October 26, 2023
(press release)
–
Amazon.com Announces Third Quarter Results SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September 30, 2023. “We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilize, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” said Andy Jassy, Amazon CEO. “The benefits of moving from a single national fulfillment network in the U.S. to eight distinct regions are exceeding our optimistic expectations, and perhaps most importantly, putting us on pace to deliver the fastest delivery speeds for Prime customers in our 29-year history. The AWS team continues to innovate and deliver at a rapid clip, particularly in generative AI, where the combination of our custom AI chips, Amazon Bedrock being the easiest and most flexible way to build and deploy generative AI applications, and our coding companion (CodeWhisperer) allowing enterprises to have the equivalent of an experienced engineer who understands all of their proprietary code is driving momentum with customers, including adidas, Booking.com, GoDaddy, LexisNexis, Merck, Royal Philips, and United Airlines, all of whom are starting to run generative AI workloads on AWS. Between AWS re:Invent and our 29th holiday shopping season, this is a particularly action-packed time of year at Amazon and we’re excited for what’s to come.” Highlights Obsessing over the customer experience Amazon obsesses over how to make customers’ lives better and easier every day with new and improved products and services. This is true for consumers, sellers, brands, developers, enterprises, and creators. For example, Amazon: Inventing on behalf of customers Amazon is driven by a passion for invention across all of its business areas. The company builds new products and services that customers ask for, and also invents new ones that customers didn’t know they wanted but make their lives or businesses better in some meaningful way. For example, Amazon: Empowering employees and delivery service partners In addition to its focus on customers, Amazon strives to make every day better for its employees and delivery service partners. For example, the company: Supporting communities and protecting the environment Amazon believes that success and scale bring broad responsibility to help the planet, future generations, and communities. Amazon employees have passion for investing in these areas, and a sampling of the efforts from this past quarter are that Amazon: Financial Guidance The following forward-looking statements reflect Amazon.com’s expectations as of October 26, 2023, 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 and geopolitical conditions and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the Internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below. Fourth Quarter 2023 Guidance 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 and outcomes 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, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events 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 Nine Months Ended Twelve Months Ended 2022 2023 2022 2023 2022 2023 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD $ 37,700 $ 50,067 $ 36,477 $ 54,253 $ 30,177 $ 35,178 OPERATING ACTIVITIES: Net income (loss) 2,872 9,879 (3,000 ) 19,801 11,323 20,079 Adjustments to reconcile net income (loss) to net cash