DOCSLIB.ORG

Tom Szkutak, SVP & CFO Morgan Stanley Technology Conference

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Tom Szkutak, SVP & CFO Morgan Stanley Technology Conference Tom Szkutak, SVP & CFO Morgan Stanley Technology Conference March 4, 2009 This presentation may contain forward-looking statements which are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, indebtedness, government regulation and taxation, payments, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings. Additional information relating to certain of our financial measures contained herein is available in the appendix to our presentation, our most recent earnings release and at our website at www.amazon.com/ir under ‘Financial Documents’. 2 Agenda • Our Results • Our Strategy 3 Financial Focus • Maximize Profit Dollars, Not Margin • Optimize Free Cash Flow • Return On Invested Capital (ROIC) 4 Free Cash Flow -- TTM (1) MM Up 16% Y/Y $1,364 $1,181 $477 Long Term Goal – Optimize Free Cash Flow (1) Free C ash Flow, a non-GAAP financial measure, is GAA P Operating Cash Flow Less Purchases of Fixed Assets. See appendix for a reconciliation of Operating Cash Flow to Free Cash Flow. 5 Free Cash Flow -- TTM MM $580 $(46) $287 $(333) $812 $(232) $(159) $(128) $1,364 $275 $842 Leverage in Earnings, Working Capital 6 Capital Efficiency -- Operating Cycle -- TTM (1) 26 Days Day 0 30 35 61 Product Product Customer Supplier Received Shipped Payment Paid Working Capital is a Source of Cash (1) As of 12/31/ 08 – Average Trailing Twelve Month (TTM) Inventory Days, AR Days and AP Days. 7 Shares MM 434 435 446 Efficiently Managing Dilution (1) The Company repurchased 8.2 million shares in 2006, 6.3 million shares in 2007 and 2.2 million shares in 2008. (2) Does not include shares issuable upon conversion of outstanding convertible debt. 8 Net Sales -- TTM MM $19,166 $14,835 $6,921 2008 Up 29% Y/Y, Up 28% Excluding Effect of F/X 9 Segments and Net Sales Segments • North America • International Net Sales Categories • Media • Electronics and Other General Merchandise (EGM) • Other (Amazon Enterprise Solutions, Amazon Web Services, Co-Branded Credit Card, Misc. Marketing & Other) 10 Worldwide Sales Mix -- TTM 11 Net Sales Mix -- TTM 12 International Sales -- TTM MM $8,938 • UK, Germany, France, Japan & China • 2008 TTM International Sales 47% of TTM WW Sales, up from 45% in 2007 • We Expect > 50% of Sales Over Time • Shipments to Over 200 Countries • Operating Profit up 44% to $648MM • Operating Margin of 7.3% 2008 Up 33%, Up 31% Excluding Effect of F/X 13 Gross Profit -- TTM MM Up 27% Y/Y Objective: Maximize Dollars, Not Margin 14 Consolidated Segment Operating Income -- TTM MM Up 29% Y/Y Objective: Maximize Dollars, Not Margin (1) Consolidated Segment Operating Income (CSOI), a non-GAAP financial measure, excludes Stock-Based Compensation and Other Operating Expense (Income). See appendix for a reconciliation of CSOI to GAAP Operating Income. 15 Balance Sheet (MM) Q4 ‘04 Q4 '08 Assets TTM Free Cash Flow Cash & Marketable Securities $1,779 $3,727 $1,364 MM Inventories $ 480 $1,399 12x Turns / 6% of Sales A/R, Current Deferred Tax Assets & Other $ 280 $1,031 Total Current Assets $2,539 $6,157 $2,253 MM in Fixed Assets, net $ 246 $ 854 “Operating Assets” Deferred Tax Assets & Other $ 463 $1,303 Total Assets $3,248 $8,314 Liabilities and Stockholders’ Equity A/P & Other Current Liabilities $1,620 $4,746 Long-Term Debt and Other $1,855 $ 896 Stockholders’ Equity (Deficit) $ (227) $2,672 Total Liabilities & Stockholders’ Equity $3,248 $8,314 Our Model is Demonstrating Its Efficiency 16 Return on Invested Capital -- TTM (1) Long Term Expectation – Triple Digit ROIC (1) ROIC = TTM Free Cash Flow divided by average Total Assets minus Current Liabilities, excluding Current Portion of our Long Ter m D eb t, over 5 quarter ends. 17 Our Strategy Earth’s Most Customer Centric Company Start With The Customer And Work Backwards Three Customer Sets Consumers, Sellers and Developers 18 Our Virtuous Cycle Lower Cost Lower Structure Prices Selection & Convenience Sellers Customer Growth Experience Traffic Over 88MM Active Customer Accounts, Up 16% Y/Y 19 Leveraging Our Platform 73% of Units (1) Our Inventory Amazon.com Our Product Detail Pages 27% of Units (1) Sellers Seller Inventory Our Product Detail Pages Amazon Enterprise Our Technology Solutions Powers Partner Websites Amazon Web Web Scale Computing Services Simple API’s (1) Q4 2008 20 Consumers -- Customer Experience Pillars • Price • Selection • Convenience Innovation Is The Foundation 21 Everyday Low Pricing Our objective is not to discount a small number of products for a limited period of time, but to offer low prices everyday and apply them broadly across our entire product range. 22 Global Selection Product Categories US UK Germany France Japan China Canada Physical Media '95 '98 '98 '00 '00 '04 '02 Electronics '99 '01 '01 '05 '03 '04 '08 Toys '99 '01 '04 '07 '04 '04 Baby '99 '07 '07 '07 '07 '06 Tools & Hardware '99 '04 '04 Home & Garden '00 '04 '04 '07 '03 Apparel & Accessories '02 '08 '08 '07 Sports & Outdoors '03 '07 '06 '05 '06 Jewelry & Watches '03 '07 '07 '07 '07 '06 Health & Personal Care '03 '08 '07 '06 '06 Beauty '04 '08 '08 '08 '06 Shoes '05 '07 '07 '07 Dry Goods '06 Auto Parts & Accessories '06 '08 Digital Media '07 '08 Office Supplies '08 Fabric '08 Motorcycle & ATV Parts & Accessories '08 23 Convenience – Amazon Prime 24 Free Membership Launch Annual Offering Shipping Program Fee Free Two- ‘05 $ 79 $ 25 Day Shipping £5 ‘07 £48 Free One-Day Delivery ‘07 € 29 Free One-Day €20 Delivery ‘07 ￥3,900 Free Expedited (Same/Next ￥1,500 Day) Shipping Free Express (Next/Two-Day) €49 €20 ‘08 Delivery CAD 39 49 Yuan 25 26 Kindle 27 MP3 Downloads 28 Video On Demand 29 Selling On Amazon Over 1.5MM Active Sellers, Up 18% Y/Y 30 Selling On Amazon MM ~1.3 31 Fulfillment By Amazon (FBA) Available in US, UK, DE & JP; Beta in FR 32 Amazon Enterprise Solutions 33 Checkout By Amazon 34 Amazon Web Services (AWS) Your Idea Undifferentiated Successful “Heavy Lifting” Product In-The Cloud Infrastructure Services 35 AWS • Massive Compute Power o Elastic Compute Cloud (EC2) • Massive Storage o Simple Storage Service (S3) o SimpleDB o Simple Queue Service • Content Delivery o Amazon CloudFront • Payments and Billing o Flexible Payments Service (FPS) o Amazon DevPay • On-Demand Workforce o Mechanical Turk 36 Summary • The Online Model is Advantaged • We Face Many Challenges and Many Opportunities – We Are: o Relentlessly Improving Customer Experience – Consumers, Sellers and Developers o Leveraging Our Platform o Well Positioned o Focused on Optimizing LT Free Cash Flow • Innovation is the Foundation of Everything We Do 37 Appendix 38 Free Cash Flow Reconciliation -- TTM $MM 2003 2004 2005 2006 2007 2008 Operating Cash Flow $393 $566 $733 $702 $1,405 $1,697 Purchases of Fixed Assets, Including Internal-Use Software and Website Development (46) (89) (204) (216) (224) (333) Free Cash Flow $347 $477 $529 $486 $1,181 $1,364 39 Consolidated Segment Operating Income Reconciliation -- TTM $MM 2003 2004 2005 2006 2007 2008 Consolidated Segment Operating Income $361 $490 $566 $500 $849 $1,093 Stock-Based Compensation (88) (58) (87) (101) (185) (275) Other Operating Income (Expense), Net (3) 8 (47) (10) (9) 24 GAAP Operating Income $270 $440 $432 $389 $655 $842 40.
