Amazon.com declares financial effects and CEO Transition

Founder and CEO Jeff Bezos will transition to position of executive Chair in Q3, Andy Jassy to turn into Chief government Officer of Amazon at that time

SEATTLE--(enterprise WIRE)--Amazon.com, Inc. (NASDAQ: AMZN) nowadays introduced economic outcomes for its fourth quarter ended December 31, 2020.

working money circulate increased seventy two% to $sixty six.1 billion for the trailing twelve months, compared with $38.5 billion for the trailing twelve months ended December 31, 2019.

Free cash movement multiplied to $31.0 billion for the trailing twelve months, compared with $25.eight billion for the trailing twelve months ended December 31, 2019.

Free cash flow much less important repayments of finance leases and financing responsibilities elevated to $20.3 billion for the trailing twelve months, compared with $sixteen.2 billion for the trailing twelve months ended December 31, 2019.

Free cash flow much less device finance leases and major repayments of all other finance leases and financing responsibilities multiplied to $21.4 billion for the trailing twelve months, in comparison with $12.5 billion for the trailing twelve months ended December 31, 2019.

regular shares remarkable plus shares underlying stock-based awards totaled 518 million on December 31, 2020, in comparison with 512 million 12 months ago.

Fourth Quarter 2020

web revenue accelerated forty four% to $a hundred twenty five.6 billion in the fourth quarter, compared with $87.4 billion in fourth quarter 2019. except the $1.7 billion favorable have an impact on from yr-over-year changes in overseas alternate rates during the quarter, internet sales extended forty two% compared with fourth quarter 2019.

operating income elevated to $6.9 billion in the fourth quarter, compared with operating earnings of $3.9 billion in fourth quarter 2019.

web earnings accelerated to $7.2 billion within the fourth quarter, or $14.09 per diluted share, in comparison with internet profits of $three.three billion, or $6.forty seven per diluted share, in fourth quarter 2019.

Full year 2020

net income improved 38% to $386.1 billion, in comparison with $280.5 billion in 2019. except for the $1.four billion favorable have an impact on from 12 months-over-year adjustments in foreign exchange quotes all through the 12 months, net revenue increased 37% compared with 2019.

operating revenue increased to $22.9 billion, compared with working income of $14.5 billion in 2019.

web profits extended to $21.3 billion, or $41.eighty three per diluted share, in comparison with internet revenue of $11.6 billion, or $23.01 per diluted share, in 2019.

Amazon is additionally saying nowadays that Jeff Bezos will transition to the position of govt Chair within the third quarter of 2021 and Andy Jassy will become Chief executive Officer at that time.

"Amazon is what it's as a result of invention. We do crazy issues collectively after which make them typical. We pioneered consumer stories, 1-click, personalized suggestions, prime's insanely-fast delivery, simply walk Out looking, the local weather Pledge, Kindle, Alexa, market, infrastructure cloud computing, profession option, and an awful lot more," stated Jeff Bezos, Amazon founder and CEO. "if you do it appropriate, just a few years after a awesome invention, the brand new element has become ordinary. americans yawn. That yawn is the most advantageous compliment an inventor can obtain. if you examine our monetary outcomes, what you're in reality seeing are the lengthy-run cumulative effects of invention. presently I see Amazon at its most creative ever, making it an superior time for this transition."

Highlights

Investing in employee security and featuring good Jobs

Amazon is working to make certain that its front-line employees receive vaccines as soon as possible. The company is closely monitoring the availability of COVID-19 vaccines worldwide, advocating on behalf of its personnel, and working in partnership with world clinical experts, governments, and health suppliers to accelerate vaccination programs.

Amazon continues to ramp up its in-condo COVID-19 trying out application as part of its investments to retain entrance-line personnel secure. more than seven hundred employees are actually tested each hour, and Amazon's committed COVID-19 labs have processed greater than a million tests globally.

Amazon recognized front-line personnel through investing $2.5 billion in extra pay in 2020. this is on correct of the company's trade-leading beginning wage of at the least $15 an hour, which is double the federal minimal wage. All full-time employees also receive healthcare and whole benefits from their first day on the job.

