AMAZON COM INC Quarterly Report for Q1 Ended Mar 31, 2015

Summary

Amazon.com, Inc. reported its first quarter 2015 financial results, ending March 31, 2015. The company experienced a net loss of $57 million, or $(0.12) per diluted share, compared to a net income of $108 million, or $0.23 per diluted share, in the prior year's first quarter. This shift was driven by significant investments and a challenging revenue environment, particularly in international markets due to foreign currency headwinds. Despite the net loss, total net sales increased by 15% year-over-year to $22.7 billion, largely fueled by a 24% surge in North America sales and a strong 49% growth in Amazon Web Services (AWS). However, international sales saw a 2% decline, primarily due to unfavorable foreign exchange rates. The company continues to invest heavily in technology infrastructure, fulfillment capacity, and new initiatives, which impacted operating expenses but are expected to drive future growth. Investors should note the substantial capital expenditures and ongoing investments in AWS as key drivers of Amazon's long-term strategy.

Key Highlights

• 1Total net sales grew 15% to $22.7 billion, up from $19.7 billion in Q1 2014.
• 2North America segment sales increased by a robust 24% year-over-year.
• 3Amazon Web Services (AWS) demonstrated strong growth, with sales up 49% to $1.6 billion.
• 4International sales declined by 2% due to unfavorable foreign exchange rates, despite increased unit sales.
• 5The company reported a net loss of $57 million, compared to a net income of $108 million in the prior year's quarter.
• 6Operating expenses increased, driven by investments in fulfillment, technology, and content, reflecting continued strategic investments.
• 7Free cash flow for the trailing twelve months improved significantly, reaching $3.2 billion compared to $1.5 billion in the prior year.

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