AMAZON.COM ANNOUNCES FIRST QUARTER RESULTS
SEATTLE—(BUSINESS WIRE) April 30, 2020—Amazon.com, Inc. (NASDAQ: AMZN) today announced
financial results for its first quarter ended March 31, 2020.
• Operating cash flow increased 16% to $39.7 billion for the trailing twelve months, compared with $34.4
billion for the trailing twelve months ended March 31, 2019.
• Free cash flow increased to $24.3 billion for the trailing twelve months, compared with $23.0 billion for
the trailing twelve months ended March 31, 2019.
• Free cash flow less principal repayments of finance leases and financing obligations decreased to $14.3
billion for the trailing twelve months, compared with $15.1 billion for the trailing twelve months ended
March 31, 2019.
• Free cash flow less equipment finance leases and principal repayments of all other finance leases and
financing obligations decreased to $11.7 billion for the trailing twelve months, compared with $11.8
billion for the trailing twelve months ended March 31, 2019.
• Common shares outstanding plus shares underlying stock-based awards totaled 513 million on
March 31, 2020, compared with 507 million one year ago.
• Net sales increased 26% to $75.5 billion in the first quarter, compared with $59.7 billion in first quarter
2019. Excluding the $387 million unfavorable impact from year-over-year changes in foreign exchange
rates throughout the quarter, net sales increased 27% compared with first quarter 2019.
• Operating income decreased to $4.0 billion in the first quarter, compared with operating income of $4.4
billion in first quarter 2019.
• Net income decreased to $2.5 billion in the first quarter, or $5.01 per diluted share, compared with net
income of $3.6 billion, or $7.09 per diluted share, in first quarter 2019.
“From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and
durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced,” said Jeff Bezos,
Amazon founder and CEO. “We are inspired by all the essential workers we see doing their jobs — nurses and
doctors, grocery store cashiers, police officers, and our own extraordinary frontline employees. The service we
provide has never been more critical, and the people doing the frontline work — our employees and all the
contractors throughout our supply chain — are counting on us to keep them safe as they do that work. We’re not
going to let them down. Providing for customers and protecting employees as this crisis continues for more months
is going to take skill, humility, invention, and money. If you’re a shareowner in Amazon, you may want to take a
seat, because we’re not thinking small. Under normal circumstances, in this coming Q2, we’d expect to make some
$4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the
entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and
keeping employees safe. This includes investments in personal protective equipment, enhanced cleaning of our
facilities, less efficient process paths that better allow for effective social distancing, higher wages for hourly teams,
and hundreds of millions to develop our own COVID-19 testing capabilities. There is a lot of uncertainty in the
world right now, and the best investment we can make is in the safety and well-being of our hundreds of thousands
of employees. I’m confident that our long-term oriented shareowners will understand and embrace our approach,
and that in fact they would expect no less.”
COVID-19
What we are doing for employees
• Our top concern is ensuring the health and safety of our employees and contractors around the world. We
made over 150 significant process changes in our operations network and Whole Foods Market stores to
help teams stay healthy — and we conduct daily audits of the measures we’ve put into place.
• We have procured 100 million face masks and are requiring that they be worn by all associates, drivers, and
support staff in our operations network. We purchased more than 1,000 thermal cameras and 31,000
thermometers, which we are using to conduct mandatory daily temperature checks for employees and
support staff throughout our operations sites and Whole Foods Market stores.
• A team of Amazonians — from research scientists and program managers to procurement specialists and
software engineers — has moved from their normal day jobs to a dedicated team working to build
incremental testing capacity. The team is building its first lab and has begun a pilot to test front-line
employees. We’re not sure how far we will get in the relevant timeframe, but we think it’s worth trying, and
we stand ready to share anything we learn.
• In March and April, we announced plans to and have now hired 175,000 people in our fulfillment and
delivery network in response to increased customer demand and to assist existing employees. We are happy
to welcome these new hires to our team and are continuing to hire.
• In March, we increased pay for hourly employees by $2/hour in the U.S. and Canada, £2/hour in the U.K.,
and €2/hour in many European countries. We also doubled the regular hourly base pay for overtime hours
worked — a minimum of $34 an hour in the U.S. — an increase from time and a half. Our investment in
increased pay for our hourly employees and partners during COVID-19 will be nearly $700 million through
May 16.
What we are doing for customers
• We’re prioritizing the stocking and delivery of essential items to ensure the fastest delivery of household
staples, medical supplies, and other critical products.
• We’re acting aggressively to help protect customers from bad actors and have removed over one million
offers from our stores due to COVID-based price gouging. We’ve suspended more than 10,000 selling
accounts globally for violating our fair-pricing policies.
