Upgrade to SI Premium - Free Trial

Amazon.com Announces Third Quarter Sales up 29% to $56.6 Billion

October 25, 2018 4:01 PM

SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September�30, 2018.

Operating cash flow increased 57% to $26.6 billion for the trailing twelve months, compared with $17.0 billion for the trailing twelve months ended September�30, 2017. Free cash flow increased to $15.4 billion for the trailing twelve months, compared with $8.0 billion for the trailing twelve months ended September�30, 2017. Free cash flow less lease principal repayments increased to $8.1 billion for the trailing twelve months, compared with $3.5 billion for the trailing twelve months ended September�30, 2017. Free cash flow less finance lease principal repayments and assets acquired under capital leases increased to an inflow of $5.4 billion for the trailing twelve months, compared with an outflow of $1.1 billion for the trailing twelve months ended September�30, 2017.

Common shares outstanding plus shares underlying stock-based awards totaled 507 million�on September�30, 2018, compared with 503 million one year ago.

Net sales increased 29% to $56.6 billion in the third quarter, compared with $43.7 billion in third quarter 2017. Excluding the $260 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 30% compared with third quarter 2017.

Operating income increased to $3.7 billion in the third quarter, compared with operating income of $347 million in third quarter 2017.

Net income increased to $2.9 billion in the third quarter, or $5.75 per diluted share, compared with net income of $256 million, or $0.52 per diluted share, in third quarter 2017.

“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” said Jeff Bezos, Amazon founder and CEO. “And we’re not slowing down – Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100. These organizations are choosing Amazon Business because it increases transparency into business spending and streamlines purchasing, with increased control. The team is doing a fantastic job building and innovating for customers.”

Highlights

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of October�25, 2018, 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, online commerce, and cloud services, and the various factors detailed below.

Fourth Quarter 2018 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 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 legal proceedings and claims, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, 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, 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 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. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services 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
September 30, 		Nine Months Ended
September 30, 		Twelve Months Ended
September 30,
2017 � 2018 2017 � 2018 2017 � 2018
�
�
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 13,851 $ 20,536 $ 19,934 $ 21,856 $ 14,124 $ 13,960
OPERATING ACTIVITIES:
Net income 256 2,883 1,176 7,046 1,926 8,902
Adjustments to reconcile net income to net cash from operating activities:
Depreciation of property and equipment, including internal-use software and website development, and other amortization, including capitalized content costs 2,912 3,778 7,980 11,079 10,277 14,577
Stock-based compensation 1,085 1,350 3,036 4,001 3,923 5,180
Other operating expense, net 43 62 146 202 177 258
Other expense (income), net (128 ) 96 (288 ) 22 (267 ) 17
Deferred income taxes (74 ) 266 279 268 (2 ) (40 )
Changes in operating assets and liabilities:
Inventories (1,593 ) (1,094 ) (1,328 ) 36 (2,371 ) (2,220 )
Accounts receivable, net and other (1,760 ) (2,884 ) (2,016 ) (3,220 ) (3,938 ) (5,983 )
Accounts payable 2,974 3,894 (1,803 ) (3,618 ) 5,479 5,285
Accrued expenses and other (122 ) 237 (1,778 ) (2,193 ) 476 (131 )
Unearned revenue 184 � — � 603 � 623 � 1,316 � 759 �
Net cash provided by (used in) operating activities 3,777 8,588 6,007 14,246 16,996 26,604
INVESTING ACTIVITIES:
Purchases of property and equipment, including internal-use software and website development (3,074 ) (3,352 ) (8,336 ) (9,693 ) (10,750 ) (13,312 )
Proceeds from property and equipment incentives 415 825 1,314 1,490 1,723 2,073
Acquisitions, net of cash acquired, and other (13,213 ) (976 ) (13,891 ) (1,855 ) (13,893 ) (1,936 )
Sales and maturities of marketable securities 2,211 1,964 6,191 6,301 7,384 9,787
Purchases of marketable securities (4,817 ) (4,033 ) (10,381 ) (5,040 ) (13,633 ) (7,390 )
Net cash provided by (used in) investing activities (18,478 ) (5,572 ) (25,103 ) (8,797 ) (29,169 ) (10,778 )
FINANCING ACTIVITIES:
Proceeds from long-term debt and other 16,049 143 16,119 363 16,653 472
Repayments of long-term debt and other (71 ) (183 ) (159 ) (533 ) (217 ) (1,675 )
Principal repayments of capital lease obligations (1,267 ) (2,247 ) (3,327 ) (5,544 ) (4,331 ) (7,016 )
Principal repayments of finance lease obligations (49 ) (82 ) (134 ) (211 ) (175 ) (277 )
Net cash provided by (used in) financing activities 14,662 (2,369 ) 12,499 (5,925 ) 11,930 (8,496 )
Foreign currency effect on cash, cash equivalents, and restricted cash 148 � (151 ) 623 � (348 ) 79 � (258 )
Net increase (decrease) in cash, cash equivalents, and restricted cash 109 � 496 � (5,974 ) (824 ) (164 ) 7,072 �
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 13,960 � $ 21,032 � $ 13,960 � $ 21,032 � $ 13,960 � $ 21,032 �
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long-term debt $ 5 $ 283 $ 155 $ 733 $ 299 $ 907
Cash paid for interest on capital and finance lease obligations 112 165 235 419 296 503
Cash paid for income taxes, net of refunds 172 200 865 1,013 960 1,106
Property and equipment acquired under capital leases 2,256 2,329 6,867 6,934 8,905 9,704
Property and equipment acquired under build-to-suit leases 750 962 2,698 2,498 3,114 3,340

