Amazon.com, Inc. (NASDAQ: AMZN) today announced financial
results for its second quarter ended June 30, 2021.
- Operating cash flow increased 16% to $59.3 billion for
the trailing twelve months, compared with $51.2 billion for the
trailing twelve months ended June 30, 2020.
- Free cash flow decreased to $12.1 billion for the
trailing twelve months, compared with $31.9 billion for the
trailing twelve months ended June 30, 2020.
- Free cash flow less principal repayments of finance leases
and financing obligations decreased to $0.6 billion for the
trailing twelve months, compared with $21.3 billion for the
trailing twelve months ended June 30, 2020.
- Free cash flow less equipment finance leases and principal
repayments of all other finance leases and financing
obligations decreased to $4.2 billion for the trailing twelve
months, compared with $19.4 billion for the trailing twelve months
ended June 30, 2020.
- Common shares outstanding plus shares underlying stock-based
awards totaled 522 million on June 30, 2021, compared with 517
million one year ago.
- Net sales increased 27% to $113.1 billion in the second
quarter, compared with $88.9 billion in second quarter 2020.
Excluding the $2.5 billion favorable impact from year-over-year
changes in foreign exchange rates throughout the quarter, net sales
increased 24% compared with second quarter 2020.
- Operating income increased to $7.7 billion in the second
quarter, compared with $5.8 billion in second quarter 2020.
- Net income increased to $7.8 billion in the second
quarter, or $15.12 per diluted share, compared with $5.2 billion,
or $10.30 per diluted share, in second quarter 2020.
“Over the past 18 months, our consumer business has been called
on to deliver an unprecedented number of items, including PPE,
food, and other products that helped communities around the world
cope with the difficult circumstances of the pandemic. At the same
time, AWS has helped so many businesses and governments maintain
business continuity, and we’ve seen AWS growth reaccelerate as more
companies bring forward plans to transform their businesses and
move to the cloud,” said Andy Jassy, Amazon CEO. “Thank you to all
of our passionate, innovative, mission-driven employees around the
world for continuing to stay focused on delivering for customers—I
am very excited to work with you as we invent and build for the
future.”
Highlights
Investing in Employee Safety and Providing Good Jobs
- Amazon announced a first-of-its-kind partnership with the
National Safety Council, a 100-year-old nonprofit that protects
workers on and off the job, to invent new ways of preventing
musculoskeletal disorders (MSDs), the most common workplace injury
in the U.S. The five-year effort aims to reduce MSDs across a
variety of industries by engaging key stakeholders, conducting new
research, inventing technology and processes, and scaling the
results. Amazon is investing over $300 million into safety projects
in 2021, including redesigning and retrofitting workstations,
re-engineering cross-dock operations and powered-industrial-truck
barriers, and implementing new safety control systems.
- In the UK, Amazon announced that it is creating more than
10,000 new corporate and operations jobs and investing £10 million
over three years to train up to 5,000 employees in new skills.
- Amazon surpassed its commitment to hire 25,000 U.S. veterans
and military spouses by 2021 and set a new commitment to hire an
additional 100,000 veterans and military spouses by 2024.
- Amazon launched the Amazon Returnship program, a new initiative
to help 1,000 experienced corporate professionals outside of Amazon
who have been out of work for an extended period of time return to
the workforce, including people who stopped working due to
COVID-19, caregiving responsibilities, or medical circumstances.
Amazon offers participants a paid, 16-week work opportunity with an
abbreviated interview process, dedicated support, and personalized
coaching and mentoring—as well as the possibility to transition
into a full-time job at Amazon.
- Amazon introduced a new mental health benefit for all of its
950,000 U.S. employees, their families, and household members,
which provides free access to personalized support, including
one-on-one counseling and 24/7 crisis support.
- For the fourth year in a row, Amazon was included on the
Disability Equality Index’s Best Places to Work for Disability
Inclusion.
Economic Impact and Small Business Empowerment
- For the second year in a row, Amazon placed No. 1 on the
Progressive Policy Institute’s Investment Heroes list, which ranks
U.S. companies’ investments in America. According to the study,
Amazon invested more in the U.S. than any other company in 2020;
was key to sustaining the economy during the COVID-19 pandemic; and
helped drive economic expansion, wage growth, and job creation
across the country.
- Amazon launched the Black Business Accelerator, committing $150
million over four years to help Black business owners and
entrepreneurs succeed as third-party selling partners. The program
aims to spur growth and advance equity for Black-owned businesses
by providing financial support, education and mentorship, and
marketing and promotional support.
- In the two-week lead-up to Prime Day, customers spent $1.9
billion on products from third-party sellers during the Spend $10,
Get $10 promotion—more than double compared to the 2020 Prime Day
small business promotion. Prime Day 2021 was the biggest two-day
period ever for small and medium-sized businesses in Amazon’s
stores worldwide.
- Amazon Advertising launched over 40 new features and
self-service capabilities, making it easier for sellers, companies,
and authors to grow their businesses by helping customers discover
their brands and products. Recent launches include regional
sponsored product campaign creation tools; access to educational,
technical, and marketing resources via the Partner Network; and a
simplified creative asset management solution. In addition, Amazon
Advertising expanded the services it offers in Australia, Europe,
India, Japan, and Saudi Arabia, creating more opportunities for
local and global sellers and brands to grow their businesses in
these regions.
Supporting Communities
- Amazon’s Housing Equity Fund has invested over $800 million of
its $2 billion total. Its latest commitment of $300 million will
create 3,000 affordable housing units near public transit centers
in the Puget Sound region of Washington state; Arlington, Virginia;
and Nashville, Tennessee.
- Amazon India sprung into urgent action to help employees,
partners, sellers, customers, and communities in recent months as
the country faced an increase in COVID-19 cases. Amazon helped
airlift over 14,000 life-saving medical items, including 100
intensive care unit ventilators as well as 10,000 oxygen and
ventilation machines. As part of its efforts, Amazon worked with
partners and nonprofits to deliver items to hospitals in the most
urgent need, bearing the cost of airlifts and managing the urgent
movement of medical equipment. In addition, Amazon India has
vaccinated over 100,000 employees and their family members and has
committed to vaccinate a total of 1 million employees, sellers,
partners, and dependents. Amazon committed $16.5 million in relief
efforts, including direct donations and medical equipment
delivery.
