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AMZN » Topics » We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

This excerpt taken from the AMZN 10-Q filed Oct 26, 2006.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. A significant portion of our expenses and investments is fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

Our revenue and operating profit growth depends on the continued growth of demand for the products and services offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

  •   variations in our level of merchandise and vendor returns;

 

38

Table of Contents
  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes;

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities;

 

  •   the extent to which operators of the networks between our customers and our websites successfully charge fees to grant our customers unimpaired and unconstrained access to our online services; and

 

  •   the extent to which overall Internet use is affected by spyware, viruses, and “phishing,” spoofing and other spam emails directed at Internet users, viruses and “denial of service” attacks directed at Internet companies and service providers, and other events.

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

This excerpt taken from the AMZN 10-Q filed Jul 27, 2006.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. A significant portion of our expenses and investments is fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

Our revenue and operating profit growth depends on the continued growth of demand for the products and services offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

  •   variations in our level of merchandise and vendor returns;

 

37

Table of Contents
  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes;

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities;

 

  •   the extent to which operators of the networks between our customers and our websites successfully charge fees to grant our customers unimpaired and unconstrained access to our online services; and

 

  •   the extent to which overall Internet use is affected by spyware, viruses, and “phishing,” spoofing and other spam emails directed at Internet users, viruses and “denial of service” attacks directed at Internet companies and service providers, and other events.

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

This excerpt taken from the AMZN 10-Q filed Apr 27, 2006.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. A significant portion of our expenses and investments is fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

Our revenue and operating profit growth depends on the continued growth of demand for the products and services offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

36

Table of Contents
  •   variations in our level of merchandise and vendor returns;

 

  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes;

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities;

 

  •   the extent to which operators of the networks between our customers and our websites successfully charge fees to grant our customers unimpaired and unconstrained access to our online services; and

 

  •   the extent to which overall Internet use is affected by spyware, viruses, and “phishing,” spoofing and other spam emails directed at Internet users, viruses and “denial of service” attacks directed at Internet companies and service providers, and other events.

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

This excerpt taken from the AMZN 10-K filed Feb 17, 2006.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

 

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. A significant portion of our expenses and investments is fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

 

Our revenue and operating profit growth depends on the continued growth of demand for the products and services offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

 

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

9

Table of Contents
  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

  •   variations in our level of merchandise and vendor returns;

 

  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes;

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities;

 

  •   the extent to which operators of the networks between our customers and our websites successfully charge fees to grant our customers unimpaired and unconstrained access to our online services; and

 

  •   the extent to which overall Internet use is affected by spyware, viruses, and “phishing,” spoofing and other spam emails directed at Internet users, viruses and “denial of service” attacks directed at Internet companies and service providers, and other events.

 

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

 

This excerpt taken from the AMZN 10-Q filed Oct 27, 2005.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

 

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. Our expenses and investments are to a large extent fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

 

Our revenue and operating profit growth depends on the continued growth of demand for the products offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

 

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

40

Table of Contents
  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

  •   variations in our level of merchandise and vendor returns;

 

  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes; and

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities.

 

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

 

This excerpt taken from the AMZN 10-Q filed Jul 28, 2005.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

 

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. Our expenses and investments are to a large extent fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

 

40

Table of Contents

Our revenue and operating profit growth depends on the continued growth of demand for the products offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

 

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

  •   variations in our level of merchandise and vendor returns;

 

  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes; and

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities.

 

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

 

41

Table of Contents
This excerpt taken from the AMZN 10-Q filed Apr 28, 2005.

We May Experience Significant Fluctuations in Our Operating Results and Rate of Growth

 

Due to our limited operating history, our evolving business model, and the unpredictability of our industry, we may not be able to accurately forecast our rate of growth. We base our current and future expense levels and our investment plans on estimates of future net sales and rate of growth. Our expenses and investments are to a large extent fixed, and we may not be able to adjust our spending quickly enough if our net sales fall short of our expectations.

 

Our revenue and operating profit growth depends on the continued growth of demand for the products offered by us or our sellers, and our business is affected by general economic and business conditions throughout the world. A softening of demand, whether caused by changes in consumer preferences or a weakening of the U.S. or global economies, may result in decreased revenue or growth. Terrorist attacks and armed hostilities create economic and consumer uncertainty that could adversely affect our revenue or growth. Such events could create delays in, and increase the cost of, product shipments, which may decrease demand. Revenue growth may not be sustainable and our company-wide percentage growth rate may decrease in the future.

 

Our net sales and operating results will also fluctuate for many other reasons, including:

 

  •   our ability to retain and increase sales to existing customers, attract new customers, and satisfy our customers’ demands;

 

  •   our ability to expand our network of sellers, and to enter into, maintain, renew, and amend on favorable terms our commercial agreements and strategic alliances;

 

  •   foreign exchange rate fluctuations, particularly as international sales become an increasingly larger contributor to our revenues;

 

  •   our ability to acquire merchandise, manage inventory, and fulfill orders;

 

  •   the introduction by our current or future competitors of websites, products, services, price decreases, or improvements;

 

38

Table of Contents
  •   changes in usage of the Internet and e-commerce, including in non-U.S. markets;

 

  •   timing, effectiveness, and costs of upgrades and developments in our systems and infrastructure;

 

  •   the effects of commercial agreements and strategic alliances and our ability to successfully implement the underlying relationships and integrate them into our business;

 

  •   the effects of acquisitions, and other business combinations and our ability to successfully integrate them into our business;

 

  •   the success of our geographic and product line expansions;

 

  •   the outcomes of legal proceedings and claims;

 

  •   technical difficulties, system downtime, or interruptions;

 

  •   variations in the mix of products and services we sell;

 

  •   variations in our level of merchandise and vendor returns;

 

  •   disruptions in service by shipping carriers;

 

  •   the extent to which we offer free shipping, continue to reduce product prices worldwide, and provide additional benefits to our customers which reduce our gross or operating profits;

 

  •   the extent to which we invest in technology and content, fulfillment, marketing and other expense categories;

 

  •   the extent to which we provide for and pay taxes; and

 

  •   increases in the prices of fuel and gasoline, which are used in the transportation of packages, as well as increases in the prices of other energy products, primarily natural gas and electricity, and commodities like paper and packing supplies, all of which are used in our operating facilities.

 

Finally, both seasonal fluctuations in Internet usage and traditional retail seasonality are likely to affect our business. Internet usage generally slows during the summer months, and sales in almost all of our product groups, particularly toys and electronics, usually increase significantly in the fourth calendar quarter of each year.

 

EXCERPTS ON THIS PAGE:

10-Q
Oct 26, 2006
10-Q
Jul 27, 2006
10-Q
Apr 27, 2006
10-K
Feb 17, 2006
10-Q
Oct 27, 2005
10-Q
Jul 28, 2005
10-Q
Apr 28, 2005

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