Summary
Amazon.com, Inc. reported its first-quarter results for 2011, showing robust revenue growth driven by strong performance in North America. Consolidated net sales increased by 38% year-over-year to $9.86 billion, with North America sales up 45% and International sales up 31%. Despite this top-line growth, operating income declined by 18% to $322 million, primarily due to increased operating expenses, particularly in fulfillment, marketing, and technology and content. The company continued to invest heavily in its infrastructure and technology to support future growth, with capital expenditures rising significantly. From a cash flow perspective, the company experienced a net cash used in operating activities of $1.59 billion for the quarter, a notable outflow compared to the previous year's $1.1 billion outflow. This was largely driven by significant increases in inventory and accounts payable. However, investing activities provided a net cash inflow of $390 million, primarily from the sale and maturity of marketable securities, which helped offset some of the operating cash outflow. The company maintained a strong liquidity position with cash and cash equivalents and marketable securities totaling $6.9 billion at the end of the period.
Financial Highlights
47 data points| Revenue | $13.19B |
| Cost of Revenue | $7.61B |
| Gross Profit | $5.58B |
| Operating Expenses | $9.54B |
| Operating Income | $322.00M |
| Interest Expense | $12.00M |
| Net Income | $130.00M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 9.06B |
| Shares Outstanding (Diluted) | 9.20B |
Key Highlights
- 1Consolidated net sales grew 38% to $9.86 billion, driven by a 45% increase in North America sales and a 31% increase in International sales.
- 2Operating income decreased by 18% to $322 million, indicating increased operating expenses relative to revenue growth.
- 3Net cash used in operating activities was $1.59 billion for the quarter, a significant outflow driven by changes in working capital, particularly inventory.
- 4Capital expenditures for fixed assets, including internal-use software and website development, nearly doubled to $298 million compared to the prior year's first quarter.
- 5The company's liquidity remains strong, with cash, cash equivalents, and marketable securities totaling $6.9 billion at the end of the period.
- 6Sales from third-party sellers on Amazon's platforms represented 33% of units sold, highlighting the continued growth of the marketplace model.
- 7The company announced the acquisition of Quidsi, Inc. in April 2011 for approximately $500 million.