Amazon bought the Lee Anderson Veteran and army spouse Employment Award for excellence in hiring, practising, and holding veterans, transitioning service members, and army spouses. Amazon employs more than forty,000 veterans and armed forces spouses across the U.S.

aiding Communities

Amazon introduced a brand new Housing equity Fund, a $2 billion commitment to retain and create over 20,000 low cost housing contraptions in Washington State's Puget Sound vicinity; Arlington, Virginia; and Nashville, Tennessee. The Fund provides below-market loans and supplies to housing companions, public organizations, and minority-led agencies. It begun with preliminary investments totaling $567 million for two,300 competitively priced residence buildings.

Amazon announced plans to supply free cloud abilities practicing to 29 million americans all over the world by way of 2025, as it continues to put money into upskilling and career construction for its consumers and employees. The AWS-designed programs latitude from self-paced on-line lessons to intensive upskilling courses that support members build new careers within the expertise industry. This expands on Amazon's Upskilling 2025 initiative, a $700 million commitment to upskill 100,000 U.S. personnel through assisting them transition into excessive-demand, excessive-paying jobs, in addition to career choice, a software that pre-can pay lessons for employees looking to earn degrees in in-demand fields.

Amazon unveiled plans for the 2d part of construction for its headquarters in Arlington, Virginia. Amazon plans to build 2.eight million square toes of office area as part of its dedication to create 25,000 jobs and invest $2.5 billion within the neighborhood over the subsequent decade. The assignment will create more than 2.5 acres of open space for the local group, run on renewable energy, and bring retail and other functions to native residents.

Amazon within the UK elevated its long-standing partnership with nonprofit Magic Breakfast to attain more children susceptible to starvation. besides being a big financial donor, Amazon dispensed more than two million free, healthy breakfasts to children getting to know at domestic due to COVID-19 who would consistently get hold of these meals in school.

in the UK, Amazon delivered greater than six million COVID-19 checking out kits freed from cost, in support of the government's COVID-19 checking out program.

Globally, Amazon has donated over 65,000 Echo instruments, fireplace capsules, and different devices all through the COVID-19 crisis to corporations that aid frontline employees and first responders, and to support keep patients, students, and communities impacted by the pandemic related.

In assist of World AIDS Day and Giving Tuesday, Amazon introduced the restrained-version (echo)crimson. purchasable within the all-new spherical design, (echo)purple offers top class sound and a developed-in wise domestic hub. Amazon will donate $10 of every (echo)purple sale to support (purple)'s combat against AIDS and COVID-19 in sub-Saharan Africa. purchasers can also donate to (purple)'s fight against the COVID-19 and HIV/AIDS pandemics on any Alexa-enabled device by way of effortlessly announcing, "Alexa, donate to purple."

Ring announced a new program with Habitat for Humanity, a world nonprofit that shares Ring's commitment to aid make buildings and neighborhoods safer, together with a donation of $1 million worth of Ring Video Doorbells to deliver Habitat householders with introduced peace of intellect.

retaining the Planet

Amazon became the area's biggest company purchaser of renewable energy, taking another step in its adventure to be net-zero carbon via 2040. The business is investing in the building of 26 new utility-scale wind and photo voltaic tasks in Australia, France, Germany, Italy, South Africa, Sweden, the united kingdom, and the U.S., bringing Amazon's total variety of renewable energy initiatives to 127. Amazon's investments will supply its operations with more than 18,000 gigawatt hours (GWh) of renewable energy annually, assisting put the enterprise on a route to obtain one hundred% renewable power by means of 2025, 5 years ahead of the preliminary 2030 target.

Thirty-one companies have signed The local weather Pledge, a commitment co-centered via Amazon and global Optimism to obtain web-zero carbon with the aid of 2040. Twenty of those companies signed The local weather Pledge final quarter: Atos, increase Supersonic, Brooks, Cabify, Canary Wharf community, Coca-Cola European partners, ERM, Groupe SEB France, Harbour Air, Henkel, ITV, JetBlue, Microsoft, Neste, Rivian, Rubicon, Signify, Uber, Unilever, and Vaude.

Amazon joined the meals Loss and Waste 2030 Champions group, an effort by the U.S. Environmental insurance policy agency and department of Agriculture to in the reduction of food loss and waste inside U.S. company operations with the aid of 50% by way of 2030.

Amazon multiplied local weather Pledge friendly, a program to aid shoppers find and shop for more sustainable items, in 5 nations throughout Europe. The program launched with over forty,000 climate Pledge friendly products in France, Germany, Italy, Spain, and the united kingdom.

