Summary
Amazon.com, Inc. (AMZN) reported strong revenue growth of 39% for the fiscal year ended December 31, 2007, reaching $14.84 billion. This growth was driven by both its North America and International segments, which experienced 38% and 39% increases, respectively. The company's strategic focus on customer-centricity, evidenced by efforts to offer low prices, wide selection, and convenience, continues to fuel its expansion. Significant investments in technology and content are ongoing to enhance customer experience and operational efficiency, positioning Amazon for continued long-term growth despite intense competition and global economic uncertainties. The company's financial performance demonstrates robust operating income growth, with $655 million reported for 2007, up from $389 million in 2006. Free cash flow also saw substantial improvement, increasing to $1.18 billion in 2007 from $486 million in the prior year. Amazon's balance sheet remains strong, with $3.1 billion in cash, cash equivalents, and marketable securities, providing ample liquidity for future investments and operations. The company reiterated its commitment to long-term value creation and efficient capital management, while navigating risks associated with international expansion, competition, and evolving technology.
Financial Highlights
30 data points| Revenue | $14.84B |
| Cost of Revenue | $11.48B |
| Gross Profit | $3.35B |
| Operating Expenses | $2.70B |
| Operating Income | $655.00M |
| Interest Expense | $77.00M |
| Net Income | $476.00M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.06 |
| Shares Outstanding (Basic) | 8.26B |
| Shares Outstanding (Diluted) | 8.48B |
Key Highlights
- 1Revenue surged by 39% year-over-year to $14.84 billion in 2007, fueled by strong performance in both North America (38% growth) and International (39% growth) segments.
- 2Operating income saw significant improvement, reaching $655 million in 2007, a substantial increase from $389 million in 2006.
- 3Free cash flow demonstrated robust growth, reaching $1.18 billion in 2007, more than doubling from $486 million in 2006.
- 4The company maintained a strong liquidity position with $3.1 billion in cash, cash equivalents, and marketable securities as of December 31, 2007.
- 5Continued strategic investment in technology and content is a priority, aimed at enhancing customer experience and expanding service offerings.
- 6Amazon continues to focus on its core strategy of offering Earth's Biggest Selection, low prices, and customer convenience.
- 7The company manages a complex global operation with significant international sales, contributing 45% of total revenue in 2007.