invention across all of its business areas. The company builds new products and services that customers ask for, and also invents new ones that customers didn’t know they wanted but make their lives or businesses better in some meaningful way. For example, Amazon:
Supporting employees, delivery service partners, communities, and the environment
In addition to its focus on customers, Amazon strives to make every day better for its employees and delivery service partners. Amazon also believes that success and scale bring broad responsibility to help the planet, future generations, and local communities in which the company has a significant presence. For example, the company:
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of August 3, 2023, 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 and geopolitical conditions and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, and cloud services, and the various factors detailed below.
Third Quarter 2023 Guidance
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 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 and outcomes 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 and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, 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, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify 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 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, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.
AMAZON.COM, INC. |
||||||||||||||||||||||||
Consolidated Statements of Cash Flows |
||||||||||||||||||||||||
(in millions) |
||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
Twelve Months Ended June 30, |
|||||||||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
2022 |
2023 |
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD |
$ |
36,599 |
|
$ |
49,734 |
|
$ |
36,477 |
|
$ |
54,253 |
|
$ |
40,667 |
|
$ |
37,700 |
|
||||||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
||||||||||||||||||
Net income (loss) |
|
(2,028 |
) |
|
6,750 |
|
|
(5,872 |
) |
|
9,922 |
|
|
11,607 |
|
|
13,072 |
|
||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: |
|
|
|
|
|
|
||||||||||||||||||
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other |
|
9,716 |
|
|
11,589 |
|
|
18,909 |
|
|
22,712 |
|
|
37,748 |
|
|
45,724 |
|
||||||
Stock-based compensation |
|
5,209 |
|
|
7,127 |
|
|
8,459 |
|
|
11,875 |
|
|
15,319 |
|
|
23,037 |
|
||||||
Non-operating expense (income), net |
|
6,104 |
|
|
47 |
|
|
14,793 |
|
|
581 |
|
|
3,201 |
|
|
2,754 |
|
||||||
Deferred income taxes |
|
(1,955 |
) |
|
(2,744 |
) |
|
(3,956 |
) |
|
(3,216 |
) |
|
(6,670 |
) |
|
(7,408 |
) |
||||||
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||||||||||||||||||
Inventories |
|
(3,890 |
) |
|
(2,373 |
) |
|
(6,504 |
) |
|
(2,002 |
) |
|
(15,478 |
) |
|
1,910 |
|
||||||
Accounts receivable, net and other |
|
(6,799 |
) |
|
(5,167 |
) |
|
(8,315 |
) |
|
(3,646 |
) |
|
(19,761 |
) |
|
(17,228 |
) |
||||||
Accounts payable |
|
3,699 |
|
|
3,029 |
|
|
(5,681 |
) |
|
(8,235 |
) |
|
6,140 |
|
|
391 |
|
||||||
Accrued expenses and other |
|
(1,412 |
) |
|
(1,938 |
) |
|
(7,315 |
) |
|
(7,701 |
) |
|
553 |
|
|
(1,944 |
) |
||||||
Unearned revenue |
|
321 |
|
|
156 |
|
|
1,657 |
|
|
974 |
|
|
2,915 |
|
|
1,533 |
|
||||||
Net cash provided by (used in) operating activities |
|
8,965 |
|
|
16,476 |
|
|
6,175 |
|
|
21,264 |
|
|
35,574 |
|
|
61,841 |
|
||||||
INVESTING ACTIVITIES: |
|
|
|
|
|
|
||||||||||||||||||
Purchases of property and equipment |
|
(15,724 |
) |
|
(11,455 |
) |
|
(30,675 |
) |
|
(25,662 |
) |
|
(65,358 |
) |
|
(58,632 |