- In Nepal, Amazon teamed up with the United Nations World Food
Programme to donate and deliver supplies to communities affected by
COVID-19, including 850,000 personal protective items such as
medical masks, goggles, and full-face protection for medical
staff.
- Amazon’s FDA-authorized at-home COVID-19 test collection kit is
now available to U.S. customers through Amazon.com. The kits are
processed by Amazon’s in-house laboratory, which has processed
millions of tests from over 750,000 Amazon front-line
employees.
- Amazon opened its first Disaster Relief Hub in an Atlanta
fulfillment center to help relief organizations respond more
quickly to natural disasters in the U.S., the Caribbean, and
Central America. The hub will store over 500,000 Amazon-donated
relief supplies so they can be rapidly deployed when needed.
- Amazon Future Engineer (AFE), the company’s computer science
education program for students from historically underserved
communities, announced its most recent round of awards in the U.S.,
including $4 million in college scholarships and paid internships
for 100 students and AFE Teacher of the Year Awards for 10 computer
science educators who promote diversity and inclusion in computer
science. Each of the winning teachers received a prize package to
expand computer science and/or robotics education at their
respective schools.
- Amazon celebrated Asian Pacific American Heritage Month in the
U.S. by signing on as a founding partner of The Asian American
Foundation, a new nonprofit dedicated to accelerating opportunity
and prosperity for Asian American Pacific Islander (AAPI)
communities. Amazon committed $10 million over five years as part
of the AAPI Giving Pledge.
- Ring launched a community program with the nonprofit Strength
Based Community Change to improve individual and family resiliency,
and advance community safety. As part of the program, Ring donated
1,000 Ring Video Doorbells, free installation, and a Ring Protect
subscription to eligible residents in Wilmington, California.
Protecting the Planet
- Amazon announced 14 new renewable energy projects in Canada,
Finland, Spain, and the U.S., making Amazon the largest corporate
purchaser of renewable energy in the U.S., Europe, and the world.
The new projects bring Amazon’s total renewable energy investments
to date to 10 gigawatts of electricity production capacity—enough
to power 2.5 million U.S. homes. Amazon has reached 65% renewable
energy across its business, up from 42% in 2019—putting the company
on a path to power 100% of company activities with renewable energy
by 2025—five years ahead of its 2030 target.
- Amazon welcomed Interpublic Group, Iron Mountain, JLL, Klarna,
Macquarie Asset Management, and RELX to The Climate Pledge, joining
other Pledge signatories such as PepsiCo, Uber, Microsoft,
Unilever, Visa, and Colgate-Palmolive. From deploying clean energy
solutions such as wind and solar, to implementing vehicle
electrification and supporting nature-based climate solutions, the
112 Climate Pledge signatories are working together to
significantly reduce corporate carbon emissions.
- Amazon added five new certifications to its Climate Pledge
Friendly program to help shoppers find more sustainable products
across grocery, household, and beauty. Amazon customers can now
shop for products that are Animal Welfare Approved, EWG Verified,
and Regenerative Organic Certified, as well as for those certified
by Higg Index Materials and the U.S. Environmental Protection
Agency’s Safer Choice program.
- The Climate Pledge Fund invested in BETA Technologies to help
accelerate the development of fully electric, zero-emission
aircraft and in ION Energy, a technology platform that leverages
intelligent battery analytics to significantly improve the life and
performance of lithium-ion batteries. The Climate Pledge Fund also
joined Greentown Labs, the largest climate tech startup incubator
in North America, to further engage with startups and help
accelerate the transition to a low-carbon economy.
- As part of its recent debt offering, Amazon issued a $1 billion
sustainability bond to further investments in tackling critical
social and environmental issues. The proceeds are being used to
fund projects in five areas: renewable energy, clean
transportation, sustainable buildings, affordable housing, and
socioeconomic advancement and empowerment.
Shopping
- Prime members in 20 countries shopped more and saved more this
Prime Day than any previous Prime Day, purchasing more than 250
million items. The Fire TV Stick 4K with Alexa Voice Remote was the
most popular item purchased. Prime Day also kicked off the
Back-to-School shopping season with members worldwide purchasing
more than 1 million laptops, 1 million headphones, 600,000
backpacks, 240,000 notebooks, 220,000 Crayola products, and 40,000
calculators.
- Prime is now available in 22 countries with the addition of
Prime in Portugal, which offers members unlimited, free two-day
delivery on millions of products, as well as access to Amazon Prime
Video streaming.
- Business Prime now serves more than 1 million business
customers of all sizes worldwide, including Chevron, Citi, and the
State of Utah. Since launching in 2017, Business Prime has saved
members millions of dollars by shipping over 140 million packages
free of charge.
- For the first time, Amazon brought Just Walk Out technology to
a full-sized grocery store, offering customers in Bellevue,
Washington the option to skip the checkout line or use traditional
checkout. Amazon Fresh now has 15 stores in the U.S. and five in
the UK.
- Amazon Fashion expanded its head-to-toe outfit recommendations,
which use machine learning models to inspire customers and help
them find products that fit their unique style and complete their
look. “Styling Ideas” are now available on Fashion product pages in
France, Germany, India, Italy, Spain, and the U.S.
- Amazon Pharmacy introduced a six-month supply option for
eligible medications, offering customers a new convenient way to
purchase many of the most commonly prescribed medications. For
Prime members, pharmacy purchases always include free, unlimited
two-day delivery, and select medications start at just $1 per month
when customers pay without insurance.
- Amazon launched the “Internet Famous” storefront, a curated
selection of the top trending products on social media. The
storefront showcases immersive content that allows customers to
discover brands across multiple categories while engaging with
their favorite influencers.
- Amazon launched its first Brand Protection Report, which
detailed Amazon’s anti-counterfeiting efforts and progress in
driving counterfeit to zero in its store. In 2020, Amazon invested
over $700 million and employed more than 10,000 people to protect
customers and sellers in its store and to stop bad actors before
they list products for sale. Amazon’s verification processes
prevented over 6 million attempts to create selling accounts before
bad actors listed a single product for sale and seized over 2
million counterfeit products sent to its fulfillment centers before
they were sent to a customer.
