10-QPeriod: Q1 FY2019

AMAZON COM INC Quarterly Report for Q1 Ended Mar 31, 2019

Filed April 26, 2019For Securities:AMZN

Summary

Amazon.com Inc. reported strong performance for the first quarter ended March 31, 2019, with consolidated net sales increasing by 17% year-over-year to $59.7 billion. This growth was driven by a robust 41% increase in Amazon Web Services (AWS) revenue, alongside solid performance in North America. International sales also showed growth, though at a more modest pace. Profitability saw a significant improvement, with operating income more than doubling to $4.4 billion. This was primarily fueled by the strong operating income from AWS and improved performance in North America. The company's balance sheet remains strong, with substantial cash and marketable securities. Despite ongoing investments in technology and infrastructure, the company generated positive free cash flow, indicating efficient operations and effective capital management.

Financial Statements
Beta
Revenue$59.70B
Cost of Revenue$33.92B
Gross Profit$25.78B
Operating Expenses$55.28B
Operating Income$4.42B
Interest Expense$366.00M
Net Income$3.56B
EPS (Basic)$0.36
EPS (Diluted)$0.35
Shares Outstanding (Basic)9.82B
Shares Outstanding (Diluted)10.04B

Key Highlights

  • 1Consolidated net sales grew 17% to $59.7 billion.
  • 2AWS revenue surged 41% year-over-year to $7.7 billion.
  • 3Operating income more than doubled to $4.4 billion, reflecting improved profitability across segments.
  • 4North America segment operating income significantly increased to $2.3 billion.
  • 5International segment operating loss narrowed substantially to $90 million.
  • 6Free cash flow for the trailing twelve months significantly increased to $23.0 billion.
  • 7The company adopted new lease accounting guidance, resulting in the recognition of significant operating lease assets and liabilities.

Frequently Asked Questions

Consolidated net sales increased by 17% to $59.7 billion in the first quarter of 2019, compared to $51.0 billion in the same period of 2018. This growth was driven by all segments, with AWS showing particularly strong growth at 41%.

Amazon's operating income saw substantial improvement, rising from $1.9 billion in Q1 2018 to $4.4 billion in Q1 2019. This improvement was driven by strong performance in AWS and North America.

The company reported a significant increase in cash flow from operations, reaching $1.8 billion in Q1 2019. For the trailing twelve months, free cash flow more than tripled to $23.0 billion, indicating strong cash generation.

Amazon adopted new accounting guidance for leases on January 1, 2019. This resulted in the recognition of approximately $21 billion in operating lease assets and liabilities on the balance sheet, impacting comparability with prior periods.