• We’re working hard to increase order capacity for Prime Now, Amazon Fresh, and Whole Foods Market.
We’ve expanded Whole Foods Market grocery pickup from roughly 80 stores to more than 150, adjusted
store hours for select locations to focus exclusively on fulfilling online grocery orders during certain times,
and have made it easier for customers to see when the next delivery window is available on the Prime Now,
Amazon Fresh, and Whole Foods Market homepages.
• We’ve implemented additional safety measures within our Whole Foods Market stores, including providing
plexiglass barriers between cashiers and customers at checkout, rolling out enhanced cleanliness and
sanitation protocols, and enforcing social distancing guidelines. Our Whole Foods Market locations are
open to seniors one hour before opening the store to the general public, and we are reserving the first hour
of grocery pickup at select Whole Foods Market locations for seniors.
• Alexa is helping customers stay informed and connected, and can now answer tens of thousands of
questions related to COVID-19. We’re working to provide accurate and timely information from official
government and news sources, globally. Alexa also provides an experience that helps customers in Brazil,
Canada, India, Japan, Mexico, and the U.S. check their risk level for COVID-19. Customers can ask,
“Alexa, what do I do if I think I have COVID-19?” or “Alexa, what do I do if I think I have coronavirus?”
Alexa then asks a series of questions about the person’s symptoms and possible exposure and provides
guidance sourced from local health authorities.
• To support third-party sellers in Amazon’s stores, many of whom are small and medium-sized businesses,
we paused Amazon Lending loan repayments from March 26 to April 30. In recent weeks, we also waived
one month of fees for long-term storage, Strategic Account Services account management, and the
Launchpad program, as well as two weeks of inventory storage fees.
• Amazon is supporting small businesses by partnering with American Express and its Stand for Small
initiative, providing free use of business tools that help with virtual communication and collaboration, such
as Amazon Chime, Amazon WorkDocs, and Amazon WorkSpaces, as well as enabling small businesses to
use the cloud at no charge for 12 months with AWS Free Tier. We’re also giving complimentary access to
training and educational tools from the Amazon Small Business Academy to help entrepreneurs learn how
to build their businesses online.
• AWS is helping healthcare workers, medical researchers, scientists, and public health officials working to
understand and fight COVID-19 by providing a centralized repository of curated, up-to-date, pre-processed,
and publicly-readable datasets focused on the spread and characteristics of the virus. The AWS COVID-19
data lake, which includes data sets from Johns Hopkins University, Definitive Healthcare, Carnegie
Mellon’s Delphi Research Group, and other sources, is available for anyone researching, tracking,
deploying vital resources, or developing other helpful solutions and applications to combat COVID-19.
• AWS is supporting the White House’s COVID-19 High Performance Computing Consortium, providing
computing resources to advance research on diagnosis, treatment, and vaccines.
• Customers are using AWS to lessen the impact that COVID-19 has on families, communities, and
businesses. Examples include:
• The New York City COVID-19 Rapid Response Coalition is using a conversational agent, which
is running on AWS, to enable at-risk, elderly New Yorkers to receive accurate, timely information
about medical needs.
• The Los Angeles Unified School District is using AWS to power a new call center that is fielding
IT questions, providing remote support, and enabling staff to answer calls around remote learning
for 700,000 students.
• Volunteer Surge, a nonprofit consortium, is running its online training platform on AWS to recruit,
train, and deploy one million volunteer health workers.
• The World Health Organization is using AWS to build large-scale data lakes, aggregate
epidemiological country data, rapidly translate medical training videos into different languages,
and help global healthcare workers better treat patients.
• Cerner, a global healthcare technology company, is compiling de-identified patient data to help
COVID-19 researchers and is leveraging AWS to secure and store critical information. The data is
available free of charge and will support research, vaccine development, and new treatment
options, allowing organizations to share information and accelerate understanding of the virus.
• In England, the National Health Service is using AWS to analyze hospital occupancy levels,
emergency room capacity, and patient wait times in order to help decide where best to allocate
resources.
• AWS is helping Kentucky and West Virginia authorities address the surge in call volumes to
unemployment call centers by transitioning from legacy technology that often required agents to
work in the states’ offices to Amazon Connect which enables staff to work remotely via the AWS
Cloud.
• Origin Energy, Australia’s largest integrated energy retailer, is using Amazon Connect to operate
its cloud-based contact center and successfully manage inbound calls by enabling their contact
center agents to work remotely during the COVID-19 crisis.
• AWS is helping the state of Rhode Island address a surge in unemployment insurance applications
— 10 times the volume their legacy system could typically handle — by powering the Department
of Labor and Training’s website and online application portal.
