Microsoft Word - Amazon Q1 2021 Earnings Release.docx

AMAZON.COM ANNOUNCES FIRST QUARTER RESULTS

SEATTLE—(BUSINESS WIRE) April 29, 2021—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results

for its first quarter ended March 31, 2021.

• Operating cash flow increased 69% to $67.2 billion for the trailing twelve months, compared with $39.7 billion for

the trailing twelve months ended March 31, 2020.

• Free cash flow increased to $26.4 billion for the trailing twelve months, compared with $24.3 billion for the trailing

twelve months ended March 31, 2020.

• Free cash flow less principal repayments of finance leases and financing obligations increased to $14.9 billion for

the trailing twelve months, compared with $14.3 billion for the trailing twelve months ended March 31, 2020.

• Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing

obligations increased to $16.8 billion for the trailing twelve months, compared with $11.7 billion for the trailing

twelve months ended March 31, 2020.

• Common shares outstanding plus shares underlying stock-based awards totaled 519 million on March 31, 2021,

compared with 513 million one year ago.

• Net sales increased 44% to $108.5 billion in the first quarter, compared with $75.5 billion in first quarter 2020.

Excluding the $2.1 billion favorable impact from year-over-year changes in foreign exchange rates throughout the

quarter, net sales increased 41% compared with first quarter 2020.

• Operating income increased to $8.9 billion in the first quarter, compared with operating income of $4.0 billion in first

quarter 2020.

• Net income increased to $8.1 billion in the first quarter, or $15.79 per diluted share, compared with net income of $2.5

billion, or $5.01 per diluted share, in first quarter 2020.

“Two of our kids are now 10 and 15 years old—and after years of being nurtured, they’re growing up fast and coming into their

own,” said Jeff Bezos, Amazon founder and CEO. “As Prime Video turns 10, over 175 million Prime members have streamed

shows and movies in the past year, and streaming hours are up more than 70% year over year. Amazon Studios received a

record 12 Academy Award nominations and two wins. Upcoming originals include Tom Clancy’s Without Remorse, The

Tomorrow War, The Underground Railroad, and much more. In just 15 years, AWS has become a $54 billion annual sales run

rate business competing against the world’s largest technology companies, and its growth is accelerating—up 32% year over

year. Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of

tools and services available, and we continue to invent relentlessly on their behalf. We love Prime Video and AWS, and we’re

proud to have them in the family.”

Highlights

Our Vision to be Earth’s Best Employer and Earth’s Safest Place to Work

• Amazon ranked #1 in the U.S. on LinkedIn’s 2021 Top Companies, an annual list identifying the most sought-after

places to work based on their ability to attract and retain the best talent, including promotions, opportunities for

employees to learn new skills, hiring people from all backgrounds and levels of education, and gender diversity. In

addition, Amazon ranked #2 on the Fortune World’s Most Admired Companies list and #3 on Boston Consulting

Group’s Most Innovative Companies list.

• In partnership with government and public health officials across the globe, Amazon is rapidly expanding on-site

COVID-19 vaccination programs for its front-line employees and contractors. In addition to offering COVID-19

testing on-site, Amazon has hosted vaccination events at fulfillment centers, sort centers, delivery stations, and AWS

data centers in 29 states, reaching more than 300,000 front-line employees and contractors. In some locations, Amazon

opened the vaccination program to employee household members. Given the vaccination program’s progress in the

U.S., it will soon expand to front-line employees in other countries.

• Amazon is committed to leading the way for workplaces around the world to proactively manage—and prevent—

work-related musculoskeletal disorders (MSDs) by drawing on expertise in innovation and technology, and

collaborating with proven thought leaders and scientists. MSDs are common in the type of work done in warehouse

operations and are more likely to occur during an employee’s first six months. Amazon’s increased attention to early

MSD prevention is already achieving results. From 2019 to 2020, overall MSDs decreased by 32% and MSDs

resulting in time away from work decreased by more than half.

• Amazon is expanding its workplace health and safety program WorkingWell with the aim of cutting recordable

incident rates by 50% by 2025. WorkingWell is currently available to 859,000 employees at 350 sites across North

America and Europe. Through the program, small groups of employees are coached on body mechanics, proactive

wellness, and safety. In addition to reducing workplace injuries, these concepts have a positive impact on regular day-

to-day activities and have contributed to reducing MSD recordable incident rates.

• Since 2020, in partnership with Crossover Health, Amazon opened 17 neighborhood health centers for employees and

their families in the areas around Dallas–Fort Worth, Texas; Detroit, Michigan; Louisville, Kentucky; Phoenix,

Arizona; and San Bernardino, California. Centers are located next to where employees live and work to provide

affordable, convenient, and high quality health care, and patients report a 90% satisfaction score. Amazon is evaluating

expansion of the program so that even more employees can access quality care whenever, and wherever, they need it.

• Amazon is fitting delivery vehicles with camera safety technology and artificial intelligence to capture real-time data

(such as following safe distance and road conditions) to identify at-risk driving events. These technologies are used to

help keep drivers and the communities where Amazon delivers safe. When this technology was piloted in 2020 on over

two million miles of delivery routes, crashes decreased 48%, stop sign violations decreased 20%, driving without a

seatbelt decreased 60%, and distracted driving decreased 45%.

• Amazon shared comprehensive companywide goals related to diversity, equity, and inclusion efforts for 2021. Goals

include increasing representation of women in tech and science roles, doubling the number of Black directors and VPs

for the second year in a row, and having 100% of Amazon employees take inclusion training. In addition, to evaluate

progress over time, Amazon increased the amount and specificity of the data shared publicly about its employees. The

expanded dataset includes representation by job type, such as front-line associates and corporate employees, and

expands historical data to the past three years.

• Amazon pulled forward its annual fall pay review for its U.S. Customer Fulfillment, Delivery, Package Sortation, and

Specialty Fulfillment teams, and will be rolling out increases from mid-May through early June. More than 500,000

people will see an increase between at least 50 cents and $3 an hour, which is an investment of over $1 billion in

incremental pay for these employees.

