Amazon reports blowout quarter, Bezos to step down

US-based e-commerce company, Amazon, is preparing an executive transition and has also released its latest financial results.

Amazon CEO, Jeff Bezos, will transition to the role of Executive Chair in Q3 2021. Andy Jassy will become CEO at that time.

“Amazon is what it is because of invention,” said Amazon founder and CEO, Jeff Bezos.

“We do crazy things together and then make them normal.

“We pioneered customer reviews, 1-Click, personalised recommendations, Prime’s insanely-fast shipping, Just Walk Out shopping, the Climate Pledge, Kindle, Alexa, marketplace, infrastructure cloud computing, Career Choice, and much more.

“If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive.

“When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.”

Operating cash flow increased 72 per cent to $66.1 billion USD for the trailing 12 months, compared with $38.5 billion USD for the trailing twelve months ended 31 December 2019.

Free cash flow increased to $31.0 billion USD for the trailing 12 months, compared with $25.8 billion USD for the trailing twelve months ended 31 December 2019.

Free cash flow less principal repayments of finance leases and financing obligations increased to $20.3 billion USD for the trailing 12 months, compared with $16.2 billion USD for the trailing 12 months ended 31 December 2019.

Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $21.4 billion for the trailing 12 months, compared with $12.5 billion USD for the trailing 12 months ended 31 December 2019.

Common shares outstanding plus shares underlying stock-based awards totalled 518 million USD on 31 December 2020, compared with 512 million USD one year ago.

Net sales increased 44 per cent to $125.6 billion in the fourth quarter, compared with $87.4 billion USD in fourth quarter 2019. Excluding the $1.7 billion favourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 42 per cent compared with fourth quarter 2019.

Operating income increased to $6.9 billion USD in the fourth quarter, compared with operating income of $3.9 billion USD in fourth quarter 2019.

Net income increased to $7.2 billion USD in the fourth quarter, or $14.09 USD per diluted share, compared with net income of $3.3 billion USD, or $6.47 USD per diluted share, in fourth quarter 2019.

As for full year 2020, net sales increased 38 per cent to $386.1 billion USD, compared with $280.5 billion USD in 2019.

Excluding the $1.4 billion favourable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 37 per cent compared with 2019.

Operating income increased to $22.9 billion USD, compared with operating income of $14.5 billion USD in 2019.

Net income increased to $21.3 billion USD, or $41.83 USD per diluted share, compared with net income of $11.6 billion USD, or $23.01 USD per diluted share, in 2019.