Market Newsdesk

Vertex Reports First-Quarter 2021 Financial Results

-Product revenues of $1.72 billion, a 14% increase compared to Q1 2020-

– Company advancing clinical programs in six additional diseases beyond cystic fibrosis-

-Multiple Phase 2 proof-of-concept study results expected in 2021 –

BOSTON–(BUSINESS WIRE)–
Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today reported consolidated financial results for the first quarter ended March 31, 2021 and reiterated full-year 2021 guidance for product revenues.

“In CF, our goal is that all eligible patients have access to and can benefit from CFTR modulators. In the first quarter, we continued to make significant progress towards this goal, and in so doing again delivered strong revenue and earnings growth,” said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex. “Beyond CF, we have also seen continued significant progress across our broad pipeline, including advancement of VX-548 to Phase 2 in acute pain, initiation of the Phase 1/2 clinical trial with VX-880 in type 1 diabetes and completion of enrollment and dosing in our Phase 2 proof-of-concept study with the AAT corrector, VX-864. The recent amendment of our agreement with CRISPR Therapeutics for the CTX001 program further enhances our leadership position in cell and genetic therapies and we look forward to completing enrollment of our ongoing trials for CTX001 in sickle cell disease and beta thalassemia this year and bringing this first-in-class treatment to patients with these devastating diseases as soon as possible.”

First-Quarter 2021 Financial Highlights

		Three Months Ended March 31,										%
		2021					2020					Change
		(in millions, except per share amounts)
Product revenues, net		$	1,723				$	1,515				14	%
TRIKAFTA/KAFTRIO		$	1,193				$	895
SYMDEKO/SYMKEVI		$	125				$	173
ORKAMBI		$	219				$	234
KALYDECO		$	186				$	213
GAAP Operating income		$	888				$	720				23	%
Non-GAAP Operating income		$	1,003				$	877				14	%
GAAP Net income		$	653				$	603				8	%
Non-GAAP Net income		$	781				$	674				16	%
GAAP Net income per share – diluted		$	2.49				$	2.29				9	%
Non-GAAP Net income per share – diluted		$	2.98				$	2.56				16	%

Product revenues increased 14% compared to the first quarter of 2020, primarily driven by the uptake of KAFTRIO in Europe and continued performance of TRIKAFTA in the U.S. Net product revenues in the first quarter of 2021 increased 6% to $1.25 billion in the U.S. and increased 43% to $470 million outside the U.S., compared to the prior year.

GAAP and non-GAAP net income increased compared to the first quarter of 2020, largely driven by strong growth in total product revenues.

Cash, cash equivalents and marketable securities as of March 31, 2021 were $6.9 billion, an increase of $265 million compared to $6.7 billion as of December 31, 2020 primarily driven by strong revenue and profitability offset by the repurchase of our common stock authorized under our stock repurchase plan.

First-Quarter 2021 Expenses

		Three Months Ended March 31,
		2021				2020
		(in millions)
Combined GAAP R&D and SG&A expenses		$	648			$	631
Combined Non-GAAP R&D and SG&A expenses		$	530			$	477
GAAP R&D expenses		$	456			$	449
Non-GAAP R&D expenses		$	379			$	337
GAAP SG&A expenses		$	192			$	182
Non-GAAP SG&A expenses		$	151			$	140
GAAP income taxes (1)		$	168			$	55
Non-GAAP income taxes		$	207			$	184
GAAP effective tax rate			20	%			8	%
Non-GAAP effective tax rate (1)			21	%			21	%

Combined GAAP and Non-GAAP R&D and SG&A expenses increased compared to the first quarter of 2020, primarily due to the expansion of Vertex’s pipeline in CF and other disease areas and incremental investment to support the global launches of Vertex’s medicines.

GAAP income taxes and the GAAP effective tax rate increased compared to the first quarter of 2020 due a non-recurring discrete tax benefit recognized in the first quarter of 2020 and Vertex’s increased operating income.

Non-GAAP income taxes increased compared to the first quarter of 2020 primarily due to Vertex’s increased operating income.

Full-Year 2021 Financial Guidance

Vertex today reiterated its full-year 2021 financial guidance, except for its expectations for combined GAAP R&D and SG&A expenses, which increased by $900 million as a result of Vertex’s amended collaboration with CRISPR announced in April. Vertex’s guidance is summarized below:

		Current FY 2021		Previous FY 2021
Product revenues		Unchanged		$6.7 to 6.9 billion
Combined GAAP R&D and SG&A expenses (2)		$3.8 to 3.95 billion		$2.9 to 3.05 billion
Combined Non-GAAP R&D and SG&A expenses (2)		Unchanged		$2.25 to 2.3 billion
Non-GAAP effective tax rate		Unchanged		21% to 22%

Key Business Highlights

Cystic Fibrosis (CF)

Vertex anticipates that achieving new approvals and entering into additional reimbursement agreements for our current CFTR modulators will increase the number of CF patients treated with our medicines and continue to grow our CF business in the years ahead.