• AWS is helping schools around the world quickly deploy and transition to online learning through its
EdTech customers and partners. In Egypt, the Ministry of Education and CDSM Thinqi are standing up
instant access to online learning content, where 22 million K-12 students are able to continue their
education in the midst of COVID-19; and in India, EdTech startup Impartus is launching virtual classrooms
for more than 530,000 students — the online equivalent of 13,000 physical classrooms. AWS is also
working with Blackboard, the largest education technology and services company in the world, enabling
them to scale to 50x their usual capacity within a 24-hour timeframe to meet the global surge in demand of
daily users for their virtual teaching and learning platform.
• In collaboration with Salesforce, AWS is participating in the “Salesforce Care” campaign, a program to
onboard up to 300 customers, like HCA Healthcare and Providence Health & Services, to help them
quickly stand-up call center capacity to handle the spike in demand from their patients.
What we are doing for communities
• Using our network of Amazon Flex drivers, we’re partnering with food banks across the U.S. to donate
delivery services of groceries to serve six million meals through the end of June. We’ve delivered 427,000
pounds of groceries, representing 336,000 meals.
• We’ve partnered with a Seattle catering company to distribute more than 73,000 meals to over 2,700 elderly
and medically-vulnerable residents in Seattle and King County during the outbreak.
• We’re donating $5 million in Amazon devices to support healthcare workers, patients, schools, teachers,
and communities around the globe that have been impacted by COVID-19.
• We’ve provided $10 million in funding to provide relief to more than 800 small businesses in Seattle and
the Puget Sound through cash grants and free rent as part of our Neighborhood Small Business Relief Fund.
• We have donated 12,200 laptops to students across the U.S. and are making online computer science
resources, including exam prep, available at no cost to students, parents, and teachers through Amazon
Future Engineer.
• We committed more than €21 million to relief organizations across Europe to support those most affected
by COVID-19.
• In partnership with the United States Department of Agriculture we’ve expanded the list of states where
Supplemental Nutrition Assistance Program (SNAP) benefits can be used online, which now includes
Alabama, Arizona, California, Florida, Iowa, Kentucky, Nebraska, New York, Oregon, and Washington,
with additional states to come online soon.
• With the AWS Diagnostic Development Initiative, a program to support customers working to bring more
accurate diagnostic solutions to market for COVID-19, we’re committing $20 million to accelerate this
work and help our customers harness the cloud to tackle this challenge.
Business Highlights
Shopping and Entertainment
• Amazon ranked #1 in the 2019 American Customer Satisfaction Index Internet Retail Category and has
been ranked in the top 10 for the past 11 years. In the U.K., the Institute of Customer Service named
Amazon as the company with the best customer service score for the past decade.
• Prime Video launched Prime Video Cinema in the U.S., the U.K., and Germany. Prime Video Cinema is a
premium movie rental offering that allows customers to stream in-theater movies at home, including titles
such as Birds of Prey, Emma, The Invisible Man, Onward, and Trolls World Tour.
• Customers in the U.S., the U.K., and Germany can now rent or buy hundreds of thousands of video titles
directly from the Prime Video app on Apple iOS 12 devices and the Apple TV Gen 4+, including new
release movies, award-winning TV shows, and Oscar-nominated movies.
• Prime Video premiered several new Amazon Original series including the reality competition Making the
Cut, hosted and executive produced by Heidi Klum and Tim Gunn; The Forgotten Army in India; Love
Island in France; Celebrity Hunted in Italy; and the docuseries The Test: A New Era for Australia’s Team in
Australia.
• Prime Video and the National Football League (NFL) announced a multi-year agreement to renew their
partnership to deliver a live digital stream of 11 Thursday Night Football games as well as exclusive global
streaming rights to one additional regular season game. All NFL games on Prime Video are available at no
extra cost to Prime members.
• Amazon launched Amazon Go Grocery in Seattle, the first grocery store to offer Just Walk Out Shopping.
The store's checkout-free experience is enabled by the same Just Walk Out Technology used in 25 Amazon
Go stores across the U.S. In addition, Amazon is now offering its Just Walk Out Technology to retailers for
use in their stores, allowing more shoppers to enjoy the convenience of taking what they want and leaving
without stopping to check out.
• Amazon launched Amazon.nl and a new Prime program for the Netherlands marketplace. Amazon Prime
includes unlimited free shipping, Prime Video, Twitch Prime, and Amazon Photos.
• Amazon announced that more than 15,000 small and medium-sized businesses selling in Amazon’s stores
in the U.S. surpassed $1 million in sales in 2019. Additionally, third-party sellers sold more than 700
million items that shipped with Prime Free One-Day Delivery or faster in the U.S. in 2019.