Entertainment
- Prime Video released new Amazon Original movies for customers
worldwide, including Tom Clancy’s Without Remorse, starring Michael
B. Jordan, and The Tomorrow War, starring Chris Pratt, both of
which were the No. 1 streamed movie on their opening weekends.
Prime members also enjoyed new and returning Amazon Original series
and specials such as THEM, Solos, The Underground Railroad, Panic,
Flack, Mary J. Blige’s My Life, and the Prime Day Show, as well as
the seventh and final season of Bosch, the longest-running Amazon
Original series to date. Additionally, Prime Video debuted over 20
local originals internationally, including Dom (Brazil), Chivas: El
Rebaño Sagrado (Mexico), Clarkson’s Farm (UK), La Leyenda de Sergio
Ramos (Spain), Mixte (France), and Head Above Water
(Australia).
- Amazon earned 20 Emmy Award nominations, including Amazon
Studios’ first-ever category nominations for a drama series (The
Boys) and limited series (The Underground Railroad). Amazon also
received two nominations in the TV movie category (Uncle Frank and
Sylvie’s Love), along with nominations for writing (All In),
choreography (Savage X Fenty Show Vol. 2), cinematography (Small
Axe), visual effects (Vikings), interactive program (Welcome to the
Blumhouse), and commercial (Michael B. Jordan’s Alexa ad).
- Prime Video announced streaming deals with sports leagues
around the world, including: the National Football League (NFL)
Thursday Night Football beginning in 2022, a year earlier than
previously announced; 16 Women’s National Basketball Association
(WNBA) games per season and the Commissioner’s Cup Championship
Game; the Premier League in the UK; the Premiere channel to watch
soccer in Brazil; and 300+ Ligue 1 soccer matches per season in
France. Prime Video also streamed the first-ever French Open night
matches and the Australian Swimming Trials globally.
- Peacock, NBCUniversal’s streaming service, is now available on
Fire TV and Fire tablet devices. Customers can use Alexa to start
watching Peacock by saying “Alexa, open Peacock.”
- Prime Video and IMDb TV announced an exclusive, multi-year
licensing deal with Universal Filmed Entertainment Group (UFEG).
Beginning in 2022, Prime Video will be an exclusive subscription
video partner for UFEG’s slate of live-action films in the U.S.,
bringing films such as Jurassic World: Dominion, The 355, and
Ambulance to Prime Video soon after theatrical release. With this
deal, IMDb TV will be the first advertising-based streaming service
to secure a major studio network window, which traditionally goes
to broadcast or cable networks.
- IMDb TV announced 12 original series and development projects
including a new half-hour drama from Dick Wolf, a home renovation
project with Jeff Lewis, a docu-series with country superstar Luke
Bryan, and a dramedy from Clea DuVall and Tegan and Sara Quin.
- Amazon Advertising announced that Amazon Streaming TV ads and
Twitch now jointly reach an audience of 120 million monthly viewers
across the U.S. creating more opportunities for brands to create
engaging and interactive product discovery experiences across IMDb
TV, Twitch, ad-supported apps on Fire TV, and Thursday Night
Football on Prime Video.
- Amazon Games began a closed preview of multiplayer online PC
game New World, during which it was one of the most watched games
on Twitch, with hundreds of thousands of players and millions of
total hours played. In addition, Amazon Games announced Lost Ark, a
multiplayer action-role-playing game developed by Smilegate RPG
that is scheduled to launch in North America and Europe later this
year.
Amazon Devices and Services
- Amazon announced the all-new Echo Show 8 with a 13-megapixel
wide-angle camera that digitally pans and zooms during video calls,
and Echo Show 5 with an upgraded HD camera and more color options
at a new lower price. The first Echo Show 5 Kids offers curated
kid-friendly content, parental controls, a colorful design, and a
one-year subscription to Amazon Kids+.
- Amazon announced a six-year collaboration with Ford to bring
Alexa to millions of retail and commercial vehicles in North
America. The deal is the industry’s broadest roll-out of the
Built-in Alexa hands-free experience, and includes complimentary
access to key Alexa features for all new and existing customers for
up to three years. Ford and Amazon will also work together to
deliver new voice AI-enabled features and services, including the
first custom Alexa skills for Ford commercial vehicles.
- Alexa added new custom voice options, including celebrity
personalities Shaquille O’Neal and Melissa McCarthy.
- Using machine learning advancements in acoustic event
detection, Amazon added the ability for Alexa to start a Routine
after detecting specific sounds like a baby crying, dog barking, or
a person coughing or snoring. For example, customers can set up a
Routine that enables their Echo device to automatically play white
noise when snoring is detected.
- Samsung Appliance Division announced that Alexa will work
alongside Bixby, Samsung’s personal voice assistant, on the Samsung
Family Hub refrigerator. This announcement continues Amazon’s
commitment to providing customers with the choice and flexibility
to interact with multiple voice agents on a single device,
simultaneously.
- There are now more than 900,000 registered developers, brands,
and device makers building with Alexa. At Alexa Live, Amazon’s
annual event for Alexa developers, Amazon introduced new ways for
developers to increase revenue, engagement, and discovery. New
innovations for developers include Paid Skills, Alexa Shopping
Actions, Widgets, and the international expansion of In-Skill
Purchasing.
- Amazon announced new features that make it easier for Alexa
developers to build entertaining and useful customer experiences,
including: Interactive Media Skill Components that shorten the time
it takes for radio, podcast, and music providers to launch
experiences on Alexa; Shared Activities Application Programming
Interface (API) that enables developers to build multi-player
gaming experiences; and Food Skill API that enables developers to
quickly create high quality, food delivery, and pickup
experiences.
- Ring announced general availability of the Floodlight Cam Wired
Pro, equipped with new features like 3D Motion Detection, and
introduced the Floodlight Cam Wired Plus, Ring’s most affordable
outdoor floodlight camera.
Amazon Web Services
- AWS announced significant customer momentum, with new
commitments and migrations from customers across many major
industries.
- Telecom: Swisscom, Switzerland’s leading
telecommunications company and IT services provider, selected AWS
as its preferred public cloud provider to power a wide range of
core applications including its 5G network, enterprise resource
planning, operational support system, business support system, and
communications provisioning. Bell Canada, one of Canada’s
largest telecommunications companies, will use the breadth and
depth of AWS technologies to create and scale new consumer and
business applications and will bring AWS Wavelength to Canada.
