Amazon 2Q13 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Trailing 12-month operating cash flow increased 41% to $4.53 billion. Trailing 12-month free cash flow decreased 76% to $265 million. Trailing-12 month capital expenditures were $4.27 billion. This amount includes $1.4 billion in purchases of our previously leased corporate office space, as well as property for development of additional corporate office space located in Seattle”

“The increase in capital expenditures reflects additional investments in support of continued business growth consisting of investments in technology, infrastructure including Amazon Web Services and additional capacity to support our fulfillment operations.”

“For Q3, 2013 we expect net sales of between $15.45 billion and $17.15 billion, a growth between 12% and 24%.”

“And it’s very early there, we’re still in the trial period, its good customer experience and we like what we see so far, but it’s very, very early. And so, it’s something that we’ll continue to work on and both from a customer experience and from an economic standpoint. And there is not much more I can add to that right now, so you have to stay tuned and see where that ends up.”

“In terms of AWS, the business is growing very, very strongly. We’ve got a great team that’s innovating on behalf of customers, launching the services, becoming more productive, which allows us to be able to lower prices”

“what we will do is, we want to make sure that we try to maximize free cash flow, that’s something that we’ve always said. So, our strategy hasn’t changed, our outlook hasn’t changed in that regard. Frequently we’d be asked historically is, double-digit operating margins are possible. And I still think it’s possible, but also if it means if a good high single-digit operating margin gets us to better, higher free cash flow over time, that’s fine too. So, again our goal is to, we don’t focus on individual margins. Our goal is to make sure that we generate free cash flow, large monthly free cash flow and use that capital efficiently, and so those are goals that we have and we certainly think that opportunity is there in each of the business that we operate in.”

“In terms of Spain, we’re very excited about what we see. It’s growing very fast. We’re in investment mode and it’s an exciting geography for us”

” the infrastructure related to our very fast growing web services business is included in tech and content, so certainly as we ramp up that business and it’s becoming more sizable and growing very fast you’re seeing that impacting that line item.”

Leave a Reply

Your email address will not be published. Required fields are marked *