• In India, Amazon announced it has added nearly 300,000 new direct and indirect jobs since its last announcement in

January 2020, putting the company on track to meet its pledge to create an additional one million new jobs in India by

2025.

Supporting Communities

• Amazon donated and delivered relief and emergency aid supplies—including over one million bottles of water and

thousands of items such as flashlights, tents, and search and rescue equipment—to communities impacted by the

winter storm crisis in Texas and Mississippi in February and severe storms in Tennessee and Alabama in March.

• Amazon Future Engineer, the company’s computer science education program for students from underserved

communities, launched in France and Canada. With this expansion, the program now reaches over one million students

globally each year. Amazon Future Engineer also donated $15 million to Code.org to develop a new equity-minded

Advanced Placement computer science curriculum, which aims to increase access, participation, and long-term

success for high school students from communities underrepresented in tech.

• Amazon announced a year-long partnership with The King Memorial Foundation, the organization responsible for

building and maintaining the Martin Luther King, Jr. Memorial in Washington, D.C. Over the next year, AWS will

support the Memorial Foundation’s Social Justice Fellows Program, which aims to help program participants develop

their professional skills by providing them with mentorship opportunities with Amazon employees, as well as free

cloud and STEM training and certification. For the partnership kick-off, Amazon joined the Foundation in a Day of

Service project, delivering essential, personal care items to shelters in seven D.C. wards.

• Since January, Amazon has opened its Seattle campus to Virginia Mason Franciscan Health for public COVID-19

vaccinations. As of April 15, nearly 50,000 immunizations have been administered to the public through weekend pop-

up clinics staffed by Amazon and community volunteers. Amazon is also providing volunteers and technology to

support the Washington State vaccine call center. Since the initiative launched in late March, the system has processed

over 100,000 calls and has eliminated wait times.

• Amazon continued its efforts to support children in need across Europe during the COVID-19 pandemic. In the UK,

Amazon donated 10,000 Fire tablets to schools lacking technology and delivered more than four million breakfasts to

children in need through charity partner Magic Breakfast. In Italy and Spain, Amazon donated millions of euros to

over 35,000 schools through a program that allows customers to choose the schools to which Amazon will donate.

• Since 2019, Amazon has worked with the U.S. Department of Agriculture and state agencies to ensure customers in

nearly all 50 states can shop for groceries on Amazon using Supplemental Nutrition Assistance Program (SNAP)

benefits. Amazon remains committed to increasing food access in the U.S.—especially in healthy food priority areas—

and is helping raise awareness among residents about the convenient, safe, and affordably priced grocery delivery

options Amazon offers their communities. As part of its ongoing work to increase food access, Amazon is establishing

partnerships with local anti-hunger organizations to assist communities in need.

• Amazon added new Alexa features to help provide localized answers to questions on COVID-19 testing and vaccine

eligibility, including the ability for customers to find and call nearby vaccine locations for booking appointments.

• Ring announced a new community program with Kids Off the Block, a Chicago-based nonprofit focused on providing

local at-risk youth a care center for personal growth and empowerment. Ring also donated 1,000 Ring Video Doorbells

and Ring subscriptions to support families and individuals in Chicago neighborhoods.

• Amazon introduced the Alexa Hörfilm skill in Germany, providing blind and visually-impaired customers with access

to more than 3,500 TV series and movies with audio description. The skill was developed and built together with

DBSV, the German association of blind or visually-impaired persons, and participating TV stations ARD, ZDF, and

ARTE.

The Climate Pledge

• Amazon continues to make progress toward powering all its businesses with 100% renewable energy by 2025—five

years ahead of the original target of 2030. Amazon has announced a total of 206 renewable energy projects globally,

including 71 utility-scale wind and solar projects and 135 rooftop solar installations at facilities and stores worldwide.

Amazon is now the largest corporate purchaser of renewable energy globally as well as in Europe, where the company

is investing in more than 2.5 gigawatts of renewable energy capacity—enough to power more than two million homes

a year.

• Amazon welcomed 52 new signatories to The Climate Pledge, a commitment co-founded by Amazon and Global

Optimism to meet the goals of the Paris Agreement 10 years early and achieve net-zero carbon by 2040. More than

100 companies representing over $1.4 trillion in global annual revenues and over five million employees have now

joined the pledge, sending an important signal to the market that there will be rapid growth in demand for products and

services that help reduce carbon emissions. New signatories include Alaska Airlines, Colgate-Palmolive, HEINEKEN,

PepsiCo, Telefónica, and Visa.

• The Climate Pledge Fund invested in Infinium, a renewable electrofuels solution provider, and Turntide Technologies,

an electric motor company. These investments help Amazon and other companies meet the goals of The Climate

Pledge as we all work together to protect the planet.

• Amazon announced a partnership with Mahindra Electric, a manufacturer of electric vehicles (EVs), to deploy nearly

100 Treo Zor electric vehicles in seven Indian cities as part of Amazon India’s plan to include 10,000 EVs in its

delivery fleet by 2025. These EVs are in addition to The Climate Pledge’s commitment to have 100,000 EVs in

Amazon’s delivery fleet by 2030.

Empowering Small and Medium-Sized Businesses

• In recognition of International Women’s Day and Women’s History Month, Amazon partnered with Diane von

Furstenberg to help empower more than 100 women-owned businesses by launching dedicated women-owned small

business stores in the U.S. and a dozen other countries around the world, making it easy for customers to discover and

learn about women-owned sellers and shop from their selection of thousands of products. To help raise awareness of

women-owned businesses and support their success, von Furstenberg hosted a virtual event on Amazon Live and

shared her own experience and insights on being an entrepreneur.

• Amazon celebrated Black History Month by launching a Black-owned small business store with products from third-

party sellers, enabling customers to discover and shop from Black business owners. Amazon also hosted an Amazon

Live event with celebrities and entrepreneurs Tia Mowry and Karamo Brown during which Black Amazon sellers

shared their insights about launching and building a small business.

• Amazon announced the Amazon Launchpad Innovation Awards, a free competition designed to support emerging,

innovative European startups. A judging panel will select five startups to each win a €10,000 grant and free access to

Amazon Launchpad for one year. The “Startup of the Year” winner will receive an additional €90,000 grant.