Devices and Alexa
• Alexa is available on even more devices including TV, mobile, and auto and is now available on select LG
and Samsung Smart TV 2020 models and the new OnePlus 8 mobile phone. Additionally, BMW customers
in the U.S., and MINI customers in the U.S., France, Italy, Spain, and Austria can now access Alexa on
select models.
• Amazon introduced a new speaking style for Alexa skills, enabling U.S. developers to build more natural
long-form content experiences by adding conversational pauses to Alexa’s speech when reading articles or
blogs.
• Fire TV’s content catalog continues to grow internationally with new apps, including Disney+, available on
Fire TV and Fire Tablet devices in the U.K., France, Germany, Italy, and Spain.
• Ring launched several new products and features, including two Ring Video Doorbells and its next-
generation Ring Chime and Ring Chime Pro, in the U.S., the U.K., Canada, Australia, and New Zealand.
Additionally, Ring launched mandatory two-step verification for all users, along with the ability to opt out
of personalized advertising.
• Amazon launched Blink Mini, a new compact indoor smart security camera that works with Alexa in the
U.S., the U.K., Canada, Germany, and France.
Amazon Web Services
• AWS announced the opening of the AWS Europe (Milan) and AWS Africa (Cape Town) Regions. AWS
now spans 76 Availability Zones within 24 geographic regions, with announced plans for nine more
Availability Zones and three more AWS Regions in Indonesia, Japan,
and Spain.
• AWS announced the general availability of Amazon Detective, a security service that makes it easy for
customers to conduct faster and more efficient investigations into security issues across their AWS
workloads. Amazon Detective automatically collects log data from a customer’s resources and uses
machine learning, statistical analysis, and graph theory to build interactive visualizations that help
customers analyze, investigate, and quickly identify the root cause of potential security issues or suspicious
activities.
• AWS announced the general availability of Amazon Keyspaces (for Apache Cassandra), a scalable, highly
available, and fully managed database service for Cassandra workloads. Amazon Keyspaces supports the
same application code, Apache 2.0 licensed drivers, and developer tools that customers running Cassandra
workloads use today. With Amazon Keyspaces, customers can easily migrate on-premises Cassandra
workloads to the cloud, without having to provision, configure, and operate servers or large Cassandra
clusters, or needing to manually add or remove nodes or rebalance partitions as traffic scales up or down.
• AWS announced Amazon AppFlow, a fully managed service that provides an easy, secure way for
customers to create and automate bidirectional data flows between AWS and SaaS applications — such as
Salesforce, Slack, Infor Nexus, Marketo, ServiceNow, Trend Micro, and Zendesk — without writing
custom integration code. Amazon AppFlow also works with AWS PrivateLink to route data flows through
the AWS network instead of over the public Internet to provide even stronger data privacy and security.
With Amazon AppFlow, customers can bring together and manage petabytes, even exabytes, of data spread
across all of their applications without having to develop custom connectors or manage underlying API and
network connectivity.
• AWS announced the general availability of Amazon Augmented Artificial Intelligence (Amazon A2I), a
fully managed service that makes it easy to add human review to machine learning predictions to enhance
model and application accuracy by continuously identifying and improving low confidence predictions.
Human review for model predictions can be added to new or existing applications using reviewers from
Mechanical Turk, third party vendors, or a customer’s own employees.
• AWS helped power the NFL’s first ever remote draft — the most watched ever, reaching more than 55
million viewers total. Through all seven rounds of the three-day event, AWS ensured that over 100 live
feeds ran successfully, creating a seamless experience for the NFL, teams, coaches, players and their
families, fans, and everyone watching.
Community and Sustainability
• Amazon launched the first Amazon Future Engineer Teacher of the Year Awards, recognizing teachers
working to help students in underserved communities gain the skills they need to build careers in computer
science.
• Amazon donated $3.9 million to CodeVA, a Virginia non-profit organization, to expand computer science
education for 500,000 students and training for 12,000 teachers in 700 underserved communities across
Virginia — with virtual training starting now in light of COVID-19.
• Amazon leveraged its operational expertise and logistics network to provide relief and support to victims
across the globe including those impacted by the Australian bushfire crisis, Indonesia’s floods, earthquakes
in Puerto Rico, and tornadoes in the Middle Tennessee region. Amazon has donated more than 750,000
relief items to help community partners responding to large-scale natural disasters.
• Amazon announced four new renewable energy projects across the U.S., Europe, and Australia that will
support Amazon’s commitment under The Climate Pledge to be net zero carbon by 2040, 10 years ahead of
the Paris Agreement. Globally, Amazon has 86 renewable energy projects that have the capacity to generate
over 2,300 MW and deliver more than 6.3 million MWh of energy annually.
