Amazon announced financial results for its second quarter ended June 30, 2004.
Operating cash flow was $410 million for the trailing twelve months, compared with $285 million for the trailing twelve months ended June 30, 2003. Free cash flow grew 45% to $354 million for the trailing twelve months, compared with $245 million for the trailing twelve months ended June 30, 2003.
Common shares outstanding plus shares underlying stock-based awards outstanding totaled 434 million at June 30, 2004, compared with 433 million a year ago.
Net sales were $1.39 billion in the second quarter, compared with $1.10 billion in second quarter 2003, an increase of 26%. Net sales, excluding the $47 million benefit from changes in foreign exchange rates, grew 22% compared with second quarter 2003.
Operating income was $86 million in the second quarter, compared with $42 million in second quarter 2003. Consolidated segment operating income grew 50% to $101 million in the second quarter, compared with $67 million in second quarter 2003. Consolidated segment operating income, excluding the $4 million benefit from changes in foreign exchange rates, grew 44% compared with second quarter 2003.
Net income was $76 million in the second quarter, or $0.18 per diluted share, compared with a net loss of $43 million, or $(0.11) per share, in second quarter 2003. Pro forma net income in the second quarter grew 77% to $75 million, or $0.18 per diluted share, compared with $42 million, or $0.10 per diluted share, in second quarter 2003.
"Worldwide adoption of our everyday free shipping reached another record high point this quarter," said Jeff Bezos, founder and CEO of Amazon. "While free shipping is expensive for the Company, it saves our customers tens of millions of dollars each quarter, and we plan to keep it in place indefinitely."
Amazon continues to offer Free Super Saving Shipping on orders over $25 and also has free shipping offers at its U.K., German, French, Japanese and Canadian sites. Amazon offers 30% off books over $15 and continues to lower prices and offer promotions every day across its product offerings, ranging from electronics to jewelry to sports and outdoors items to tools.