• Amazon India announced it has digitized 2.5 million small and medium-sized businesses, enabled cumulative exports

worth $3 billion, and announced the $250 million Amazon Smbhav Venture Fund. The fund will encourage the best

ideas to digitize small and medium-sized businesses, drive technology-led innovation in agriculture to improve farmer

productivity, and enable healthcare access.

• Amazon India announced that more than 50,000 offline retailers and neighborhood stores joined the Local Shops on

Amazon program in its first year. It also committed to bringing one million Local Shops online by 2025. Launched in

April 2020, the Local Shops on Amazon program helps sellers sustain their livelihoods and jumpstart their businesses.

Shopping

• There are now more than 200 million paid Prime members worldwide. Members have exclusive access to deals every

day and especially during Prime Day, which will take place later in the second quarter.

• Amazon continues to innovate and invest in fast, free, and convenient delivery for customers. In the U.S., Same-Day

Delivery in as fast as five hours is free on orders over $35 on over three million items in select cities. This is in

addition to Free Same-Day Delivery on millions of items in thousands of cities and towns across 47 major U.S. metro

areas, plus over 10 million items available for Free One-Day Delivery coast to coast. These fast and efficient deliveries

are powered by Amazon’s last mile network of delivery driver partners—small businesses creating tens of thousands

of new jobs across the country.

• Amazon continues to expand Amazon Scout, a fully electric autonomous delivery system. Similar in size to a small

cooler on wheels, Amazon Scout rolls down the sidewalk at walking pace and delivers items right to customers. Since

its launch, Scout has delivered tens of thousands of packages to customers in California, Georgia, Tennessee, and

Washington, and the program is continuing to expand to new communities in the U.S.

• The new Prime prescription savings benefit offers pharmacy savings at more than 60,000 participating pharmacies in

the U.S., including Amazon Pharmacy. Amazon has helped Prime members save millions of dollars on prescription

medications so far this year when paying without insurance, both at Amazon Pharmacy and other local pharmacies.

• Amazon expanded Discover Rooms, an immersive shopping experience that helps customers browse and shop from

thousands of home room designs and instantly discover home furnishing product inspiration based on visual attributes.

The experience is now available in nine countries, including Canada, France, Germany, India, Italy, Japan, Spain, UK,

and the U.S.

• Prime Wardrobe, Amazon’s “try before you buy” offering, expanded selection and launched new innovations for

customers, including the ability to chat live with Amazon Stylists for personalized recommendations and trial items

recommended by their favorite fashion influencers and websites.

• In the U.S., Amazon launched an expanded assortment of NFL merchandise, including replica jerseys and hats, at

amazon.com/NFL. Customers can now shop thousands of additional products on Amazon from NFL Pro Line,

Fanatics, New Era, Outerstuff, '47, and other top brands. Amazon also made enhancements to the sports fan shopping

experience, including improved navigation in Your Fanshop and personalized game celebrations for customers’

favorite teams.

• Amazon’s Counterfeit Crimes Unit continues to work aggressively with law enforcement, industry associations, brand

owners, and academics to bring counterfeit to zero. Examples this quarter include working with the U.S. National

Intellectual Property Rights Coordination Center to prevent counterfeit Super Bowl LV merchandise from reaching

consumers and partnering with Pennsylvania-based, family-owned card game maker Dutch Blitz and Italian luxury

brand Salvatore Ferragamo to file lawsuits against multiple counterfeiters and hold them accountable to the fullest

extent of the law.

• In March, Amazon launched Amazon.pl, offering Polish customers a selection of more than 100 million products

across more than 30 categories, including products from thousands of European and local Polish businesses. Amazon

has been operating in Poland since 2014, has created over 18,000 permanent jobs, and will open its tenth fulfillment

center in Swiebodzin in 2021, adding more than 1,000 new jobs to Amazon’s existing network in Poland.

• Amazon opened its first international physical retail stores powered by Just Walk Out technology with the launch of

three Amazon Fresh locations in London. These new convenience grocery stores sell a range of products, including the

new “by Amazon” private brand, and enable shoppers to enter a store, grab what they want, and leave without stopping

to check out. There are now 15 Amazon Fresh physical stores around the world.

• Amazon Fresh grocery stores expanded into four new communities in the U.S.: Oak Lawn, Illinois; Bloomingdale,

Illinois; Fullerton, California; and Long Beach, California, creating hundreds of regular full- and part-time jobs in each

community with starting wages of at least $15 per hour and comprehensive benefits.

• Amazon announced that millions of Prime members now have access to Key In-Garage Grocery Delivery in more than

5,000 cities and towns in the U.S., enabling them to enjoy free, contactless, and secure in-garage delivery of grocery

orders from Whole Foods Market and Amazon Fresh.

• Amazon One—a fast, convenient, contactless way for people to use their palm to enter, identify, and pay—launched as

a payment option at Whole Foods Market, starting with the Madison Broadway store in Seattle. Amazon One will be

added as a payment option at additional Whole Foods Market stores in the Seattle area in the coming months.

• Delaware North, a global leader in hospitality and food service, announced the opening of two checkout-free

convenience stores using Amazon’s Just Walk Out technology at TD Garden, an entertainment venue in Boston and

home of the Boston Celtics and Boston Bruins.

• Amazon Business, the company’s global procurement solution, now serves more than five million businesses and

generated $25 billion in worldwide annualized sales. More than half of unit sales are from third-party sellers, such as

women-, minority-, or veteran-owned businesses that have been certified by U.S. diversity-certifying organizations

such as the Department of Veterans Affairs and Women’s Business Enterprise National Council. In the U.S., Amazon

Business serves 45 states and 80 of the Fortune 100 companies, including Citigroup, Intel, Cisco, and ExxonMobil.

• Amazon continues to expand its air cargo network to meet growing customer demand. In January, the company

announced the purchase of 11 aircraft from Delta and WestJet to expand its Amazon Air fleet to more than 85 aircraft

by the end of 2022. Amazon also announced new Amazon Air sites in Toledo, Ohio and Fairbanks, Alaska, and plans

to expand existing operations in Canada this summer.