• Amazon announced its first donation of $10 million to The Nature Conservancy. This first project donation
is part of Amazon’s Right Now Climate Fund — a $100 million commitment to protect, restore, and
support reforestation projects around the world in collaboration with The Nature Conservancy.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of April 30, 2020, 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 April 30, 2020 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 spread of the pandemic; 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
consumer 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 Q2 to date, and the
additional assumptions set forth below. However, it is not possible to determine the ultimate impact on our
operations for the second quarter, or whether other currently unanticipated direct or indirect consequences of the
pandemic are reasonably likely to materially affect our operations.
Second Quarter 2020 Guidance
• Net sales are expected to be between $75.0 billion and $81.0 billion, or to grow between 18% and 28%
compared with second quarter 2019. This guidance anticipates an unfavorable impact of approximately 70
basis points from foreign exchange rates.
• Operating income (loss) is expected to be between $(1.5) billion and $1.5 billion, compared with $3.1
billion in second quarter 2019. This guidance assumes approximately $4.0 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, seasonality, 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. Customer reviews, 1-Click shopping, personalized
recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV,
Amazon Echo, and Alexa are some of the products and services 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
March 31,
Twelve Months Ended
March 31,
2019
2020
2019
2020
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $
32,173
$
36,410
$
17,616
$
23,507
OPERATING ACTIVITIES:
Net income 3,561
2,535
12,005
10,563
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
4,854
5,362
16,524
22,297
Stock-based compensation 1,274
1,757
5,509
7,347
Other operating expense (income), net (13)
67
205
244
Other expense (income), net (135)
565
268
451
Deferred income taxes 415
322
714
704
Changes in operating assets and liabilities:
Inventories 719
1,392
(2,815)
(2,605)
Accounts receivable, net and other (401)
1,262
(6,043)
(6,018)
Accounts payable (6,384)
(8,044)
7,095
6,532
Accrued expenses and other (2,932)
(2,761)
(235)
(1,213)
Unearned revenue 888
607
1,133
1,430
Net cash provided by (used in) operating activities 1,846
3,064
34,360
39,732
INVESTING ACTIVITIES:
Purchases of property and equipment (3,290)
(6,795)
(13,619)
(20,365)
Proceeds from property and equipment sales and incentives 569
1,367
2,303
4,970
Acquisitions, net of cash acquired, and other (1,169)
(91)
(3,342)
(1,384)
Sales and maturities of marketable securities 2,643
11,626
8,205
31,664
Purchases of marketable securities (6,876)
(15,001)
(13,506)
(39,938)
Net cash provided by (used in) investing activities (8,123)
(8,894)
(19,959)
(25,053)
FINANCING ACTIVITIES:
Proceeds from long-term debt and other 190
693
833
2,776
Repayments of long-term debt and other (351)
(667)
(817)
(3,000)
Principal repayments of finance leases (2,214)
(2,600)
(7,649)
(10,013)
Principal repayments of financing obligations (2)
(17)
(266)
(43)
Net cash provided by (used in) financing activities (2,377)
(2,591)
(7,899)
(10,280)
Foreign currency effect on cash, cash equivalents, and restricted cash (12)
(484)
(611)
(401)
Net increase (decrease) in cash, cash equivalents, and restricted cash (8,666)
(8,905)
5,891
3,998
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $
23,507
$
27,505
$
23,507
$
27,505
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on long-term debt $
286
$
290
$
858
$
879
Cash paid for operating leases 709
1,029
709
3,680
Cash paid for interest on finance leases 165
168
471
650
Cash paid for interest on financing obligations 2
22
142
59
Cash paid for income taxes, net of refunds 168
305
840
1,017
Assets acquired under operating leases 875
2,408
875
9,403
Property and equipment acquired under finance leases 2,628