Empowering Small and Medium-Sized groups

The 2020 holiday season changed into the optimal ever for independent corporations selling on Amazon—very nearly all of which might be small and medium-sized groups—with worldwide income growing to be over 50% compared to the identical duration in 2019. retailers surpassed $four.eight billion in worldwide income from Black Friday through Cyber Monday, growing about 60% from the outdated yr. all through the break season as a whole, small and medium-sized companies in the U.S. sold almost one thousand million products in Amazon's shop.

because the beginning of the COVID-19 pandemic, Amazon has incurred more than $5 billion in operational prices on behalf of unbiased organizations selling in Amazon's shop, and expects to make investments billions greater through 2021. In 2020, Amazon elevated rectangular pictures across its achievement and logistics network with the aid of 50%, committed 60% of success middle capacity to seller products, and postponed annual selling price alterations except June 2021.

As part of the AWS activate application, Amazon offered more than $1 billion in AWS credits all through 2020 to aid early stage startups launch their agencies and speed up their boom. With this support, startups are the usage of scalable, authentic, and comfortable cloud functions like compute, storage, database, analytics, web of things, desktop researching, and a lot of others from AWS to scale their groups.

Amazon launched small business accelerator classes throughout Europe to assist entrepreneurs and small groups prevail within the digital world. These courses offer free access to on-line practicing, knowledgeable tips, are living activities, and capabilities, and that they encompass the Amazon Small enterprise Accelerator within the UK, Quickstart-online in Germany, Despega in Spain, Accelera con Amazon in Italy, and Accelerateur du Numerique in France. The classes are delivered in collaboration with associations and universities, and that they have already supported tens of lots of small agencies.

In December, Amazon India hosted Small business Day, an event to increase visibility and income for entrepreneurs and small corporations promoting in Amazon's store. Over 55,000 retailers from over 4,000 Postal Index Codes benefitted from Small company Day, and over 1,500 agents had their maximum ever day of income on Amazon.

In 2020, heaps of unbiased authors earned greater than $50,000 via Kindle Direct Publishing, with greater than 1,000 authors surpassing $100,000 in royalties.

In 2020, authors the usage of Amazon's self-publishing provider Kindle Direct Publishing (KDP) earned greater than $370 million in royalties from their participation in Kindle unlimited. KDP authors have earned more than $1.5 billion from participation in Kindle limitless given that 2014.

looking and enjoyment

due to clients, personnel, and selling companions, Amazon had a checklist-breaking holiday season, offering greater than a billion toys, domestic, style, electronics, splendor, and private care products to customers worldwide.

Amazon Pharmacy launched within the U.S., bringing prescription drugs to consumers' doorsteps. consumers can now browse medications, create a at ease pharmacy profile, and request or manage prescriptions on Amazon.com. top contributors acquire unlimited, free two-day start on Amazon Pharmacy orders with their membership.

Amazon launched a new Amazon prime prescription reductions advantage, which brings pharmacy mark downs to shoppers who pay without coverage and can be used at 50,000 taking part pharmacies nationwide.

Amazon trend added Made For You, a means for valued clientele to design customized T-shirts to their accurate measurements and charm preferences. For simply $25, U.S. clients can customize a T-shirt's fit, fabric, colour, sleeve length, shirt size, neckline, and returned-neck label.

Amazon India's high-quality Indian competition shopping experience concentrated on enabling the revival of small and medium-sized groups and helping consumers, even in far off areas of the country, store safely and comfortably from their buildings. all through the month-long event, clients bought objects from over one hundred ten,000 agents, the vast majority of whom were from rural cities.

Hudson, a trip adventure chief with over 1,000 retailers across North the us, announced it will use Amazon's simply stroll Out technology in select shuttle comfort retailers. simply walk Out know-how allows for shoppers to enter a shop, grab what they want, and just go. the first Hudson save with simply stroll Out know-how is planned to open in early 2021 at Dallas Love container Airport, with extra stores coming later this 12 months.

Amazon fresh grocery outlets elevated into seven new communities within the U.S.: Irvine, CA; Ladera Heights, CA; Naperville, IL; North Hollywood, CA; Northridge, CA; Schaumburg, IL; and Whittier, CA. To help the continued growth, Amazon is hiring lots of grocery friends throughout Chicagoland, the more suitable los angeles enviornment, and Seattle.