Entertainment

• This quarter marked Amazon Studios’ most successful awards season to date and the first time a streaming service has

won a best picture Golden Globe award from the Hollywood Foreign Press Association. Original titles earned 10

Golden Globe nominations and three awards for Small Axe (Supporting Actor John Boyega) and Borat Subsequent

Moviefilm (Best Picture Musical/Comedy and Best Actor Musical/Comedy). Amazon Studios also earned 12 Academy

Award nominations, a record for the studio, across four films: One Night in Miami…, Borat Subsequent Moviefilm,

Time, and Sound of Metal, which won two awards (Best Sound and Best Film Editing).

• Coming 2 America launched worldwide on Prime Video, becoming the #1 streamed movie its opening weekend and

the #1 opening weekend for a streamed movie this year according to Screen Engine/ASI. Regina King’s feature

directorial debut One Night in Miami… also launched to critical acclaim, receiving numerous accolades, including a

Critics’ Choice Award as well as Golden Globe, SAG, and Oscar nominations. In addition, new Amazon Original

Invincible premiered to praise from TV critics, and Prime Video debuted Local Originals The Stand (Canada), Guerra

de Likes (Mexico), The Great Escapists (UK), La Templanza (Spain), and We Children from Bahnhof Zoo (Germany).

• Amazon Studios continues to invest in diverse creators and content. This quarter, Amazon Studios announced new

series for Prime Video, including a Mr. and Mrs. Smith remake created by and starring Phoebe Waller-Bridge and

Donald Glover, as well as a young adult series The Summer I Turned Pretty from writer Jenny Han. The studio also

announced that the sci-fi action film The Tomorrow War from Skydance Media starring Chris Pratt will premiere on

July 2.

• Amazon announced that Prime Video will become the exclusive home for Thursday Night Football beginning in

2023—making Prime Video the first streaming service to secure an exclusive national broadcast package from the

NFL. The 10-year deal gives tens of millions of U.S. Prime members exclusive access to must-watch live football on

Prime Video and also expands the Thursday Night Football package from 11 to 15 regular-season games.

• Amazon, the New York Yankees, and YES Network announced 21 regular-season games will stream on Prime Video

in 2021. All games will be available to stream throughout New York State, Connecticut, northeast Pennsylvania, and

north and central New Jersey at no additional cost to Prime members. All Yankees games on Prime Video this season

will feature Amazon’s exclusive X-Ray technology, which gives real-time access to live in-game stats, team and player

details, and real-time play-by-play information. In addition, Prime Video will air a new 15-minute pregame show

ahead of the first pitch for every Prime Video broadcast.

• The Live Sports offering for Prime Video continues to grow internationally. In the first quarter, Prime Video broadcast

five additional Premier League football matches in the UK. Prime Video also kicked off 2021 coverage of the ATP and

WTA Tour tennis tournaments, including exclusive coverage of the Miami Open. In Australia, Prime Video announced

an exclusive, two-year, live broadcast streaming deal to distribute the Australian Swimming championship events

globally on Prime Video at no additional cost to Prime members.

• Amazon Music continues to expand its international reach of podcasts, launching localized offerings in France, Italy,

Spain, and India for customers across all streaming tiers, at no additional cost. Amazon Music also announced the

integration of artist merchandise into the Amazon Music app, providing a new shopping experience for music fans.

Customers can now shop a curated, Prime-eligible selection of artist merchandise while listening to their favorite

music, uninterrupted.

Amazon Devices and Services

• Amazon introduced the next generation of Echo Buds, featuring an all-new design, premium audio, custom-designed

Active Noise Cancellation technology, wireless charging capabilities, improved microphones, and hands-free access to

Alexa.

• Amazon announced Build It, a new Day 1 Editions program that gives customers a say in the devices Amazon builds

next. The first wave of concepts included a Smart Sticky Note Printer, a Smart Nutrition Scale, and a Smart Cuckoo

Clock. In just three days, the Smart Sticky Note Printer hit its pre-order goal and is being built.

• Amazon announced new Alexa features, such as Music Sharing with Alexa, which allows users to share songs with

friends and family who are Alexa contacts, and Alexa for Xbox, which gives U.S. and Canadian customers more ways

to interact with their consoles using their voice—such as asking Alexa to download games remotely through Xbox’s

Game Pass service.

• Amazon launched a new Alexa Prize TaskBot Challenge, in which university teams will compete to develop

conversational AI agents to help customers complete tasks requiring multiple steps and decisions. It is the first

conversational AI challenge to incorporate multimodal—voice and vision—customer experiences.

• As part of the Fairness in AI program, the National Science Foundation and Amazon announced the next cohort of 37

researchers focused on 11 projects covering a range of topics, including: theoretical and algorithmic foundations;

principles for human interaction with AI systems; technologies such as natural language understanding and computer

vision; and applications including hiring decisions, education, criminal justice, and human services.

• Ring introduced Ring Video Doorbell Pro 2 and Ring Floodlight Cam Wired Pro, both featuring 3D Motion Detection

and Bird’s Eye View powered by radar technology. Ring also announced several other products and features, including

Ring Video Doorbell 4, Smart Responses and Geofence for compatible devices, and Ring Alarm (2nd Gen) for the UK

and Europe.

• Amazon launched the Alexa Built-in experience in Lamborghini’s Huracán EVO, the first vehicle to offer online car

control capabilities with Alexa embedded. Amazon also launched the first application of the Alexa Connected Vehicle

Skills API with Nissan, and Garmin announced it is the first Tier 1 automotive supplier to integrate Alexa Custom

Assistant in its In-Vehicle Infotainment systems. Jeep announced Wagoneer and Grand Wagoneer models will be the

first to launch Fire TV for Auto, an on-the-go entertainment experience.

Amazon Web Services

• AWS announced significant customer momentum, with new commitments and migrations from customers spanning

many major industries.