2,166
10,972
13,262
Property and equipment acquired under build-to-suit arrangements 436
379
3,336
1,304
AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended
March 31,
2019
2020
Net product sales $
34,283
$
41,841
Net service sales 25,417
33,611
Total net sales 59,700
75,452
Operating expenses:
Cost of sales 33,920
44,257
Fulfillment 8,601
11,531
Technology and content 7,927
9,325
Marketing 3,664
4,828
General and administrative 1,173
1,452
Other operating expense (income), net (5)
70
Total operating expenses 55,280
71,463
Operating income 4,420
3,989
Interest income 183
202
Interest expense (366)
(402
)
Other income (expense), net 164
(406
)
Total non-operating income (expense) (19)
(606
)
Income before income taxes 4,401
3,383
Provision for income taxes (836)
(744
)
Equity-method investment activity, net of tax (4)
(104
)
Net income $
3,561
$
2,535
Basic earnings per share $
7.24
$
5.09
Diluted earnings per share $
7.09
$
5.01
Weighted-average shares used in computation of earnings per share:
Basic 491
498
Diluted 502
506
AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
Three Months Ended
March 31,
2019
2020
Net income $
3,561
$
2,535
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(1) and $21 (8)
(874
)
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $0 and $12 32
(203
)
Reclassification adjustment for losses (gains) included in “Other income (expense),
net,” net of tax of $0 and $0
1
—
Net unrealized gains (losses) on available-for-sale debt securities 33
(203
)
Total other comprehensive income (loss) 25
(1,077
)
Comprehensive income $
3,586
$
1,458
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
March 31,
2019
2020
North America
Net sales $
35,812
$
46,127
Operating expenses 33,525
44,815
Operating income $
2,287
$
1,312
International
Net sales $
16,192
$
19,106
Operating expenses 16,282
19,504
Operating income (loss) $
(90)
$
(398)
AWS
Net sales $
7,696
$
10,219
Operating expenses 5,473
7,144
Operating income $
2,223
$
3,075
Consolidated
Net sales $
59,700
$
75,452
Operating expenses 55,280
71,463
Operating income 4,420
3,989
Total non-operating income (expense) (19)
(606)
Provision for income taxes (836)
(744)
Equity-method investment activity, net of tax (4)
(104)
Net income $
3,561
$
2,535
Segment Highlights:
Y/Y net sales growth:
North America 17%
29%
International 9
18
AWS 41
33
Consolidated 17
26
Net sales mix:
North America 60%
61%
International 27
25
AWS 13
14
Consolidated 100%
100%
AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
December 31, 2019
March 31, 2020
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $
36,092
$
27,201
Marketable securities 18,929
22,091
Inventories 20,497
18,857
Accounts receivable, net and other 20,816
17,836
Total current assets
96,334
85,985
Property and equipment, net 72,705
77,779
Operating leases 25,141
26,279
Goodwill 14,754
14,739
Other assets 16,314
16,456
Total assets
$
225,248
$
221,238
LIABILITIES AND STOCKHOLDERS
’
EQUITY
Current liabilities:
Accounts payable $
47,183
$
40,056
Accrued expenses and other 32,439
30,791
Unearned revenue 8,190
8,864
Total current liabilities
87,812
79,711
Long-term lease liabilities 39,791
40,300
Long-term debt 23,414
23,437
Other long-term liabilities 12,171
12,518
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 — 521 and 522
Outstanding shares — 498 and 499 5
5
Treasury stock, at cost (1,837)
(1,837
)
Additional paid-in capital 33,658
35,412
Accumulated other comprehensive income (loss) (986)
(2,063
)
Retained earnings 31,220
33,755
Total stockholders
’
equity
62,060
65,272
Total liabilities and stockholders
’
equity
$
225,248
$
221,238
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Y/Y %
Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM) $
30,723
$
34,360
$
36,029
$
35,332
$
38,514
$
39,732
16 %
Operating cash flow -- TTM Y/Y growth 67
% 89% 65% 33 %
25% 16 % N/A
Purchases of property and equipment, net of proceeds from sales and incentives -- TTM $
11,323
$
11,316
$
11,011
$
11,868
$
12,689
$
15,395
36 %
Principal repayments of finance leases -- TTM (1) $
7,449
$
7,649
$
8,693
$
8,754
$
9,628
$
