Amazon Q4 results: revenue up 22% but profit slips 45%

By on January 30, 2013, 8:30 AM

Amazon had a predictably solid holiday season that saw revenue climb 22 percent over the same period last year to $21.27 billion. Those fortunes, however, were overshadowed by a 45 percent decline in profit, dropping to just $97 million to close out the year. In 2011, the Internet retail giant turned a profit of $177 million.

Analysts were expecting Amazon to post revenue of $22.26 billion that would have been good for $0.27 per share. The company noted that operating income increased 56 percent to $405 million during Q4 2012, compared to just $206 million during the same time a year ago. But even still, stock in the e-commerce company is up nearly nine percent in after hours trading, sitting at $283.50 as of writing.

Amazon CEO Jeff Bezos seemed pleased with the results, noting that after five years, e-books are now a multi-billion dollar category and that the division continues to see rapid growth. Unsurprisingly, physical book sales are on the decline and for the second year in a row, the Kindle was their most popular item. Specifically, the Kindle Fire HD was the bestselling, most gifted and most wished-for product across their entire merchandise lineup.

When looking at the entire year, Amazon pulled in revenues of $61.09 billion compared to just $48.08 billion in 2011 – that’s good for a 27 percent increase. Moving forward, Amazon expects sales of $15 billion to 16.2 billion for the current quarter which would represent 14 percent to 26 percent growth compared to Q1 2012.

User Comments: 5

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VitalyT VitalyT said:

Not of much interest to a technical reader. This is a Tech Spot website

MilwaukeeMike said:

Not of much interest to a technical reader. This is a Tech Spot website

Really? I think this is very relevant. Amazon is a tech company, and profits are what drives every piece of consumer technology out there.

Sure the Kindle HD sold well, but didn't they price it really low so they could make money on book sales? I think they're expecting to make some of that money back when there are a few million Kindle owners buying Amazon content. Amazon made it through the e-commerce minefield of 2000 - 2004 by following their motto - 'Get big fast.' Looks like they're doing it with the Kindle HD. I'd say we have to wait to see how it turns out.

VitalyT VitalyT said:

Ok, ...yawning...

VitalyT VitalyT said:

Seriously, there is so much more relevant to the technology industry that doesn't get published.

Example: The just-approved H.265 compression standard (HEVC) to finally pave the way to 4K distribution - that's kind of interesting, and surely is a huge deal for the entire digital industry

Jim$ter said:

Interesting profit is going down. I buy from Amazon a lot. I have used their subscribe and save feature when it use to be 15% it was actually worth it. In the last year they have decreased it to %5 and shipping is slower. So I don't even use it anymore. It was a nice feature and I'm sure others are disappointed what they did to that feature.

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