Summary
Amazon.com Inc. (AMZN) reported its financial results for the quarter and six months ended June 30, 2009. For the second quarter, net sales increased by 14% year-over-year to $4.65 billion, while net income saw a slight decrease to $142 million from $158 million in the prior year period. The company demonstrated continued revenue growth across both its North America and International segments, with international sales showing a significant increase even after accounting for unfavorable foreign exchange rates. Despite a decrease in net income for the quarter, the company's overall financial health appears stable, with a substantial cash and marketable securities balance. Management highlighted progress in operational efficiency and continued investment in technology and content, which are key drivers for future growth. The company also announced its agreement to acquire Zappos.com, Inc., indicating a strategic move to expand its e-commerce offerings. Investors should note the ongoing investments in infrastructure and technology, as well as the potential impact of competitive pressures and economic conditions.
Financial Highlights
48 data points| Revenue | $4.65B |
| Cost of Revenue | $3.52B |
| Gross Profit | $1.13B |
| Operating Expenses | $4.49B |
| Operating Income | $159.00M |
| Interest Expense | $7.00M |
| Net Income | $142.00M |
| EPS (Basic) | $0.02 |
| EPS (Diluted) | $0.02 |
| Shares Outstanding (Basic) | 8.62B |
| Shares Outstanding (Diluted) | 8.80B |
Key Highlights
- 1Net sales for the second quarter of 2009 increased 14% to $4.65 billion, compared to $4.06 billion in the second quarter of 2008.
- 2Net income for the second quarter decreased to $142 million ($0.32 per diluted share) from $158 million ($0.37 per diluted share) in the prior year period.
- 3The company entered into an agreement to acquire Zappos.com, Inc. for approximately $807 million in Amazon stock, expected to close in Fall 2009.
- 4Free cash flow for the trailing twelve months ended June 30, 2009, increased by 89% to $1.54 billion compared to $816 million in the prior year.
- 5Operating expenses, excluding stock-based compensation, increased by 33% year-over-year for the quarter, driven by investments in fulfillment, marketing, and technology.
- 6The International segment showed robust growth, with net sales increasing 16% year-over-year (28% excluding foreign exchange impacts).
- 7The company maintained a strong liquidity position with $3.2 billion in cash, cash equivalents, and marketable securities as of June 30, 2009.