Summary
Amazon.com, Inc. reported its third quarter 2008 financial results, showcasing a 31% increase in net sales to $4.26 billion compared to the prior year period. This growth was driven by strong performance in both its North America and International segments, despite a noted slowdown towards the end of the quarter, attributed to disruptions in the global financial markets. Net income rose to $118 million, up from $80 million in the same quarter last year, reflecting continued profitability. The company's focus remains on long-term, sustainable growth in free cash flow, which increased by 21% year-over-year to $970 million for the trailing twelve months. Investments in technology and content, as well as expansion efforts, continue to be a priority, alongside managing operational costs and inventory effectively.
Financial Highlights
28 data points| Revenue | $4.26B |
| Cost of Revenue | $3.27B |
| Gross Profit | $999.00M |
| Operating Expenses | $845.00M |
| Operating Income | $154.00M |
| Interest Expense | $17.00M |
| Net Income | $118.00M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 8.54B |
| Shares Outstanding (Diluted) | 8.72B |
Key Highlights
- 1Net sales grew 31% year-over-year to $4.26 billion in Q3 2008.
- 2Net income increased to $118 million from $80 million in Q3 2007.
- 3Free cash flow for the trailing twelve months ended September 30, 2008, was $970 million, a 21% increase year-over-year.
- 4International segment sales showed robust growth, up 33% year-over-year.
- 5The company continued to invest in technology and content, with significant capital expenditures.
- 6Amazon repurchased $132 million principal amount of its 4.75% Convertible Subordinated Notes through conversion in Q3 2008.
- 7Marketable securities and cash balances stood at $2.3 billion at the end of the quarter.