from operating activities: Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other 10,327 12,131 29,236 34,843 39,103 47,528 Stock-based compensation 5,556 5,829 14,015 17,704 17,695 23,310 Non-operating expense (income), net (1,272 ) (990 ) 13,521 (409 ) 1,589 3,036 Deferred income taxes (825 ) (1,196 ) (4,781 ) (4,412 ) (8,404 ) (7,779 ) Changes in operating assets and liabilities: Inventories 732 808 (5,772 ) (1,194 ) (7,687 ) 1,986 Accounts receivable, net and other (4,794 ) (6,718 ) (13,109 ) (10,364 ) (19,665 ) (19,152 ) Accounts payable (1,226 ) 2,820 (6,907 ) (5,415 ) 1,082 4,437 Accrued expenses and other (20 ) (1,321 ) (7,335 ) (9,022 ) 1,998 (3,245 ) Unearned revenue 54 (25 ) 1,711 949 2,631 1,454 Net cash provided by (used in) operating activities 11,404 21,217 17,579 42,481 39,665 71,654 INVESTING ACTIVITIES: Purchases of property and equipment (16,378 ) (12,479 ) (47,053 ) (38,141 ) (65,988 ) (54,733 ) Proceeds from property and equipment sales and incentives 1,337 1,181 4,172 3,361 6,637 4,513 Acquisitions, net of cash acquired, non-marketable investments, and other (885 ) (1,629 ) (7,485 ) (5,458 ) (7,866 ) (6,289 ) Sales and maturities of marketable securities 557 1,393 25,918 4,059 38,455 9,742 Purchases of marketable securities (239 ) (219 ) (2,332 ) (1,053 ) (10,598 ) (1,286 ) Net cash provided by (used in) investing activities (15,608 ) (11,753 ) (26,780 ) (37,232 ) (39,360 ) (48,053 ) FINANCING ACTIVITIES: Common stock repurchased — — (6,000 ) — (6,000 ) — Proceeds from short-term debt, and other 12,338 216 30,946 17,395 33,613 28,002 Repayments of short-term debt, and other (7,916 ) (8,095 ) (21,757 ) (19,339 ) (24,416 ) (35,136 ) Proceeds from long-term debt 107 — 12,931 — 13,131 8,235 Repayments of long-term debt — — (1 ) (3,386 ) (1,002 ) (4,643 ) Principal repayments of finance leases (1,465 ) (1,005 ) (6,301 ) (3,605 ) (8,561 ) (5,245 ) Principal repayments of financing obligations (48 ) (64 ) (186 ) (198 ) (233 ) (260 ) Net cash provided by (used in) financing activities 3,016 (8,948 ) 9,632 (9,133 ) 6,532 (9,047 ) Foreign currency effect on cash, cash equivalents, and restricted cash (1,334 ) (502 ) (1,730 ) (288 ) (1,836 ) 349 Net increase (decrease) in cash, cash equivalents, and restricted cash (2,522 ) 14 (1,299 ) (4,172 ) 5,001 14,903 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD $ 35,178 $ 50,081 $ 35,178 $ 50,081 $ 35,178 $ 50,081 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest on debt, net of capitalized interest $ 304 $ 465 $ 932 $ 1,821 $ 1,299 $ 2,450 Cash paid for operating leases 1,813 2,692 6,268 7,687 7,961 10,052 Cash paid for interest on finance leases 88 76 290 234 404 318 Cash paid for interest on financing obligations 39 50 152 150 189 205 Cash paid for income taxes, net of refunds 742 2,628 4,340 6,982 4,674 8,677 Assets acquired under operating leases 6,755 3,345 14,031 11,075 19,839 15,844 Property and equipment acquired under finance leases, net of remeasurements and modifications 131 183 358 431 1,966 748 Property and equipment recognized during the construction period of build-to-suit lease arrangements 526 93 2,877 308 4,847 618 Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating 2,195 492 3,307 1,212 3,363 3,063 AMAZON.COM, INC. Consolidated Statements of Operations (in millions, except per share data) (unaudited) Three