Load more

Recommended publications
  • No Slide Title
    Tom Szkutak, SVP & CFO Credit Suisse Convergence Conference June 10, 2009 This presentation may contain forward-looking statements which are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, 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, payments, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings. Additional information relating to certain of our financial measures contained herein is available in the appendix to our presentation, our most recent earnings release and at our website at www.amazon.com/ir under ‘Financial Documents’.
    [Show full text]
  • A Motion Is Requested to Authorize the Execution of a Contract for Amazon Business Procurement Services Through the U.S. Communities Government Purchasing Alliance
    MOT 2019-8118 Page 1 of 98 VILLAGE OF DOWNERS GROVE Report for the Village Council Meeting 3/19/2019 SUBJECT: SUBMITTED BY: Authorization of a contract for Amazon Business procurement Judy Buttny services Finance Director SYNOPSIS A motion is requested to authorize the execution of a contract for Amazon Business procurement services through the U.S. Communities Government Purchasing Alliance. STRATEGIC PLAN ALIGNMENT The goals for 2017-2019 includes Steward of Financial Sustainability, and Exceptional, Continual Innovation. FISCAL IMPACT There is no cost to utilize Amazon Business procurement services through the U.S. Communities Government Purchasing Alliance. RECOMMENDATION Approval on the March 19, 2019 Consent Agenda. BACKGROUND U.S. Communities Government Purchasing Alliance is the largest public sector cooperative purchasing organization in the nation. All contracts are awarded by a governmental entity utilizing industry best practices, processes and procedures. The Village of Downers Grove has been a member of the U.S. Communities Government Purchasing Alliance since 2008. Through cooperative purchasing, the Village is able to take advantage of economy of scale and reduce the cost of goods and services. U.S. Communities has partnered with Amazon Services to offer local government agencies the ability to utilize Amazon Business for procurement services at no cost to U.S. Communities members. Amazon Business offers business-only prices on millions of products in a competitive digital market place and a multi-level approval workflow. Staff can efficiently find quotes and purchase products for the best possible price, and the multi-level approval workflow ensures this service is compliant with the Village’s competitive process for purchases under $7,000.
    [Show full text]
  • Running Head: Amazon
    Amazon, Inc. 1 Running head: Amazon.com, Inc. Amazon.com, Inc. New Mexico Highlands University BUS 696, Business Case Study Dr. Margaret Young March 21, 2009 Amazon, Inc. 2 What does a customer centric company look like? Is there a smiling face to welcome you in the door? What if the company doesn’t have a door? What if the door was the World Wide Web? Then what does a customer centric online company look like? Is there a big smiling face when you browse to the company’s website? The answer is yes and the company is Amazon.com, Inc. Amazon.com, Inc. Amazon.com, Inc. is the largest “e-tailer” in the world with annual sales in 2008 over $19 billion (Amazon.com, Inc., 2009). Amazon.com, Inc. was founded by Jeff Bezos in 1994 in Washington State. Amazon.com, Inc. opened its virtual doors in July of 1995 with Amazon.com (Amazon.com, Inc., 2008). Amazon.com was originally an online bookstore. The company sold its first book in July of 1995. The book was titled, "Fluid Concepts & Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought" (Amazon.com, Inc., 2008) In May of 1997 Amazon.com, Inc. launched its initial public offering (IPO) of stock. The company sold three million shares of common stock. The company was listed as AMZN on the NASDAQ (Schneider, 2008, para. 1). Amazon.com Product Offerings Soon after the company's IPO, Amazon.com, Inc. began selling music, movies, software, electronics, and other items besides books on its website (Schneider, 2008, para.