10,013
31 %
Principal repayments of financing obligations -- TTM (1) $
337
$
266
$
211
$
129
$
27
$
43
(84)%
Equipment acquired under finance leases -- TTM (1) (2) $
10,615
$
10,909
$
11,656
$
12,580
$
12,916
$
12,209
12 %
Principal repayments of all other finance leases -- TTM (1) (3) $
—
$
76
$
176
$
302
$
392
$
407
430 %
Free cash flow -- TTM (4) $
19,400
$
23,044
$
25,018
$
23,464
$
25,825
$
24,337
6 %
Free cash flow less principal repayments of finance leases and financing obligations
--
TTM (1) (5)
$
11,614
$
15,129
$
16,114
$
14,581
$
16,170
$
14,281
(6)%
Free cash flow less equipment finance leases and principal repayments of all other
finance leases and financing obligations
--
TTM (1) (6)
$
8,448
$
11,793
$
12,975
$
10,453
$
12,490
$
11,678
(1)%
Common shares and stock-based awards outstanding 507
507
510
511
512
513
1 %
Common shares outstanding 491
492
494
495
498
499
1 %
Stock-based awards outstanding 16
15
16
16
14
14
(7)%
Stock-based awards outstanding -- % of common shares outstanding 3.2
% 3.0% 3.3% 3.2 %
2.9% 2.8 % N/A
Results of Operations
Worldwide (WW) net sales $
72,383
$
59,700
$
63,404
$
69,981
$
87,437
$
75,452
26 %
WW net sales -- Y/Y growth, excluding F/X 21
% 19% 21% 25 %
21% 27 % N/A
WW net sales -- TTM $
232,887
$
241,546
$
252,064
$
265,469
$
280,522
$
296,274
23 %
WW net sales -- TTM Y/Y growth, excluding F/X 30
% 26% 23% 22 %
22% 23 % N/A
Operating income $
3,786
$
4,420
$
3,084
$
3,157
$
3,879
$
3,989
(10)%
F/X impact -- favorable (unfavorable) $
123
$
84
$
58
$
22
$
16
$
63
N/A
Operating income -- Y/Y growth (decline), excluding F/X 72
% 125% 1% (16)%
2% (11)% N/A
Operating margin -- % of WW net sales 5.2
% 7.4% 4.9% 4.5 %
4.4% 5.3 % N/A
Operating income -- TTM $
12,421
$
14,914
$
15,014
$
14,448
$
14,541
$
14,109
(5)%
Operating income -- TTM Y/Y growth (decline), excluding F/X 197
% 190% 99% 32 %
16% (6)% N/A
Operating margin -- TTM % of WW net sales 5.3
% 6.2% 6.0% 5.4 %
5.2% 4.8 % N/A
Net income $
3,027
$
3,561
$
2,625
$
2,134
$
3,268
$
2,535
(29)%
Net income per diluted share $
6.04
$
7.09
$
5.22
$
4.23
$
6.47
$
5.01
(29)%
Net income -- TTM $
10,073
$
12,005
$
12,096
$
11,347
$
11,588
$
10,563
(12)%
Net income per diluted share -- TTM $
20.14
$
23.96
$
24.08
$
22.57
$
23.01
$
20.93
(13)%
______________________________
(1) On January 1, 2019, we adopted accounting guidance amending the accounting for leases, which did not have a material impact on our 2019 operating
results. Prior period amounts were not retrospectively adjusted. Under this new guidance, leases we previously referred to as “capital leases” are now
referred to as “finance leases.” Leases we previously referred to as “finance leases” are now referred to as “financing obligations.”
(2) For the twelve months ended March 31, 2019 and 2020, this amount relates to equipment included in “Property and equipment acquired under finance
leases” of $10,972 million and $13,262 million.
(3) For the twelve months ended March 31, 2019 and 2020, this amount relates to property included in “Principal repayments of finance leases” of $7,649
million and $10,013 million.
(4) Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”
(5) 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.”
(6) 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)
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Y/Y %
Change
Segments
North America Segment:
Net sales $
44,124
$
35,812
$
38,653
$
42,638
$
53,670
$
46,127
29 %
Net sales -- Y/Y growth, excluding F/X 18 % 17 % 20
% 24 % 22 %
29 % N/A
Net sales -- TTM $
141,366
$
146,453
$
152,938
$
161,228
$
170,773
$
181,088
24 %
Operating income $
2,251
$
2,287
$
1,564
$
1,282
$
1,900
$
1,312
(43)%
F/X impact -- favorable (unfavorable) $
17
$
13
$
7
$
6
$
(3
) $
5
N/A
Operating income -- Y/Y growth (decline), excluding F/X 32 % 98 % (15
)% (37)% (16)%
(43)% N/A
Operating margin -- % of North America net sales 5.1 % 6.4 % 4.0
% 3.0 % 3.5 %
2.8 % N/A
Operating income -- TTM $
7,267
$
8,405
$
8,134
$
7,384
$
7,033
$
6,057
(28)%
Operating margin -- TTM % of North America net sales 5.1 % 5.7 % 5.3
% 4.6 % 4.1 %
3.4 % N/A
International Segment:
Net sales $
20,829
$
16,192
$
16,370
$
18,348
$
23,813
$
19,106
18 %
Net sales -- Y/Y growth, excluding F/X 19 % 16 % 17
% 21 % 15 %
20 % N/A
Net sales -- TTM $
65,866
$
67,184
$
68,941
$
71,740
$
74,723
$
77,637
16 %
Operating income (loss) $
(642) $
(90) $
(601) $
(386) $
(617
) $
(398) 343 %
F/X impact -- favorable (unfavorable) $
55
$
(39) $
(36) $
(34) $
(7
) $
(5) N/A
Operating income/loss -- Y/Y growth (decline), excluding F/X (24)% (92)% 15
% (8)% (5)%
338 % N/A
Operating margin -- % of International net sales (3.1)% (1.0)% (3.7
)% (2.1)% (2.6)%
(2.1)% N/A
Operating income (loss) -- TTM $
(2,142) $
(1,610) $
(1,718) $
(1,718) $
(1,693
) $
(2,001) 24 %
Operating margin -- TTM % of International net sales (3.3)% (2.4)% (2.5
)% (2.4)% (2.3)%
(2.6)% N/A
AWS Segment:
Net sales $
7,430
$
7,696
$
8,381
$
8,995
$
9,954
$
10,219
33 %
Net sales -- Y/Y growth, excluding F/X 46 % 42 % 37
% 35 % 34 %
33 % N/A
Net sales -- TTM $
25,655
$
27,909
$
30,185
$
32,501
$
35,026
$
37,549
35 %
Operating income $
2,177
$
2,223
$
2,121
$
2,261
$
2,596
$
3,075
38 %
F/X impact -- favorable (unfavorable) $
51
$
110
$
87
$
50
$
26
$
63
N/A
Operating income -- Y/Y growth, excluding F/X 57 % 51 % 24
% 6 % 18 %
36 % N/A
Operating margin -- % of AWS net sales 29.3 % 28.9 % 25.3
% 25.1 % 26.1 %
30.1 % N/A
Operating income -- TTM $
7,296
$
8,119
$
8,598
$
8,782
$
9,201
$
10,053
24 %
Operating margin -- TTM % of AWS net sales 28.4 % 29.1 % 28.5
% 27.0 % 26.3 %
26.8 % N/A
AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except employee data)
(unaudited)
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020
Y/Y %
Change
Net Sales
Online stores (1) $
39,822
$
29,498
$
31,053
$
35,039
$
45,657
$
36,652
24
%
Online stores -- Y/Y growth, excluding F/X 14 % 12% 16
% 22 % 15 % 25
% N/A
Physical stores (2) $
4,401
$
4,307
$
4,330
$
4,192
$
4,363
$
4,640
8
%
Physical stores -- Y/Y growth, excluding F/X (3)% 1% 1
% (1)% (1)% 8
% N/A
Third-party seller services (3) $
13,383
$
11,141
$
11,962
$
13,212
$
17,446
$
14,479
30
%
Third-party seller services -- Y/Y growth, excluding F/X 28 % 23% 25
% 28 % 31 % 31
% N/A
Subscription services (4) $
3,959
$
4,342
$
4,676
$
4,957
$
5,235
$
5,556
28
%
Subscription services -- Y/Y growth, excluding F/X 26 % 42% 39
% 35 % 32 % 29
% N/A
AWS $
7,430
$
7,696
$
8,381
$
8,995
$
9,954
$
10,219
33
%
AWS -- Y/Y growth, excluding F/X 46 % 42% 37
% 35 % 34 % 33
% N/A
Other (5) $
3,388
$
2,716
$
3,002
$
3,586
$
4,782
$
3,906
44
%
Other -- Y/Y growth, excluding F/X (6) 97 % 36% 37
% 45 % 41 % 44
% N/A
Stock-based Compensation Expense
Cost of sales $
21
$
24
$
43
$
39
$
43
$
41
71
%
Fulfillment $
287
$
234
$
360
$
301
$
286
$
260
11
%
Technology and content $
750
$
675
$
1,077
$
966
$
1,007
$
961
59
%
Marketing $
217
$
209
$
307
$
298
$
322
$
332
42
%
General and administrative $
142
$
132
$
184
$
175
$
182
$
163
24
%
Total stock-based compensation expense $
1,417
$
1,274
$
1,971
$
1,779
$
1,840
$
1,757
38
%
Other
WW shipping costs $
9,041
$
7,320
$
8,134
$
9,608
$
12,884
$
10,936
49
%
WW shipping costs -- Y/Y growth 23 % 21% 36
% 46 % 43 % 49
% N/A
WW paid units -- Y/Y growth (7) 14 % 10% 18
% 22 % 22 % 32
% N/A
WW seller unit mix -- % of WW paid units (7) 52 % 53% 54
% 53 % 53 % 52
% N/A
Employees (full-time and part-time; excludes contractors & temporary personnel) 647,500
630,600
653,300
750,000
798,000
840,400
33
%
Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y
growth
14 % 12% 13
% 22 % 23 % 33
% 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, music, videos, games, 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 from 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 audiobook, digital video, 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) As a result of revenue recognition accounting guidance adopted on January 1, 2018, certain advertising services are classified as revenue rather than a
reduction in cost of sales.
(7) 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.
Contacts:
Amazon.com Investor Relations Amazon.com Public Relations
Dave Fildes, amazon-ir@amazon.com Dan Perlet, amazon-pr@amazon.com
amazon.com/ir amazon.com/pr