Amazon become recognized because the most fulfilling universal grocery retailer with the aid of dunnhumby Retailer alternative Index that ranks the properly 57 grocery agents in the U.S. based on an annual survey of 10,000 U.S. households. The survey also placed Amazon on the excellent of the listing for customer protection ratings.

Amazon track signed an contract to purchase inventive podcast publisher, Wondery. through this acquisition, Amazon track goals to accelerate the increase and evolution of podcasts by using bringing creators, hosts, and immersive experiences to even more listeners across the globe. Wondery can be able to give extra notable, ingenious content, carrying on with their mission of bringing a global of entertainment and competencies to their audiences, wherever they listen. The acquisition is not yet closed and is field to everyday closing conditions.

leading Video continues to launch Amazon long-established sequence and flicks globally. Amazon original movie Borat Subsequent Moviefilm, starring Sacha Baron Cohen, generated tens of millions of customer streams globally on opening weekend. different widely wide-spread Amazon normal motion pictures include Uncle Frank, Sylvie's Love, Sound of metallic, and that i'm Your lady. prime Video contributors also loved new and returning Amazon usual collection and specials such as What the charter means to Me, Utopia, actuality Seekers, The Pack, Small Axe, The Wilds, The Expanse, every year Departed, and the last season of Vikings. Internationally, in the neighborhood produced Amazon Originals debuting protected FERRO (Italy), El Cid (Spain), The problem: ETA (Spain), BILD.Macht.Deutschland? (Germany), Binge Reloaded (Germany), certainty Seekers (UK), The Grand Tour: a large Hunt (UK), All or Nothing: Tottenham Hotspur (UK), The Bachelorette (Japan), Mirzapur (India), and Locas por el Cambio (Mexico).

The fourth quarter marked top Video's strongest viewership for reside activities globally. in the U.S., major Video's unique coverage of the San Francisco 49ers vs. Arizona Cardinals game on December 26 drew an estimated 11.2 million total viewers and delivered the highest digital typical-minute-viewers ever for an NFL average season video game. in the UK, the number of purchasers tuning into reside Premier League soccer grew for the second season as hundreds of thousands watched 22 live and unique suits on top Video. furthermore, millions of leading members streamed are living, international rugby for the primary-ever Autumn international locations Cup match; and in India, prime Video introduced its first foray into live sports, with the acquisition of India territory rights for brand new Zealand Cricket via 2025-26.

Amazon Studios announced offers for upcoming best Video series and films, including the Eddie Murphy comedy Coming 2 the united states, which premieres in March on top Video globally and an unscripted docuseries and new coming-of-age collection in keeping with Jessica Simpson's highest quality-selling memoir Open ebook.

Amazon contraptions and services

Amazon announced that fireplace television now reaches greater than 50 million month-to-month lively clients around the world. Amazon also secured new content material offers with premium streaming providers, including HBO Max, discovery+, and Xfinity within the U.S.; Disney+ in Mexico and Brazil; NOW tv within the UK; and CANAL+ in France. the new fire tv experience released globally includes a redesigned home reveal, Profiles, and a brand new voice-first event with Alexa to easily find content.

Zoox published the first analyze their entirely purposeful, electric, self reliant vehicle, which points bi-directional driving and is in a position to hurries up to seventy five miles per hour.

Amazon introduced Alexa customized Assistant, a new service that lets gadget makers, auto makers, and repair suppliers create custom-branded voice assistants that are powered with the aid of and work in cooperation with Alexa. The Alexa customized Assistant can also be developed into automobiles and client electronics, together with wise shows, speakers, set suitable boxes, health instruments, and greater, featuring a complete, managed voice solution that notably reduces can charge, complexity, and time to market.

Amazon persevered to make development on task Kuiper, a low earth orbit satellite constellation with a view to increase broadband access for unserved and underserved communities worldwide. In December, the crew published designs for the Ka-band phased array antenna that should be used in its customer terminal. The antenna is smaller and lighter than legacy designs, permitting Amazon to supply a customer terminal it really is more within your means and simpler to install.

Ring added prevalent availability of its new Mailbox Sensor to purchasers, launched Customizable motion Zones for all battery-powered Ring Video Doorbells and security Cameras, and have become the first essential sensible home safety business to offer Video conclusion-to-end Encryption. additionally, Ring introduced Ring Video Doorbell Wired, its smallest doorbell yet, and availability of the Ring Alarm in Spain.

