SEATTLE--(BUSINESS WIRE)--Jul. 25, 2019--\u00a0Amazon.com, Inc.\u00a0(NASDAQ: AMZN) today announced financial results for its second quarter ended\u00a0June 30, 2019. Operating cash flow increased 65% to\u00a0$36.0 billion\u00a0for the trailing twelve months, compared with\u00a0$21.8 billion\u00a0for the trailing twelve months ended\u00a0June 30, 2018. Free cash flow increased to\u00a0$25.0 billion\u00a0for the trailing twelve months, compared with\u00a0$10.4 billion\u00a0for the trailing twelve months ended\u00a0June 30, 2018. Free cash flow less principal repayments of finance leases and financing obligations increased to\u00a0$16.1 billion\u00a0for the trailing twelve months, compared with\u00a0$4.1 billionfor the trailing twelve months ended\u00a0June 30, 2018. Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to\u00a0$13.0 billion\u00a0for the trailing twelve months, compared with\u00a0$546 million\u00a0for the trailing twelve months ended\u00a0June 30, 2018. Common shares outstanding plus shares underlying stock-based awards totaled 510 million on\u00a0June 30, 2019, compared with 506 million one year ago. Net sales increased 20% to\u00a0$63.4 billion\u00a0in the second quarter, compared with\u00a0$52.9 billion\u00a0in second quarter 2018. Excluding the\u00a0$814 million\u00a0unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 21% compared with second quarter 2018. Operating income increased to\u00a0$3.1 billion\u00a0in the second quarter, compared with operating income of\u00a0$3.0 billion\u00a0in second quarter 2018. Net income increased to\u00a0$2.6 billion\u00a0in the second quarter, or\u00a0$5.22\u00a0per diluted share, compared with net income of\u00a0$2.5 billion, or\u00a0$5.07\u00a0per diluted share, in second quarter 2018. \u201cCustomers are responding to Prime\u2019s move to one-day delivery \u2014 we\u2019ve received a lot of positive feedback and seen accelerating sales growth,\u201d said\u00a0Jeff Bezos,\u00a0Amazon\u00a0founder and CEO. \u201cFree one-day delivery is now available to Prime members on more than ten million items, and we\u2019re just getting started. A big thank you to the team for continuing to make life easier for customers.\u201d Highlights \tPrime Day was once again the largest shopping event in\u00a0Amazonhistory with more than one million deals exclusively for Prime members. Over the two days of Prime Day, on\u00a0July 15\u00a0and 16, sales surpassed the previous Black Friday and Cyber Monday combined. Prime Day was also the biggest event ever for\u00a0Amazon\u00a0devices, when comparing two-day periods.\u00a0Amazon\u00a0welcomed more new Prime members on\u00a0July 15than any previous day, and almost as many on\u00a0July 16\u00a0\u2014 making these the two biggest days ever for member signups. In addition, Prime members received tens of millions of dollars in savings when shopping from\u00a0Whole Foods Market\u00a0and bought more than\u00a0$2 billion\u00a0of products from independent small and medium-sized businesses. Millions of people worldwide streamed Prime Day events, including the Prime Day Concert presented by Amazon Music and headlined by 10-time GRAMMY Award-winning artist\u00a0Taylor Swift. \tAmazon\u00a0hosted thousands of attendees at re:MARS, a new Artificial Intelligence (AI) conference focused on machine learning, automation, robotics, and space. There were over one hundred talks, sessions, and workshops held by\u00a0Amazon\u00a0and industry leaders that showcased leading advancements in robotics and automation, including telerobotic hands that transmit touch to haptic gloves from\u00a0HaptX, SynTouch, and\u00a0Shadow Robot Company; an electric adventure vehicle from Rivian that integrates with Alexa; and an autonomous flying microbot from the\u00a0Wyss Institute\u00a0at\u00a0Harvard University.