Q Financial Results Conference Call Slides

Transcription

1 Q Financial Results Conference Call Slides

2 This presentation may contain forward-looking statements which are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including fluctuations in foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of growth of the Internet and online commerce, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com s financial results is included in Amazon.com s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings. Additional information relating to certain of our financial measures contained herein is available in the appendix to our presentation, our most recent earnings release and at our website at 2

3 $10,000 Free Cash Flow -- TTM (1) (2) Up 276% Y/Y $7,331 $5,000 $1,949 Long Term Goal Optimize Free Cash Flows (1) Free cash flow is cash flow from operations reduced by Purchases of property and equipment, including internal-use software and website development, net which is included in cash flow from investing activities. See appendix for a reconciliation of operating cash flow to free cash flow. (2) Trailing twelve-month period 3

4 $7,000 Free Cash Flow Less Lease Principal Repayments -- TTM (1) $4,748 $3,500 $529 Long Term Goal Optimize Free Cash Flows (1) Free cash flow less lease principal repayments is free cash flow reduced by Principal repayments of capital lease obligations, and Principal repayments of finance lease obligations, which are included in cash flow from financing activities. See appendix for a reconciliation of operating cash flow to free cash flow less lease principal repayments. 4

5 Free Cash Flow Less Finance Lease Principal Repayments and Assets Acquired Under Capital Leases -- TTM (1) $4,000 $2,493 ($2,194) ($4,000) Long Term Goal Optimize Free Cash Flows (1) Free cash flow less finance lease principal repayments and assets acquired under capital leases is free cash flow reduced by Principal repayments of finance lease obligations, which are included in cash flow from financing activities, and property and equipment acquired under capital leases. In this measure, property and equipment acquired under capital leases is reflected as if these assets had been purchased with cash, which is not the case as these assets have been leased. See appendix for a reconciliation of operating cash flow to free cash flow less finance lease principal repayments and assets acquired under capital leases. 5

6 600 Shares Common Shares Outstanding Stock-Based Awards Outstanding Efficiently Managing Dilution 6

7 Net Sales $50,000 $35,747 $29,328 $25,000 Up 22% Y/Y (26% F/X Adjusted) 7

8 Net Sales TTM $150,000 Up 20% Y/Y; 26% F/X Adjusted Net Sales - TTM $7,880 7% $88,988 $107,006 $35,418 33% $63,708 60% $75,000 North America International AWS 8

9 GAAP Operating Income $1,600 Up 88% Y/Y $1,108 $800 $591 9

10 GAAP Operating Income TTM $4,000 Up 24% Y/Y $2,000 $2,233 $178 10

11 Consolidated Segment Operating Income (1) $3,000 Up 69% Y/Y $1,750 $1,500 $1,038 (1) Consolidated Segment Operating Income (CSOI), a non-gaap financial measure, excludes Stock-Based Compensation and Other Operating Income (Expense), Net. See appendix for a reconciliation of CSOI to GAAP Operating Income. 11

12 Consolidated Segment Operating Income -- TTM (1) $6,000 Up 150% Y/Y $4,523 $3,000 $1,808 (1) Consolidated Segment Operating Income (CSOI), a non-gaap financial measure, excludes Stock-Based Compensation and Other Operating Income (Expense), Net. See appendix for a reconciliation of CSOI to GAAP Operating Income. 12

13 GAAP Net Income (Loss) $700 Up 125% Y/Y $482 $300 $214 ($100) 13

14 Segment Results North America $30,000 Net Sales $1,500 Operating Income Up 24% Y/Y $21,501 Up 37% Y/Y $1,003 $17,333 $15,000 $750 $733 TTM Net Sales $63.7B Down 980% Y/Y 14

15 Segment Results International $18,000 Net Sales $300 Operating Income (Loss) $10,575 Up 12% Y/Y; Up 22% F/X adjusted $11,841 Down 7% Y/Y; Up 65% F/X adjusted $9,000 $100 $65 $60 ($100) TTM Net Sales $35.4B 15