• In telecommunications, DISH is leveraging AWS’s advanced, reliable, and secure infrastructure to build a

cloud-based, 5G Open Radio Access Network (O-RAN) to deliver consistent, cost-effective performance

from the cloud to the edge of the network.

• The media and entertainment industry continues to move to AWS at a rapid pace with The Walt Disney

Company working with AWS on the expansion of Disney+ to more than 100 million subscribers around the

world.

• Some of the world’s most renowned sports leagues are choosing AWS as their technology provider to

transform the fan experience. For example, the National Hockey League (NHL) uses artificial intelligence,

machine learning, and other AWS technologies to create new viewing experiences and in-depth stats and

analytics, and the PGA TOUR (TOUR) uses AWS cloud and machine learning technologies to transform the

way golf content is created, distributed, and experienced. The German Bundesliga, Germany’s top national

football league, uses AWS to power three new Bundesliga Match Facts to give fans deeper insights into action

on the pitch, while Formula 1 (F1) uses a range of AWS technologies, including machine learning, for six

new F1 Insights for the 2021 season that help motor racing fans understand the strategy of their favorite

driver.

• Automotive companies continue to choose AWS to support the development of their next-generation vehicles.

Continental, one of the world’s largest automotive parts manufacturers, announced they are collaborating

with AWS to develop the Continental Automotive Edge Platform (CAEdge), which will allow automakers to

develop, deploy, and manage code to run connected and autonomous vehicles. In addition, AWS and Torc

Robotics, a subsidiary of Daimler Truck AG, are collaborating to scale an autonomous truck development

platform in the cloud so that Torc Robotics can accelerate testing and commercialization of autonomous

driving technology. And ABB announced a collaboration with AWS to create a cloud-based fleet management

system for electric vehicles, helping companies accelerate electrification of their fleets while maintaining

business continuity.

• AWS announced the launch of a second full region in Japan—the AWS Asia Pacific (Osaka) Region—which is an

expansion of the existing AWS Osaka Local Region. The new region consists of three Availability Zones (AZs) and

joins the existing 25 Availability Zones in eight AWS Regions across Asia Pacific in Beijing, Hong Kong, Mumbai,

Ningxia, Seoul, Singapore, Sydney, and Tokyo. Globally, AWS has 80 Availability Zones across 25 geographic

regions, with plans to launch 15 more Availability Zones and five more AWS Regions in Australia, India, Indonesia,

Spain, and Switzerland.

• AWS and Red Hat announced the general availability of Red Hat OpenShift Service on AWS (ROSA), a new managed

service that makes it easier for Red Hat OpenShift customers to build, scale, and manage containerized applications on

AWS. With ROSA, customers can enjoy more simplified Kubernetes cluster creation without the burden of manually

scaling and managing the underlying infrastructure. ROSA streamlines moving on-premises Red Hat OpenShift

workloads to AWS and offers a tighter integration with other AWS technologies.

• AWS announced the general availability of AQUA (Advanced Query Accelerator) for Amazon Redshift, an innovative

new distributed and hardware-accelerated cache that delivers up to ten times better query performance than other cloud

data warehouses. AQUA brings compute to the storage layer, helping customers avoid networking bandwidth

limitations by eliminating unnecessary data movement between where data is stored and compute clusters. With

AQUA, customers have more up-to-date dashboards, save development time, and their systems are easier to maintain.

• AWS announced the general availability of Amazon Elastic Compute Cloud (EC2) X2gd instances, the next generation

of advanced, memory-optimized instances powered by AWS-designed, Arm-based Graviton2 processors. New X2gd

instances deliver up to 55% better price/performance compared to current generation x86-based X1 instances, while

also offering increased memory per vCPU compared to other Graviton2-based instances. Together, the higher

performance and additional memory of X2gd instances make it possible for customers to more efficiently run memory

intensive workloads like in-memory databases, relational databases, electronic design automation (EDA) workloads,

real-time analytics, and real-time caching servers.

• AWS announced Amazon Lookout for Equipment, a new service that uses AWS-developed machine learning models

to help customers perform predictive maintenance on the equipment in their facilities. Amazon Lookout for Equipment

ingests sensor data from a customer’s industrial equipment (e.g., pressure, flow rate, RPMs, temperature, and power),

and then trains a unique machine learning model to accurately predict early warning signs of machine failure or

suboptimal performance using real-time data streams from the customer’s equipment. With Amazon Lookout for

Equipment, customers can detect abnormalities with speed and precision, quickly diagnose issues, reduce false alerts,

and avoid expensive downtime by taking action before machine failures occur.

• AWS announced the general availability of Amazon Lookout for Vision, a service that analyzes images using computer

vision and sophisticated machine learning capabilities to spot product or process defects and anomalies. By employing

advanced machine learning techniques, Amazon Lookout for Vision is able to train a model using as few as 30 images,

which can help detect manufacturing and production defects (e.g., cracks, dents, incorrect color, irregular shape, etc.)

in their products and prevent costly errors from progressing down an operational line and reaching customers.

• AWS announced the general availability of Amazon Lookout for Metrics, a new fully managed machine learning

service that helps customers monitor the most important metrics for their business (e.g., revenue, web page views,

active users, transaction volume, and mobile app installations) with greater speed and accuracy. The service also

makes it easier to diagnose the root cause of anomalies like unexpected dips in revenue, high rates of abandoned

shopping carts, spikes in payment transaction failures, increases in new user sign-ups, and more.