\u00a0Amazon\u00a0also announced Prime Air\u2019s new drone delivery design; a new AI-driven approach for Alexa skill developers called Alexa Conversations; and the\u00a0Pegasus Drivesortation robot, used in\u00a0Amazon\u00a0sortation centers. \tAmazon\u00a0introduced the all-new\u00a0Echo Show\u00a05, which features a compact design, 5.5-inch display, rich sound, HD camera, and built-in camera shutter. \tAmazon\u00a0introduced the all-new Kindle Oasis, featuring its best Paperwhite display with the next generation of e-ink technology, which includes fast page turns, waterproofing, a color adjustable front light, and six months of Kindle Unlimited for free. \tAmazon\u00a0introduced the all-new Fire 7, the next generation of our best-selling tablet, featuring a faster processor, 16 GB of internal storage with support for up to 512 GB more via microSD, and hands-free access to Alexa. \tAmazon\u00a0announced the all-new Fire 7 Kids Edition tablet and Echo Dot Kids Edition, as well as the new Alexa Skill Blueprints that let families create personalized skills for Alexa-enabled devices. These devices rely on Amazon FreeTime, a service that helps parents manage the ways their kids interact with technology. \tThe number of Alexa-compatible smart home devices continues to grow, with more than 60,000 smart home products from over 7,400 unique brands. Additionally,\u00a0Alexa Guard, a feature that helps customers protect their home by detecting the sounds of smoke alarms, carbon monoxide alarms, and glass breaking, is now widely available across the U.S. Alexa Guard can also be connected to customers\u2019 existing ADT or Ring alarm systems. \tThere are now hundreds of third-party devices with Alexa built-in. Customers can access Alexa at home through select TVs from LG and ecobee\u2019s newest smart thermostat, or on-the-go with new headphones from Bose and Jabra. Alexa is now integrated into even more vehicles from Lexus and\u00a0Toyota, as well as select\u00a0BMW\u00a0and MINI vehicles in\u00a0Germany\u00a0and the\u00a0U.K.\u00a0Additionally,\u00a0Garmin, iOttie, and Nextbase launched new automotive accessories that make it easy for customers to add Alexa to their current vehicle. \tAmazon\u00a0continues to expand Alexa\u2019s features and capabilities. Alexa Announcements, which allows customers to broadcast a one-way message to their Alexa devices, is now available in\u00a0Germany,\u00a0France,\u00a0Spain,\u00a0Italy, and\u00a0Mexico. Additionally, customers in the\u00a0U.K.\u00a0can make outbound calls with Alexa Outbound Calling, and with eligible\u00a0Vodafoneplans, can place and receive calls from an Echo device using their mobile number. \tCustomers can now set an Alexa Routine timed to sunset, sunrise, or when an alarm is dismissed; and delete their voice recordings by saying \u201cAlexa, delete what I just said\u201d or \u201cAlexa, delete everything I said today.\u201d Additionally,\u00a0Amazon\u00a0launched the Alexa Privacy Hub, which provides customers with information and control over their Alexa experience. \tIn\u00a0Japan,\u00a0Germany, and the\u00a0U.K.,\u00a0Amazon\u00a0introduced the ability for Alexa developers to earn money using in-skill purchasing for their skills. \tFire TV now has more than 34 million active users worldwide and continues to be the #1 streaming media player family in the U.S.,\u00a0U.K.,\u00a0Germany,\u00a0Japan, and\u00a0India. \tAmazon\u00a0and\u00a0Google\u00a0launched the official\u00a0YouTube\u00a0app on Fire TV devices and Fire TV Edition smart TVs, and released the Prime Video app for Chromecast, Chromecast built-in devices, and Android TV devices. \tPrime Video received 47 Emmy nominations for its original programming, more than double from last year, including 20 nominations for\u00a0The Marvelous Mrs. Maisel\u00a0and 11 nominations for\u00a0Fleabag. \tPrime Video premiered the Jonas Brothers documentary\u00a0Chasing Happiness, and Original Series\u00a0Good Omens, based on the novel by\u00a0Neil Gaiman. In addition, Prime Video will debut new Original Series\u00a0The Boys, from creators\u00a0Evan Goldberg\u00a0and\u00a0Seth Rogen, on\u00a0July 26, and\u00a0Carnival Row, starring\u00a0Orlando Bloom\u00a0and Cara Delevingne, on\u00a0August 30. \tAmazonFresh expanded to\u00a0Las Vegas\u00a0with options for ultrafast one- and two-hour delivery, and introduced an expanded selection of products including tens of thousands of grocery items, plus bestselling items from\u00a0Amazon.com. \tAmazon\u00a0continues to expand grocery delivery from\u00a0Whole Foods Market, and is now available in nearly 90 metros in the U.S., offering Prime customers free delivery in as fast as an hour on thousands of natural and organic groceries and locally-sourced items. \tAmazon Go, with a checkout-free experience enabled by our Just Walk Out Technology, expanded to\u00a0New