Summary
Amazon.com, Inc. reported its first-quarter 2008 financial results, demonstrating robust revenue growth of 37% year-over-year, reaching $4.135 billion. This growth was driven by strong performance in both North America and International segments, with the International segment showing a notable 44% increase. Net income for the quarter was $143 million, or $0.34 per diluted share, an improvement from the prior year's $111 million. The company continued to invest heavily in technology and content, reflecting its commitment to long-term growth and customer experience, while also managing operating expenses effectively. The company also noted a significant increase in cash used in operating activities for the quarter, a trend primarily driven by changes in working capital, particularly a large decrease in accounts payable, though free cash flow for the trailing twelve months showed a substantial increase.
Key Highlights
- 1Revenue grew 37% to $4.135 billion, driven by strong performance in both North America (31% growth) and International (44% growth) segments.
- 2Net income increased to $143 million ($0.34/share) from $111 million ($0.26/share) in the prior year's first quarter.
- 3The company reported $355 million in acquisitions during the quarter, contributing to a significant outflow in investing activities.
- 4Operating expenses, excluding stock-based compensation, increased by 31% to $704 million, largely in line with revenue growth.
- 5Free cash flow for the trailing twelve months ended March 31, 2008, increased by 51% to $788 million.
- 6Amazon.com announced a new $1 billion stock repurchase program, replacing the previous $500 million authorization.
- 7International sales represented 49% of consolidated net sales, with the company expecting this segment to eventually exceed 50%.