Amazon Booms in 2013 With $74.45 Billion in Revenue

Print Friendly

[Press Release]

Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2013.

Operating cash flow increased 31% to $5.47 billion for the trailing twelve months, compared with $4.18 billion for the trailing twelve months ended December 31, 2012. Free cash flow increased to $2.03 billion for the trailing twelve months, compared with $395 million for the trailing twelve months ended December 31, 2012. Free cash flow for the trailing twelve months ended December 31, 2012 includes fourth quarter cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.
Common shares outstanding plus shares underlying stock-based awards totaled 476 million on December 31, 2013, compared with 470 million one year ago.

Fourth Quarter 2013
Net sales increased 20% to $25.59 billion in the fourth quarter, compared with $21.27 billion in fourth quarter 2012. Excluding the $258 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 22% compared with fourth quarter 2012.

Operating income increased 26% to $510 million in the fourth quarter, compared with $405 million in fourth quarter 2012. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $7 million.

Net income increased to $239 million in the fourth quarter, or $0.51 per diluted share, compared with $97 million, or $0.21 per diluted share, in fourth quarter 2012.

“It’s a good time to be an Amazon customer. You can now read your Kindle gate-to-gate, get instant on-device tech support via our revolutionary Mayday button, and have packages delivered to your door even on Sundays,” said Jeff Bezos, founder and CEO of Amazon.com. “In just the last weeks, Forrester, YouGov, and ForeSee have all ranked Amazon #1 – and we believe we’re just scratching the surface of what world-class customer service can be.”

Full Year 2013
Net sales increased 22% to $74.45 billion, compared with $61.09 billion in 2012. Excluding the $1.28 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales grew 24% compared with 2012.

Operating income increased 10% to $745 million, compared with $676 million in 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the year on operating income was $29 million.

Net income was $274 million, or $0.59 per diluted share, compared with net loss of $39 million, or $0.09 per diluted share, in 2012.

Highlights
Amazon announced a record-setting holiday season for Amazon Prime, the annual membership program with tens of millions of members worldwide. Amazon is working hard to increase capacity for the Prime program. In December, Prime was so popular that Amazon limited new Prime membership signups during peak periods.

Prime Instant Video selection increased from 33,000 to more than 40,000 movies and TV episodes in 2013.

Selection in the Kindle Owners’ Lending Library in 2013 grew from 250,000 books to more than 475,000 books-books that Kindle owners with a Prime membership can borrow for free with no due dates.

Amazon worked with the FAA to update its rules on the use of electronic devices on planes and now over 20 airlines allow customers to use their Kindles gate-to-gate.

Amazon announced that on Christmas Day, the average response time when a customer tapped the Mayday button on Kindle Fire HDX was just 9 seconds, faster than the response time goal of 15 seconds. Thousands of Mayday Tech Advisors in the U.S. were available on Christmas Day to take calls from customers.

Amazon announced a new version of Kindle FreeTime on Kindle Fire tablets that brings new educational features built from the ground up for parents and kids. The new features let parents set educational goals for their kids before switching to cartoons or games. Parents can also manage screen time with additional Time Limits features: set different limits for weekends vs. weekdays, and use “Bedtime” to set a curfew.

Amazon announced a software update for the new Kindle Paperwhite that brings exclusive features including Goodreads integration and Kindle FreeTime.

Amazon launched the Australian Kindle Store, offering over 2 million eBooks, including more than 400,000 Kindle-exclusive titles.

Amazon launched Kindle MatchBook, a new benefit that gives customers the option to buy – for $2.99, $1.99, $0.99 or free – the Kindle edition of the print books they have purchased from Amazon, including more than 100,000 titles.

Since its launch one year ago, Amazon AutoRip has delivered more than 2 billion digital music tracks to customers who have purchased AutoRip albums. The digital copy is automatically added to the customer’s Cloud Player library where it is available, free of charge, for immediate playback or download.

Amazon Instant Video announced it is working with the world’s leading consumer electronics companies, top Hollywood studios and TV programmers, including Samsung, Warner Bros., Lionsgate, 20th Century Fox, Discovery and others to offer customers a premium 4K Ultra HD experience. In addition, Amazon Studios announced that it plans to shoot all 2014 full original series, including comedies and dramas, in 4K Ultra HD.

Amazon Studios debuted new original series Alpha House and Betas. The first three episodes are available for all customers to enjoy, with the remaining episodes available exclusively on Prime Instant Video.

