Amazon.com Reports Sales Up 20% in Second Quarter to $ 63.4 Billion

SEATTLE – (BUSINESS WIRE) – Amazon.com, Inc. (NASDAQ: AMZN) today announced the financial results for its second quarter ended June 30, 2019.

Cash flow from operations increased 65% to $ 36.0 billion for the last twelve months, compared to $ 21.8 billion for the twelve months ended June 30, 2018. Free cash flow was increased to $ 25.0 billion for the last twelve months, up from $ 10.4 billion in the last twelve months. Year ended June 30, 2018. Free cash flow less principal repayments of finance leases and financing obligations increased to $ 16.1 billion for the last twelve months compared to $ 4.1 billion for the last twelve months ended June 30, 2018. Free Cash Flow less Equipment Finance leases and principal repayments of all other finance leases and financing obligations increased to 13 , $ 0 billion for the last twelve months, compared to $ 546 million for the last twelve months ended June 30, 2018.

Common shares outstanding plus shares underlying stock-based awards totaled $ 510 million as at June 30, 2019, compared to $ 506 million a year earlier.

Net sales rose 20% to settle at $ 63.4 billion in the second quarter, compared with $ 52.9 billion in the second quarter of 2018. If we exclude the impact As a result of a year-over-year change in foreign exchange rates of $ 814 million, net sales were 21% higher than in the second quarter of 2018.

Operating profit reached $ 3.1 billion in the second quarter, compared with $ 3.0 billion in the second quarter of 2018.

Net income increased to $ 2.6 billion in the second quarter, or $ 5.22 per diluted share, compared with net earnings of $ 2.5 billion, or $ 5.07 per diluted share, in the second quarter 2018.

"Customers respond to the shift from Prime to Delivery in one day. We have received a lot of positive feedback and have seen accelerated sales growth, "said Jeff Bezos, founder and CEO of Amazon. "A free one – day delivery is now available to Premium members on over ten million items, and we are just starting to get started. A big thank you to the team for continuing to simplify the lives of customers. "

Strong points

• Prime Day was once again the largest commercial event in Amazon's history with more than one million deals exclusively for Premium members. During the two days of Prime Day, July 15 and 16, sales exceeded the previous Black Friday and Cyber ​​Monday combined. Prime Day was also the largest event ever recorded for Amazon devices, comparing two-day periods. Amazon has welcomed more new Premium members on July 15 than any previous day and almost as much on July 16 – making them the two biggest everyday days for membership registrations. In addition, Premium members saved tens of millions of dollars in purchases from Whole Foods Market and purchased more than $ 2 billion worth of products from small and medium-sized independent businesses. Millions of people around the world have broadcast Prime Day events, including the Prime Day concert presented by Amazon Music and titled by 10-time GRAMMY award-winning artist, Taylor Swift.

• Amazon has hosted thousands of participants at re: MARS, a new conference on artificial intelligence (AI) focused on machine learning, automation, robotics and space. More than 100 conferences, sessions, and workshops organized by Amazon and industry leaders have shown breakthroughs in robotics and automation, including telehands that transmit touch to haptic gloves. HaptX, SynTouch and Shadow Robot Company; an electric adventure vehicle from Rivian that integrates with Alexa; and an autonomous flying microbot from the Wyss Institute of Harvard University. Amazon also announced Prime Air's new drone delivery concept; Alexa Conversations, a new approach focused on the IAA for Alexa skill developers; and the Pegasus Drive sorting robot, used in Amazon sorting centers.

• Amazon introduced the all-new Echo Show 5, which features a compact design, a 5.5-inch display, rich sound, an HD camera, and an integrated shutter.

• Amazon introduced the all-new Kindle Oasis, featuring its best Paperwhite display and next-generation e-ink technology, featuring fast page rotations, waterproofing, adjustable color front lighting and six months of free use from Kindle Unlimited.

• Amazon introduced the all-new Fire 7, the next generation of our best-selling tablet, featuring a faster processor, 16GB of internal storage, and support up to the same time. to 512 GB more via microSD, as well as a hands-free access to Alexa.

• Amazon has announced the all-new Fire 7 Kids Edition and Echo Dot Kids Edition tablet, as well as the new Alexa Skill Plans, which allow families to create custom skills for Alexa-enabled devices. These devices are based on Amazon FreeTime, a service that helps parents manage their children's interactions with technology.

• The number of Alexa-enabled smart home devices continues to grow, with more than 60,000 smart home products from more than 7,400 unique brands. In addition, Alexa Guard, a feature that helps customers protect their home by detecting the sound of smoke alarms, carbon monoxide alarms, and glbad breakage, is now widely available in the United States. Alexa Guard can also be connected to the ADT alarm or existing ringtone of the clients. systems.

