Despite slow progress in the Australian market, US-based e-commerce company, Amazon, has announced financial results for the first quarter ended 31 March 2019.

Operating cash flow increased 89 per cent to approx. $48.9 billion for the trailing twelve months, compared with approx. $25.9 billion for the trailing twelve months ended 31 March 2018. Free cash flow increased to approx. $32.7 billion for the trailing twelve months, compared with approx. $10.3 billion for the trailing twelve months ended 31 March 2018.

Since it commenced operations in Australia, Amazon has taken $300 million of revenue from the local retail economy.

Globally, free cash flow, less principal repayments of finance leases and financing obligations increased to approx. $21.5 billion for the trailing twelve months, compared with approx. $1.5 billion for the trailing twelve months ended 31 March 2018. Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to an inflow of approx. $16.8 billion for the trailing twelve months, compared with an outflow of approx. $4.2 billion for the trailing twelve months ended 31 March 2018.

On 1 January 2019, Amazon adopted accounting guidance amending the accounting for leases, which did not have a material impact on its first quarter operating results. Prior period amounts were not retrospectively adjusted. Under this new guidance, leases previously referred to as ‘capital leases’ are now referred to as ‘finance leases’ – leases previously referred to as ‘finance leases’ are now referred to as ‘financing obligations’.

Common shares outstanding plus shares underlying stock-based awards totalled 507 million on 31 March 2019, compared with 504 million one year ago.

Net sales increased 17 per cent to approx. $85 billion in the first quarter, compared with approx. $72.6 billion in Q1 2018.

Operating income increased to approx. $6.2 billion in the first quarter, compared with operating income of approx. $2.7 billion in Q1 2018.

“The son of a working single mum, Leo Jean Baptiste grew up speaking Haitian Creole in a New Jersey home without internet access,” said Amazon founder and CEO, Jeff Bezos.

“He’s also one of our inaugural group of 100 high school seniors to receive a $40,000 [approx. $56,900] Amazon Future Engineer scholarship and Amazon internship.

“He rose to the top of his class and is set to study computer science at college this fall, with the dream of getting a job in machine learning. Our passion for invention led us to create Amazon Future Engineer so we could help young people like Leo from underrepresented groups and underserved communities across the country. In addition to 100 college scholarships a year, we’re funding computer science classes in 1,000 high schools and counting, and inspiring younger kids to explore coding through coding camps and after-school programs. We love this program, and we can’t wait to see what Leo and his fellow future engineers invent,” he said.

In related news, Roy Morgan CEO, Michele Levine, anticipates the rollout of the ‘Amazon Fresh’ brand in Australia, and commented on the state of the country’s total grocery spend.

(Image: Amazon founder and CEO, Jeff Bezos.)