Amazon Prime Instant Video will be the exclusive premium subscription home for Extant, a serialized drama starring Halle Berry and produced by Steven Spielberg’s Amblin Television. The drama will premiere on the CBS Television Network in June with unlimited streaming of all the series’ episodes available four days after their initial broadcast on CBS.

Amazon launched AmazonSmile, a new program that makes it easy for customers to support their favorite charitable organizations every time they shop. Customers who visit AmazonSmile (smile.amazon.com) will find the exact same Amazon they know and love, with the added bonus that Amazon will donate a portion of the purchase price to their favorite charitable organization. There is no cap on the total donation amount and customers can choose from nearly one million organizations around the country.

During the quarter, Amazon Web Services (AWS) announced over 100 new services and features, including Amazon AppStream, Amazon Kinesis, and three new Amazon Elastic Compute Cloud (Amazon EC2) instances. AWS now offers six Amazon EC2 instance families with 13 instance types to support a wide range of use-cases.

AWS announced Amazon WorkSpaces, a fully managed desktop computing service in the cloud that allows end-users to access the documents, applications and resources they need with the device of their choice, including laptops, iPad, Kindle Fire, and Android tablets.

The AWS Partner Network program, which provides technical, business and marketing support for the AWS partner ecosystem, has grown to more than 8,000 technology and consulting partners worldwide. In addition, AWS Marketplace now offers over 1,100 third-party software products for customers to choose from.

AWS announced the upcoming launch of its China Region. This will be the fourth AWS Region in Asia Pacific and the tenth Region globally.

Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of January 30, 2014, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, and the various factors detailed below.

First Quarter 2014 Guidance
Net sales are expected to be between $18.2 billion and $19.9 billion, or to grow between 13% and 24% compared with first quarter 2013.

Operating income (loss) is expected to be between $(200) million and $200 million, compared to $181 million in first quarter 2013.

This guidance includes approximately $350 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, 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 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 (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is www.amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases and social media postings.

About Amazon.com
Amazon.com, Inc. (NASDAQ: AMZN), a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth’s Biggest Selection. Amazon.com, Inc. seeks to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as Books; Movies, Music & Games; Digital Downloads; Electronics & Computers; Home & Garden; Toys, Kids & Baby; Grocery; Apparel, Shoes & Jewelry; Health & Beauty; Sports & Outdoors; and Tools, Auto & Industrial. Amazon Web Services provides Amazon’s developer customers with access to in-the-cloud infrastructure services based on Amazon’s own back-end technology platform, which developers can use to enable virtually any type of business. Kindle Paperwhite is the world’s best-selling and most advanced e-reader. It features new display technology with higher contrast, the next generation built-in light, a faster processor, the latest touch technology, and exclusive new features designed from the ground up for readers. Kindle, the lightest and smallest Kindle, features improved fonts and faster page turns. The new Kindle Fire HDX features a stunning exclusive 7″ or 8.9″ HDX display, a quad-core 2.2 GHz processor, 2x more memory, and 11 hours of battery life, as well as exclusive new features of Fire OS 3.0 including X-Ray for Music, Second Screen, Prime Instant Video downloads, and the revolutionary new Mayday button. The all-new Kindle Fire HD includes an HD display, high-performance processor and dual speakers at a breakthrough price.

Amazon and its affiliates operate websites, including www.amazon.com, www.amazon.co.uk, www.amazon.de, www.amazon.co.jp, www.amazon.fr, www.amazon.ca, www.amazon.cn, www.amazon.it, www.amazon.es, www.amazon.com.br, www.amazon.in, www.amazon.com.mx, and www.amazon.com.au. As used herein, “Amazon.com,” “we,” “our” and similar terms include Amazon.com, Inc., and its subsidiaries, unless the context indicates otherwise.

Related Posts:

26 thoughts on “Amazon Booms in 2013 With $74.45 Billion in Revenue

  1. Pingback: Amazon Booms in 2013 With $74.45 Billion in Revenue – Digital Book World | Droid Books

  2. Pingback: Amazon Booms in 2013 With $74.45 Billion in Rev...

  3. DBW’s email about this Amazon press release was far more interesting, referring to huge revenues and tiny profits. DBW really should explore just how any retailer can slice their profit margin so thin, particularly when one former Amazon executive has gone on record that almost all the company’s divisions are doing quite well.

    All that money sloshing about is how Amazon can post those suspiciously small profits. The straight numbers for profit and loss are hard to manage, particularly when such a large slice of sales come at the end of the year. But deciding when to account for those competitor-crushing subsidies is mere bookkeeping. And as tax-payers, we’re even subsidizing Amazon growth to monopoly status by giving them tax breaks on those seemingly low profits.