    [Show full text]
  • Tom Szkutak, CFO Goldman Sachs Eighth Annual Internet Conference May 24Th, 2007
    Tom Szkutak, CFO Goldman Sachs Eighth Annual Internet Conference May 24th, 2007 Amazon.com This presentation may contain forward-looking statements, including statements regarding expectations of sales, gross margin, productivity, leverage, operating results, consolidated segment operating results, capital investment, return on capital, free cash flow and other financial statement or balance sheet items or ratios, all of which are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, significant indebtedness, government regulation and taxation, payments, and fraud. 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, including its Annual Report on Form 10-K for the year ended December 31, 2006, and all subsequent filings.
    [Show full text]
  • Omnia Amazon Business R-TC-17006
    amazonbusiness.,.,,_,__, October 14, 2016 Mr. Anthony Crosby Coordinator Prince William County Public Schools Financial Services/Purchasing Room #1500 RFP #R-TC-17006 P.O. Box 389 Manassas, VA 20108 Dear Mr. Crosby, It is with great pleasure that we enclose our response to your request for proposal for the on-line marketplace for the purchase of products and services. Amazon Services, LLC. (Amazon.com) is an e-commerce company offering a range of products and services through our website. Amazon herewith offers Prince William County Public Schools (PWCPS) our Amazon Business solution to assist PWCPS in your on-line marketplace needs. Please review our responses and feel free to contact Daniel Smith, General Manager, (206) 708-9895 or via email at [email protected] to answer any questions you may have. The entire team at Amazon Business looks forward to building a mutually beneficial relationship with Prince William County Public Schools. Respectfully, Prentis Wilson Vice President Amazon Business Amazon Services, LLC • 410 Terry Avenue North • Seattle, WA 98109-5210 • USA Prince William County Schools RFP R-TC-17006 On-line Marketplace for the Purchases of Products and Services Table of Contents 1.0 Title Sheet (Tab 1) ................................................................................................ 1 2.0 Executive Summary (Tab 2) ................................................................................. 3 Product Benefits .........................................................................................................
    [Show full text]
  • 3 Takeaways Podcast Transcript Lynn Thoman Ep. 28: Working for Jeff
    3 Takeaways Podcast Transcript Lynn Thoman (https://www.3takeaways.com/) Ep. 28: Working for Jeff Bezos and The Secrets of Amazon’s Success INTRO male voice: Welcome to the 3 Takeaways Podcast, which features short memorable conversations with the world's best thinkers, business leaders, writers, politicians, scientists, and other news-makers. Each episode ends with the three key takeaways that person has learned over their lives and their careers, and now your host and board member of schools at Harvard, Princeton and Columbia, Lynn Thoman. 0:23 Lynn Thoman: Hi everyone, it's Lynn Thoman, and welcome to another episode. Today, I'm delighted to be here with Colin Bryar and Bill Carr. They both joined Amazon in the late 1990s, a few years after the company was founded. Colin's first job at Amazon was as Jeff Bezos's technical advisor, his shadow, he literally spent all day, every day for two years with Jeff Bezos, during a pivotal period that included the launch of Amazon Prime and Amazon Web Services. Bill was vice president of worldwide media, including books, music and video, and then became head of digital media with the task of building Amazon's digital media business. He led the launch, development and growth of the Kindle, Amazon music, Prime Video and Amazon Studios. I'm excited to learn what working with Jeff Bezos was really like, and to learn their insights, stories and secrets from inside Amazon. Colin and Bill are also the authors of Working Backwards. Welcome, Colin and Bill, and thanks so much for being here today.
    [Show full text]
  • Company Analysis: Team C2X
    Company Analysis: Team C2X History The company was founded in 1994, spurred by what Bezos called his "regret minimization framework", which he described as his effort to fend off regret for not staking a claim in the Internet gold rush. The company began as an offline bookstore. While the largest brick-and-mortar bookstores and mail-order catalogs might offer 200,000 titles, an online bookstore could sell far more. Bezos wanted a name for his company that began with "A" so that it would appear early in alphabetic order. He began looking through the dictionary and settled on "Amazon" because it was a place that was "exotic and different" and it was the river he considered the biggest in the world, as he hoped his company would be. Since 2000, Amazon's logotype is an arrow leading from A to Z, representing that they carry every product from A to Z. Amazon's initial business plan was unusual. The company did not expect a profit for four to five years. Its "slow" growth provoked stockholder complaints that the company was not reaching profitability fast enough. When the dot-com bubble burst, and many e-companies went out of business, Amazon persevered, and finally turned its first profit in the fourth quarter of 2001: $5 million or 1¢ per share, on revenues of more than $1 billion. The profit, although it was modest, served to demonstrate that the business model could be profitable. In 1999, Time magazine named Bezos the Person of the Year, recognizing the company's success in popularizing online shopping.