) |
||||||
Proceeds from property and equipment sales and incentives |
|
1,626 |
|
|
1,043 |
|
|
2,835 |
|
|
2,180 |
|
|
6,297 |
|
|
4,669 |
|
||||||
Acquisitions, net of cash acquired, and other |
|
(259 |
) |
|
(316 |
) |
|
(6,600 |
) |
|
(3,829 |
) |
|
(7,635 |
) |
|
(5,545 |
) |
||||||
Sales and maturities of marketable securities |
|
2,608 |
|
|
1,551 |
|
|
25,361 |
|
|
2,666 |
|
|
53,706 |
|
|
8,906 |
|
||||||
Purchases of marketable securities |
|
(329 |
) |
|
(496 |
) |
|
(2,093 |
) |
|
(834 |
) |
|
(25,590 |
) |
|
(1,306 |
) |
||||||
Net cash provided by (used in) investing activities |
|
(12,078 |
) |
|
(9,673 |
) |
|
(11,172 |
) |
|
(25,479 |
) |
|
(38,580 |
) |
|
(51,908 |
) |
||||||
FINANCING ACTIVITIES: |
|
|
|
|
|
|
||||||||||||||||||
Common stock repurchased |
|
(3,334 |
) |
|
— |
|
|
(6,000 |
) |
|
— |
|
|
(6,000 |
) |
|
— |
|
||||||
Proceeds from short-term debt, and other |
|
4,865 |
|
|
4,399 |
|
|
18,608 |
|
|
17,179 |
|
|
23,462 |
|
|
40,124 |
|
||||||
Repayments of short-term debt, and other |
|
(7,610 |
) |
|
(7,641 |
) |
|
(13,841 |
) |
|
(11,244 |
) |
|
(18,417 |
) |
|
(34,957 |
) |
||||||
Proceeds from long-term debt |
|
12,824 |
|
|
— |
|
|
12,824 |
|
|
— |
|
|
13,200 |
|
|
8,342 |
|
||||||
Repayments of long-term debt |
|
(1 |
) |
|
(2,000 |
) |
|
(1 |
) |
|
(3,386 |
) |
|
(1,511 |
) |
|
(4,643 |
) |
||||||
Principal repayments of finance leases |
|
(2,059 |
) |
|
(1,220 |
) |
|
(4,836 |
) |
|
(2,600 |
) |
|
(9,789 |
) |
|
(5,705 |
) |
||||||
Principal repayments of financing obligations |
|
(59 |
) |
|
(77 |
) |
|
(138 |
) |
|
(134 |
) |
|
(205 |
) |
|
(244 |
) |
||||||
Net cash provided by (used in) financing activities |
|
4,626 |
|
|
(6,539 |
) |
|
6,616 |
|
|
(185 |
) |
|
740 |
|
|
2,917 |
|
||||||
Foreign currency effect on cash, cash equivalents, and restricted cash |
|
(412 |
) |
|
69 |
|
|
(396 |
) |
|
214 |
|
|
(701 |
) |
|
(483 |
) |
||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
1,101 |
|
|
333 |
|
|
1,223 |
|
|
(4,186 |
) |
|
(2,967 |
) |
|
12,367 |
|
||||||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD |
$ |
37,700 |
|
$ |
50,067 |
|
$ |
37,700 |
|
$ |
50,067 |
|
$ |
37,700 |
|
$ |
50,067 |
|
||||||
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
||||||||||||||||||
Cash paid for interest on debt, net of capitalized interest |
$ |
349 |
|
$ |
954 |
|
$ |
628 |
|
$ |
1,356 |
|
$ |
1,271 |
|
$ |
2,289 |
|
||||||
Cash paid for operating leases |
|
2,088 |
|
|
2,528 |
|
|
4,455 |
|
|
4,995 |
|
|
7,960 |
|
|
9,173 |
|
||||||
Cash paid for interest on finance leases |
|
95 |
|
|
77 |
|
|
202 |
|
|
158 |
|
|
437 |
|
|
330 |
|
||||||
Cash paid for interest on financing obligations |
|
55 |
|
|
41 |
|
|
113 |
|
|
100 |
|
|
198 |
|
|
194 |
|
||||||
Cash paid for income taxes, net of refunds |
|
3,145 |
|
|
3,735 |
|
|
3,598 |
|
|
4,354 |
|
|
4,682 |
|
|
6,791 |
|
||||||
Assets acquired under operating leases |
|
5,101 |
|
|
4,104 |
|
|
7,276 |
|
|
7,730 |
|
|
23,531 |
|
|
19,254 |
|
||||||
Property and equipment acquired under finance leases, net of remeasurements and modifications |
|
61 |
|
|
240 |
|
|
227 |
|
|
248 |
|
|
3,579 |
|
|
696 |
|
||||||
Property and equipment recognized during the construction period of build-to-suit lease arrangements |
|
986 |
|
|
84 |
|
|
2,351 |
|
|
215 |
|
|
6,117 |
|
|
1,051 |
|
||||||
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating |
|
1,079 |
|
|
— |
|
|
1,112 |
|
|
720 |
|
|
1,243 |
|
|
4,766 |
|
AMAZON.COM, INC. |
||||||||||||||||
Consolidated Statements of Operations |
||||||||||||||||
(in millions, except per share data) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|||||||||||||