• AWS announced new Amazon Elastic File System (EFS) One Zone storage classes that reduce storage costs by 47%,

compared to existing Amazon EFS storage classes, while delivering the same features and benefits. One Zone storage

classes redundantly store data within a single Availability Zone (AZ). These are ideal for customers who want cost-

optimized file storage for workloads and applications (e.g., content management, developer applications, etc.) that do

not require the level of availability and durability offered by regional Amazon EFS storage classes, which redundantly

store data across multiple geographically separated AZs.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of April 29, 2021, and are subject to

substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as

fluctuations in foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of

growth of the Internet, online commerce, and cloud services, and the various factors detailed below. This guidance reflects our

estimates as of April 29, 2021 regarding the impact of the COVID-19 pandemic on our operations, including those discussed

above, and is highly dependent on numerous factors that we may not be able to predict or control, including: the duration and

scope of the pandemic, including any recurrence; actions taken by governments, businesses, and individuals in response to the

pandemic; the impact of the pandemic on global and regional economies and economic activity, workforce staffing and

productivity, and our significant and continuing spending on employee safety measures; our ability to continue operations in

affected areas; and consumer demand and spending patterns, as well as the effects on suppliers, creditors, and third-party

sellers, all of which are uncertain. This guidance also assumes the impacts on consumer demand and spending patterns,

including impacts due to concerns over the current economic outlook, will be in line with those experienced during the second

quarter of 2021 to date, and the additional assumptions set forth below. However, it is not possible to determine the ultimate

impact on our operations for the second quarter of 2021, or whether other currently unanticipated direct or indirect

consequences of the pandemic are reasonably likely to materially affect our operations.

Second Quarter 2021 Guidance

• Net sales are expected to be between $110.0 billion and $116.0 billion, or to grow between 24% and 30% compared

with second quarter 2020. This guidance anticipates a favorable impact of approximately 200 basis points from foreign

exchange rates.

• Operating income is expected to be between $4.5 billion and $8.0 billion, compared with $5.8 billion in second quarter

2020. This guidance assumes approximately $1.5 billion of costs related to COVID-19.

• This guidance assumes that Prime Day occurs in second quarter 2021.

• This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or

legal settlements are concluded.

A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at

amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s

financial and operating results.

These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of

reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business

opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales

derived from products as compared with services, the extent to which we owe income or other taxes, competition, management

of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation,

government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of

inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops

commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of

fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products,

services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, additional or

unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these

risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s

filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and

subsequent filings.

Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information

about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate

governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain

material information about us, and you may subscribe to be notified of new information posted to this site.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to

operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best

Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime,

Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa,

Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more

information, visit amazon.com/about and follow @AmazonNews.

AMAZON.COM, INC.

Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Three Months Ended

March 31,

Twelve Months Ended

March 31,

2020

2021

2020

2021

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD

36,410

42,377

23,507

27,505

OPERATING ACTIVITIES:

Net income

2,535

8,107

10,563

26,903

Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization of property and equipment and capitalized content costs, operating

lease assets, and other

5,362

7,508

22,297

27,397

Stock-based compensation

1,757

2,306

7,347

9,757

Other operating expense (income), net

244

(108)

Other expense (income), net

565

(1,456)

451

(4,603)

Deferred income taxes

322

1,703

704

827

Changes in operating assets and liabilities:

Inventories

1,392

(304)

(2,605)

(4,545)

Accounts receivable, net and other

1,262

(2,255)

(6,018)

(11,686)

Accounts payable

(8,044)

(8,266)

6,532

17,258

Accrued expenses and other

(2,761)

(4,060)

(1,213)

4,455

Unearned revenue

607

900

1,430

1,558

Net cash provided by (used in) operating activities

3,064

4,213

39,732

67,213

INVESTING ACTIVITIES:

Purchases of property and equipment

(6,795)

(12,082)

(20,365)

(45,427)

Proceeds from property and equipment sales and incentives

1,367

895

4,970

4,624

Acquisitions, net of cash acquired, and other

(91)

(630)

(1,384)

(2,864)

Sales and maturities of marketable securities

11,626

17,826

31,664

56,437

Purchases of marketable securities

(15,001)

(14,675)

(39,938)

(72,153)

Net cash provided by (used in) investing activities

(8,894)

(8,666)

(25,053)

(59,383)

FINANCING ACTIVITIES:

Proceeds from short

term debt, and other

617

1,926

1,934

8,105

Repayments of short

term debt, and other

(631)

(2,001)

(1,860)

(7,547)

Proceeds from long

term debt

111

842

10,560

Repayments of long-term debt

(36)

(39)

(1,140)

(1,556)

Principal repayments of finance leases

(2,600)

(3,406)

(10,013)

(11,448)

Principal repayments of financing obligations

(17)

(67)

(43)

(103)

Net cash provided by (used in) financing activities

(2,591)

(3,476)

(10,280)

(1,989)

Foreign currency effect on cash, cash equivalents, and restricted cash

(484)

(293)

(401)

809

Net increase (decrease) in cash, cash equivalents, and restricted cash

(8,905)

(8,222)

3,998

6,650

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD

27,505

34,155

27,505

34,155

SUPPLEMENTAL CASH FLOW INFORMATION:

Cash paid for interest on debt

290

276

879

902

Cash paid for operating leases

1,029

1,640

3,680

5,086

Cash paid for interest on finance leases

168

157

650

601

Cash paid for interest on financing obligations

113

Cash paid for income taxes, net of refunds

305

801

1,017

2,209

Assets acquired under operating leases

2,408

3,536

9,403

17,345

Property and equipment acquired under finance leases

2,166

2,067

13,262

11,489

Property and equipment acquired under build-to-suit arrangements 379

887

1,304

2,775

AMAZON.COM, INC.

Consolidated Statements of Operations

(in millions, except per share data)

(unaudited)

Three Months Ended

March 31,

2020

2021

Net product sales

41,841

57,491

Net

service sales

33,611

51,027

Total net sales

75,452

108,518

Operating expenses:

Cost of sales

44,257

62,403

Fulfillment

11,531

16,530

Technology and content

9,325

12,488

Marketing

4,828

6,207

General and

administrative

1,452

1,987

Other operating expense (income), net

Total operating expenses

71,463

99,653

Operating income

3,989

8,865

Interest income

202

105

Interest expense

(402)

(399)

Other income (expense), net

(406)

1,697

Total non-operating income (expense)

(606)

1,403

Income before income taxes

3,383

10,268

Provision for income taxes

(744)

(2,156)

Equity-method investment activity, net of tax

(104)

(5)

Net income

2,535

8,107

Basic earnings per share

5.09

16.09

Diluted earnings per share

5.01

15.79

Weighted-average shares used in computation of earnings per share:

Basic 498

504

Diluted

506

513

AMAZON.COM, INC.