- Financial services: BMO Financial Group, one of North
America’s largest financial institutions, selected AWS as its
preferred, strategic cloud provider to modernize its banking
platforms and build digital financial services applications as part
of the company’s ongoing digital transformation. As part of its
move to personalize services, the bank is using Amazon
Connect—AWS’s easy-to-use, scalable cloud contact center—to provide
a seamless and more customer-centric experience for its call
center, as well as to support remote working capabilities for
employees. Bancolombia, Colombia’s largest bank, selected
AWS as its strategic cloud provider and plans to migrate its
applications to AWS.
- Automotive: Ferrari S.p.A., a leading global
manufacturer of luxury, high-performance sports cars, entered into
an agreement with AWS to become its official cloud, machine
learning, and artificial intelligence provider. Together, AWS and
Ferrari will accelerate the pace of innovation across the entire
Ferrari organization, including their road cars department, GT
Competitions, the Ferrari Challenge, and the Scuderia Ferrari
FORMULA 1 (F1) team.
- Sports: The National Hockey League (NHL), the premier
hockey league in the world, debuted two new advanced analytics
during the 2021 Stanley Cup Playoffs—shot analytics and save
analytics. These new stats powered by AWS appear as on-screen
graphics and data visualizations during NHL games and give fans a
better understanding and deeper appreciation of how their favorite
players and teams perform during crucial moments.
- AWS plans to open infrastructure Regions in the United Arab
Emirates (UAE) in the first half of 2022 and Israel in the first
half of 2023. The new Regions will enable even more developers,
startups, and enterprises as well as government, education, and
nonprofits to run their applications and serve end-users from data
centers located in the UAE and Israel. Globally, AWS has 81
Availability Zones across 25 geographic Regions, with plans to
launch 21 more Availability Zones and seven more AWS Regions.
- AWS and Salesforce announced a significant expansion of their
global strategic partnership, making it easier for customers to
build and launch custom applications. The expanded partnership
extends the technological capabilities of both providers,
connecting Salesforce data and workflows natively into their
solutions running on AWS, and making it easy for Salesforce
developers to integrate AWS data and workflows into Salesforce
applications. Salesforce will also embed AWS services for voice,
video, artificial intelligence, and machine learning directly in
new applications for sales, service, and industry vertical use
cases. For example, customers can activate virtual call centers and
empower high-velocity sales teams with Amazon Connect and AWS AI/ML
services, pre-integrated into both Sales Cloud and Service
Cloud.
- AWS announced the general availability of two industry-specific
services. Amazon HealthLake is a HIPAA-eligible service for
healthcare and life sciences organizations that uses machine
learning to understand and extract meaningful medical information
from unstructured data such as clinical observations, laboratory
notes, and medical images. Amazon FinSpace is a purpose-built
analytics service that reduces the time it takes financial services
organizations to find, prepare, and analyze financial data from
months to minutes.
- AWS announced the general availability of Amazon EBS io2 Block
Express volumes, delivering storage area network (SAN) capabilities
in the cloud for the first time. EBS Block Express is a
next-generation storage architecture that provides the highest
block storage performance without the cost or hassle of having to
procure, scale, and maintain expensive on-premises SANs. With io2
volumes running on Block Express, customers get a 4x increase in
performance, throughput, and capacity for existing io2 volumes,
making it ideal for the most I/O-intensive, mission-critical
deployments of Oracle, SAP HANA, Microsoft SQL Server, and SAS
Analytics.
- AWS announced the general availability of three new container
services. AWS App Runner is a fully managed container application
service that makes it easier and faster for customers to build,
deploy, and run containerized web applications and APIs with just a
few clicks. AWS Proton is an application delivery service that
makes it easier for customers to provision, deploy, and monitor the
microservices that form the basis of modern container and
serverless applications. Amazon Elastic Container Service (ECS)
Anywhere is a new capability for Amazon ECS that enables customers
to easily run, scale, secure, and manage container-based
applications on-premises and at edge environments using the same
APIs, cluster management, workload scheduling, monitoring, and
deployment pipelines they use with Amazon ECS on AWS.
- AWS announced the general availability of Amazon DevOps Guru, a
fully managed operations service that uses machine learning to make
it easier for developers to improve application availability by
automatically detecting operational issues and recommending
specific actions for remediation. Informed by years of Amazon.com
and AWS operational excellence, Amazon DevOps Guru applies machine
learning to automatically analyze data like application metrics,
logs, events, and traces for behaviors that deviate from normal
operating patterns so developers can identify and remediate issues
long before they impact customers.
- AWS announced the general availability of Amazon Location
Service, a new service that makes it easier and more cost-effective
for customers to add location functionality to their applications,
without compromising on user privacy or data security. With Amazon
Location Service, customers can embed location functionality in
their applications using data from location-based service providers
Esri and HERE Technologies to provide maps, points of interest,
geocoding (converting location information to a point on a map),
route planning, geofencing (creating virtual perimeters), or asset
tracking.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of July 29, 2021, 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
customer spending, world events, the rate of growth of the
Internet, online commerce, and cloud services, and the various
factors detailed below. This guidance reflects our estimates as of
July 29, 2021 regarding the impact of the COVID-19 pandemic on our
operations, including those discussed above, and is highly
dependent on numerous factors that we may not be able to predict or
control, including: the duration and scope of the pandemic,
including any recurrence; actions taken by governments, businesses,
and individuals in response to the pandemic; the impact of the
pandemic on global and regional economies and economic activity,
workforce staffing and productivity, and our significant and
continuing spending on employee safety measures; our ability to
continue operations in affected areas; and consumer demand and
spending patterns, as well as the effects on suppliers, creditors,
and third-party sellers, all of which are uncertain. This guidance
also assumes the impacts on consumer demand and spending patterns,
including impacts due to concerns over the current economic
outlook, will be in line with those experienced during the third
quarter of 2021 to date, and the additional assumptions set forth
below. However, it is not possible to determine the ultimate impact
on our operations for the third quarter of 2021, or whether other
currently unanticipated direct or indirect consequences of the
pandemic are reasonably likely to materially affect our
operations.