York City\u00a0with two new stores. Amazon Go now has thirteen stores open in\u00a0Seattle,\u00a0Chicago,\u00a0San Francisco, and\u00a0New York. \tAmazon Beauty announced that\u00a0HAUS Laboratories, an exclusive makeup collection co-created by Lady Gaga and makeup artist\u00a0Sarah Tanno, is now available for pre-order to customers worldwide. \tAmazon Fashion introduced new, innovative shopping experiences, including The Drop, which gives customers in more than one hundred countries and regions exclusive access to limited-edition collections designed by fashion influencers via the Amazon App, and StyleSnap, an AI-powered feature that lets customers shop by simply taking a photograph or screenshot of an item. \tAmazon Fashion continues to bring exclusive selection to customers, including clothing for babies and toddlers from Moon and Back in partnership with\u00a0Hanna Andersson; a Levi\u2019s collaboration to bring custom Levi\u2019s Iconic 501 for him and Levi\u2019s 721 High-Rise for her designed by pro football player\u00a0Sterling Shepard\u00a0and supermodel\u00a0Chanel Iman Shepard; and Hanes Ultimate Baby collection. Additionally, customers can now shop Russell Wilson\u2019s Good Man Brand, J\/Slides,\u00a0Tommy Hilfiger, and more. \tAmazon\u00a0launched Prime in the\u00a0United Arab Emirates, offering free delivery on millions of local and international items, Prime Video, Twitch Prime, discounted same-day delivery, and Prime exclusive deals. \tAmazon\u00a0introduced Amazon Flex in\u00a0India, a program that provides opportunities for local partners to deliver packages to grow delivery capacity for sellers and increase delivery speed for customers. \tAmazon\u00a0published its Small and Medium-Sized Business Impact Report and launched a \u201cBuild Your Business with Amazon\u201d website to help entrepreneurs sell in Amazon\u2019s stores. More than 1.9 million small and medium-sized businesses (SMBs), content creators, and developers in the U.S. are currently working with\u00a0Amazon. SMBs selling in Amazon\u2019s stores have created an estimated 1.6 million jobs worldwide. \tAmazon\u00a0began hiring for its\u00a0Arlington\u00a0headquarters, with plans to hire 25,000 highly-skilled employees over the next decade.\u00a0Amazonunveiled development plans for the first phase of construction for its new urban campus, which includes the redevelopment of vacant warehouses into two new LEED Gold-certified buildings, new retail space for area businesses, and centrally-located community green space. \tAmazon\u00a0announced that it will hire nearly 12,000 new employees across\u00a0Europe\u00a0in 2019, taking its permanent workforce in\u00a0Europe\u00a0to nearly 95,000 by the end of 2019. \tAmazon\u00a0pledged to upskill 100,000 of its employees across the U.S. by 2025, dedicating over\u00a0$700 million\u00a0to provide employees across its corporate offices, tech hubs, fulfillment centers, retail stores, and transportation network with access to training programs that will help them move into more highly-skilled roles within or outside of the company. Programs include\u00a0Machine Learning University,\u00a0Amazon Technical Academy, and Career Choice. \tAmazon\u00a0was named the\u00a0Marketplace Innovator of the Year\u00a0at the 2019 Disability:IN Inclusion Awards for the accessibility of its products, services, and experiences across the company. \tAmazon\u00a0announced its latest effort to fight homelessness with an\u00a0$8 million\u00a0donation to housing and homeless nonprofits in its HQ regions \u2014\u00a0$5 million\u00a0to Plymouth Housing in\u00a0Seattle\u00a0and\u00a0$3 million\u00a0to the\u00a0Arlington Community Foundation\u00a0in\u00a0Arlington\u00a0\u2014 and an employee donation match campaign to select charities that address housing and homelessness in both regions. \tAmazon\u00a0announced the early completion of its commitment to host 50 solar systems on its fulfillment and sortation center rooftops globally by 2020. Additionally, the Solar Energy Industries Association\u2019s\u00a02018 Solar Means Business Report\u00a0ranked\u00a0Amazon\u00a0#1 in the U.S. for the amount of corporate on-site solar installed in 2018 and #2 for the total amount of solar installed to date. Globally,\u00a0Amazon\u00a0has 61 operating solar and wind projects that are expected to