paidContent.org - The Economics of Content

Current Story

Earnings: Amazon Q3 Sales Jump 41 Percent; Income Soars

By Joseph Weisenthal - Tue 23 Oct 2007 01:06 PM PST

The market was expecting big things from Amazon, and the company has delivered. Revenues in Q3 surged 41 percent to $3.26 billion from $2.31 billion last year. Net income quadrupled to $80 million ($.19 per share) from $19 million ($.05 per share) last year. The company cited its low prices and its Amazon (NSDQ: AMZN) Prime offering for its growth. Numbers were bolstered somewhat by a $75 million revenue boost associated with exchange rates and a lower tax rate during the period. During the day, the company’s stock closed just ahead of $100, as it’s touching highs not seen since the very top of the bubble.

--290,000 developers have registered for the company’s much-vaunted Amazon Web Services platform, up 25,000 from the prior quarter.

--45 percent of sales were international

--Worldwide Media sales grew 36 percent, hitting $2.09 billion

--Release notes the launch of Amazon MP3, though no figures are given.

Release | Webcast (5:00 PM ET)

Conference Call: Amazon CEO Jeff Bezos was asked on the company’s conference call if he could quantify at all the company’s digital media initiatives, including Unbox and Amazon MP3. Not surprisingly, he declined to give out any actual numbers, though he did say the company is “very happy with the early results that we’re seeing,” and that “the onus is on us to convince music labels that this (DRM-free) is a good way to sell music.” He had no comment on Unbox. Much of the call was a discussion of margins, future investments and the effects of Amazon prime. There was some concern about a slight decline in gross margins during the quarter, which the company partly attributed to the minimal mark up on Harry Potter books (though that doesn’t account for all of it). As for broader economic concerns, CFO Tom Szkutak argued that Amazon’s value proposition helped position the company well for any consumer weakness.

--Web Services: At the end of the call, Bezos gave a little Amazon Web Services 101 talk, explaining how the company is turning its infrastructure outward towards developers. Again, not much in the way of numbers, though it’s said to be growing “very, very rapidly.”

Posted in: Companies, Amazon.com, Money, Earnings


Related Research from Alacrastore.com

1 Response:
Post Your Comment

Mobile Options

» Mobile App
» Mobile/WAP Site

Send a News Tip

About

paidContent.org, flagship of the ContentNext Media network, provides global coverage of the business of digital content.

Rafat Ali
Publisher & Co-Editor

Staci D. Kramer
Co-Editor

David Kaplan
Senior Correspondent

Joseph Weisenthal
Correspondent

Robert Andrews
U.K. Editor

Amanda Natividad
Editorial Producer

EconCeleb Conference - The Economics of Celebrity. July 23 at the Roosevelt Hotel in Hollywood

Featured Report - 2008 Social Media Deals Report

front page of report

The economics of social media continue to heat up, with ever more buzz created in new and growing market categories. This report examines the categories, number and size of investment and acquisitions into social media and the resulting value created from 2007 through 2008. Order your report today to analyze deals made by Yahoo, Disney, Google, AOL, CBS, Hearst, Microsoft and many more.

Learn more or purchase now.

New Media/Interactive Job Listings

Post Job
More Jobs

Generous Supporters