Net product sales |
$ |
56,575 |
|
$ |
59,032 |
|
$ |
113,030 |
|
$ |
116,013 |
|
||||
Net service sales |
|
64,659 |
|
|
75,351 |
|
|
124,648 |
|
|
145,728 |
|
||||
Total net sales |
|
121,234 |
|
|
134,383 |
|
|
237,678 |
|
|
261,741 |
|
||||
Operating expenses: |
|
|
|
|
||||||||||||
Cost of sales |
|
66,424 |
|
|
69,373 |
|
|
132,923 |
|
|
137,164 |
|
||||
Fulfillment |
|
20,342 |
|
|
21,305 |
|
|
40,613 |
|
|
42,210 |
|
||||
Technology and infrastructure |
|
18,072 |
|
|
21,931 |
|
|
32,914 |
|
|
42,381 |
|
||||
Sales and marketing |
|
10,086 |
|
|
10,745 |
|
|
18,406 |
|
|
20,917 |
|
||||
General and administrative |
|
2,903 |
|
|
3,202 |
|
|
5,497 |
|
|
6,245 |
|
||||
Other operating expense (income), net |
|
90 |
|
|
146 |
|
|
339 |
|
|
369 |
|
||||
Total operating expenses |
|
117,917 |
|
|
126,702 |
|
|
230,692 |
|
|
249,286 |
|
||||
Operating income |
|
3,317 |
|
|
7,681 |
|
|
6,986 |
|
|
12,455 |
|
||||
Interest income |
|
159 |
|
|
661 |
|
|
267 |
|
|
1,272 |
|
||||
Interest expense |
|
(584 |
) |
|
(840 |
) |
|
(1,056 |
) |
|
(1,663 |
) |
||||
Other income (expense), net |
|
(5,545 |
) |
|
61 |
|
|
(14,115 |
) |
|
(382 |
) |
||||
Total non-operating expense |
|
(5,970 |
) |
|
(118 |
) |
|
(14,904 |
) |
|
(773 |
) |
||||
Income (loss) before income taxes |
|
(2,653 |
) |
|
7,563 |
|
|
(7,918 |
) |
|
11,682 |
|
||||
Benefit (provision) for income taxes |
|
637 |
|
|
(804 |
) |
|
2,059 |
|
|
(1,752 |
) |
||||
Equity-method investment activity, net of tax |
|
(12 |
) |
|
(9 |
) |
|
(13 |
) |
|
(8 |
) |
||||
Net income (loss) |
$ |
(2,028 |
) |
$ |
6,750 |
|
$ |
(5,872 |
) |
$ |
9,922 |
|
||||
Basic earnings per share |
$ |
(0.20 |
) |
$ |
0.66 |
|
$ |
(0.58 |
) |
$ |
0.97 |
|
||||
Diluted earnings per share |
$ |
(0.20 |
) |
$ |
0.65 |
|
$ |
(0.58 |
) |
$ |
0.95 |
|
||||
Weighted-average shares used in computation of earnings per |
|
|
|
|
||||||||||||
Basic |
|
10,175 |
|
|
10,285 |
|
|
10,173 |
|
|
10,268 |
|
||||
Diluted |
|
10,175 |
|
|
10,449 |
|
|
10,173 |
|
|
10,398 |
|
AMAZON.COM, INC. |
||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) |
||||||||||||||
(in millions) |
||||||||||||||
(unaudited) |
||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||
|
|
|
|
|
||||||||||
|
|
|
|
|||||||||||
Net income (loss) |
$ |
(2,028 |
) |
$ |
6,750 |
$ |
(5,872 |
) |
$ |
9,922 |
||||
Other comprehensive income (loss): |
|
|
|
|
||||||||||
Foreign currency translation adjustments, net of tax of $76, $(22), $60, and $(32) |
|
(2,186 |
) |
|
264 |
|
(2,519 |
) |
|
650 |
||||
Net change in unrealized gains (losses) on available-for-sale debt securities: |
|
|
|
|
||||||||||
Unrealized gains (losses), net of tax of $0, $(5), $1, and $(34) |
|
(238 |
) |
|
17 |
|
(900 |
) |
|
112 |
||||
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $(5), $0, and $(15) |
|
7 |
|
|
12 |
|
13 |
|
|
45 |
||||
Net unrealized gains (losses) on available-for-sale debt securities |
|
(231 |
) |
|
29 |
|
(887 |
) |
|
157 |
||||
Total other comprehensive income (loss) |
|
(2,417 |
) |
|
293 |
|
(3,406 |
) |
|
807 |
||||
Comprehensive income (loss) |
$ |
(4,445 |
) |
$ |
7,043 |
$ |
(9,278 |
) |
$ |
10,729 |
AMAZON.COM, INC. |
||||||||||||||||
Segment Information |
||||||||||||||||
(in millions) |
||||||||||||||||
(unaudited) |
||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||
|
2022 |
2023 |
2022 |
2023 |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|||||||||||||
North America |
|
|
|
|
||||||||||||
Net sales |
$ |
74,430 |
|
$ |
82,546 |
|
$ |
143,674 |
|
$ |
159,427 |
|
||||
Operating expenses |
|
75,057 |
|
|
79,335 |
|
|
145,869 |
|
|