generate over 1,044 megawatts and deliver over 3.1 million megawatt hours of energy annually. \tAmazon\u00a0India\u00a0introduced the Packaging-Free Shipment program in nine cities, which reduces waste by shipping orders in their original packaging and combining multiple shipments in a reusable crate or a corrugate box. This is one of several initiatives that support Shipment Zero, Amazon\u2019s vision to make all\u00a0Amazon\u00a0shipments net zero carbon. \tAmazon Web Services (AWS) announced several new customer commitments and major migrations during the quarter:\u00a0National Association for Stock Car Auto Racing\u00a0(NASCAR) has chosen AWS and Amazon SageMaker as its standard for cloud-based machine learning and artificial intelligence workloads; Emirates NBD, a leading bank in the\u00a0Middle East, is using AWS machine learning services to build a personalized retail customer banking experience;\u00a0Hyundai Electric & Energy Systems\u00a0(Hyundai Electric), Korea\u2019s leading electric power equipment manufacturer, launched a new high performance computing (HPC) system leveraging AWS to accelerate its digital transformation; and Sony Music Entertainment Japan selected Amazon Managed Blockchain in the development of a digital music rights management system. \tAWS announced the general availability of Amazon Personalize, a fully-managed machine learning service that trains, tunes, and deploys custom, private machine learning models. The service brings the same machine learning technology used by\u00a0Amazon.com\u00a0to engage with millions of shoppers to AWS customers, so they can easily develop applications with a wide array of personalization use cases, including specific product recommendations, individualized search results, and customized direct marketing \u2014 with no machine learning experience required. \tAWS announced the general availability of\u00a0AWS Ground Station, a service that makes it easy and cost-effective for customers to control their satellites using AWS and download data into AWS Global Infrastructure Regions using a fully-managed network of ground station antennas located around the world. With\u00a0AWS Ground Station, customers can more easily and cost-effectively control satellite operations, ingest satellite data, and integrate the data with applications and other cloud services running in AWS, saving up to 80% of their ground station costs by paying for antenna access time on demand. Capella Space, D-Orbit,\u00a0Maxar Technologies, Myriota, NSLComm, Open Cosmos, Spire, and Thales Alenia Space are among the customers and partners using\u00a0AWS Ground Station. \tAWS announced the general availability of Amazon Managed Blockchain, a fully-managed service that makes it easy to create and manage scalable blockchain networks that allow multiple parties to execute transactions and maintain a cryptographically verifiable record without the need for a trusted, central authority. Amazon Managed Blockchain also scales to support thousands of applications and millions of transactions using popular open source frameworks like Hyperledger Fabric and Ethereum. \tAWS announced the general availability of Amazon Textract, a fully-managed machine learning service that automatically extracts text and data, including from tables and forms, in virtually any document without the need for manual review, custom code, or machine learning experience. With Amazon Textract, customers can more easily and accurately process millions of document pages in just a few hours, significantly lowering document processing costs, and allowing customers to focus on deriving business value from their text and data instead of wasting time and effort on post-processing. \tAWS announced the general availability of\u00a0AWS Control Tower, a service that makes it as easy for customers to set up and continuously govern secure, compliant, multi-account AWS environments as it is to select items from a menu.\u00a0AWS Control Tower\u00a0gives customers a pre-configured environment built according to AWS best-practices, with clearly defined rules for security, operations, and compliance.