Months Ended Nine Months Ended 2022 2023 2022 2023 Net product sales $ 59,340 $ 63,171 $ 172,370 $ 179,184 Net service sales 67,761 79,912 192,409 225,640 Total net sales 127,101 143,083 364,779 404,824 Operating expenses: Cost of sales 70,268 75,022 203,191 212,186 Fulfillment 20,583 22,314 61,196 64,524 Technology and infrastructure 19,485 21,203 52,399 63,584 Sales and marketing 11,014 10,551 29,420 31,468 General and administrative 3,061 2,561 8,558 8,806 Other operating expense (income), net 165 244 504 613 Total operating expenses 124,576 131,895 355,268 381,181 Operating income 2,525 11,188 9,511 23,643 Interest income 277 776 544 2,048 Interest expense (617 ) (806 ) (1,673 ) (2,469 ) Other income (expense), net 759 1,031 (13,356 ) 649 Total non-operating income (expense) 419 1,001 (14,485 ) 228 Income (loss) before income taxes 2,944 12,189 (4,974 ) 23,871 Benefit (provision) for income taxes (69 ) (2,306 ) 1,990 (4,058 ) Equity-method investment activity, net of tax (3 ) (4 ) (16 ) (12 ) Net income (loss) $ 2,872 $ 9,879 $ (3,000 ) $ 19,801 Basic earnings per share $ 0.28 $ 0.96 $ (0.29 ) $ 1.93 Diluted earnings per share $ 0.28 $ 0.94 $ (0.29 ) $ 1.89 Weighted-average shares used in computation of earnings per Basic 10,191 10,322 10,178 10,286 Diluted 10,331 10,558 10,178 10,452 AMAZON.COM, INC. Consolidated Statements of Comprehensive Income (Loss) (in millions) (unaudited) Three Months Ended Nine Months Ended 2022 2023 2022 2023 Net income (loss) $ 2,872 $ 9,879 $ (3,000 ) $ 19,801 Other comprehensive income (loss): Foreign currency translation adjustments, net of tax of $76, $36, $136, and $4 (2,142 ) (1,388 ) (4,661 ) (738 ) Net change in unrealized gains (losses) on available-for-sale debt securities: Unrealized gains (losses), net of tax of $(4), $(18), $(3), and $(52) (195 ) 62 (1,095 ) 174 Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0, $0, $0, and $(15) 4 3 17 48 Net unrealized gains (losses) on available-for-sale debt securities (191 ) 65 (1,078 ) 222 Total other comprehensive income (loss) (2,333 ) (1,323 ) (5,739 ) (516 ) Comprehensive income (loss) $ 539 $ 8,556 $ (8,739 ) $ 19,285 AMAZON.COM, INC. Segment Information (in millions) (unaudited) Three Months Ended Nine Months Ended 2022 2023 2022 2023 North America Net sales $ 78,843 $ 87,887 $ 222,517 $ 247,314 Operating expenses 79,255 83,580 225,124 238,898 Operating income (loss) $ (412 ) $ 4,307 $ (2,607 ) $ 8,416 International Net sales $ 27,720 $ 32,137 $ 83,544 $ 90,957 Operating expenses 30,186 32,232 89,062 93,194 Operating loss $ (2,466 ) $ (95 ) $ (5,518 ) $ (2,237 ) AWS Net sales $ 20,538 $ 23,059 $ 58,718 $ 66,553 Operating expenses 15,135 16,083 41,082 49,089 Operating income $ 5,403 $ 6,976 $ 17,636 $ 17,464 Consolidated Net sales $ 127,101 $ 143,083 $ 364,779 $ 404,824 Operating expenses 124,576 131,895 355,268 381,181 Operating income 2,525 11,188 9,511 23,643 Total non-operating income (expense) 419 1,001 (14,485 ) 228 Benefit (provision) for income taxes (69 ) (2,306 ) 1,990 (4,058 ) Equity-method investment activity, net of tax (3 ) (4 ) (16 ) (12 ) Net income (loss) $ 2,872 $ 9,879 $ (3,000 ) $ 19,801 Segment Highlights: Y/Y net sales growth (decline): North America 20 % 11 % 13 % 11 % International (5 ) 16 (8 ) 9 AWS 27 12 32 13 Consolidated 15 13 10 11 Net sales mix: North America 62 % 