10-QPeriod: Q3 FY2009

AMAZON COM INC Quarterly Report for Q3 Ended Sep 30, 2009

Filed October 23, 2009For Securities:AMZN

Summary

Amazon.com, Inc. (AMZN) reported its third quarter 2009 financial results, showcasing strong revenue growth and improved profitability. Net sales increased by 28% year-over-year, driven by robust performance in both North America and International segments. The company demonstrated effective cost management, leading to a significant increase in operating income and net income. This quarter highlights Amazon's ability to expand its top line while improving its bottom line, even amidst a challenging economic environment. The company's strategic investments in technology and content, coupled with its focus on customer-centric initiatives like lower prices and free shipping, continue to drive customer engagement and sales growth. The acquisition of Zappos.com, Inc., pending closure, is expected to further enhance its e-commerce offerings. Amazon's solid cash flow generation and healthy balance sheet provide a strong foundation for continued growth and strategic investments.

Financial Highlights

50 data points
Beta

Revenue

$5.45B

23.4% Gross Margin

Net Income

$199.00M

3.7% Net Margin

EPS (Diluted)

$0.02

Total Assets

$8.97B

Cash & Equivalents

$2.51B

Free Cash Flow

$696.00M

Financial Statements
Beta
Revenue$5.45B
Cost of Revenue$4.18B
Gross Profit$1.27B
Operating Expenses$5.20B
Operating Income$251.00M
Interest Expense$7.00M
Net Income$199.00M
EPS (Basic)$0.02
EPS (Diluted)$0.02
Shares Outstanding (Basic)8.64B
Shares Outstanding (Diluted)8.82B

Key Highlights

  • 1Net sales increased by 28% to $5.45 billion in Q3 2009 compared to $4.26 billion in Q3 2008.
  • 2Net income grew by 69% to $199 million ($0.45 per diluted share) in Q3 2009, up from $118 million ($0.27 per diluted share) in Q3 2008.
  • 3Operating income saw a substantial increase of 63% to $251 million in Q3 2009.
  • 4International net sales grew by 33% year-over-year, indicating strong global expansion.
  • 5Free cash flow for the trailing twelve months ended September 30, 2009, increased by 98% to $1.9 billion.
  • 6The company reported a strong cash position of $4.0 billion in cash, cash equivalents, and marketable securities as of September 30, 2009.
  • 7Agreement to acquire Zappos.com, Inc. for approximately 10 million shares of common stock, expected to close in Q4 2009.

Frequently Asked Questions

Amazon reported a 28% year-over-year increase in net sales for the third quarter of 2009, reaching $5.45 billion. This growth was driven by strong performance across both its North America and International segments.

Profitability improved significantly, with net income rising by 69% to $199 million compared to $118 million in the same period last year. Diluted earnings per share increased from $0.27 to $0.45. Operating income also saw a substantial jump of 63%.

Amazon continues to invest in technology and content, fulfillment, and marketing, which are key drivers of its growth. Despite these investments, the company demonstrated effective cost management, leading to improved operating margins and a 98% increase in free cash flow for the trailing twelve months.

A key announcement was the agreement to acquire Zappos.com, Inc., a prominent online shoe and apparel retailer. This acquisition, expected to close in Q4 2009, is structured as an all-stock deal and is intended to enhance Amazon's e-commerce offerings.