• There are now hundreds of third-party devices with Alexa built-in. Customers can access Alexa at home via select LG TVs and the brand new smart ecobee thermostat, or while traveling with the new Bose and Jabra headphones. Alexa is now integrated into even more vehicles from Lexus and Toyota, as well as into some BMW and MINI vehicles in Germany and the UK. In addition, Garmin, iOttie and Nextbase have launched new car accessories facilitating the addition of Alexa to their current models. vehicle.

• Amazon continues to expand the features and capabilities of Alexa. Alexa Announcements, which allows customers to broadcast a one-way message on their Alexa devices, is now available in Germany, France, Spain, Italy and Mexico. In addition, UK customers can make outgoing calls with Alexa Outbound Calling and eligible Vodafone plans. They can make and receive calls from an Echo device with the help of their mobile phone number.

• Customers can now set a Alexa routine scheduled for sunset, sunrise or alarm trigger; and delete their voice recordings by saying "Alexa, delete what I just said" or "Alexa, delete everything I said today." In addition, Amazon has launched Alexa Privacy Hub, which provides customers with information and allows them to control their Alexa experience.

• In Japan, Germany and the UK, Amazon has introduced the opportunity for Alexa developers to earn money by using qualified purchases for their skills.

• Fire TV now has more than 34 million active users worldwide and remains the first family of media players for streaming in the United States, the United Kingdom, Germany, Japan, and India.

• Amazon and Google launched the official YouTube app on Fire TV devices and Fire TV Edition smart TVs, and launched the Prime Video app for Chromecast, Chromecast integrated devices, and Android TV devices.

• Prime Video received 47 Emmy nominations for its original programming, more than double last year, including 20 nominations for The wonderful Mrs Maisel and 11 nominations for Fleabag.

• Prime Video created the documentary Jonas Brothers Chasing happiness, and original series Good omens, based on Neil Gaiman's novel. In addition, Prime Video will debut with the new original series The boys, creators Evan Goldberg and Seth Rogen, July 26, and Carnival Row, with Orlando Bloom and Cara Delevingne, August 30.

• AmazonFresh has expanded its Las Vegas operations with ultra-fast delivery options in one hour and two hours and has introduced an expanded selection of products including tens of thousands of grocery items and successful items d & # 39; Amazon.com.

• Amazon continues to expand its grocery deliveries from Whole Foods Market and is now available in nearly 90 metros in the United States, providing Prime customers with free shipping in just one hour on thousands of products. natural and organic groceries and local products.

• Amazon Go, with a no-purchase experience activated through our Just Walk Out technology, has expanded to New York with two new stores. Amazon Go now has 13 stores in Seattle, Chicago, San Francisco and New York.

• Amazon Beauty has announced that HAUS Laboratories, an exclusive makeup collection co-created by Lady Gaga and makeup artist Sarah Tanno, is now available for pre-order for customers worldwide.

• Amazon Fashion has introduced new and innovative shopping experiences, including The Drop, which offers customers from more than one hundred countries and regions exclusive access to limited edition collections designed by fashion influencers via the. Amazon app, and StyleSnap, an AI-powered feature that customers simply buy by taking a picture or screen capture of an item.

• Amazon Fashion continues to offer an exclusive selection to its customers, including Moon and Back's baby and toddler clothing, in partnership with Hanna Andersson; a collaboration between Levi and the customization of Levi's Iconic 501 and Levi's 721 High-Rise designed by professional football player Sterling Shepard and model Chanel Iman Shepard; and Hanes Ultimate Baby collection. In addition, customers can now purchase Russell Wilson's Good Man brands, J / Slides, Tommy Hilfiger, etc.

• Amazon has launched Prime in the UAE, offering free shipping on millions of local and international items, Prime Video, Twitch Prime, same day discounted delivery and exclusive Prime offers.

• Amazon launched Amazon Flex in India, a program that offers local partners the opportunity to deliver packages to increase vendor delivery capacity and increase customer delivery speed.

• Amazon has released its impact report on small and medium-sized businesses and launched a "Build Your Business with Amazon" website to help entrepreneurs sell in Amazon stores. More than 1.9 million small and medium-sized businesses (SMBs), content creators, and developers in the US are currently working with Amazon. SMEs selling in Amazon stores have created around 1.6 million jobs worldwide.

