Amazon’s 2011 Q1: sales up 38%
Amazon reported its 2011 first quarter financial results today.
has some of the details.
You aren’t going to see how many Kindles were sold…and Kindle sales aren’t supposedly a big part of their business.
There are a lot of financial data here…I’m not an expert on that. It appears to me that sales were up, but free cash flow is down. What does that mean? Stockholders don’t get as much.
Again, not an expert…but I think we may see the stock drop on this.
The Q & A on the conference call, which you can hear recorded here:
is often the most interesting part.
The first question had to do with the impact of the events in Japan, and a note that shipping costs are a growing negative. That may be due to Prime adoption (which increases free shipping).
2. Are international markets adopting Prime? Is Kindle international growth following the US pattern? A. People love Prime. “Tremendous growth” “Very, very happy”. KSOs (Kindle with Special Offers) will start shipping tomorrow (April 27).
3. Unit growth seems very high. What about an outage on Amazon services that had happened?
4. Included a question about the state tax issue. If you’d had to collect sales tax all long, how would that have hurt you?. A. They already collect sales tax on 50% of their revenue base…
Financial questions followed…
How will the change in distribution in books affect the margin at Amazon? “long term perspective” “incredibly excited…with Kindle” “customers are buying a lot more books”
There was a question about the “Living Social” promo…it seems as though customer acquisition costs might be rising…
When a customer becomes a “digital customer”, how does that affect their spending with Amazon? A. Digital customers are also good physical customers.
Those are just my very rough notes.
If you listened to the call (or just read the press release), feel free to let me know what you think.
This post by Bufo Calvin originally appeared in the I Love My Kindle blog.