155,318 |
|
||||
Operating income (loss) |
$ |
(627 |
) |
$ |
3,211 |
|
$ |
(2,195 |
) |
$ |
4,109 |
|
||||
|
|
|
|
|
||||||||||||
International |
|
|
|
|
||||||||||||
Net sales |
$ |
27,065 |
|
$ |
29,697 |
|
$ |
55,824 |
|
$ |
58,820 |
|
||||
Operating expenses |
|
28,836 |
|
|
30,592 |
|
|
58,876 |
|
|
60,962 |
|
||||
Operating loss |
$ |
(1,771 |
) |
$ |
(895 |
) |
$ |
(3,052 |
) |
$ |
(2,142 |
) |
||||
|
|
|
|
|
||||||||||||
AWS |
|
|
|
|
||||||||||||
Net sales |
$ |
19,739 |
|
$ |
22,140 |
|
$ |
38,180 |
|
$ |
43,494 |
|
||||
Operating expenses |
|
14,024 |
|
|
16,775 |
|
|
25,947 |
|
|
33,006 |
|
||||
Operating income |
$ |
5,715 |
|
$ |
5,365 |
|
$ |
12,233 |
|
$ |
10,488 |
|
||||
|
|
|
|
|
||||||||||||
Consolidated |
|
|
|
|
||||||||||||
Net sales |
$ |
121,234 |
|
$ |
134,383 |
|
$ |
237,678 |
|
$ |
261,741 |
|
||||
Operating expenses |
|
117,917 |
|
|
126,702 |
|
|
230,692 |
|
|
249,286 |
|
||||
Operating income |
|
3,317 |
|
|
7,681 |
|
|
6,986 |
|
|
12,455 |
|
||||
Total non-operating expense |
|
(5,970 |
) |
|
(118 |
) |
|
(14,904 |
) |
|
(773 |
) |
||||
Benefit (provision) for income taxes |
|
637 |
|
|
(804 |
) |
|
2,059 |
|
|
(1,752 |
) |
||||
Equity-method investment activity, net of tax |
|
(12 |
) |
|
(9 |
) |
|
(13 |
) |
|
(8 |
) |
||||
Net income (loss) |
$ |
(2,028 |
) |
$ |
6,750 |
|
$ |
(5,872 |
) |
$ |
9,922 |
|
||||
|
|
|
|
|
||||||||||||
Segment Highlights: |
|
|
|
|
||||||||||||
Y/Y net sales growth (decline): |
|
|
|
|
||||||||||||
North America |
|
10 |
% |
|
11 |
% |
|
9 |
% |
|
11 |
% |
||||
International |
|
(12 |
) |
|
10 |
|
|
(9 |
) |
|
5 |
|
||||
AWS |
|
33 |
|
|
12 |
|
|
35 |
|
|
14 |
|
||||
Consolidated |
|
7 |
|
|
11 |
|
|
7 |
|
|
10 |
|
||||
Net sales mix: |
|
|
|
|
||||||||||||
North America |
|
62 |
% |
|
61 |
% |
|
60 |
% |
|
61 |
% |
||||
International |
|
22 |
|
|
22 |
|
|
24 |
|
|
22 |
|
||||
AWS |
|
16 |
|
|
17 |
|
|
16 |
|
|
17 |
|
||||
Consolidated |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
AMAZON.COM, INC. |
||||||||
Consolidated Balance Sheets |
||||||||
(in millions, except per share data) |
||||||||
(unaudited) |
||||||||
|
December 31, 2022 |
June 30, 2023 |
||||||
|
|
|
||||||
ASSETS |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
53,888 |
|
$ |
49,529 |
|
||
Marketable securities |
|
16,138 |
|
|
14,441 |
|
||
Inventories |
|
34,405 |
|
|
36,587 |
|
||
Accounts receivable, net and other |
|
42,360 |
|
|
39,925 |
|
||
Total current assets |
|
146,791 |
|
|
140,482 |
|
||
Property and equipment, net |
|
186,715 |
|
|
193,784 |
|
||
Operating leases |
|
66,123 |
|
|
70,332 |
|
||
Goodwill |
|
20,288 |
|
|
22,785 |
|
||
Other assets |
|
42,758 |
|
|
50,224 |
|
||
Total assets |
$ |
462,675 |
|
$ |
477,607 |
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable |
$ |
79,600 |
|
$ |
69,481 |
|
||
Accrued expenses and other |
|
62,566 |
|
|
64,235 |
|
||
Unearned revenue |
|
13,227 |
|
|
14,522 |
|
||
Total current liabilities |
|
155,393 |
|
|
148,238 |
|
||
Long-term lease liabilities |
|
72,968 |
|
|
75,822 |
|
||
Long-term debt |
|
67,150 |
|
|
63,092 |
|
||
Other long-term liabilities |
|
21,121 |
|
|
21,853 |
|
||
Commitments and contingencies |
|
|
||||||
Stockholders’ equity: |
|
|
||||||
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) |
|
— |
|
|
— |
|
||
Common stock ($0.01 par value; 100,000 shares authorized; 10,757 and 10,828 shares issued; 10,242 and 10,313 shares outstanding) |
|
108 |
|
|
108 |
|
||
Treasury stock, at cost |
|
(7,837 |
) |
|
(7,837 |
) |
||
Additional paid-in capital |
|
75,066 |
|
|
86,896 |
|
||
Accumulated other comprehensive income (loss) |
|
(4,487 |
) |
