This summary is based on the first quarter fiscal 2008 earnings call conducted by Amazon.com, Inc. (AMZN: chart) on April 23, 2008.

Management:

Vice President, Investor Relations: Rob Eldridge
Chief Financial Officer, Senior Vice President: Thomas J. Szkutak
Chairman of the Board, President, Chief Executive Officer: Jeffrey P. Bezos

Key Investors Issues

- EPS were 34 cents a share compared to 26 cents a share last year.
- Earnings were $143 million compared to earnings of $111 million for the same period last year.
- Revenue grew 37% to $4.13 billion.

First Quarter Highlights

Trailing 12-month free cash flow increased 51% to $788 million.

- The combination of common stock and stock-based awards outstanding was 435 million shares compared with 430 million.
- Return on invested capital was 32%, up from 30%.
- Worldwide revenue grew 37% to $4.13 billion, or 31% excluding the $185 million of favorable impact from year-over-year changes in foreign exchange rates.

- Media revenue increased to $2.54 billion, up 28%, or 21% excluding FX.
- EGM revenue increased to $1.48 billion, up 56% or 50% excluding FX.
- Worldwide EGM increased to 36% of worldwide sales, up from 31%.

- Worldwide unit growth was 31%.
- Active customer accounts exceeded $79 million, up 19%.
- Worldwide active seller accounts were more than $1.3 million, up 17%. Seller units were 30% of total units versus 29%. Worldwide gross profit was $956 million, up 33%.

Fulfillment, marketing, technology and content and G&A combined was $698 million, or 16.9% of sales, an improvement of 103 basis points year over year.

Tech and content was $203 million, or 4.9% of revenue compared with 5.5%.

In the North America segment, revenue grew 31% to $2.13 billion.

- Media revenue grew 22% to $1.2 billion.
- EGM revenue grew 46% to $826 million, representing 39% of North America revenues, up from 35%.
- The company saw another quarter of strong sales in electronics, toys and baby, consumables, and soft goods, which includes jewelry, apparel, shoes, and sporting goods.

- North America gross profit grew 29% to $569 million, and gross margin decreased 33 basis points to 26.7%, driven by lower prices for customers and changes in product mix.
- North America segment operating income increased 52% to $130 million, a 6.1% operating margin.

In the international segment, revenue grew 44% to $2.01 billion.

- Revenue growth was 31%, adjusting for the $179 million year-over-year favorable FX impact.
- Media revenue grew 34% to $1.34 billion, or 22% excluding FX, and EGM revenue grew 71% to $655 million, or 56% excluding FX.
- EGM now represents 33% of international revenues, up from 27%.

- International gross profit grew 38% to $387 million, or grew 26% excluding FX, while gross margin decreased 81 basis points to 19.3%, driven by lower prices for customers and changes in product mix, partially offset by increases in product sales by sellers.
- International segment operating income increased 36% to $128 million, a 6.4% operating margin. Excluding the favorable impact from FX, international segment operating income increased 19%.

- CSOI grew 44% to $258 million, or 6.2% of revenue, up 29 basis points. Excluding the $14 million favorable impact from FX, CSOI grew 36%.
- Unlike CSOI, GAAP operating income includes stock-based compensation expense and other operating expense.
- GAAP operating income grew 36% to $198 million, or 4.8% of net sales.

- Income tax was $62 million, or a 30% rate. The company estimates effective tax rate in 2008 will be approximately 30% and that cash taxes paid will be less than $75 million. However, there is potential for volatility due to several factors, including variability in accurately predicting the amount and mix of taxable income by jurisdiction and business acquisitions or investments.
- The company is endeavoring to optimize global taxes on cash paid basis, not for tax expense on a financial reporting basis.
- GAAP net income was $143 million, or 34 cents per share compared with $111 million and 26 cents per share.