61 % 61 % 61 % International 22 23 23 23 AWS 16 16 16 16 Consolidated 100 % 100 % 100 % 100 % AMAZON.COM, INC. Consolidated Balance Sheets (in millions, except per share data) (unaudited) December 31, 2022 September 30, 2023 ASSETS Current assets: Cash and cash equivalents $ 53,888 $ 49,605 Marketable securities 16,138 14,564 Inventories 34,405 35,406 Accounts receivable, net and other 42,360 43,420 Total current assets 146,791 142,995 Property and equipment, net 186,715 196,468 Operating leases 66,123 70,758 Goodwill 20,288 22,749 Other assets 42,758 53,913 Total assets $ 462,675 $ 486,883 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 79,600 $ 72,004 Accrued expenses and other 62,566 58,812 Unearned revenue 13,227 14,398 Total current liabilities 155,393 145,214 Long-term lease liabilities 72,968 75,891 Long-term debt 67,150 61,098 Other long-term liabilities 21,121 21,707 Commitments and contingencies Stockholders’ equity: Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding) — — Common stock ($0.01 par value; 100,000 shares authorized; 10,757 and 10,845 shares issued; 10,242 and 10,330 shares outstanding) 108 108 Treasury stock, at cost (7,837 ) (7,837 ) Additional paid-in capital 75,066 92,711 Accumulated other comprehensive income (loss) (4,487 ) (5,003 ) Retained earnings 83,193 102,994 Total stockholders’ equity 146,043 182,973 Total liabilities and stockholders’ equity $ 462,675 $ 486,883 AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except per share data) (unaudited) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Y/Y % Change Cash Flows and Shares Operating cash flow -- trailing twelve months (TTM) $ 35,574 $ 39,665 $ 46,752 $ 54,330 $ 61,841 $ 71,654 81% Operating cash flow -- TTM Y/Y growth (decline) (40 )% (27 )% 1 % 38 % 74 % 81 % N/A Purchases of property and equipment, net of proceeds from sales and incentives -- TTM $ 59,061 $ 59,351 $ 58,321 $ 57,649 $ 53,963 $ 50,220 (15)% Principal repayments of finance leases -- TTM $ 9,789 $ 8,561 $ 7,941 $ 6,544 $ 5,705 $ 5,245 (39)% Principal repayments of financing obligations -- TTM $ 205 $ 233 $ 248 $ 226 $ 244 $ 260 12% Equipment acquired under finance leases -- TTM (1) $ 1,621 $ 868 $ 299 $ 285 $ 269 $ 239 (72)% Principal repayments of all other finance leases -- TTM (2) $ 751 $ 706 $ 670 $ 625 $ 631 $ 694 (2)% Free cash flow -- TTM (3) $ (23,487 ) $ (19,686 ) $ (11,569 ) $ (3,319 ) $ 7,878 $ 21,434 N/A Free cash flow less principal repayments of finance leases and financing obligations -- TTM (4) $ (33,481 ) $ (28,480 ) $ (19,758 ) $ (10,089 ) $ 1,929 $ 15,929 N/A Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations -- TTM (5) $ (26,064 ) $ (21,493 ) $ (12,786 ) $ (4,455 ) $ 6,734 $ 20,241 N/A Common shares and stock-based awards outstanding 10,551 10,597 10,627 10,625 10,794 10,792 2% Common shares outstanding 10,183 10,198 10,242 10,258 10,313 10,330 1% Stock-based awards outstanding 368 399 384 367 481 462 16% Stock-based awards outstanding -- % of common shares outstanding 3.6 % 3.9 % 3.8 % 3.6 % 4.7 % 4.5 % N/A Results of Operations Worldwide (WW) net sales $ 121,234 $ 127,101 $ 149,204 $ 127,358 $ 134,383 $ 143,083 13% WW net sales -- Y/Y growth, excluding F/X 10 % 19 % 12 % 11 % 11 % 11 % N/A WW net sales -- TTM $ 485,902 $ 502,191 $ 513,983 $ 524,897 $ 538,046 $ 554,028 10% WW net sales -- TTM Y/Y