______________________________

As a result of the adoption of new accounting guidance, we retrospectively adjusted our consolidated statements of cash flows to add restricted cash to cash and cash equivalents.

�
� �
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
�
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2017 � 2018 2017 � 2018
�
�
Net product sales $ 28,768 $ 33,746 $ 77,248 $ 97,215
Net service sales 14,976 � 22,830 � 40,165 � 63,289 �
Total net sales 43,744 56,576 117,413 160,504
Operating expenses:
Cost of sales 27,549 33,003 73,439 94,370
Fulfillment 6,420 8,275 16,275 23,999
Marketing 2,479 3,303 6,629 8,902
Technology and content 5,944 7,162 16,306 21,168
General and administrative 960 1,041 2,630 3,219
Other operating expense, net 45 � 68 � 155 � 211 �
Total operating expenses 43,397 � 52,852 � 115,434 � 151,869 �
Operating income 347 3,724 1,979 8,635
Interest income 54 117 137 290
Interest expense (228 ) (358 ) (510 ) (1,030 )
Other income (expense), net 143 � (93 ) 329 � 16 �
Total non-operating income (expense) (31 ) (334 ) (44 ) (724 )
Income before income taxes 316 3,390 1,935 7,911
Provision for income taxes (58 ) (508 ) (755 ) (870 )
Equity-method investment activity, net of tax (2 ) 1 � (4 ) 5 �
Net income $ 256 � $ 2,883 � $ 1,176 � $ 7,046 �
Basic earnings per share $ 0.53 � $ 5.91 � $ 2.46 � $ 14.49 �
Diluted earnings per share $ 0.52 � $ 5.75 � $ 2.39 � $ 14.10 �
Weighted-average shares used in computation of earnings per share:
Basic 481 � 488 � 479 � 486 �
Diluted 494 � 501 � 492 � 500 �
�
� �
AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
�
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2017 � 2018 2017 � 2018
�
�
Net income $ 256 $ 2,883 $ 1,176 $ 7,046
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $10, $2, $(5), and $19 104 (101 ) 486 (512 )
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $(1), $0, $1, and $8 (2 ) — (10 ) (43 )

Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $0, and $0

3 � 1 � 8 � 5 �

Net unrealized gains (losses) on available-for-sale debt securities

1 � 1 � (2 ) (38 )
Total other comprehensive income (loss) 105 � (100 ) 484 � (550 )
Comprehensive income $ 361 � $ 2,783 � $ 1,660 � $ 6,496 �
�
� �
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
�
Three Months Ended
September 30, 		Nine Months Ended
September 30,
2017 � 2018 2017 � 2018
�
�
North America
Net sales $ 25,446 $ 34,348 $ 68,808 $ 97,242
Operating expenses 25,334 � 32,316 � 67,664 � 92,227 �
Operating income $ 112 � $ 2,032 � $ 1,144 � $ 5,015 �
�
International
Net sales $ 13,714 $ 15,549 $ 36,259 $ 45,037
Operating expenses 14,650 � 15,934 � 38,401 � 46,536 �
Operating income (loss) $ (936 ) $ (385 ) $ (2,142 ) $ (1,499 )
�
AWS
Net sales $ 4,584 $ 6,679 $ 12,346 $ 18,225
Operating expenses 3,413 � 4,602 � 9,369 � 13,106 �
Operating income $ 1,171 � $ 2,077 � $ 2,977 � $ 5,119 �
�
Consolidated
Net sales $ 43,744 $ 56,576 $ 117,413 $ 160,504
Operating expenses 43,397 � 52,852 � 115,434 � 151,869 �
Operating income 347 3,724 1,979 8,635
Total non-operating income (expense) (31 ) (334 ) (44 ) (724 )
Provision for income taxes (58 ) (508 ) (755 ) (870 )
Equity-method investment activity, net of tax (2 ) 1 � (4 ) 5 �
Net income $ 256 � $ 2,883 � $ 1,176 � $ 7,046 �
�
Segment Highlights:
Y/Y net sales growth:
North America 35 % 35 % 29 % 41 %
International 29 13 21 24
AWS 42 46 42 48
Consolidated 34 29 27 37
Net sales mix:
North America 58 % 61 % 59 % 61 %
International 31 27 31 28
AWS 11 � 12 � 10 � 11 �
Consolidated 100 % 100 % 100 % 100 %
�
� �
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
�
December 31, 2017 September 30, 2018
(unaudited)

ASSETS

Current assets:
Cash and cash equivalents $ 20,522 $ 20,425
Marketable securities 10,464 9,340
Inventories 16,047 15,862
Accounts receivable, net and other 13,164 � 14,258 �
Total current assets 60,197 59,885
Property and equipment, net 48,866 58,019
Goodwill 13,350 14,553
Other assets 8,897 � 11,238 �
Total assets $ 131,310 � $ 143,695 �

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable $ 34,616 $ 30,904
Accrued expenses and other 18,170 18,420
Unearned revenue 5,097 � 6,000 �
Total current liabilities 57,883 55,324
Long-term debt 24,743 24,684
Other long-term liabilities 20,975 24,562
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 — 507 and 512
Outstanding shares — 484 and 489 5 5
Treasury stock, at cost (1,837 ) (1,837 )
Additional paid-in capital 21,389 25,375
Accumulated other comprehensive loss (484 ) (1,034 )
Retained earnings 8,636 � 16,616 �
Total stockholders’ equity 27,709 � 39,125 �
Total liabilities and stockholders’ equity $ 131,310 � $ 143,695 �
�
� � � � � � �
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
�
Q2 2017 � Q3 2017 � Q4 2017 � Q1 2018 � Q2 2018 � Q3 2018 � Y/Y %