|
(3,680 |
) |
||
Retained earnings |
|
83,193 |
|
|
93,115 |
|
||
Total stockholders’ equity |
|
146,043 |
|
|
168,602 |
|
||
Total liabilities and stockholders’ equity |
$ |
462,675 |
|
$ |
477,607 |
|
AMAZON.COM, INC. |
||||||||||||||||||||||||||
Supplemental Financial Information and Business Metrics |
||||||||||||||||||||||||||
(in millions, except per share data) |
||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||
|
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Y/Y % Change |
|||||||||||||||||||
Cash Flows and Shares |
|
|
|
|
|
|
|
|||||||||||||||||||
Operating cash flow -- trailing twelve months (TTM) |
$ |
39,324 |
|
$ |
35,574 |
|
$ |
39,665 |
|
$ |
46,752 |
|
$ |
54,330 |
|
$ |
61,841 |
|
74% |
|||||||
Operating cash flow -- TTM Y/Y growth (decline) |
|
(41 |
)% |
|
(40 |
)% |
|
(27 |
)% |
|
1 |
% |
|
38 |
% |
|
74 |
% |
N/A |
|||||||
Purchases of property and equipment, net of proceeds from sales and incentives -- TTM |
$ |
57,951 |
|
$ |
59,061 |
|
$ |
59,351 |
|
$ |
58,321 |
|
$ |
57,649 |
|
$ |
53,963 |
|
(9)% |
|||||||
Principal repayments of finance leases -- TTM |
$ |
10,534 |
|
$ |
9,789 |
|
$ |
8,561 |
|
$ |
7,941 |
|
$ |
6,544 |
|
$ |
5,705 |
|
(42)% |
|||||||
Principal repayments of financing obligations -- TTM |
$ |
174 |
|
$ |
205 |
|
$ |
233 |
|
$ |
248 |
|
$ |
226 |
|
$ |
244 |
|
19% |
|||||||
Equipment acquired under finance leases -- TTM (1) |
$ |
2,764 |
|
$ |
1,621 |
|
$ |
868 |
|
$ |
299 |
|
$ |
285 |
|
$ |
269 |
|
(83)% |
|||||||
Principal repayments of all other finance leases -- TTM (2) |
$ |
714 |
|
$ |
751 |
|
$ |
706 |
|
$ |
670 |
|
$ |
625 |
|
$ |
631 |
|
(16)% |
|||||||
Free cash flow -- TTM (3) |
$ |
(18,627 |
) |
$ |
(23,487 |
) |
$ |
(19,686 |
) |
$ |
(11,569 |
) |
$ |
(3,319 |
) |
$ |
7,878 |
|
N/A |
|||||||
Free cash flow less principal repayments of finance leases and financing obligations -- TTM (4) |
$ |
(29,335 |
) |
$ |
(33,481 |
) |
$ |
(28,480 |
) |
$ |
(19,758 |
) |
$ |
(10,089 |
) |
$ |
1,929 |
|
N/A |
|||||||
Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations -- TTM (5) |
$ |
(22,279 |
) |
$ |
(26,064 |
) |
$ |
(21,493 |
) |
$ |
(12,786 |
) |
$ |
(4,455 |
) |
$ |
6,734 |
|
N/A |
|||||||
Common shares and stock-based awards outstanding |
|
10,454 |
|
|
10,551 |
|
|
10,597 |
|
|
10,627 |
|
|
10,625 |
|
|
10,794 |
|
2% |
|||||||
Common shares outstanding |
|
10,171 |
|
|
10,183 |
|
|
10,198 |
|
|
10,242 |
|
|
10,258 |
|
|
10,313 |
|
1% |
|||||||
Stock-based awards outstanding |
|
283 |
|
|
368 |
|
|
399 |
|
|
384 |
|
|
367 |
|
|
481 |
|
31% |
|||||||
Stock-based awards outstanding -- % of common shares outstanding |
|
2.8 |
% |
|
3.6 |
% |
|
3.9 |
% |
|
3.8 |
% |
|
3.6 |
% |
|
4.7 |
% |
N/A |
|||||||
Results of Operations |
|
|
|
|
|
|
|
|||||||||||||||||||
Worldwide (WW) net sales |
$ |
116,444 |
|
$ |
121,234 |
|
$ |
127,101 |
|
$ |
149,204 |
|
$ |
127,358 |
|
$ |
134,383 |
|
11% |
|||||||
WW net sales -- Y/Y growth, excluding F/X |
|
9 |
% |
|
10 |
% |
|
19 |
% |
|
12 |
% |
|
11 |
% |
|
11 |
% |
N/A |
|||||||
WW net sales -- TTM |
$ |
477,748 |
|
$ |
485,902 |
|
$ |
502,191 |
|
$ |
513,983 |
|
$ |
524,897 |
|
$ |
538,046 |
|
11% |
|||||||
WW net sales -- TTM Y/Y growth, excluding F/X |
|
14 |
% |
|
11 |
% |
|
12 |
% |
|
13 |
% |
|
13 |
% |
|
13 |
% |
N/A |
|||||||
Operating income |
$ |
3,669 |
|
$ |
3,317 |
|
$ |
2,525 |
|
$ |
2,737 |
|
$ |
4,774 |
|
$ |
7,681 |
|
132% |
|||||||
F/X impact -- favorable |
$ |
126 |
|
$ |
165 |
|
$ |
357 |
|
$ |
213 |
|
$ |
139 |
|
$ |
104 |
|
N/A |
|||||||
Operating income -- Y/Y growth (decline), excluding F/X |
|
(60 |
)% |
|
(59 |
)% |
|
(55 |
)% |
|
(27 |