    [Show full text]
  • Marketplace Fairness: Leveling the Playing Field for Small Business
    S. HRG. 112–831 MARKETPLACE FAIRNESS: LEVELING THE PLAYING FIELD FOR SMALL BUSINESS HEARING BEFORE THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS SECOND SESSION AUGUST 1, 2012 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 85–318 PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 13:39 Nov 01, 2013 Jkt 075679 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\GPO\DOCS\85318.TXT JACKIE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED TWELFTH CONGRESS SECOND SESSION JOHN D. ROCKEFELLER IV, West Virginia, Chairman DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas, Ranking JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine BARBARA BOXER, California JIM DEMINT, South Carolina BILL NELSON, Florida JOHN THUNE, South Dakota MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi FRANK R. LAUTENBERG, New Jersey JOHNNY ISAKSON, Georgia MARK PRYOR, Arkansas ROY BLUNT, Missouri CLAIRE MCCASKILL, Missouri JOHN BOOZMAN, Arkansas AMY KLOBUCHAR, Minnesota PATRICK J. TOOMEY, Pennsylvania TOM UDALL, New Mexico MARCO RUBIO, Florida MARK WARNER, Virginia KELLY AYOTTE, New Hampshire MARK BEGICH, Alaska DEAN HELLER, Nevada ELLEN L. DONESKI, Staff Director JAMES REID, Deputy Staff Director JOHN WILLIAMS, General Counsel RICHARD M. RUSSELL, Republican Staff Director DAVID QUINALTY, Republican Deputy Staff Director REBECCA SEIDEL, Republican General Counsel and Chief Investigator (II) VerDate Nov 24 2008 13:39 Nov 01, 2013 Jkt 075679 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\85318.TXT JACKIE C O N T E N T S Page Hearing held on August 1, 2012 ............................................................................
    [Show full text]
  • Amazon.Com, 2018
    9-716-402 REV: MAY 24, 2018 JOHN R. WELLS GALEN DANSKIN GABRIEL ELLSWORTH Amazon.com, 2018 On February 1, 2018, Amazon.com (Amazon) announced 2017 operating profits of $4.1 billion on sales of $178 billion, and the markets responded enthusiastically. (See Exhibits 1 and 2.)1 For years, founder and CEO Jeffrey Bezos had prioritized growth and investment in new business areas over profits. (See Exhibit 3.) In response, shareholders had driven the stock to new heights, making the company the second-most valuable in the world after Apple and ahead of Alphabet (Google).2 In the process, Bezos became the richest man in the world.3 However, not all were happy with Amazon’s progress. Many traditional retailers in the United States were going bankrupt, while major competitors such as Walmart and Best Buy were forced to invest aggressively in online retailing to prevent their market share from eroding. President Donald Trump was lambasting the company for exploiting the U.S. Postal Service by paying low rates for parcel delivery. 4 In June 2017, Amazon’s $13.7 billion purchase of natural-foods retailer Whole Foods Market triggered many questions in Congress and much speculation amongst observers about the company’s intentions in grocery.5 Amazon’s January 2018 announcement that it was joint-venturing with JPMorgan Chase & Co. and Berkshire Hathaway to reduce healthcare costs sent shockwaves through the sector.6 Meanwhile, the city of Seattle, where Amazon was headquartered, was set to impose a labor tax to help fund low-cost housing to help offset local rent rises.7 For its part, Amazon was in discussions with 20 North American cities bidding to host “HQ2,” the company’s second headquarters.8 Could anything stop the inexorable rise of Amazon? History Bezos began his career as a programmer for Wall Street trading firms and hedge funds.