Change

Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) (1) $ 17,802 $ 16,996 $ 18,365 $ 18,194 $ 21,793 $ 26,604 57 %
Operating cash flow -- TTM Y/Y growth 36 % 13 % 7 % 4 % 22 % 57 % N/A
Purchases of property and equipment, including internal-use software and website development, net of proceeds from property and equipment incentives -- TTM $ 8,207 $ 9,027 $ 10,058 $ 10,924 $ 11,372 $ 11,239 25 %
Principal repayments of capital lease obligations -- TTM $ 4,003 $ 4,331 $ 4,799 $ 5,981 $ 6,037 $ 7,016 62 %
Principal repayments of finance lease obligations -- TTM $ 170 $ 175 $ 200 $ 235 $ 244 $ 277 58 %
Property and equipment acquired under capital leases -- TTM $ 8,019 $ 8,905 $ 9,637 $ 10,020 $ 9,631 $ 9,704 9 %
Free cash flow -- TTM (1) (2) $ 9,595 $ 7,969 $ 8,307 $ 7,270 $ 10,421 $ 15,365 93 %
Free cash flow less lease principal repayments -- TTM (1) (3) $ 5,422 $ 3,463 $ 3,308 $ 1,054 $ 4,140 $ 8,072 133 %
Free cash flow less finance lease principal repayments and assets acquired under capital leases -- TTM (1) (4) $ 1,406 $ (1,111 ) $ (1,530 ) $ (2,985 ) $ 546 $ 5,384 N/A
Invested capital (5) $ 45,537 $ 52,690 $ 60,368 $ 68,377 $ 76,600 $ 85,059 61 %
Common shares and stock-based awards outstanding 502 503 504 504 506 507 1 %
Common shares outstanding 480 482 484 485 487 489 1 %
Stock-based awards outstanding 22 21 20 19 19 18 (15 )%
Stock-based awards outstanding -- % of common shares outstanding 4.5 % 4.4 % 4.2 % 3.9 % 3.9 % 3.7 % N/A
Results of Operations
Worldwide (WW) net sales $ 37,955 $ 43,744 $ 60,453 $ 51,042 $ 52,886 $ 56,576 29 %
WW net sales -- Y/Y growth, excluding F/X 26 % 33 % 36 % 39 % 37 % 30 % N/A
WW net sales -- TTM $ 150,123 $ 161,154 $ 177,866 $ 193,194 $ 208,125 $ 220,958 37 %
WW net sales -- TTM Y/Y growth, excluding F/X 26 % 27 % 31 % 34 % 36 % 35 % N/A
Operating income $ 628 $ 347 $ 2,127 $ 1,927 $ 2,983 $ 3,724 974 %
F/X impact -- favorable (unfavorable) $ (38 ) $ (39 ) $ (33 ) $ (29 ) $ 42 $ 90 N/A
Operating income -- Y/Y growth (decline), excluding F/X (48 )% (33 )% 72 % 95 % 369 % 948 % N/A
Operating margin -- % of WW net sales 1.7 % 0.8 % 3.5 % 3.8 % 5.6 % 6.6 % N/A
Operating income -- TTM $ 3,462 $ 3,234 $ 4,106 $ 5,028 $ 7,384 $ 10,762 233 %
Operating income -- TTM Y/Y growth (decline), excluding F/X (9 )% (17 )% 1 % 25 % 115 % 231 % N/A
Operating margin -- TTM % of WW net sales 2.3 % 2.0 % 2.3 % 2.6 % 3.5 % 4.9 % N/A
Net income $ 197 $ 256 $ 1,856 $ 1,629 $ 2,534 $ 2,883 N/A
Net income per diluted share $ 0.40 $ 0.52 $ 3.75 $ 3.27 $ 5.07 $ 5.75 N/A
Net income -- TTM $ 1,922 $ 1,926 $ 3,033 $ 3,938 $ 6,275 $ 8,902 362 %
Net income per diluted share -- TTM $ 3.94 $ 3.94 $ 6.15 $ 7.90 $ 12.63 $ 17.85 353 %
______________________________
(1) � � As a result of the adoption of new accounting guidance, we retrospectively adjusted our consolidated statements of cash flows to add restricted cash to cash and cash equivalents.
(2) Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, including internal-use software and website development, net of proceeds from property and equipment incentives,” which both are included in cash flow from investing activities.
(3) Free cash flow less lease principal repayments is free cash flow reduced by “Principal repayments of capital lease obligations,” and “Principal repayments of finance lease obligations,” which are included in cash flow from financing activities.
(4) Free cash flow less finance lease principal repayments and assets acquired under capital leases is free cash flow reduced by “Principal repayments of finance lease obligations,” which is included in cash flow from financing activities, and property and equipment acquired under capital leases. In this measure, property and equipment acquired under capital leases is reflected as if these assets had been purchased with cash, which is not the case as these assets have been leased.
(5) Average Total Assets minus Current Liabilities (excluding current portion of Long-Term Debt and current portion of capital lease obligations and finance lease obligations) over five quarter ends.
�
� � � � � � �
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions)
(unaudited)
�
Q2 2017 � Q3 2017 � Q4 2017 � Q1 2018 � Q2 2018 � Q3 2018 � Y/Y %