Amazon took yet another step toward making interactions with Alexa more herbal, and knowledge greater discoverable, with the aid of introducing a new skill that infers customers' latent dreams—goals that are implicit in consumer requests but not without delay expressed—and seamlessly transitions to a relevant skill with out requiring the name of the skill, or repeating the equal tips across talents.

Key via Amazon's In-storage beginning carrier elevated to tens of hundreds of thousands of prime participants in over 4,000 cities in the U.S., enabling them to appreciate free, contactless, and at ease kit delivery quite simply internal their storage to retain applications safe.

Amazon introduced the first Alexa developed-in commercial trucking integration in Volvo vehicles within the ecu; the first integration in Brazil with BMW's BMWi and MINI vehicles; and new automobile launches with keep away from Durango, Chrysler Pacifica, Fiat 500 electric powered, and Acura MDX. moreover, new Alexa integrations had been introduced on the client Electronics exhibit (CES), including Harman, Intel, Lenovo, TP-hyperlink, upward push Gardens, and extra.

Alexa introduced Netflix to its global roster of streaming carrier suppliers for Echo reveal valued clientele, giving them more at-home leisure alternatives. Amazon additionally brought podcast guide to Alexa from services like Amazon song, Apple, and Spotify in additional nations around the world.

Alexa became more multilingual, enabling participants of a family to engage with Alexa in two distinctive languages with out desiring to change the settings. in the U.S., multilingual mode enables bilingual purchasers to code-change from English to Spanish, and vice versa. Amazon additionally launched multilingual mode in new languages and international locations including Germany, Spain, France, Italy, and Japan.

Amazon brought new Alexa aspects that make valued clientele' each day lives more effortless, including the skill to share a looking list with Alexa contacts through voice, video calling on hearth tv, and new Alexa Routines on fire television.

Amazon internet functions

AWS introduced gigantic consumer momentum during the quarter with new commitments and migrations spanning primary industries, together with economic services with JPMorgan Chase, Itaú Unibanco (Latin the usa's largest bank), usual Chartered bank, and Nationwide; media and entertainment with Metro-Goldwyn-Mayer (MGM), Thomson Reuters, and ViacomCBS; technology with Arm and Twitter; go back and forth with increase expertise, Inc. (boom Supersonic) and celebrity Alliance (the realm's largest airline alliance); retail and e-commerce with Mercado Libre (Latin the us's largest online commerce and funds company) and Zalando (Europe's greatest on-line style and tradition platform); vigour and utilities with Siemens sensible Infrastructure (a Siemens AG enterprise neighborhood that makes a speciality of energy distribution and intelligent constructions); and car with The BMW neighborhood, as well as a multi-12 months, world contract to advance and market BlackBerry's intelligen t car records Platform, IVY.

At AWS re:Invent, Amazon's ninth-annual studying conference for the world cloud computing and information technology communities, AWS attracted over 570,000 registered attendees and introduced 180 new features and contours, together with:

The business's first cloud-based mostly Mac situations (EC2 Mac instances for Amazon Elastic Compute Cloud) that allow purchasers to strengthen, scale, and run macOS workloads in AWS.

five new functions that push the envelope on price performance and prolong Amazon EC2's lead as the broadest and deepest portfolio of compute instances in the cloud, together with Graviton2-powered C6gn cases that give forty% stronger expense efficiency for networking and compute-intensive workloads over comparable current technology x86-based mostly cases, AMD-powered G4ad photographs Processing Unit (GPU) instances that offer the business's top of the line rate performance for pix-intensive applications, M5zn circumstances that deliver the quickest Intel Xeon Scalable processors in the cloud, Intel-powered D3/D3en cases that present the highest storage potential for native HDD storage in the cloud, and memory-optimized R5b circumstances that bring the quickest block storage efficiency available for Amazon EC2.

9 new capabilities for Amazon SageMaker that make it even less difficult for developers and records scientists to put together, construct, teach, set up, and manage laptop getting to know models.

5 new functions for industrial customers that use desktop discovering to enrich operational effectivity, satisfactory handle, protection, and office safety. Amazon Monitron and Amazon Lookout for device use sensor information to enable predictive upkeep.

Contacts

Amazon Investor RelationsDave Fildes, amazon-ir@amazon.comamazon.com/ir

Amazon Public RelationsDan Perlet, amazon-pr@amazon.comamazon.com/pr

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