Amazon CEO Jeff Bezos

Net sales and operating cash flow up considerably; net and operating income still taking big hits

Everyone's favorite online retailer turned tablet maker and content aggregator, Amazon, has just posted its Q1 2013 financial report. There's a whole lot of numbers to jump into here, so let's get to the quick breakdown first:

  • Net sales of $16.07 billion, up a full 22-percent year-over-year
  • Operating income of $181 million, down 6-percent y-o-y
  • Net income of just $82 million, down sharply by 37-percent y-o-y
  • Operating cash flow (for the trailing 12 months) of $4.25 billion, up 39-percent y-o-y

This seems to be the trend for Amazon as of late, boasting high quarterly sales year after year, but coming up a bit short at the bottom line. Over $16 billion in sales is a massive number, but among other reasons currency fluctuations are to blame for the decreasing net income. Regardless of what the income numbers look like, Amazon isn't slowing down any time soon. During the release it took time to remind us of its current initiatives.

Amazon is continually boosting its Prime Instant Video catalog, bringing TV shows from A&E, FX, PBS, HGTV and many more. It also debuted pilots for 14 original series, which are coming out of Amazon Studios. Aside from touting increased availability of the Kindle Fire HD 8.9" in several new countries, in typical Amazon fashion it didn't break out any sales or earnings for the devices. Rest assured that Amazon is likely selling a boatload of Kindles every quarter.

Source: Amazon (BusinessWire)

 

Reader comments

Amazon posts Q1 2013 earnings: $16.07 billion in sales net just $82 million in income

12 Comments

Their profits will definitely increase after introducing add-on items, which, on the contrary is one of the most annoying things ever!

I love add on items. now Amazon can sell all that little crap that use to be marked way up to cover shipping costs, at a reasonable competitive price.

I don't see why people are annoyed their prime plan doesn't get them a 1 dollar coin cell battery delivered free in 2 days.

Why can't the Release Amazon Prime to all Android Devices, like Samsung Asus, Nexus tablets or any Android phone?

Why can't the Release Amazon Prime to all Android Devices, like Samsung Asus, Nexus tablets or any Android phone?

These numbers show if company is ripping its costumers of or not. Verizon and ATT post numbers that shows 25-33% profits per revenue, and Amazon not even 1%. People, look and learn.

I read a big article once on how Amazon purposefully keeps profits down. They do have low margins...but that's not the whole reason profits are so low...they put a LOT of their money back into the company for expansion.

True. Profits have to be used somewhere, otherwise investors start asking for dividends. The true measure to pay attention to with Amazon is operating cash flow, and that was not only $4.25bil, but was up 39% y-o-y. Amazon is swimming in cash; they are just spending it on growing the company.

Umm no. Actually, that tells you what their business model is like. It has nothing to do with "ripping its costumers of or not".

I don't know what it is with Amazon these days.

I used to be a certified Amazon junkie. Whenever I buy something, I always check Amazon prices and usually end up buying from Amazon. (because they were almost always cheaper than other online retailers and local stores.... obviously) In 2011 alone, I bought everything from pet food, electronics, laundry detergents to large items such as window air conditioners. 152 orders in 2011.

However, in the last 12 months, Amazon no longer has the cheapest prices. Even Walmartcom has better prices on many items. Not to mention Best Buy, which started pricematching.
So far this year(2013), I have only placed 6 orders on Amazon. The rest of the stuff
were all ordered elsewhere.

Yeah, I've noticed that as well. I still tend to use Amazon though if it's no more than a few more dollars. I like the easy returns, and the dead simple checkout process.