Key progress in 2021 includes:

• New approval received for TRIKAFTA(elexacaftor/tezacaftor/ivacaftor and ivacaftor) in Australia for people with CF ages 12 years and older who have at least one F508del mutation.
• Post-marketing application filed with the European Medicines Agency (EMA) for the expanded indication of KAFTRIO(elexacaftor/tezacaftor/ivacaftor and ivacaftor) to include children with CF ages 6 through 11 years.
• TRIKAFTA/KAFTRIO is now approved and reimbursed or accessible in 12 countries outside the U.S., including Denmark, Germany, Ireland, Israel, Switzerland and the countries within the UK.

R&D pipeline

Vertex continues to progress a broad pipeline of potentially transformative small molecule, cell and genetic therapies aimed at serious diseases. Recent and anticipated progress for key pipeline programs is noted below:

Beta Thalassemia and Sickle Cell Disease

• In April, Vertex and CRISPR Therapeutics amended their collaboration for the CTX001 programs in beta thalassemia and sickle cell disease. Under the terms of the revised agreement, Vertex will lead worldwide development, manufacturing and commercialization of CTX001. The revised agreement provides Vertex with 60% and CRISPR Therapeutics with 40% of program economics. At closing, CRISPR Therapeutics will receive a $900 million upfront payment with the potential for an additional $200 million milestone payment upon CTX001 regulatory approval.
• The CTX001 program employs a non-viral ex vivo CRISPR gene-editing therapy for the treatment of transfusion-dependent beta thalassemia (TDT) and sickle cell disease (SCD). This approach aims to edit a person’s hematopoietic stem cells to produce fetal hemoglobin in red blood cells, which has the potential to reduce or eliminate symptoms associated with the diseases.
• Enrollment and dosing are ongoing in the clinical studies for CTX001 and more than 30 patients have now been dosed to date. Completion of enrollment in both studies is expected in 2021.
• In April, the European Medicines Agency (EMA) granted Priority Medicines Designation (PRIME) to CTX001 for TDT. The program has previously been granted Regenerative Medicine Advanced Therapy (RMAT), Fast Track, Orphan Drug and Rare Pediatric Disease designations from the U.S. Food and Drug Administration (FDA) for both TDT and SCD. CTX001 has also been granted PRIME designation for SCD and Orphan Drug Designation from EMA for both TDT and SCD.

Alpha-1 Antitrypsin (AAT) Deficiency

• Vertex is evaluating multiple compounds with the potential to correct the misfolding of Z-AAT protein in the liver, in order to increase the systemic levels of functional AAT. Misfolded Z-AAT protein is the root cause of AAT deficiency and the Vertex small molecule corrector program targets both the liver and lung manifestations of the disease.
• Patients enrolled in the Phase 2 proof-of-concept study for the Z-AAT corrector, VX-864, have completed the 28-day dosing period. The study includes a 28-day safety follow-up period which is ongoing, and results are expected in the second quarter of 2021.

APOL1-mediated Kidney Diseases

• Vertex is evaluating the potential of inhibitors of APOL1 function in people with APOL1-mediated kidney diseases, including focal segmental glomerulosclerosis (FSGS).
• Enrollment is ongoing in a Phase 2 proof-of-concept study designed to evaluate the reduction in proteinuria in people with APOL1-mediated FSGS after treatment with VX-147. Results from this study are expected in the second half of 2021.

Type 1 Diabetes (T1D)

• Vertex is evaluating a cell therapy designed to replace insulin-producing islet cells in people with T1D. Vertex is pursuing two programs for the transplant of these fully-differentiated functional islets into patients: 1) transplantation of islet cells alone, using immunosuppression to protect the implanted cells and 2) implantation of the islet cells inside a novel immunoprotective device.
• In March, the U.S. FDA granted Fast Track Designation and Vertex initiated a Phase 1/2 clinical trial for VX-880, the islet cells alone program, in people with T1D.

Pain

• Vertex is evaluating selective small molecule inhibitors of NaV1.8, a genetically validated, novel target for the treatment of pain, with the goal of preventing pain signals traveling from the sensory nerves to the central nervous system. Vertex has previously demonstrated clinical proof-of-concept with a small molecule investigational treatment targeting NaV1.8, VX-150, in multiple pain indications including acute pain, neuropathic pain and musculoskeletal pain.
• VX-548, a selective NaV1.8 inhibitor, demonstrated favorable safety, tolerability and pharmacokinetic profiles in Phase 1 studies. In these studies, the molecule exhibited a favorable profile at doses considerably lower than those required with our previous NaV1.8 inhibitors.
• VX-548 is expected to advance into Phase 2 proof-of-concept studies for acute pain in the second half of 2021.

Investments in External Innovation

• In April, we entered into a research collaboration with Obsidian Therapeutics, Inc., or Obsidian, aimed at the discovery of novel therapies that regulate gene-editing for the treatment of serious diseases. This collaboration enables us to leverage Obsidian’s cytoDRiVE® platform technology to discover gene-editing medicines whose therapeutic activity can be precisely controlled using small molecules.

