Amazon(US:AMZN)2025-05-01 22:14Cash Flow and Capital Expenditures - Operating cash flow for Q1 2025 was $17.0 billion, a decrease from $19.0 billion in Q1 2024, attributed to changes in working capital and net income fluctuations [107]. - Cash capital expenditures increased to $24.3 billion in Q1 2025 from $13.9 billion in Q1 2024, primarily for technology infrastructure and fulfillment network capacity [108]. - The company expects cash capital expenditures to rise in 2025, driven by technology infrastructure investments [108]. - Cash provided by investing activities was $(29.8) billion for Q1 2025, reflecting significant capital expenditures and marketable securities transactions [108]. - Free cash flow for the twelve months ended March 31, 2025, was $25,925 million, a decrease of 48.3% from $50,149 million in 2024 [146]. Financial Position and Investments - Total cash, cash equivalents, and marketable securities were $94.6 billion as of March 31, 2025, down from $101.2 billion as of December 31, 2024 [106]. - The company had no borrowings outstanding under its unsecured revolving credit facilities as of March 31, 2025 [110]. - The company intends to invest substantially all foreign subsidiary earnings outside the U.S. to avoid additional repatriation costs [111]. - The company's equity investments in public and private companies were valued at $21.0 billion as of March 31, 2025, with $3.8 billion in publicly traded companies [155]. Sales and Revenue Growth - Consolidated net sales reached $155,667 million in Q1 2025, reflecting a 9% increase compared to the prior year [118]. - North America net sales increased by 8% to $92,887 million in Q1 2025, with a year-over-year growth of 12% excluding foreign exchange effects [118]. - International net sales increased by 5% to $33,513 million in Q1 2025, with a year-over-year growth of 10% excluding foreign exchange effects [120]. - AWS sales increased by 17% to $29,267 million in Q1 2025, maintaining a consistent growth rate year-over-year [121]. - Net sales for Q1 2025 were reported at $155,667 million, reflecting a decrease of $1,000 million due to foreign exchange rate fluctuations compared to Q1 2024 [152]. - Guidance for Q2 2025 projects net sales between $159.0 billion and $164.0 billion, representing a growth of 7% to 11% compared to Q2 2024 [149]. Operating Performance - Total operating expenses rose to $137,262 million in Q1 2025, with a year-over-year growth of 7% [122]. - Operating income increased from $15,307 million in Q1 2024 to $18,405 million in Q1 2025, representing a significant growth [137]. - Operating income for Q1 2025 was $18,405 million, compared to $15,307 million in Q1 2024, indicating an increase of 20.5% [148]. - Operating income for Q2 2025 is expected to be between $13.0 billion and $17.5 billion, compared to $14.7 billion in Q2 2024 [149]. Tax and Foreign Exchange - The effective tax rates may be influenced by changes in business operations, acquisitions, and the mix of foreign earnings [104]. - The income tax provision for Q1 2025 was $4.6 billion, including $559 million of net discrete tax expense [144]. - The company is subject to tax controversies that could materially affect operating results or cash flows [105]. - Changes in foreign exchange rates reduced net sales by $1.4 billion and operating expenses by $910 million in Q1 2025 [118][124]. - As of March 31, 2025, the company had $18.6 billion in foreign-denominated cash, with a potential loss of $3.7 billion under a 20% adverse change in foreign exchange rates [153]. - The company anticipates an unfavorable impact of approximately 10 basis points from foreign exchange rates on its Q2 2025 guidance [149]. Other Income and Expenses - Interest income rose to $1.1 billion in Q1 2025, primarily due to a higher average balance of invested funds [141]. - Other income (expense), net shifted from a loss of $(2.7) billion in Q1 2024 to a gain of $2.7 billion in Q1 2025, driven by equity securities valuations [143]. - Changes in interest rates may affect the fair market value of the company's long-term debt, which is carried at amortized cost [151]. - The company recorded an additional cost of sales of approximately $380 million for every 1% increase in inventory valuation allowance as of March 31, 2025 [100].