Consolidated Statements of Comprehensive Income

(in millions)

(unaudited)

Three Months Ended

March 31,

2020

2021

Net income

2,535

8,107

Other comprehensive income (loss):

Foreign currency translation adjustments, net of tax of $21 and $13

(874)

(374)

Net change in unrealized gains (losses) on available

for

sale debt securities:

Unrealized gains (losses), net of tax of $12 and $30

(203)

(98)

Reclassification adjustment for losses (gains) included in “Other income (expense), net,”

net of tax of $0 and $4

—

(14)

Net unrealized gains (losses) on available

for

sale debt

securities

(203)

(112)

Total other comprehensive income (loss)

(1,077)

(486)

Comprehensive income

1,458

7,621

AMAZON.COM, INC.

Segment Information

(in millions)

(unaudited)

Three Months Ended

March 31,

2020

2021

North America

Net sales

46,127

64,366

Operating expenses

44,815

60,916

Operating income

1,312

3,450

International

Net sales

19,106

30,649

Operating expenses

19,504

29,397

Operating income (loss)

(398)

1,252

AWS

Net sales

10,219

13,503

Operating expenses

7,144

9,340

Operating income

3,075

4,163

Consolidated

Net sales

75,452

108,518

Operating expenses

71,463

99,653

Operating income

3,989

8,865

Total non

operating income (expense)

(606)

1,403

Provision for income taxes

(744)

(2,156)

Equity

method investment activity, net of tax

(104)

(5)

Net income

2,535

8,107

Segment Highlights:

Y/Y net sales growth:

North America

International

AWS

Consolidated

Net sales mix:

North America

International

AWS

Consolidated

100

AMAZON.COM, INC.

Consolidated Balance Sheets

(in millions, except per share data)

December 31, 2020

March 31, 2021

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

42,122

33,834

Marketable securities

42,274

39,436

Inventories

23,795

23,849

Accounts receivable, net and other

24,542

24,289

Total current assets

132,733

121,408

Property and equipment, net

113,114

121,461

Operating leases

37,553

39,328

Goodwill

15,017

15,220

Other assets

22,778

25,660

Total assets

321,195

323,077

LIABILITIES AND STOCKHOLDERS

’

EQUITY

Current liabilities:

Accounts payable

72,539

63,926

Accrued expenses and other

44,138

40,939

Unearned revenue

9,708

10,539

Total current liabilities

126,385

115,404

Long

term lease liabilities

52,573

53,067

Long

term debt

31,816

31,868

Other long

term liabilities

17,017

19,418

Commitments and contingencies

Stockholders

’

equity:

Preferred stock, $0.01 par value:

Authorized shares

—

500

Issued and outstanding shares

—

none

—

Common stock, $0.01 par value:

Authorized shares

—

5,000

Issued shares

—

527

and 528

Outstanding shares

—

503

and 504

Treasury stock, at cost

(1,837)

Additional paid

capital

42,865

45,160

Accumulated other comprehensive income (loss)

(180)

(666)

Retained earnings

52,551

60,658

Total stockholders’ equity

93,404

103,320

Total liabilities and stockholders

’

equity

321,195

323,077

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except per share data)

(unaudited)

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Y/Y %

Change

Cash Flows and Shares

Operating cash flow

trailing twelve months (TTM)

38,514

39,732

51,220

55,292

66,064

67,213

Operating cash flow

TTM Y/Y g

rowth

N/A

Purchases of property and equipment, net of proceeds from sales and incentives --

TTM

12,689

15,395

19,368

25,791

35,044

40,803

165

Principal repayments of finance leases -- TTM

9,628

10,013

10,504

11,054

10,642

11,448

Principal repayments of financin

g obligations

TTM

103

140

Equipment acquired under finance leases

TTM (1)

12,916

12,209

11,952

11,116

9,104

8,936

(27)

Principal repayments of all othe

r finance leases

TTM (2)

392

407

415

413

427

525

Free cash flow

TTM (3)

25,8

24,337

31,852

29,501

31,020

26,410

Free cash flow less principal repayments of finance leases and financing obligations

-- TTM (4)

16,170

14,281

21,292

18,379

20,325

14,859

Free cash flow less equipment finance leases and principal repayments of all other

finance leases and financing obligations -- TTM (5)

12,490

11,678

19,429

17,904

21,436

16,846

Common shares and stock

based aw

ards outstanding

512

513

517

518

519

Common shares outstanding

498

499

501

502

503

504

Stock

based awards outstanding

Stock

based awards outstanding

% of common shares outstanding

2.9

2.8

3.2

3.3

3.0

2.9

N/A

Results of Operations

Worldwide (WW) net sales

87,437

75,452

88,912

96,145

125,555

108,518

WW net sales

Y/Y growth, excl

uding F/X

N/A

WW net sales

TTM

280,522

296,274

321,782

347,946

386,064

419,130

WW net sales

TTM Y/Y growth,

excluding F/X

N/A

Operating income

3,879

3,989

5,843

6,194

6,873

8,865

122

F/X impact

favorable (unfavor

able)

111

133

142

107

N/A

Operating income

Y/Y growth (decline), exclud

ing F/X

(11)

120

N/A

Operating margin

% of WW net sales

4.4

5.3

6.6

6.4

5.5

8.2

N/A

Operating income

TTM

14,541

14,109

16,868

19,905

22,899

27,775

Operating income

TTM Y/Y gro

wth (decline), excluding F/X

(6)

N/A

Operating margin

TTM % of WW net sales

5.2

4.8

5.2

5.7

5.9

6.6

N/A

Net income

3,268

2,535

5,243

6,331

7,222

8,107

220

Net income per diluted share

.47

5.01

10.30

12.37

14.09

15.79

215

Net income

TTM

11,588

10,563

13,180

17,377

21,331

26,903

155

Net income per diluted share

TTM

23.01

20.93

26.04

34.21

41.83

52.59

151

______________________________

(1) For the twelve months ended March 31, 2020 and 2021, this amount relates to equipment included in “Property and equipment acquired under finance leases” of $13,262

million and $11,489 million.