Third Quarter 2021 Guidance
- Net sales are expected to be between $106.0 billion and $112.0
billion, or to grow between 10% and 16% compared with third quarter
2020. This guidance anticipates a favorable impact of approximately
70 basis points from foreign exchange rates.
- Operating income is expected to be between $2.5 billion and
$6.0 billion, compared with $6.2 billion in third quarter 2020.
This guidance assumes approximately $1.0 billion of costs related
to COVID-19.
- This guidance assumes, among other things, that no additional
business acquisitions, investments, restructurings, or legal
settlements are concluded.
A conference call will be webcast live today at 2:30 p.m.
PT/5:30 p.m. ET, and will be available for at least three months at
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 and services
sold to customers, the mix of net sales derived from products as
compared with services, the extent to which we owe income or other
taxes, competition, management of growth, potential fluctuations in
operating results, international growth and expansion, the outcomes
of claims, litigation, government investigations, and other
proceedings, fulfillment, sortation, delivery, and data center
optimization, risks of inventory management, variability in demand,
the degree to which the Company enters into, maintains, and
develops commercial agreements, proposed and completed 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, additional or
unforeseen effects from the COVID-19 pandemic and the global
economic climate may give rise to or amplify 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 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, which may contain material information
about us, and you may subscribe to be notified of new information
posted to this site.
About Amazon
Amazon is guided by four principles: customer obsession rather
than competitor focus, passion for invention, commitment to
operational excellence, and long-term thinking. Amazon strives to
be Earth’s Most Customer-Centric Company, Earth’s Best Employer,
and Earth’s Safest Place to Work. Customer reviews, 1-Click
shopping, personalized recommendations, Prime, Fulfillment by
Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire
tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology,
Amazon Studios, and The Climate Pledge are some of the things
pioneered by Amazon. For more information, visit amazon.com/about
and follow @AmazonNews.
AMAZON.COM, INC.
Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
Twelve Months Ended
June 30,
2020
2021
2020
2021
2020
2021
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
27,505
$
34,155
$
36,410
$
42,377
$
22,965
$
37,842
OPERATING ACTIVITIES:
Net income
5,243
7,778
7,778
15,885
13,180
29,438
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization of property
and equipment and capitalized content costs, operating lease
assets, and other
5,748
8,038
11,110
15,546
22,843
29,687
Stock-based compensation
2,601
3,591
4,358
5,897
7,977
10,747
Other operating expense (income), net
282
18
348
48
445
(372
)
Other expense (income), net
(769
)
(1,258
)
(204
)
(2,714
)
(310
)
(5,092
)
Deferred income taxes
465
701
787
2,404
1,063
1,063
Changes in operating assets and
liabilities:
Inventories
(672
)
(209
)
720
(513
)
(1,176
)
(4,082
)
Accounts receivable, net and other
(2,854
)
(4,462
)
(1,592
)
(6,717
)
(6,680
)
(13,294
)
Accounts payable
8,616
47
573
(8,219
)
11,482
8,689
Accrued expenses and other
1,699
(1,685
)
(1,063
)
(5,745
)
1,110
1,071
Unearned revenue
247
156
854
1,056
1,286
1,467
Net cash provided by (used in) operating
activities
20,606
12,715
23,669
16,928
51,220
59,322
INVESTING ACTIVITIES:
Purchases of property and equipment
(7,459
)
(14,288
)
(14,254
)
(26,370
)
(24,263
)
(52,256
)
Proceeds from property and equipment sales
and incentives
844
1,300
2,212
2,195
4,895
5,080
Acquisitions, net of cash acquired, and
other
(118
)
(320
)
(210
)
(950
)
(1,385
)
(3,066
)
Sales and maturities of marketable
securities
8,138
13,213
19,764
31,039
34,641
61,512
Purchases of marketable securities
(19,209
)
(21,985
)
(34,210
)
(36,660
)
(49,196
)
(74,929
)
Net cash provided by (used in) investing
activities
(17,804
)
(22,080
)
(26,698
)
(30,746
)
(35,308
)
(63,659
)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and
other
2,433
1,176
3,050
3,102
4,145
6,848
Repayments of short-term debt, and
other
(1,906
)
(1,176
)
(2,537
)
(3,177
)
(3,693
)
(6,817
)
Proceeds from long-term debt
9,918
18,516
9,994
18,627
10,699
19,158
Repayments of long-term debt
(205
)
(41
)
(241
)
(80
)
(1,305
)
(1,392
)
Principal repayments of finance leases
(2,817
)
(2,804
)
(5,417
)
(6,210
)
(10,504
)
(11,435
)
Principal repayments of financing
obligations
(15
)
(28
)
(32
)
(95
)
(56
)
(116
)
Net cash provided by (used in) financing
activities
7,408
15,643
4,817
12,167
(714
)
6,246
Foreign currency effect on cash, cash
equivalents, and restricted cash
127
234
(356
)
(59
)
(321
)
916
Net increase (decrease) in cash, cash
equivalents, and restricted cash
10,337
6,512
1,432
(1,710
)
14,877
2,825
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, END OF PERIOD
$
37,842
$
40,667
$
37,842
$
40,667
$
37,842
$
40,667
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt
$
139
$
179
$
430
$
455
$
872
$
942
Cash paid for operating leases
1,086
1,577
2,115
3,217
3,929
5,577
Cash paid for interest on finance
leases
161
129
329
286
662
569
Cash paid for interest on financing
obligations
21
35
43
68
77
127
Cash paid for income taxes, net of
refunds
486
1,803
791
2,604
1,221
3,526
Assets acquired under operating leases
3,347
5,578
5,755
9,114
10,530
19,576
Property and equipment acquired under
finance leases
3,155
1,642
5,321
3,709
13,110
9,976
Property and equipment acquired under
build-to-suit arrangements
482
1,094
861
1,981
1,504
3,387
AMAZON.COM, INC.