)% |
|
26 |
% |
|
128 |
% |
N/A |
|||||||
Operating margin -- % of WW net sales |
|
3.2 |
% |
|
2.7 |
% |
|
2.0 |
% |
|
1.8 |
% |
|
3.7 |
% |
|
5.7 |
% |
N/A |
|||||||
Operating income -- TTM |
$ |
19,683 |
|
$ |
15,298 |
|
$ |
12,971 |
|
$ |
12,248 |
|
$ |
13,353 |
|
$ |
17,717 |
|
16% |
|||||||
Operating income -- TTM Y/Y growth (decline), excluding F/X |
|
(30 |
)% |
|
(49 |
)% |
|
(57 |
)% |
|
(54 |
)% |
|
(37 |
)% |
|
10 |
% |
N/A |
|||||||
Operating margin -- TTM % of WW net sales |
|
4.1 |
% |
|
3.1 |
% |
|
2.6 |
% |
|
2.4 |
% |
|
2.5 |
% |
|
3.3 |
% |
N/A |
|||||||
Net income (loss) |
$ |
(3,844 |
) |
$ |
(2,028 |
) |
$ |
2,872 |
|
$ |
278 |
|
$ |
3,172 |
|
$ |
6,750 |
|
N/A |
|||||||
Net income (loss) per diluted share |
$ |
(0.38 |
) |
$ |
(0.20 |
) |
$ |
0.28 |
|
$ |
0.03 |
|
$ |
0.31 |
|
$ |
0.65 |
|
N/A |
|||||||
Net income (loss) -- TTM |
$ |
21,413 |
|
$ |
11,607 |
|
$ |
11,323 |
|
$ |
(2,722 |
) |
$ |
4,294 |
|
$ |
13,072 |
|
13% |
|||||||
Net income (loss) per diluted share -- TTM |
$ |
2.08 |
|
$ |
1.13 |
|
$ |
1.10 |
|
$ |
(0.27 |
) |
$ |
0.42 |
|
$ |
1.26 |
|
12% |
______________________________ |
||
(1) |
For the twelve months ended June 30, 2022 and 2023, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $3,579 million and $696 million. |
|
(2) |
For the twelve months ended June 30, 2022 and 2023, this amount relates to property included in “Principal repayments of finance leases” of $9,789 million and $5,705 million. |
|
(3) |
Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.” |
|
(4) |
Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by “Principal repayments of finance leases” and “Principal repayments of financing obligations.” |
|
(5) |
Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment acquired under finance leases, which is included in “Property and equipment acquired under finance leases, net of remeasurements and modifications,” principal repayments of all other finance lease liabilities, which is included in “Principal repayments of finance leases,” and “Principal repayments of financing obligations.” |
AMAZON.COM, INC. |
||||||||||||||||||||||||||
Supplemental Financial Information and Business Metrics |
||||||||||||||||||||||||||
(in millions) |
||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||
|
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Y/Y % Change |
|||||||||||||||||||
Segments |
|
|
|
|
|
|
|
|||||||||||||||||||
North America Segment: |
|
|
|
|
|
|
|
|||||||||||||||||||
Net sales |
$ |
69,244 |
|
$ |
74,430 |
|
$ |
78,843 |
|
$ |
93,363 |
|
$ |
76,881 |
|
$ |
82,546 |
|
11% |
|||||||
Net sales -- Y/Y growth, excluding F/X |
|
8 |
% |
|
10 |
% |
|
20 |
% |
|
14 |
% |
|
11 |
% |
|
11 |
% |
N/A |
|||||||
Net sales -- TTM |
$ |
284,711 |
|
$ |
291,591 |
|
$ |
304,877 |
|
$ |
315,880 |
|
$ |
323,517 |
|
$ |
331,633 |
|
14% |
|||||||
Operating income (loss) |
$ |
(1,568 |
) |
$ |
(627 |
) |
$ |
(412 |
) |
$ |
(240 |
) |
$ |
898 |
|
$ |
3,211 |
|
N/A |
|||||||
F/X impact -- favorable (unfavorable) |
$ |
42 |
|
$ |
61 |
|
$ |
95 |
|
$ |
76 |
|
$ |
41 |
|
$ |
(7 |
) |
N/A |
|||||||
Operating income (loss) -- Y/Y growth (decline), excluding F/X |
|
(147 |
)% |
|
(122 |
)% |
|
(158 |
)% |
|
53 |
% |
|
N/A |
|
|
N/A |
|
N/A |
|||||||
Operating margin -- % of North America net sales |
|
(2.3 |
)% |
|
(0.8 |
)% |
|
(0.5 |
)% |
|
(0.3 |
)% |
|
1.2 |
% |
|
3.9 |
% |
N/A |
|||||||
Operating income (loss) -- TTM |
$ |
2,253 |
|
$ |
(1,521 |
) |
$ |
(2,813 |
) |
$ |
(2,847 |
) |
$ |
(381 |
) |
$ |
3,457 |
|
N/A |
|||||||
Operating margin -- TTM % of North America net sales |
|
0.8 |
% |
|
(0.5 |
)% |
|
(0.9 |
)% |
|