(2) For the twelve months ended March 31, 2020 and 2021, this amount relates to property included in “Principal repayments of finance leases” of $10,013 million and

$11,448 million.

(3) Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”

(4) Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by “Principal repayments of finance leases” and “Principal

repayments of financing obligations.”

(5) Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment

acquired under finance leases, which is included in “Property and equipment acquired under finance leases,” principal repayments of all other finance lease liabilities,

which is included in “Principal repayments of finance leases,” and “Principal repayments of financing obligations.”

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions)

(unaudited)

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Y/Y %

Change

Segments

North America Segment:

Net sales

53,670

46,127

55,436

59,373

75,346

64,366

Net sales

Y/Y growth, exclu

ding F/X

N/A

Net sales

TTM

170,773

181,088

197,871

214,606

236,282

254,521

Operating income

1,900

,312

2,141

2,252

2,946

3,450

163

F/X impact

favorable (unfav

orable)

(3)

(4)

—

N/A

Operating income

Y/Y growth (decline), excl

uding F/X

(16)

(43)

162

N/A

Operating margin

% of North America net sales

3.5

2.8

3.9

3.8

3.9

5.4

N/A

Operating income

TTM

7,033

6,057

6,634

7,604

8,651

10,789

Operating margin

TTM % of N

orth America net sales

4.1

3.4

3.5

3.7

4.2

N/A

International Segment:

Net sales

23,813

19,106

22,668

25,171

37,467

30,649

Net sales

Y/Y growth, exclu

ding F/X

N/A

Net sales

TTM

74,723

77,637

83,935

90,758

104,412

115,955

Operating income (loss)

(617

)

(398)

345

407

363

1,252

N/A

F/X impact

favorable (unfavorable)

(7)

(5)

152

232

270

N/A

Operating income/loss

Y/Y growth (decline),

excluding F/X

(5)

338

N/A

347

N/A

Operating margin

% of International net sales

(2.6)

(2.1)

1.5

1.6

1.0

4.1

N/A

Operating income (loss)

TTM

(1,693)

(2,001)

(1,055)

(262)

717

2,367

N/A

Operating margin

TTM % of International net

sales

(2.3)

(2.6)

(1.3)

(0.3)

0.7

2.0

N/A

AWS Segment:

Net sales

9,954

10,219

10,808

11,601

12,742

13,503

Net sales

Y/Y growth, exclu

ding F/X

N/A

Net sales

TTM

35,026

37,549

39,976

42,582

45,370

48,654

Operating income

2,596

,075

3,357

3,535

3,564

4,163

F/X impact

favorable (unfav

orable)

(20)

(96)

(171)

N/A

Operating income

Y/Y growth, excluding F/X

N/A

Operating margin

% of AWS net sales

26.1

30.1

31.1

30.5

28.0

30.8

N/A

Operating income

TTM

9,201

10,053

11,289

12,563

13,531

14,619

Operating margin

TTM % of A

WS net sales

26.3

26.8

28.2

29.5

29.8

30.0

N/A

AMAZON.COM, INC.

Supplemental Financial Information and Business Metrics

(in millions, except employee data)

(unaudited)

Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021

Y/Y %

Change

Net Sales

Online stores (1)

45,657

36,652

45,896

48,350

66,451

52,901

44 %

Online stores

Y/Y growth, e

xcluding F/X

N/A

Physical stores (2)

4,363

4,640

3,774

3,788

4,022

3,920

(16)

Physical stores

Y/Y growth,

excluding F/X

(1)

(13)

(10)

(7)

(16)

N/A

Third

party seller services (3)

17,446

14,479

18,195

20,436

27,327

23,709

Third

party seller services

Y/Y growth, excluding F/X

N/A

Subscription services (4)

5,235

5,556

6,018

6,572

7,061

7,580

Subscription services

Y/Y

growth, excluding F/X

N/A

AWS

9,954

10,219

10,808

11,601

12,742

13,503

AWS

Y/Y growth, excluding F

N/A

Other (5)

4,782

3,906

4,221

5,398

7,952

6,905

Other

Y/Y growth, excluding

F/X

N/A

Stock

based Compensation Expense

Cost of sales

116

Fulfillment

286

260

417

316

364

342

Technology and content

1,007

961

1,421

1,267

1,412

1,228

Marketing

322

332

446

476

456

General and administrative

163

231

184

219

190

Total stock

based compensation

expense

1,840

1,757

2,601

2,288

2,562

2,306

Other

WW shipping

costs

12,884

10,936

13,652

15,063

21,465

17,162

WW shipping costs

Y/Y growt

N/A

WW paid units

Y/Y growth (6)

N/A

WW seller unit mix

% of WW paid units (6)

N/A

Employees (full

time and part

time; excludes contractors & temporary personnel)

798,000

840,400

876,800

1,125,300

1,298,000

1,271,000

Employees (full-time and part-time; excludes contractors & temporary personnel) --

Y/Y growth

23 %

33 %

34 %

50 %

63 %

51 %

N/A

________________________

(1) Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable

goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital

products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”

(2) Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are

included in “Online stores.”

(3) Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.

(4) Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription

services.

(5) Primarily includes sales of advertising services, as well as sales related to our other service offerings.

(6) Excludes the impact of Whole Foods Market.

Amazon.com, Inc.

Certain Definitions

Customer Accounts

• References to customers mean customer accounts established when a customer places an order through one of our

stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions,

Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a

technology alliance or marketing and promotional relationship. Customers are considered active when they have

placed an order during the preceding twelve-month period.

Seller Accounts

• References to sellers means seller accounts, which are established when a seller receives an order from a customer

account. Sellers are considered active when they have received an order from a customer during the preceding twelve-

month period.

AWS Customers

• References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are

eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services

via one account ID are counted as a single account. Customers are considered active when they have had AWS usage

activity during the preceding one-month period.

Units

• References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our

stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units

associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or

Amazon gift cards.

Contacts:

Amazon Investor Relations

Amazon Public Relations

Dave Fildes, amazon

ir@amazon.com

Dan Perlet, amazon

pr@amazon.com

amazon.com/ir

amazon.com/pr