    [Show full text]
  • Tom Szkutak, CFO CSFB Technology Conference November 27, 2007 Amazon.Com
    Tom Szkutak, CFO CSFB Technology Conference November 27, 2007 Amazon.com This presentation may contain forward-looking statements, including statements regarding expectations of sales, gross margin, productivity, leverage, operating results, consolidated segment operating results, capital investment, return on capital, free cash flow and other financial statement or balance sheet items or ratios, all of which are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains and develops commercial agreements, acquisitions and strategic transactions, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services and technologies, system interruptions, significant indebtedness, government regulation and taxation, payments, and fraud. 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, including its Annual Report on Form 10-K for the year ended December 31, 2006, and all subsequent filings.
    [Show full text]
  • Amazon.Com Inc AMZN [XNAS] | QQQQ
    ? Amazon.com Inc AMZN [XNAS] | QQQQ Last Price Fair Value Consider Buy Consider Sell Uncertainty Economic Moat™ Stewardship Morningstar Credit Rating Industry 249.74 USD 300.00 USD 180.00 USD 465.00 USD High Wide Exemplary A- Specialty Retail Strong Start to 2013 for Amazon as it Monetizes Market CSOI margins during the second quarter (versus 2.8% posted Share Gains, Fortifies Its Already Wide Moat in the second quarter of 2012), with revenue comfortably within the $14.5-$16.2 billion guidance range (representing 13%-26% growth, or 16%-29% excluding currency). by R.J. Hottovy, CFA Analyst Note Apr. 26, 2013 Director However, as the year progresses, modest CSOI margin gains Analyst covering this company do not Amazon AMZN continued to build a case as one of the most own its stock. could offer a possible upside catalyst. disruptive and diverse players in the consumer universe in the first quarter, while also layering in a steadily improving Pricing as of Apr 29, 2013. Thesis Mar. 04, 2013 Rating as of Apr 29, 2013. margin expansion story. Active users grew 21% to 209 A shakeout among traditional brick-and-mortar retailers is million, total units sold grew 30%, and third party units were under way, particularly in commodified categories. With up 33%, driving revenue growth of 21% (24% excluding minimal customer switching costs and intense competition, Currency amounts expressed with "$" currency). Although these trends represent a nominal are in U.S. dollars (USD) unless we've already seen Circuit City, Linens 'N Things, and deceleration on a sequential basis, they keep Amazon well otherwise denoted.
    [Show full text]
  • The Future of Amazon.Com Report Highlights
    SPECIAL REPORT SEPTEMBER 23, 2013 THE FUTURE OF AMAZON.COM REPORT HIGHLIGHTS > Market share projections (p. 7). AMZN Is Our Top Pick Among Internet Stocks > Key metrics estimates (p. 10). For this report, we talked to more than 50 industry sources, encompassing public > Potential sales & margin impact of emerging efforts and private companies, industry experts, and government-related entities. (p. 11). Conducting the research for this report has increased our conviction on the name for > Price comparisons: vs. competition (pp. 15-18), 1P vs. the following reasons: 3P (pp. 33-34) vs. Quidsi (pp. 55-56) vs. Zappos (pp. 57-58), AmazonFresh vs. Safeway (p. 42), and vs. > We have a greater understanding of Amazon.com’s strategy regarding sales Whole Foods (p. 42). tax and greater appreciation of its efforts that could more than offset any > Case for/against collecting sales taxes affecting pressure on big-ticket sales, including adding fulfillment centers for expedited Amazon.com’s revenues and potential impact (p. 24). delivery, lockers, AmazonFresh, and (perhaps) pickup points. In addition, > Amazon.com vs. Walmart, by-state sales taxes (p. 28). several third-party sellers will still be able to offer merchandise on > Who offered the most choices Super Bowl Sunday (p. Amazon.com’s platform without having to collect sales tax, which should 37). allow Amazon.com to retain these sales and should be accretive to margins. > Online grocery services comparison (p. 41). > AmazonFresh SKU’s by category, Seattle vs. L.A. (p. > We have a greater appreciation for the levers the company could pull to 45).
    [Show full text]