(0.9 |
)% |
|
(0.1 |
)% |
|
1.0 |
% |
N/A |
|||||||
International Segment: |
|
|
|
|
|
|
|
|||||||||||||||||||
Net sales |
$ |
28,759 |
|
$ |
27,065 |
|
$ |
27,720 |
|
$ |
34,463 |
|
$ |
29,123 |
|
$ |
29,697 |
|
10% |
|||||||
Net sales -- Y/Y growth (decline), excluding F/X |
|
0 |
% |
|
(1 |
)% |
|
12 |
% |
|
5 |
% |
|
9 |
% |
|
10 |
% |
N/A |
|||||||
Net sales -- TTM |
$ |
125,897 |
|
$ |
122,241 |
|
$ |
120,816 |
|
$ |
118,007 |
|
$ |
118,371 |
|
$ |
121,003 |
|
(1)% |
|||||||
Operating loss |
$ |
(1,281 |
) |
$ |
(1,771 |
) |
$ |
(2,466 |
) |
$ |
(2,228 |
) |
$ |
(1,247 |
) |
$ |
(895 |
) |
(49)% |
|||||||
F/X impact -- favorable (unfavorable) |
$ |
(79 |
) |
$ |
(231 |
) |
$ |
(216 |
) |
$ |
(331 |
) |
$ |
(174 |
) |
$ |
32 |
|
N/A |
|||||||
Operating loss -- Y/Y growth (decline), excluding F/X |
|
(196 |
)% |
|
(526 |
)% |
|
147 |
% |
|
17 |
% |
|
(16 |
)% |
|
(48 |
)% |
N/A |
|||||||
Operating margin -- % of International net sales |
|
(4.5 |
)% |
|
(6.5 |
)% |
|
(8.9 |
)% |
|
(6.5 |
)% |
|
(4.3 |
)% |
|
(3.0 |
)% |
N/A |
|||||||
Operating loss -- TTM |
$ |
(3,457 |
) |
$ |
(5,590 |
) |
$ |
(7,145 |
) |
$ |
(7,746 |
) |
$ |
(7,712 |
) |
$ |
(6,836 |
) |
22% |
|||||||
Operating margin -- TTM % of International net sales |
|
(2.7 |
)% |
|
(4.6 |
)% |
|
(5.9 |
)% |
|
(6.6 |
)% |
|
(6.5 |
)% |
|
(5.6 |
)% |
N/A |
|||||||
AWS Segment: |
|
|
|
|
|
|
|
|||||||||||||||||||
Net sales |
$ |
18,441 |
|
$ |
19,739 |
|
$ |
20,538 |
|
$ |
21,378 |
|
$ |
21,354 |
|
$ |
22,140 |
|
12% |
|||||||
Net sales -- Y/Y growth, excluding F/X |
|
37 |
% |
|
33 |
% |
|
28 |
% |
|
20 |
% |
|
16 |
% |
|
12 |
% |
N/A |
|||||||
Net sales -- TTM |
$ |
67,140 |
|
$ |
72,070 |
|
$ |
76,498 |
|
$ |
80,096 |
|
$ |
83,009 |
|
$ |
85,410 |
|
19% |
|||||||
Operating income |
$ |
6,518 |
|
$ |
5,715 |
|
$ |
5,403 |
|
$ |
5,205 |
|
$ |
5,123 |
|
$ |
5,365 |
|
(6)% |
|||||||
F/X impact -- favorable |
$ |
163 |
|
$ |
335 |
|
$ |
478 |
|
$ |
468 |
|
$ |
272 |
|
$ |
79 |
|
N/A |
|||||||
Operating income -- Y/Y growth (decline), excluding F/X |
|
53 |
% |
|
28 |
% |
|
1 |
% |
|
(10 |
)% |
|
(26 |
)% |
|
(8 |
)% |
N/A |
|||||||
Operating margin -- % of AWS net sales |
|
35.3 |
% |
|
29.0 |
% |
|
26.3 |
% |
|
24.3 |
% |
|
24.0 |
% |
|
24.2 |
% |
N/A |
|||||||
Operating income -- TTM |
$ |
20,887 |
|
$ |
22,409 |
|
$ |
22,929 |
|
$ |
22,841 |
|
$ |
21,446 |
|
$ |
21,096 |
|
(6)% |
|||||||
Operating margin -- TTM % of AWS net sales |
|
31.1 |
% |
|
31.1 |
% |
|
30.0 |
% |
|
28.5 |
% |
|
25.8 |
% |
|
24.7 |
% |
N/A |
AMAZON.COM, INC. |
||||||||||||||||||||||||||
Supplemental Financial Information and Business Metrics |
||||||||||||||||||||||||||
(in millions, except employee data) |
||||||||||||||||||||||||||
(unaudited) |
||||||||||||||||||||||||||
|
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Y/Y % Change |
|||||||||||||||||||
Net Sales |
|
|
|
|
|
|
|
|||||||||||||||||||
Online stores (1) |
$ |
51,129 |
|
$ |
50,855 |
|
$ |
53,489 |
|
$ |
64,531 |
|
$ |
51,096 |
|
$ |
52,966 |
|
4% |
|||||||
Online stores -- Y/Y growth (decline), excluding F/X |
|
(1 |
)% |
|
0 |
% |
|
13 |
% |
|
2 |
% |
|
3 |
% |
|
5 |
% |
N/A |
|||||||
Physical stores (2) |
$ |
4,591 |
|
$ |
4,721 |
|
$ |
4,694 |
|
$ |
4,957 |
|
$ |
4,895 |
|
$ |
5,024 |
|
6% |
|||||||
Physical stores -- Y/Y growth, excluding F/X |
|
16 |
% |
|
13 |
% |
|
10 |
% |
|
6 |
% |
|
7 |
% |
|
7 |
% |
N/A |
|||||||
Third-party seller services (3) |
$ |
25,335 |
|
$ |
27,376 |
|
$ |
28,666 |
|
$ |
36,339 |
|
$ |
29,820 |
|
$ |
32,332 |
|
18% |
|||||||
Third-party seller services -- Y/Y growth, excluding F/X |
|
9 |
% |
|
13 |
% |
|
23 |
% |
|
24 |
% |
|
20 |
