10-QPeriod: Q1 FY2015

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

Filed April 24, 2015For Securities:AMZN

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.

Financial Highlights

53 data points
Beta

Revenue

$22.72B

32.2% Gross Margin

Net Income

-$57.00M

-0.3% Net Margin

EPS (Diluted)

$-0.01

Total Assets

$50.08B

Cash & Equivalents

$10.24B

Free Cash Flow

-$2.37B

Financial Statements
Beta
Revenue$22.72B
Cost of Revenue$15.39B
Gross Profit$7.32B
Operating Expenses$22.46B
Operating Income$255.00M
Interest Expense$115.00M
Net Income-$57.00M
EPS (Basic)$-0.01
EPS (Diluted)$-0.01
Shares Outstanding (Basic)9.30B
Shares Outstanding (Diluted)9.30B

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.

Frequently Asked Questions

Amazon reported a net loss of $57 million, or $(0.12) per diluted share, for the first quarter of 2015. This compares to a net income of $108 million, or $0.23 per diluted share, for the same period in 2014.

Total net sales increased by 15% year-over-year, reaching $22.7 billion in the first quarter of 2015, up from $19.7 billion in the first quarter of 2014. This growth was primarily driven by the North America segment, which saw a 24% increase in sales.

AWS continued its strong growth trajectory, with net sales increasing by 49% to $1.6 billion in Q1 2015, compared to $1.05 billion in Q1 2014. This segment remains a significant growth driver for Amazon.

Operating expenses increased due to significant investments in technology infrastructure, particularly to support AWS, and expansion of fulfillment capacity to meet growing customer demand and selection. Payroll and related costs also increased as the company continued to expand its workforce and offerings.