Change

Segments
North America Segment:
Net sales $ 22,370 $ 25,446 $ 37,302 $ 30,725 $ 32,169 $ 34,348 35 %
Net sales -- Y/Y growth, excluding F/X 27 % 35 % 42 % 46 % 44 % 35 % N/A
Net sales -- TTM $ 88,476 $ 95,048 $ 106,110 $ 115,843 $ 125,642 $ 134,545 42 %
Operating Income:
Operating income $ 436 $ 112 $ 1,692 $ 1,149 $ 1,835 $ 2,032 N/A
F/X impact -- favorable (unfavorable) $ 11 $ (12 ) $ (8 ) $ (10 ) $ 1 $ 9 N/A
Operating income -- Y/Y growth (decline), excluding F/X (40 )% (51 )% 108 % 95 % 321 % N/A N/A
Operating margin -- % of North America net sales 1.9 % 0.4 % 4.5 % 3.7 % 5.7 % 5.9 % N/A
Operating income -- TTM $ 2,102 $ 1,960 $ 2,837 $ 3,390 $ 4,788 $ 6,708 242 %
Operating margin -- TTM % of North America net sales 2.4 % 2.1 % 2.7 % 2.9 % 3.8 % 5.0 % N/A
International Segment:
Net sales $ 11,485 $ 13,714 $ 18,038 $ 14,875 $ 14,612 $ 15,549 13 %
Net sales -- Y/Y growth, excluding F/X 22 % 28 % 22 % 21 % 21 % 15 % N/A
Net sales -- TTM $ 47,119 $ 50,224 $ 54,297 $ 58,111 $ 61,239 $ 63,074 26 %
Operating income (loss):
Operating income (loss) $ (724 ) $ (936 ) $ (919 ) $ (622 ) $ (494 ) $ (385 ) (59 )%
F/X impact -- favorable (unfavorable) $ (59 ) $ (13 ) $ 20 $ 70 $ 86 $ 47 N/A
Operating income/loss -- Y/Y growth (decline), excluding F/X 393 % 71 % 93 % 44 %

(20

)%

(54 )% N/A
Operating margin -- % of International net sales (6.3 )% (6.8 )% (5.1 )% (4.2 )% (3.4 )% (2.5 )% N/A
Operating income (loss) -- TTM $ (2,233 ) $ (2,629 ) $ (3,062 ) $ (3,202 ) $ (2,971 ) $ (2,420 )

(8

)%

Operating margin -- TTM % of International net sales (4.7 )% (5.2 )% (5.6 )% (5.5 )% (4.9 )% (3.8 )% N/A
AWS Segment:
Net sales $ 4,100 $ 4,584 $ 5,113 $ 5,442 $ 6,105 $ 6,679 46 %
Net sales -- Y/Y growth, excluding F/X 42 % 42 % 44 % 48 % 49 % 46 % N/A
Net sales -- TTM $ 14,529 $ 15,882 $ 17,459 $ 19,240 $ 21,244 $ 23,339 47 %
Operating income:
Operating income $ 916 $ 1,171 $ 1,354 $ 1,400 $ 1,642 $ 2,077 77 %
F/X impact -- favorable (unfavorable) $ 10 $ (14 ) $ (45 ) $ (89 ) $ (45 ) $ 34 N/A
Operating income -- Y/Y growth, excluding F/X 26 % 38 % 51 % 67 % 84 % 75 % N/A
Operating margin -- % of AWS net sales 22.3 % 25.5 % 26.5 % 25.7 % 26.9 % 31.1 % N/A
Operating income -- TTM $ 3,593 $ 3,903 $ 4,331 $ 4,840 $ 5,567 $ 6,473 66 %
Operating margin -- TTM % of AWS net sales 24.7 % 24.6 % 24.8 % 25.2 % 26.2 % 27.7 % N/A
�
� � � � � � �
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except employee data)
(unaudited)
�
Q2 2017 � Q3 2017 � Q4 2017 � Q1 2018 � Q2 2018 � Q3 2018 � Y/Y %