growth, excluding F/X 11 % 12 % 13 % 13 % 13 % 12 % N/A Operating income $ 3,317 $ 2,525 $ 2,737 $ 4,774 $ 7,681 $ 11,188 343% F/X impact -- favorable $ 165 $ 357 $ 213 $ 139 $ 104 $ 132 N/A Operating income -- Y/Y growth (decline), excluding F/X (59 )% (55 )% (27 )% 26 % 128 % 338 % N/A Operating margin -- % of WW net sales 2.7 % 2.0 % 1.8 % 3.7 % 5.7 % 7.8 % N/A Operating income -- TTM $ 15,298 $ 12,971 $ 12,248 $ 13,353 $ 17,717 $ 26,380 103% Operating income -- TTM Y/Y growth (decline), excluding F/X (49 )% (57 )% (54 )% (37 )% 10 % 99 % N/A Operating margin -- TTM % of WW net sales 3.1 % 2.6 % 2.4 % 2.5 % 3.3 % 4.8 % N/A Net income (loss) $ (2,028 ) $ 2,872 $ 278 $ 3,172 $ 6,750 $ 9,879 244% Net income (loss) per diluted share $ (0.20 ) $ 0.28 $ 0.03 $ 0.31 $ 0.65 $ 0.94 237% Net income (loss) -- TTM $ 11,607 $ 11,323 $ (2,722 ) $ 4,294 $ 13,072 $ 20,079 77% Net income (loss) per diluted share -- TTM $ 1.13 $ 1.10 $ (0.27 ) $ 0.42 $ 1.26 $ 1.93 76% ______________________________ (1) For the twelve months ended September 30, 2022 and 2023, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $1,966 million and $748 million. (2) For the twelve months ended September 30, 2022 and 2023, this amount relates to property included in “Principal repayments of finance leases” of $8,561 million and $5,245 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, net of remeasurements and modifications,” 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) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Y/Y % Change Segments North America Segment: Net sales $ 74,430 $ 78,843 $ 93,363 $ 76,881 $ 82,546 $ 87,887 11% Net sales -- Y/Y growth, excluding F/X 10 % 20 % 14 % 11 % 11 % 11 % N/A Net sales -- TTM $ 291,591 $ 304,877 $ 315,880 $ 323,517 $ 331,633 $ 340,677 12% Operating income (loss) $ (627 ) $ (412 ) $ (240 ) $ 898 $ 3,211 $ 4,307 N/A F/X impact -- favorable (unfavorable) $ 61 $ 95 $ 76 $ 41 $ (7 ) $ (27 ) N/A Operating income (loss) -- Y/Y growth (decline), excluding F/X (122 )% (158 )% 53 % N/A N/A N/A N/A Operating margin -- % of North America net sales (0.8 )% (0.5 )% (0.3 )% 1.2 % 3.9 % 4.9 % N/A Operating income (loss) -- TTM $ (1,521 ) $ (2,813 ) $ (2,847 ) $ (381 ) $ 3,457 $ 8,176 N/A Operating margin -- TTM % of North America net sales (0.5 )% (0.9 )% (0.9 )% (0.1 )% 1.0 % 2.4 % N/A International Segment: Net sales $ 27,065 $ 27,720 $ 34,463 $ 29,123 $ 29,697 $ 32,137 16% Net sales -- Y/Y growth (decline), excluding F/X (1 )% 12 % 5 % 9 % 10 % 11 % N/A Net sales -- TTM $ 122,241 $ 120,816 $ 118,007 $ 118,371 $ 121,003 $ 125,420 4% Operating loss $ (1,771 ) $ (2,466 ) $ (2,228 ) $ (1,247 ) $ (895 ) $ (95 ) (96)% F/X impact -- favorable (unfavorable) $ (231 ) $ (216 ) $ (331 ) $ (174 ) $ 32 $ 228 N/A Operating loss -- Y/Y growth (decline), excluding F/X (526 )% 147 % 17 % (16 )% (48 )% (87 )% N/A Operating margin -- % of International net sales (6.5 )% (8.9 )% (6.5 )% (4.3 )% (3.0 )% (0.3 )% N/A Operating loss -- TTM $ (5,590 ) $ (7,145 ) $ (7,746 ) $ (7,712 ) $ (6,836 ) $ (4,465 ) (38)% Operating margin -- TTM % of International net sales (4.6 )% (5.9 )% (6.6 )% (6.5 )% (5.6 )% (3.6 )% N/A AWS Segment: Net sales $ 19,739 $ 20,538 $ 21,378 $ 21,354 $ 22,140 $ 23,059 12% Net sales -- Y/Y growth, excluding F/X 33 % 28 % 20 % 16 % 12 % 12 % N/A Net sales -- TTM $ 72,070 $ 76,498 $ 80,096 $ 