    In short, what’s going on is clever bookkeeping allied with classic competitor crushing. For instance Amazon makes money hand-over-fist with ebooks, mostly because it pays authors far less than companies such as Apple. It charges huge download fees (roughly 100 times per megabyte what it server division charges for downloads). And it pays the industry-standard 70% royalties only over a narrow price range. Outside that, it rakes in 65 cents out of every dollar of an ebook’s price for merely processing a credit card.

    My rough calculations suggest Amazon makes twice as much per ebook sale as the other retailers. It then uses those fat profits to sell Kindles below cost, crushing B&N’s Nook. Once the Nook is gone and Apple has been driven down in the ebook market by a Chicago-machine DOJ, only minor ereader players are left, then Amazon owns the market.

    And of course, owning the ebook market, Amazon can continue to shaft authors with those huge download fees and far below market royalties at many price levels. That’s one reason I know Amazon isn’t being kind to consumers. It simply feels it has to be nice them to dominate the market. And most of those ebook buyers, nice though they might be, don’t realize that the authors they love are getting shortchanged by Amazon.

  4. Too bad for that ‘Amazon will crush everyone and own the world\ argument that Amazon’s share of the e-book market has gone down instead of up. And the idea of Amazon distroying Apple with its deep pockets is so absurd as to be outright laughable.

  5. Your “Amazon is about to eat the world on stomp us into mush” comment would make more sense if the Amazon share of the e-book market hadn’t gone down instead of up. As for your belief that Amazon could possibly force Apple–with its huge funds–out of the e-book market is so silly as to be laughable.

  6. Pingback: 3 success stories of worlds most successful eCommerce stores - 101ecommerce

  7. Pingback: | OpinurateOpinurate

  8. Pingback: 3 success stories of world’s most successful eCommerce stores | edessert.net

  9. Pingback: 背靠AWS云服务,AmazonSupply瞄准产值8万亿美元的B2B市场 | 专栏 | 极氪世界 前所未有的技术

  10. Pingback: 背靠AWS云服务,AmazonSupply瞄准产值8万亿美元的B2B市场 | 我爱互联网

  11. Pingback: 背靠AWS云服务,AmazonSupply瞄准产值8万亿美元的B2B市场 | 36氪 | What Happen Today?!?

  12. Pingback: Helping The High-Street: tips from online retailersOpinurate

  13. Does your blog have a contact page? I’m having trouble locating it but, I’d
    like to send you an e-mail. I’ve got some recommendations for your blog
    you might be interested in hearing. Either way, great
    website and I look forward to seeing it grow over time.

    my site

  14. Pingback: 5 tärkeintä syytä miksi asiakas kantaa käteisensä kilpailijasi verkkokauppaan » Aucor

  15. Pingback: Vive la Indie Revolution | THINKING SCI-FI

  16. Pingback: PENGUIN RANDOM HOUSE Y PLANETA: CONDENADOS A “FUSIONARSE” | Patrulla de salvación

  17. Pingback: Amazon Expanding Local Services

  18. #Amazon Booms in 2013 With $74.45 #Billion in #Revenue @DigiBookWorld
    http://www.digitalbookworld.com/2014/amazon-booms-in-2013-with-74-45-billion-in-revenue/

    #bennyquetell, #ResilientMediaEntertainment, #PrivateEquity, #VentureCapital, #HedgeFunds, #Celebrities, #Hollywood, #Films, #Movies, #PublicRelations, #Marketing, #ProductPlacement, #MusicPublishing, #PlatinumArtist, #BoxOffice, #BILLIONS, #Sales, #Diamonds, #Gold, #Technology, @resilient_ent, #Trillions, #Fashion

  19. Pingback: Lost in Translation: Are we active in our activism? | The Moody Standard

  20. Pingback: Is Alibaba Amazon’s Replacement As The Online Retail Growth Leader? « Small Cap Savvy

  21. Pingback: Is Alibaba Amazon's Replacement As The Online Retail Growth Leader?

  22. Pingback: Is Alibaba Amazon’s Replacement As The Online Retail Growth Leader?

  23. Pingback: Is Alibaba Amazon’s Replacement As The Online Retail Growth Leader? | Investor Spread

  24. Pingback: Is Alibaba Amazon’s Replacement As The Online Retail Growth Leader? | The Today Online

  25. Pingback: Sono curioso di vedere che sanzioni mettono alla russia? Va!!! - Pagina 144

  26. Pingback: Alibaba Becomes Largest Initial Public Offering (IPO) in History on NYSE Debut | Political Munchie.com, Neocritic

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>