• Amazon has started hiring for its head office in Arlington and plans to hire 25,000 highly skilled employees over the next decade. Amazon unveiled the development plans for the first phase of construction of its new urban campus, which includes the redevelopment of vacant warehouses into two new LEED Gold certified buildings, new retail spaces for businesses in the region and centralized community green spaces.

• Amazon announced that it will be hiring nearly 12,000 new employees in Europe in 2019, bringing its permanent workforce in Europe to nearly 95,000 by the end of 2019.

• Amazon is committed to training more than 100,000 of its employees in the United States by 2025, with more than $ 700 million dedicated to employees in its offices, innovation centers, distribution centers, distribution centers and transportation networks, to enable them to access training programs for highly skilled positions within or outside of the company. Programs offered include Machine Learning University, Amazon Technical Academy and Career Choice.

• Amazon was named the Innovative market of the year Disability Awards: IN Inclusion of 2019 for the accessibility of its products, services and experiences within the company.

• Amazon announced its latest homelessness efforts with an $ 8 million donation to non-profit housing and homelessness organizations in its regions, $ 5 million to Plymouth Housing in Seattle and $ 3 million at the Arlington Community Foundation in Arlington. housing and homelessness in both regions.

• Amazon has announced the end of its commitment to host 50 solar rooftop systems at its sorting and sorting centers around the world by 2020. In addition, Solar Energy Industries Association has Activity Report on Solar Means 2018 ranked Amazon # 1 in the US for the amount of solar energy installed on the company's site in 2018 and # 2 for the total amount of solar energy installed to date. Globally, Amazon operates 61 solar and wind projects that are expected to generate more than 1,044 megawatts and provide more than 3.1 million megawatt hours of power annually.

• Amazon India launched the unpackaged shipping program in nine cities, which reduces waste by shipping orders in their original packaging and combining multiple shipments into a reusable crate or corrugated box. This is one of many initiatives supporting Shipment Zero, Amazon's vision of making all Amazon net shipments carbon.

• Amazon Web Services (AWS) announced several new customer commitments and major migrations during the quarter: the NASCAR badociation chose AWS and Amazon SageMaker as the standard for machine learning workloads, and for the first time. artificial intelligence in the cloud; Emirates NBD, a leading bank in the Middle East, uses AWS 'machine learning services to create a personalized banking experience with retail clients. Hyundai Electric & Energy Systems (Hyundai Electric), Korea's leading power equipment manufacturer, has launched a new High Performance Computing (HPC) system using AWS to accelerate its digital transformation; and Sony Music Entertainment Japan have selected Amazon Managed Blockchain to develop a rights management system for digital music.

• AWS has announced the general availability of Amazon Personalize, a fully managed machine learning service that trains, adjusts, and deploys custom and private machine learning patterns. The service integrates the same machine learning technology used by Amazon.com with millions of AWS buyers and customers, allowing them to easily develop applications with a wide range of customization use cases, including specific product recommendations, individualized search results, and personalized direct results. marketing – without any machine learning experience required.

• AWS announced the general availability of AWS Ground Station, a service that allows customers to control their satellites with the help of AWS and download data into AWS Global Infrastructure Regions at the same time. Using a fully managed network of antennas of ground stations spread throughout the world. . With AWS Ground Station, customers can more easily and cost-effectively control satellite operations, integrate satellite data, and integrate with cloud-based applications and other cloud services running on AWS, allowing them save up to 80% of the costs of their land station by paying for access by antenna. time on request. Capella Space, D-Orbit, Maxar Technologies, Myriota, NSLComm, Open Cosmos, Spire and Thales Alenia Space are among the customers and partners using AWS Ground Station.

• AWS announced the general availability of Amazon Managed Blockchain, a fully managed service that facilitates the creation and management of scalable blockchain networks allowing multiple parties to execute transactions and manage a verifiable record of cryptographic way without the need of a trusted central authority. Amazon Managed Blockchain also fits thousands of applications and millions of transactions using popular open source frameworks such as Hyperledger Fabric and Ethereum.

• AWS has announced the general availability of Amazon Textract, a fully extracted machine learning service that automatically extracts text and data, including tables and forms, into virtually any document without the need for revision. manual, custom code or machine learning experience. With Amazon Textract, customers can more easily and accurately process millions of document pages in just a few hours, dramatically reducing document processing costs and making the most of the business value of their documents. text and their data, instead of wasting time and post-processing efforts. Processing.

• AWS announced the general availability of AWS Control Tower, a service that allows customers to continuously configure and manage secure, compliant, and multi-tenant AWS environments in the same way as for the selection of AWS Control Tower. items in a menu. AWS Control Tower provides customers with a preconfigured environment built according to AWS best practices, with clearly defined rules for security, operations, and compliance. AWS Control Tower provides ongoing governance on how to "do it right", based on the AWS experience, helping thousands of enterprise customers create secure and compatible cloud environments.