83,009 $ 85,410 $ 87,931 15% Operating income $ 5,715 $ 5,403 $ 5,205 $ 5,123 $ 5,365 $ 6,976 29% F/X impact -- favorable (unfavorable) $ 335 $ 478 $ 468 $ 272 $ 79 $ (69 ) N/A Operating income -- Y/Y growth (decline), excluding F/X 28 % 1 % (10 )% (26 )% (8 )% 30 % N/A Operating margin -- % of AWS net sales 29.0 % 26.3 % 24.3 % 24.0 % 24.2 % 30.3 % N/A Operating income -- TTM $ 22,409 $ 22,929 $ 22,841 $ 21,446 $ 21,096 $ 22,669 (1)% Operating margin -- TTM % of AWS net sales 31.1 % 30.0 % 28.5 % 25.8 % 24.7 % 25.8 % N/A AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except employee data) (unaudited) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Y/Y % Change Net Sales Online stores (1) $ 50,855 $ 53,489 $ 64,531 $ 51,096 $ 52,966 $ 57,267 7% Online stores -- Y/Y growth, excluding F/X 0 % 13 % 2 % 3 % 5 % 6 % N/A Physical stores (2) $ 4,721 $ 4,694 $ 4,957 $ 4,895 $ 5,024 $ 4,959 6% Physical stores -- Y/Y growth, excluding F/X 13 % 10 % 6 % 7 % 7 % 6 % N/A Third-party seller services (3) $ 27,376 $ 28,666 $ 36,339 $ 29,820 $ 32,332 $ 34,342 20% Third-party seller services -- Y/Y growth, excluding F/X 13 % 23 % 24 % 20 % 18 % 18 % N/A Subscription services (4) $ 8,716 $ 8,903 $ 9,189 $ 9,657 $ 9,894 $ 10,170 14% Subscription services -- Y/Y growth, excluding F/X 14 % 14 % 17 % 17 % 14 % 13 % N/A Advertising services (5) $ 8,757 $ 9,548 $ 11,557 $ 9,509 $ 10,683 $ 12,060 26% Advertising services -- Y/Y growth, excluding F/X 21 % 30 % 23 % 23 % 22 % 25 % N/A AWS $ 19,739 $ 20,538 $ 21,378 $ 21,354 $ 22,140 $ 23,059 12% AWS -- Y/Y growth, excluding F/X 33 % 28 % 20 % 16 % 12 % 12 % N/A Other (6) $ 1,070 $ 1,263 $ 1,253 $ 1,027 $ 1,344 $ 1,226 (3)% Other -- Y/Y growth (decline), excluding F/X 135 % 168 % 80 % 57 % 26 % (3 )% N/A Stock-based Compensation Expense Cost of sales $ 213 $ 190 $ 208 $ 165 $ 251 $ 193 2% Fulfillment $ 763 $ 727 $ 757 $ 603 $ 932 $ 732 1% Technology and infrastructure $ 2,814 $ 3,036 $ 3,126 $ 2,574 $ 4,043 $ 3,284 8% Sales and marketing $ 990 $ 1,128 $ 1,092 $ 993 $ 1,303 $ 1,111 (2)% General and administrative $ 429 $ 475 $ 423 $ 413 $ 598 $ 509 7% Total stock-based compensation expense $ 5,209 $ 5,556 $ 5,606 $ 4,748 $ 7,127 $ 5,829 5% Other WW shipping costs $ 19,304 $ 19,942 $ 24,714 $ 19,937 $ 20,418 $ 21,799 9% WW shipping costs -- Y/Y growth 9 % 10 % 4 % 2 % 6 % 9 % N/A WW paid units -- Y/Y growth (7) 1 % 11 % 8 % 8 % 9 % 9 % N/A WW seller unit mix -- % of WW paid units (7) 57 % 58 % 59 % 59 % 60 % 60 % N/A Employees (full-time and part-time; excludes contractors & temporary personnel) 1,523,000 1,544,000 1,541,000 1,465,000 1,461,000 1,500,000 (3)% Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth (decline) 14 % 5 % (4 )% (10 )% (4 )% (3 )% 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 media content 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) Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising. (6) Includes sales related to various other offerings, such as certain licensing and distribution of video content, health care services, and shipping services, and our co-branded credit card agreements. (7) Excludes the impact of Whole Foods Market. Amazon.com, Inc. Customer Accounts Seller Accounts AWS Customers Units Amazon Investor Relations Amazon Public Relations Multimedia Files:
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