Consolidated Statements of
Operations
(in millions, except per share
data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020
2021
2020
2021
Net product sales
$
50,244
$
58,004
$
92,085
$
115,495
Net service sales
38,668
55,076
72,279
106,103
Total net sales
88,912
113,080
164,364
221,598
Operating expenses:
Cost of sales
52,660
64,176
96,917
126,579
Fulfillment
13,806
17,638
25,337
34,168
Technology and content
10,388
13,871
19,713
26,359
Marketing
4,345
7,524
9,173
13,731
General and administrative
1,580
2,158
3,032
4,145
Other operating expense (income), net
290
11
360
49
Total operating expenses
83,069
105,378
154,532
205,031
Operating income
5,843
7,702
9,832
16,567
Interest income
135
106
337
211
Interest expense
(403
)
(435
)
(805
)
(834
)
Other income (expense), net
646
1,261
240
2,958
Total non-operating income (expense)
378
932
(228
)
2,335
Income before income taxes
6,221
8,634
9,604
18,902
Provision for income taxes
(984
)
(868
)
(1,729
)
(3,024
)
Equity-method investment activity, net of
tax
6
12
(97
)
7
Net income
$
5,243
$
7,778
$
7,778
$
15,885
Basic earnings per share
$
10.50
$
15.40
$
15.59
$
31.49
Diluted earnings per share
$
10.30
$
15.12
$
15.32
$
30.92
Weighted-average shares used in
computation of earnings per share:
Basic
500
505
499
505
Diluted
509
514
508
514
AMAZON.COM, INC.
Consolidated Statements of
Comprehensive Income
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020
2021
2020
2021
Net income
$
5,243
$
7,778
$
7,778
$
15,885
Other comprehensive income (loss):
Foreign currency translation adjustments,
net of tax of $(8), $(17), $13 and $(4)
207
159
(668
)
(215
)
Net change in unrealized gains (losses) on
available-for-sale debt securities:
Unrealized gains (losses), net of tax of
$(73), $(2), $(61) and $28
407
(6
)
205
(104
)
Reclassification adjustment for losses
(gains) included in “Other income (expense), net,” net of tax of
$0, $4, $0 and $8
(6
)
(12
)
(6
)
(26
)
Net unrealized gains (losses) on
available-for-sale debt securities
401
(18
)
199
(130
)
Total other comprehensive income
(loss)
608
141
(469
)
(345
)
Comprehensive income
$
5,851
$
7,919
$
7,309
$
15,540
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020
2021
2020
2021
North America
Net sales
$
55,436
$
67,550
$
101,563
$
131,916
Operating expenses
53,295
64,403
98,111
125,319
Operating income
$
2,141
$
3,147
$
3,452
$
6,597
International
Net sales
$
22,668
$
30,721
$
41,774
$
61,370
Operating expenses
22,323
30,359
41,826
59,756
Operating income (loss)
$
345
$
362
$
(52
)
$
1,614
AWS
Net sales
$
10,808
$
14,809
$
21,027
$
28,312
Operating expenses
7,451
10,616
14,595
19,956
Operating income
$
3,357
$
4,193
$
6,432
$
8,356
Consolidated
Net sales
$
88,912
$
113,080
$
164,364
$
221,598
Operating expenses
83,069
105,378
154,532
205,031
Operating income
5,843
7,702
9,832
16,567
Total non-operating income (expense)
378
932
(228
)
2,335
Provision for income taxes
(984
)
(868
)
(1,729
)
(3,024
)
Equity-method investment activity, net of
tax
6
12
(97
)
7
Net income
$
5,243
$
7,778
$
7,778
$
15,885
Segment Highlights:
Y/Y net sales growth:
North America
43
%
22
%
36
%
30
%
International
38
36
28
47
AWS
29
37
31
35
Consolidated
40
27
34
35
Net sales mix:
North America
62
%
60
%
62
%
59
%
International
26
27
25
28
AWS
12
13
13
13
Consolidated
100
%
100
%
100
%
100
%
AMAZON.COM, INC.
Consolidated Balance
Sheets
(in millions, except per share
data)
December 31, 2020
June 30, 2021
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
42,122
$
40,380
Marketable securities
42,274
49,514
Inventories
23,795
24,119
Accounts receivable, net and other
24,542
26,835
Total current assets
132,733
140,848
Property and equipment, net
113,114
133,502
Operating leases
37,553
43,346
Goodwill
15,017
15,350
Other assets
22,778
27,273
Total assets
$
321,195
$
360,319
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
72,539
$
66,090
Accrued expenses and other
44,138
41,007
Unearned revenue
9,708
10,695
Total current liabilities
126,385
117,792
Long-term lease liabilities
52,573
56,297
Long-term debt
31,816
50,279
Other long-term liabilities
17,017
21,148
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares — 500
Issued and outstanding shares — none
—
—
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 527 and 530
Outstanding shares — 503 and 506
5
5
Treasury stock, at cost
(1,837)
(1,837)
Additional paid-in capital
42,865
48,724
Accumulated other comprehensive income
(loss)
(180)
(525)
Retained earnings
52,551
68,436
Total stockholders’ equity
93,404
114,803
Total liabilities and stockholders’
equity
$
321,195
$
360,319
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except per share
data)
(unaudited)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Y/Y %
Change
Cash Flows and Shares
Operating cash flow -- trailing twelve
months (TTM)
$
39,732
$
51,220
$
55,292
$
66,064
$
67,213
$
59,322
16
%
Operating cash flow -- TTM Y/Y growth
16
%
42
%
56
%
72
%
69
%
16
%
N/A
Purchases of property and equipment, net
of proceeds from sales and incentives -- TTM
$
15,395
$
19,368
$
25,791
$
35,044
$
40,803
$
47,176
144
%
Principal repayments of finance leases --
TTM
$
10,013
$
10,504
$
11,054
$
10,642
$
11,448
$
11,435
9
%
Principal repayments of financing
obligations -- TTM
$
43
$
56
$
68
$
53
$
103
$
116
106
%
Equipment acquired under finance leases --
