Amazon has released its much-anticipated 2012 Q1 earnings statement, and the figures are generally pretty impressive. Here’s the statement, and here are the key points:
- Net sales increased 34% to $13.18bn (compared to $9.86bn a year ago). Net income decreased 35% to $130m (compared to $201m a year ago). Operating cash flow increased 1% to $3.05bn (compared to $3.03bn a year ago). Free cash flow decreased 39% to $1.15bn (compared to $1.9bn a year ago).
- Digital products are booming. The Kindle Fire is the most popular item on Amazon, and 90% of the top sellers on Amazon.com during Q1 were digital products (e.g. Kindles, ebooks, music, apps etc.).
- North American sales were strong, up 36% year-on-year to $7.43bn.
- Amazon expects Q2 to be strong as well. Net sales year-on-year are expected to be up by between 20% and 34%.
Reaction to Amazon’s figures has been mostly positive. The company’s shares rallied 9% following the statement, partly due to relief after Amazon’s 2011 Q4 earnings had been a little disappointing. Some analysts had expected that downward trend to continue, so the relatively strong figures were seized upon as a sign of the company’s overall strength. Here’s some more reaction from The Next Web, and Bloomberg.