\u00a0AWS Control Tower\u00a0provides ongoing governance on how to \u201cget it right\u201d based on AWS\u2019s experience helping thousands of enterprise customers create secure and compliant cloud environments. \tAWS announced the general availability of AWS Security Hub, a service that gives customers a central place to manage security and compliance across an AWS environment. AWS Security Hub aggregates, organizes, and prioritizes security findings from AWS services such as Amazon GuardDuty, Amazon Inspector, and Amazon Macie, and from a large and growing list of AWS Partner Network solutions, to provide a comprehensive view of a customer's overall security and compliance status. \tAWS announced the general availability of Amazon Managed Streaming for Apache Kafka (Amazon MSK), a fully-managed service that makes it easy for developers to build and run highly available, secure, and scalable applications based on Apache Kafka without having to worry about managing the underlying infrastructure. Fully compatible with Apache Kafka, it enables customers to easily migrate their on-premises or Amazon Elastic Cloud Compute (Amazon EC2) clusters to Amazon MSK with no code changes. \tAt the AWS Public Sector Summit in\u00a0Washington, D.C.,\u00a0George Mason University\u00a0and\u00a0Northern Virginia Community College, in collaboration with AWS Educate, introduced a Bachelor of Applied Science pathway in cloud computing. This degree offers students a seamless transfer pathway from a two-year associate\u2019s degree to a four-year bachelor\u2019s degree in the cloud, providing a clear path to high-demand careers in cloud computing with AWS partners and customers. \tSince launching in 2016, the number of databases migrated to AWS using the AWS Database Migration Service has grown to more than 150,000 databases. \tFor the ninth consecutive year, AWS is positioned in the Leader\u2019s quadrant in Gartner\u2019s\u00a0Magic Quadrant for Cloud Infrastructure as a Service\u00a0(IaaS), earning the highest placement for \u201cAbility to Execute\u201d and \u201cCompleteness of Vision,\u201d and we have widened the gap between AWS and all others in the report. Financial Guidance The following forward-looking statements reflect Amazon.com\u2019s expectations as of\u00a0July 25, 2019, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and customer spending, world events, the rate of growth of the Internet, online commerce, and cloud services, and the various factors detailed below. Third Quarter 2019 Guidance \tNet sales are expected to be between\u00a0$66.0 billion and $70.0 billion, or to grow between 17% and 24% compared with third quarter 2018. This guidance anticipates an unfavorable impact of approximately 30 basis points from foreign exchange rates. \tOperating income is expected to be between\u00a0$2.1 billion and $3.1 billion, compared with\u00a0$3.7 billion\u00a0in third quarter 2018. \tThis guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded. A conference call will be webcast live today at\u00a02:30 p.m. PT\/5:30 p.m. ET, and will be available for at least three months at\u00a0amazon.com\/ir. This call will contain forward-looking statements and other material information regarding the Company\u2019s financial and operating results. These forward-looking statements are inherently difficult to predict. Actual results could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that\u00a0Amazon.com\u00a0invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of legal proceedings and claims, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, seasonality, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, system interruptions, government regulation and taxation, and fraud. In addition, the current global economic climate amplifies many of these risks. More information about factors that potentially could affect Amazon.com\u2019s financial results is included in Amazon.com\u2019s filings with the\u00a0Securities and Exchange Commission\u00a0(\u201cSEC\u201d), including its most recent Annual Report on Form 10-K and subsequent filings. Our investor relations website is\u00a0amazon.com\/ir\u00a0and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the\u00a0SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site. About\u00a0Amazon Amazon\u00a0is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by\u00a0Amazon, AWS,\u00a0Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by\u00a0Amazon. For more information, visit\u00a0amazon.com\/about\u00a0and follow @AmazonNews.