TTM (1)
$
12,209
$
11,952
$
11,116
$
9,104
$
8,936
$
7,295
(39
)%
Principal repayments of all other finance
leases -- TTM (2)
$
407
$
415
$
413
$
427
$
525
$
550
33
%
Free cash flow -- TTM (3)
$
24,337
$
31,852
$
29,501
$
31,020
$
26,410
$
12,146
(62
)%
Free cash flow less principal repayments
of finance leases and financing obligations
-- TTM (4)
$
14,281
$
21,292
$
18,379
$
20,325
$
14,859
$
595
(97
)%
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations -- TTM (5)
$
11,678
$
19,429
$
17,904
$
21,436
$
16,846
$
4,185
(78
)%
Common shares and stock-based awards
outstanding
513
517
518
518
519
522
1
%
Common shares outstanding
499
501
502
503
504
506
1
%
Stock-based awards outstanding
14
16
16
15
15
16
(3
)%
Stock-based awards outstanding -- % of
common shares outstanding
2.8
%
3.2
%
3.3
%
3.0
%
2.9
%
3.1
%
N/A
Results of Operations
Worldwide (WW) net sales
$
75,452
$
88,912
$
96,145
$
125,555
$
108,518
$
113,080
27
%
WW net sales -- Y/Y growth, excluding
F/X
27
%
41
%
36
%
42
%
41
%
24
%
N/A
WW net sales -- TTM
$
296,274
$
321,782
$
347,946
$
386,064
$
419,130
$
443,298
38
%
WW net sales -- TTM Y/Y growth, excluding
F/X
23
%
28
%
31
%
37
%
40
%
36
%
N/A
Operating income
$
3,989
$
5,843
$
6,194
$
6,873
$
8,865
$
7,702
32
%
F/X impact -- favorable (unfavorable)
$
63
$
111
$
133
$
142
$
107
$
7
N/A
Operating income -- Y/Y growth (decline),
excluding F/X
(11
)%
86
%
92
%
74
%
120
%
32
%
N/A
Operating margin -- % of WW net sales
5.3
%
6.6
%
6.4
%
5.5
%
8.2
%
6.8
%
N/A
Operating income -- TTM
$
14,109
$
16,868
$
19,905
$
22,899
$
27,775
$
29,634
76
%
Operating income -- TTM Y/Y growth
(decline), excluding F/X
(6
)%
11
%
36
%
54
%
93
%
73
%
N/A
Operating margin -- TTM % of WW net
sales
4.8
%
5.2
%
5.7
%
5.9
%
6.6
%
6.7
%
N/A
Net income
$
2,535
$
5,243
$
6,331
$
7,222
$
8,107
$
7,778
48
%
Net income per diluted share
$
5.01
$
10.30
$
12.37
$
14.09
$
15.79
$
15.12
47
%
Net income -- TTM
$
10,563
$
13,180
$
17,377
$
21,331
$
26,903
$
29,438
123
%
Net income per diluted share -- TTM
$
20.93
$
26.04
$
34.21
$
41.83
$
52.59
$
57.47
121
%
(1)
For the twelve months ended June 30, 2020
and 2021, this amount relates to equipment included in “Property
and equipment acquired under finance leases” of $13,110 million and
$9,976 million.
(2)
For the twelve months ended June 30, 2020
and 2021, this amount relates to property included in “Principal
repayments of finance leases” of $10,504 million and $11,435
million.
(3)
Free cash flow is cash flow from
operations reduced by “Purchases of property and equipment, net of
proceeds from sales and incentives.”
(4)
Free cash flow less principal repayments
of finance leases and financing obligations is free cash flow
reduced by “Principal repayments of finance leases” and “Principal
repayments of financing obligations.”
(5)
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations is free cash flow reduced by equipment
acquired under finance leases, which is included in “Property and
equipment acquired under finance leases,” principal repayments of
all other finance lease liabilities, which is included in
“Principal repayments of finance leases,” and “Principal repayments
of financing obligations.”
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions)
(unaudited)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Y/Y %
Change
Segments
North America Segment:
Net sales
$
46,127
$
55,436
$
59,373
$
75,346
$
64,366
$
67,550
22
%
Net sales -- Y/Y growth, excluding F/X
29
%
44
%
39
%
40
%
39
%
21
%
N/A
Net sales -- TTM
$
181,088
$
197,871
$
214,606
$
236,282
$
254,521
$
266,635
35
%
Operating income
$
1,312
$
2,141
$
2,252
$
2,946
$
3,450
$
3,147
47
%
F/X impact -- favorable (unfavorable)
$
5
$
(4
)
$
—
$
7
$
8
$
34
N/A
Operating income -- Y/Y growth (decline),
excluding F/X
(43
)%
37
%
76
%
55
%
162
%
45
%
N/A
Operating margin -- % of North America net
sales
2.8
%
3.9
%
3.8
%
3.9
%
5.4
%
4.7
%
N/A
Operating income -- TTM
$
6,057
$
6,634
$
7,604
$
8,651
$
10,789
$
11,795
78
%
Operating margin -- TTM % of North America
net sales
3.4
%
3.4
%
3.5
%
3.7
%
4.2
%
4.4
%
N/A
International Segment:
Net sales
$
19,106
$
22,668
$
25,171
$
37,467
$
30,649
$
30,721
36
%
Net sales -- Y/Y growth, excluding F/X
20
%
41
%
33
%
50
%
50
%
26
%
N/A
Net sales -- TTM
$
77,637
$
83,935
$
90,758
$
104,412
$
115,955
$
124,008
48
%
Operating income (loss)
$
(398
)
$
345
$
407
$
363
$
1,252
$
362
5
%
F/X impact -- favorable (unfavorable)
$
(5
)
$
32
$
152
$
232
$
270
$
199
N/A
Operating income/loss -- Y/Y growth
(decline), excluding F/X
338
%
N/A
N/A
N/A
347
%
(53
)%
N/A
Operating margin -- % of International net
sales
(2.1
)%
1.5
%
1.6
%
1.0
%
4.1
%
1.2
%
N/A
Operating income (loss) -- TTM
$
(2,001
)
$
(1,055
)
$
(262
)
$
717
$
2,367
$
2,384
N/A
Operating margin -- TTM % of International
net sales
(2.6
)%
(1.3
)%
(0.3
)%
0.7
%
2.0
%
1.9
%
N/A
AWS Segment:
Net sales
$
10,219
$
10,808
$
11,601
$
12,742
$
13,503
$
14,809
37
%
Net sales -- Y/Y growth, excluding F/X
33
%
29
%
29
%
28
%
32
%
37
%
N/A
Net sales -- TTM
$
37,549
$
39,976
$
42,582
$
45,370
$
48,654
$
52,655
32
%
Operating income
$
3,075
$
3,357
$
3,535
$
3,564
$
4,163
$
4,193
25
%
F/X impact -- favorable (unfavorable)
$
63
$
83
$
(20
)
$
(96
)
$
(171
)
$
(226
)
N/A
Operating income -- Y/Y growth, excluding
F/X
36
%
54
%
57
%
41
%
41
%
32
%
N/A