Change

Net Sales:
Online stores (1) $ 23,754 $ 26,392 $ 35,383 $ 26,939 $ 27,165 $ 29,061 10 %
Online stores - Y/Y growth, excluding F/X 18 % 22 % 17 % 13 % 12 % 11 % N/A
Physical stores (2) $ 1,276 $ 4,522 $ 4,263 $ 4,312 $ 4,248 N/A
Third-party seller services (3) $ 6,991 $ 7,928 $ 10,523 $ 9,265 $ 9,702 $ 10,395 31 %
Third-party seller services - Y/Y growth, excluding F/X 40 % 40 % 38 % 39 % 36 % 32 % N/A
Subscription services (4) $ 2,165 $ 2,441 $ 3,177 $ 3,102 $ 3,408 $ 3,698 52 %
Subscription services - Y/Y growth, excluding F/X 53 % 59 % 47 % 56 % 55 % 52 % N/A
AWS $ 4,100 $ 4,584 $ 5,113 $ 5,442 $ 6,105 $ 6,679 46 %
AWS - Y/Y growth, excluding F/X 42 % 42 % 44 % 48 % 49 % 46 % N/A
Other (5) $ 945 $ 1,123 $ 1,735 $ 2,031 $ 2,194 $ 2,495 122 %
Other - Y/Y growth, excluding F/X 53 % 58 % 60 % 132 % 129 % 123 % N/A
�
Stock-based Compensation Expense
Cost of sales $ 12 $ 13 $ 14 $ 15 $ 19 $ 19 50 %
Fulfillment $ 261 $ 230 $ 256 $ 244 $ 320 $ 269 17 %
Marketing $ 133 $ 135 $ 148 $ 161 $ 190 $ 201 48 %
Technology and content $ 633 $ 595 $ 637 $ 631 $ 788 $ 719 21 %
General and administrative $ 119 $ 112 $ 124 $ 132 $ 151 $ 142 27 %
Total stock-based compensation expense $ 1,158 $ 1,085 $ 1,179 $ 1,183 $ 1,468 $ 1,350 24 %
Other
WW shipping costs $ 4,568 $ 5,401 $ 7,368 $ 6,069 $ 5,990 $

6,568

22

%
WW shipping costs -- Y/Y growth 36 % 39 % 31 % 38 % 31 %

22

% N/A
WW paid units -- Y/Y growth (6) 27 % 25 % 23 % 22 % 17 % 15 % N/A
WW seller unit mix -- % of WW paid units (6) 51 % 50 % 51 % 52 % 53 % 53 % N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 382,400 541,900 566,000 563,100 575,700 613,300 13 %
Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth 42 % 77 % 66 % 60 % 51 % 13 % 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, music, videos, games, and software. These product sales include digital products sold on a transactional basis. Digital product 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.
(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 membership, as well as audiobook, digital video, e-book, digital music, and other non-AWS subscription services.
(5) Primarily includes sales of advertising services, as well as sales related to our other service offerings.
(6) Excludes the impact of Whole Foods Market.
�

Amazon.com, Inc.

Certain Definitions

Customer Accounts

Seller Accounts

AWS Customers

Units

Amazon.com Investor Relations

Dave Fildes, [email protected]

amazon.com/ir

or

Amazon.com Public Relations

Dan Perlet, [email protected]

amazon.com/about

Source: Amazon.com, Inc.

Categories

Press Releases

Next Articles