Amazon.com (AMZN) Q3-2008 Earnings Call Notes
-Revenue $4.26B vs. $4.27B est. EPS 27c vs. 25c est. December quarter revenue guidance of $6-7B vs. $7.05B est. Operating income guidance of $145-305M (-46% to 13% growth). 2008 revenue guidance of $18.46-19.46B vs. $19.52B est. Operating income guidance of $716-876M (9-34% growth)
-Revenue growth of 31% y/y or 28% F/X adjusted, operating income up 26% y/y
-FCF TTM of $970M, up 21% y/y
-59% of revenue is media. 38% electronics. 3% other
-North America up 29% in revenue. International up 33%, 28% f/x adjusted
-new version of Kindle won’t come out till next year at the earliest
-experienced slower rates of growth at the end of the third quarter due to the financial market disruptions
-operate in a very competitive environment, we are well positioned due to our low prices
-deceleration of growth in purchase items over $1000
-Prices of books longer-term are cheaper on Kindle $9.99 vs. $25. Hope to sell many more units and make less per unit
-Amazon has changed so much since 2001. We are the low-cost provider with free shipping now, more product categories
-Low prices, free shipping, selection, and speedy delivery drive demand
-Kindle book buying has been additive. Customers buys 1.6Xs what they spent before on physical books and continue to buy physical books
-Going to be especially prudent with capex given environment