Operating margin -- % of AWS net sales
30.1
%
31.1
%
30.5
%
28.0
%
30.8
%
28.3
%
N/A
Operating income -- TTM
$
10,053
$
11,289
$
12,563
$
13,531
$
14,619
$
15,455
37
%
Operating margin -- TTM % of AWS net
sales
26.8
%
28.2
%
29.5
%
29.8
%
30.0
%
29.4
%
N/A
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except employee
data)
(unaudited)
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Y/Y %
Change
Net Sales
Online stores (1)
$
36,652
$
45,896
$
48,350
$
66,451
$
52,901
$
53,157
16
%
Online stores -- Y/Y growth, excluding
F/X
25
%
49
%
37
%
43
%
41
%
13
%
N/A
Physical stores (2)
$
4,640
$
3,774
$
3,788
$
4,022
$
3,920
$
4,198
11
%
Physical stores -- Y/Y growth, excluding
F/X
8
%
(13
)%
(10
)%
(7
)%
(16
)%
10
%
N/A
Third-party seller services (3)
$
14,479
$
18,195
$
20,436
$
27,327
$
23,709
$
25,085
38
%
Third-party seller services -- Y/Y growth,
excluding F/X
31
%
53
%
53
%
54
%
60
%
34
%
N/A
Subscription services (4)
$
5,556
$
6,018
$
6,572
$
7,061
$
7,580
$
7,917
32
%
Subscription services -- Y/Y growth,
excluding F/X
29
%
30
%
32
%
34
%
34
%
28
%
N/A
AWS
$
10,219
$
10,808
$
11,601
$
12,742
$
13,503
$
14,809
37
%
AWS -- Y/Y growth, excluding F/X
33
%
29
%
29
%
28
%
32
%
37
%
N/A
Other (5)
$
3,906
$
4,221
$
5,398
$
7,952
$
6,905
$
7,914
87
%
Other -- Y/Y growth, excluding F/X
44
%
41
%
49
%
64
%
73
%
83
%
N/A
Stock-based Compensation
Expense
Cost of sales
$
41
$
76
$
75
$
91
$
90
$
145
91
%
Fulfillment
$
260
$
417
$
316
$
364
$
342
$
566
36
%
Technology and content
$
961
$
1,421
$
1,267
$
1,412
$
1,228
$
1,887
33
%
Marketing
$
332
$
456
$
446
$
476
$
456
$
691
52
%
General and administrative
$
163
$
231
$
184
$
219
$
190
$
302
31
%
Total stock-based compensation expense
$
1,757
$
2,601
$
2,288
$
2,562
$
2,306
$
3,591
38
%
Other
WW shipping costs
$
10,936
$
13,652
$
15,063
$
21,465
$
17,162
$
17,747
30
%
WW shipping costs -- Y/Y growth
49
%
68
%
57
%
67
%
57
%
30
%
N/A
WW paid units -- Y/Y growth (6)
32
%
57
%
46
%
47
%
44
%
15
%
N/A
WW seller unit mix -- % of WW paid units
(6)
52
%
53
%
54
%
55
%
55
%
56
%
N/A
Employees (full-time and part-time;
excludes contractors & temporary personnel)
840,400
876,800
1,125,300
1,298,000
1,271,000
1,335,000
52
%
Employees (full-time and part-time;
excludes contractors & temporary personnel) -- Y/Y growth
33
%
34
%
50
%
63
%
51
%
52
%
N/A
(1)
Includes product sales and digital media
content where we record revenue gross. We leverage our retail
infrastructure to offer a wide selection of consumable and durable
goods that includes media products available in both a physical and
digital format, such as books, videos, games, music, and software.
These product sales include digital products sold on a
transactional basis. Digital product subscriptions that provide
unlimited viewing or usage rights are included in “Subscription
services.”
(2)
Includes product sales where our customers
physically select items in a store. Sales to customers who order
goods online for delivery or pickup at our physical stores are
included in “Online stores.”
(3)
Includes commissions and any related
fulfillment and shipping fees, and other third-party seller
services.
(4)
Includes annual and monthly fees
associated with Amazon Prime memberships, as well as digital video,
audiobook, digital music, e-book, and other non-AWS subscription
services.
(5)
Primarily includes sales of advertising
services, as well as sales related to our other service
offerings.
(6)
Excludes the impact of Whole Foods
Market.
Amazon.com, Inc.
Certain Definitions
Customer Accounts
- References to customers mean customer accounts established when
a customer places an order through one of our stores. Customer
accounts exclude certain customers, including customers associated
with certain of our acquisitions, Amazon Payments customers, AWS
customers, and the customers of select companies with whom we have
a technology alliance or marketing and promotional relationship.
Customers are considered active when they have placed an order
during the preceding twelve-month period.
Seller Accounts
- References to sellers means seller accounts, which are
established when a seller receives an order from a customer
account. Sellers are considered active when they have received an
order from a customer during the preceding twelve-month
period.
AWS Customers
- References to AWS customers mean unique AWS customer accounts,
which are unique customer account IDs that are eligible to use AWS
services. This includes AWS accounts in the AWS free tier. Multiple
users accessing AWS services via one account ID are counted as a
single account. Customers are considered active when they have had
AWS usage activity during the preceding one-month period.
Units
- References to units mean physical and digital units sold (net
of returns and cancellations) by us and sellers in our stores as
well as Amazon-owned items sold in other stores. Units sold are
paid units and do not include units associated with AWS, certain
acquisitions, certain subscriptions, rental businesses, or
advertising businesses, or Amazon gift cards.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210729006106/en/
Amazon Investor Relations Dave Fildes, amazon-ir@amazon.com
amazon.com/ir
Amazon Public Relations Dan Perlet, amazon-pr@amazon.com
amazon.com/pr
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