AMAZON COM INC Quarterly Report for Q2 Ended Jun 30, 2013

Summary

Amazon.com Inc. (AMZN) reported its financial results for the quarter and six months ended June 30, 2013. The company experienced a net loss of $7 million for the second quarter of 2013, a shift from a net income of $7 million in the prior year's second quarter. This loss was driven by increased operating expenses, particularly in technology and content, and marketing, which outpaced revenue growth. Total net sales increased by 22% year-over-year to $15.7 billion for the quarter, with North America sales showing robust growth of 30% while International sales grew by 13%. Despite the quarterly loss, the company maintained a positive operating income of $79 million for the quarter. Management highlighted significant investments in technology and content, including Amazon Web Services (AWS), and expansion of fulfillment capacity as key drivers of operating expenses, signaling a continued focus on long-term growth strategies.

Key Highlights

• 1Total net sales increased by 22% to $15.7 billion for Q2 2013 compared to Q2 2012.
• 2North America segment sales grew by 30% year-over-year, outpacing International segment sales growth of 13%.
• 3The company reported a net loss of $7 million for Q2 2013, a decline from a net income of $7 million in Q2 2012.
• 4Operating expenses, particularly in Technology & Content and Fulfillment, increased significantly, contributing to the net loss.
• 5Investments in property and equipment, including internal-use software and website development, continued, with purchases totaling $855 million for the quarter.
• 6Free cash flow for the trailing twelve months ended June 30, 2013, was $265 million, a significant decrease from $1.1 billion in the prior year period.
• 7The company held $7.5 billion in cash, cash equivalents, and marketable securities as of June 30, 2013.

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