• AWS announced the general availability of the AWS Security Hub, a service that provides customers with a central location to manage security and compliance in an AWS environment. AWS Security Hub aggregates, organizes, and prioritizes the security outcomes of AWS services such as Amazon GuardDuty, Amazon Inspector, and Amazon Macie, as well as an ever-growing list of AWS Partner Network solutions, to provide a view comprehensive overall customer security and compliance status.

• AWS has announced the general availability of Amazon Managed Streaming for Apache Kafka (Amazon MSK), a fully managed service that allows developers to easily create and run highly available, secure and scalable applications based on Apache Kafka without worrying about management. the underlying infrastructure. Fully compatible with Apache Kafka, it allows customers to easily migrate their on-premise clusters or Amazon Elastic Cloud Compute (Amazon EC2) to Amazon MSK without code modification.

• At the AWS Public Sector Summit in Washington, D.C., George Mason University and Northern Virginia Community College, in collaboration with AWS Educate, presented a Bachelor of Applied Science in Cloud Computing. This degree offers students a flawless transfer path from a two-year badociate degree to a four-year bachelor's degree in the cloud, thus providing a clear path to highly sought-after careers in cloud computing with partners and partners. AWS customers.

• Since its launch in 2016, the number of databases migrated to AWS with the help of the AWS database migration service has grown to more than 150,000 databases.

• For the ninth consecutive year, AWS is positioned in the quadrant of the leader of the Gartner Group. Magic Quadrant for cloud infrastructure as a service (IaaS), obtaining the highest ranking for "Ability to Execute" and "Fullness of Vision", and we widened the gap between AWS and all others in the report.

Financial guidance

The following forward-looking statements reflect Amazon.com's expectations as of July 25, 2019, and are subject to considerable uncertainty. Our results are inherently unpredictable and can be significantly affected by many factors, such as changes in foreign exchange rates, changes in global economic conditions and customer spending, global events, the growth rate of the global economy, and Internet, e-commerce and cloud services. the different factors detailed below.

Forecast for the third quarter of 2019

• Net sales are expected to be between $ 66.0 billion and $ 70.0 billion, or grow between 17% and 24% from the third quarter of 2018. This forecast predicts an unfavorable impact of approximately 30 basis points foreign exchange rates.

• Operating profit is expected to be between $ 2.1 billion and $ 3.1 billion, compared to $ 3.7 billion in the third quarter of 2018.

• These indications badume in particular that no business acquisition, investment, restructuring or additional legal settlement is concluded.

A teleconference will be webcast live today at 2:30 pm PT / 5:30 pm ET, and will be available for at least 3 months on amazon.com/ir. This call will contain forward-looking statements and other important information regarding the financial and operating results of the Company.

These forward-looking statements are inherently difficult to predict. Actual results may differ materially for a number of reasons including, but not limited to, the amounts noted above, the amount invested by Amazon.com in new business opportunities and the timing of such investments, the mix of products and services sold to customers, and the composition of net sales products versus services, extended tax or other liabilities, competition, growth management, potential fluctuations in operating results, international growth and expansion, results of legal actions and claims, performance, sorting, delivery and data center optimization, inventory management risks, seasonality, the extent to which the Company enters into, maintains and develops proposed and finalized business agreements, acquisitions and strategic transactions, payment risks and risks of achievement and productivity. Other risks and uncertainties include, but are not limited to, risks related to new products, services and technologies, system disruptions, government regulation and taxation, and fraud. In addition, the current global economic climate amplifies many of these risks. Further information on the factors that may affect Amazon.com's financial results is provided in Amazon.com's filings with the Securities and Exchange Commission ("SEC"), including its most recent annual form report. 10-K and subsequent documents.

Our investor relations website is amazon.com/ir and we encourage investors to use it as a way to easily search for information about us. We make available promptly and free of charge on this website any reports we file or provide to the SEC with information about governance (including our Code of Business Conduct and Ethics), as well as press releases that may contain material information to our attention. subject, and you can subscribe to be informed of new information published on this site.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitive attention, pbadion for invention, commitment to operational excellence and long-term thinking. Customer Ratings, 1-Click Purchases, Custom Recommendations, Prime, Amazon Fulfillment, AWS, Kindle Direct Edition, Kindle, Fire tablets, Fire TV, Amazon Echo and Alexa are some of the products and services developed by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.