Amazon Second Quarter Sales up 23 percent to $19.34 Billion
Amazon.com has announced financial results for its second quarter ended June 30, 2014.
Operating cash flow increased 18 percent to $5.33 billion for the previous twelve months, compared with $4.53 billion for the twelve months ended June 30, 2013. Free cash flow increased to $1.04 billion for the previous twelve months, compared with $265 million for the twelve months ended June 30, 2013.
Free cash flow includes cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion. Common shares outstanding plus shares underlying stock-based awards have increased $6 billion to $480 billion.
Jeff Bezos, founder and CEO of Amazon.com said: “We continue working hard on making the Amazon customer experience better and better.
“We’ve recently introduced Sunday delivery coverage to 25 percent of the U.S. population, launched European cross-border Two-Day Delivery for Prime, and launched Kindle Unlimited, an eBook subscription service.”
Net sales increased 23 percent to $19.34 billion in the second quarter, compared with $15.70 billion in second quarter 2013. Excluding the $237 million favourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 22 percent compared with second quarter 2013.
Operating loss was $15 million in the second quarter, compared with operating income of $79 million in second quarter 2013. The favourable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating loss was $31 million.
Net loss was $126 million in the second quarter, or $0.27 per diluted share, compared with net loss of $7 million, or $0.02 per diluted share, in second quarter 2013.
Highlights
- AmazonFresh continued to expand its service in the Los Angeles and San Francisco areas. AmazonFresh customers in Orange County, Berkeley, Oakland, and Silicon Valley now get same-day and early next-day delivery of fresh groceries as well as over 500,000Amazon.com items.
- Amazon has expanded Sunday delivery to 18 additional cities since launching in the Los Angeles and New York metro areas. Since Sunday delivery launched, millions of packages have been delivered on Sundays to Amazon customers. Amazon Prime members, who receive unlimited two-day shipping on millions of items, can order as late as Friday and receive their packages on Sunday, for free.
- Amazon announced enhancements to its European cross border delivery network. Amazon.co.uk and Amazon.de Prime members now have access to free Two-Day Delivery for approximately one million additional products stored in Amazon’s European fulfillment centers located outside their respective countries.
- Since launching the India marketplace website, Amazon.in, one year ago, Amazon has rapidly expanded selection to serve customers in India, averaging a launch of one new category every 13 days. With Amazon.in customers can shop from India’s largest store with ease and confidence from over 17 million products from a rapidly growing group of small and medium businesses.
Third Quarter 2014 Guidance
- Net sales are expected to be between $19.7 billion and $21.5 billion, or to grow between 15% and 26% compared with third quarter 2013.
- Operating loss is expected to be between $810 million and $410 million, compared to $25 million in third quarter 2013.
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