16 Segment Results AWS $4,000 Net Sales $1,000 Operating Income Up 69% Y/Y Up 186% Y/Y; Up 161% F/X adjusted $687 $2,405 $2,000 $500 $1,420 $240 TTM Net Sales $7.9B 16

17 Supplemental Revenue Highlights Media $6,000 North America $6,000 International $3,000 $3,544 Up 11% Y/Y; 12% F/X adjusted $3,931 $3,000 $3,406 Down 3% Y/Y; Up 5% F/X adjusted $3,292 Books, Music, Movies, Video Games and Consoles, Software, and Digital Downloads 17

18 Supplemental Revenue Highlights Electronics & Other General Merchandise (EGM) $30,000 North America $15,000 International Up 28% Y/Y $17,325 Up 19% Y/Y; 31% F/X adjusted $8,491 $15,000 $13,529 $7,500 $7,109 Electronics and Computers, Home and Garden, Grocery, Health and Beauty, Toys, Kids and Baby, Clothing, Shoes and Jewelry, Sports and Outdoors, Tools, Auto and Industrial, and Digital Devices 18

19 Supplemental Revenue Highlights Other $500 North America $100 International $250 $260 Down 6% Y/Y $245 $50 $60 Down 3% Y/Y; Up 5% F/X adjusted $58 Includes sales from non-retail activities, such as certain advertising services and our co-branded credit card agreements 19

20 Appendix 20

21 Free Cash Flow Reconciliation TTM $ Operating Cash Flow $ 6,842 $ 7,845 $8,980 $9,823 $11,920 Purchases of property and equipment, including internal-use software and website development, net (4,893) (4,684) (4,607) (4,424) (4,589) Free Cash Flow $ 1,949 $ 3,161 $4,373 $5,399 $7,331 21

22 Free Cash Flow Less Lease Principal Repayments TTM $ Operating Cash Flow $ 6,842 $ 7,845 $ 8,980 $ 9,823 $ 11,920 Purchases of property and equipment, including internaluse software and website development, net (4,893) (4,684) (4,607) (4,424) (4,589) Principal repayments of capital lease obligations (1,285) (1,537) (1,832) (2,144) (2,462) Principal repayments of finance lease obligations (135) (132) (155) (163) (121) Free Cash Flow Less Lease Principal Repayments $ 529 $ 1,492 $ 2,386 $ 3,092 $ 4,748 22

23 Free Cash Flow Less Finance Lease Principal Repayments and Assets Acquired Under Capital Leases TTM $ Operating Cash Flow $ 6,842 $ 7,845 $ 8,980 $ 9,823 $ 11,920 Purchases of property and equipment, including internaluse software and website development, net (4,893) (4,684) (4,607) (4,424) (4,589) Property and equipment acquired under capital leases (4,008) (4,246) (4,710) (4,599) (4,717) Principal repayments of finance lease obligations (135) (132) (155) (163) (121) Free Cash Flow Less Finance Lease Principal Repayments and Assets Acquired Under Capital Leases $ (2,194) $ (1,217) $ (492) $ 637 $ 2,493 23

24 Consolidated Segment Operating Income Reconciliation $ Consolidated Segment Operating Income $ 1,038 $ 706 $ 1,075 $ 993 $ 1,750 Stock-Based Compensation (408) (407) (563) (544) (606) Other Operating Income (Expense), Net (39) (44) (48) (43) (36) GAAP Operating Income $ 591 $ 255 $ 464 $ 406 $ 1,108 24

25 Consolidated Segment Operating Income Reconciliation TTM $ Consolidated Segment Operating Income $ 1,808 $ 2,012 $ 2,682 $ 3,811 $ 4,523 Stock-Based Compensation (1,497) (1,582) (1,754) (1,921) (2,119) Other Operating Income (Expense), Net (133) (143) (163) (175) (171) GAAP Operating Income $ 178 $ 287 $ 765 $ 1,715 $ 2,233 25