% |
|
18 |
% |
N/A |
|||||||
Subscription services (4) |
$ |
8,410 |
|
$ |
8,716 |
|
$ |
8,903 |
|
$ |
9,189 |
|
$ |
9,657 |
|
$ |
9,894 |
|
14% |
|||||||
Subscription services -- Y/Y growth, excluding F/X |
|
13 |
% |
|
14 |
% |
|
14 |
% |
|
17 |
% |
|
17 |
% |
|
14 |
% |
N/A |
|||||||
Advertising services (5) |
$ |
7,877 |
|
$ |
8,757 |
|
$ |
9,548 |
|
$ |
11,557 |
|
$ |
9,509 |
|
$ |
10,683 |
|
22% |
|||||||
Advertising services -- Y/Y growth, excluding F/X |
|
25 |
% |
|
21 |
% |
|
30 |
% |
|
23 |
% |
|
23 |
% |
|
22 |
% |
N/A |
|||||||
AWS |
$ |
18,441 |
|
$ |
19,739 |
|
$ |
20,538 |
|
$ |
21,378 |
|
$ |
21,354 |
|
$ |
22,140 |
|
12% |
|||||||
AWS -- Y/Y growth, excluding F/X |
|
37 |
% |
|
33 |
% |
|
28 |
% |
|
20 |
% |
|
16 |
% |
|
12 |
% |
N/A |
|||||||
Other (6) |
$ |
661 |
|
$ |
1,070 |
|
$ |
1,263 |
|
$ |
1,253 |
|
$ |
1,027 |
|
$ |
1,344 |
|
26% |
|||||||
Other -- Y/Y growth, excluding F/X |
|
28 |
% |
|
135 |
% |
|
168 |
% |
|
80 |
% |
|
57 |
% |
|
26 |
% |
N/A |
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||
Stock-based Compensation Expense |
|
|
|
|
|
|
|
|||||||||||||||||||
Cost of sales |
$ |
146 |
|
$ |
213 |
|
$ |
190 |
|
$ |
208 |
|
$ |
165 |
|
$ |
251 |
|
18% |
|||||||
Fulfillment |
$ |
498 |
|
$ |
763 |
|
$ |
727 |
|
$ |
757 |
|
$ |
603 |
|
$ |
932 |
|
22% |
|||||||
Technology and infrastructure |
$ |
1,645 |
|
$ |
2,814 |
|
$ |
3,036 |
|
$ |
3,126 |
|
$ |
2,574 |
|
$ |
4,043 |
|
44% |
|||||||
Sales and marketing |
$ |
665 |
|
$ |
990 |
|
$ |
1,128 |
|
$ |
1,092 |
|
$ |
993 |
|
$ |
1,303 |
|
32% |
|||||||
General and administrative |
$ |
296 |
|
$ |
429 |
|
$ |
475 |
|
$ |
423 |
|
$ |
413 |
|
$ |
598 |
|
39% |
|||||||
Total stock-based compensation expense |
$ |
3,250 |
|
$ |
5,209 |
|
$ |
5,556 |
|
$ |
5,606 |
|
$ |
4,748 |
|
$ |
7,127 |
|
37% |
|||||||
Other |
|
|
|
|
|
|
|
|||||||||||||||||||
WW shipping costs |
$ |
19,560 |
|
$ |
19,304 |
|
$ |
19,942 |
|
$ |
24,714 |
|
$ |
19,937 |
|
$ |
20,418 |
|
6% |
|||||||
WW shipping costs -- Y/Y growth |
|
14 |
% |
|
9 |
% |
|
10 |
% |
|
4 |
% |
|
2 |
% |
|
6 |
% |
N/A |
|||||||
WW paid units -- Y/Y growth (7) |
|
0 |
% |
|
1 |
% |
|
11 |
% |
|
8 |
% |
|
8 |
% |
|
9 |
% |
N/A |
|||||||
WW seller unit mix -- % of WW paid units (7) |
|
55 |
% |
|
57 |
% |
|
58 |
% |
|
59 |
% |
|
59 |
% |
|
60 |
% |
N/A |
|||||||
Employees (full-time and part-time; excludes contractors & temporary personnel) |
|
1,622,000 |
|
|
1,523,000 |
|
|
1,544,000 |
|
|
1,541,000 |
|
|
1,465,000 |
|
|
1,461,000 |
|
(4)% |
|||||||
Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth (decline) |
|
28 |
% |
|
14 |
% |
|
5 |
% |
|
(4 |
)% |
|
(10 |
)% |
|
(4 |
)% |
N/A |
________________________ |
||
(1) |
Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.” |
|
(2) |
Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.” |
|
(3) |
Includes commissions and any related fulfillment and shipping fees, and other third-party seller services. |
|
(4) |
Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services. |
|
(5) |
Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. |
|
(6) |
Includes sales related to various other offerings, such as certain licensing and distribution of video content, health care services, and shipping services, and our co-branded credit card agreements. |
|
(7) |
Excludes the impact of Whole Foods Market. |
Amazon.com, Inc.
Certain Definitions
Customer Accounts
Seller Accounts
AWS Customers
Units
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802612401/en/
Amazon Investor Relations
Dave Fildes, [email protected]
amazon.com/ir
Amazon Public Relations
Dan Perlet, [email protected]
amazon.com/pr