Non-GAAP Financial Measures

In this press release, Vertex’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures. In particular, non-GAAP financial results and guidance exclude from Vertex’s pre-tax income (i) stock-based compensation expense, (ii) revenues and expenses related to collaborative milestones and upfront payments, (iii) gains or losses related to the fair value of the company’s strategic investments, (iv) increases or decreases in the fair value of contingent consideration, (v) acquisition-related costs and (vi) other adjustments. The company’s non-GAAP financial results also exclude from its provision for income taxes the estimated tax impact related to its non-GAAP adjustments to pre-tax income described above and certain discrete items. These results should not be viewed as a substitute for the company’s GAAP results and are provided as a complement to results provided in accordance with GAAP. Management believes these non-GAAP financial measures help indicate underlying trends in the company’s business, are important in comparing current results with prior period results and provide additional information regarding the company’s financial position that the company believes is helpful to an understanding of its ongoing business. Management also uses these non-GAAP financial measures to establish budgets and operational goals that are communicated internally and externally, to manage the company’s business and to evaluate its performance. The company adjusts, where appropriate, for both revenues and expenses in order to reflect the company’s operations. The company’s calculation of non-GAAP financial measures likely differs from the calculations used by other companies. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the attached financial information.

The company provides guidance regarding combined R&D and SG&A expenses and effective tax rate on a non-GAAP basis. The guidance regarding combined GAAP R&D and SG&A expenses does not include estimates associated with any potential future business development activities. The company does not provide guidance regarding its GAAP effective tax rate because it is unable to forecast with reasonable certainty the impact of excess tax benefits related to stock-based compensation and the possibility of certain discrete items, which could be material.

Vertex Pharmaceuticals Incorporated
First-Quarter Results
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
		Three Months Ended March 31,
		2021				2020
Revenues:
Product revenues, net		$	1,723,305			$	1,515,107
Other revenues		1,000				—
Total revenues		1,724,305				1,515,107
Costs and expenses:
Cost of sales		192,329				162,497
Research and development expenses		455,973				448,528
Sales, general and administrative expenses		192,077				182,258
Change in fair value of contingent consideration		(3,900		)		1,600
Total costs and expenses		836,479				794,883
Income from operations		887,826				720,224
Interest income		1,465				12,576
Interest expense		(15,678		)		(14,136		)
Other expense, net (3)		(52,653		)		(61,130		)
Income before provision for income taxes		820,960				657,534
Provision for income taxes		167,822				54,781
Net income		$	653,138			$	602,753
Net income per common share:
Basic		$	2.52			$	2.32
Diluted		$	2.49			$	2.29
Shares used in per share calculations:
Basic		259,369				259,815
Diluted		261,916				263,515

Reconciliation of GAAP to Non-GAAP Net Income
First-Quarter Results
(in thousands, except per share amounts)
(unaudited)
		Three Months Ended March 31,
		2021				2020
GAAP net income		$	653,138			$	602,753
Stock-based compensation expense		115,174				115,706
Decrease in fair value of strategic investments (3)		52,295				44,870
(Decrease) increase in fair value of contingent consideration (4)		(3,900		)		1,600
Collaborative revenues and expenses (5)		650				36,250
Acquisition-related costs (6)		2,820				2,883
Total non-GAAP adjustments to pre-tax income		167,039				201,309
Tax adjustments (1)		(38,961		)		(129,608		)
Non-GAAP net income		$	781,216			$	674,454
Net income per diluted common share:
GAAP		$	2.49			$	2.29
Non-GAAP		$	2.98			$	2.56
Shares used in diluted per share calculations:
GAAP and Non-GAAP		261,916				263,515
		Three Months Ended March 31,
		2021				2020
GAAP operating income		$	887,826			$	720,224
Stock-based compensation expense		115,174				115,706
(Decrease) increase in fair value of contingent consideration (4)		(3,900		)		1,600
Collaborative revenues and expenses (5)		650				36,250
Acquisition-related costs (6)		2,820				2,883
Non-GAAP operating income		$	1,002,570			$	876,663

Reconciliation of GAAP to Non-GAAP Revenues and Expenses
First-Quarter Results
(in thousands)
(unaudited)
		Three Months Ended March 31,
		2021				2020
GAAP total revenues		$	1,724,305			$	1,515,107
Collaborative revenues		(1,000		)		—
Non-GAAP total revenues		$	1,723,305			$	1,515,107
		Three Months Ended March 31,
		2021				2020
GAAP cost of sales		$	192,329			$	162,497
Stock-based compensation expense		(1,431		)		(1,361		)
Non-GAAP cost of sales		$	190,898			$	161,136
GAAP research and development expenses		$	455,973			$	448,528
Stock-based compensation expense		(72,802		)		(72,687		)
Collaborative expenses (5)		(1,650		)		(36,250		)
Acquisition-related costs (6)		(2,820		)		(2,678		)
Non-GAAP research and development expenses		$	378,701			$	336,913
GAAP sales, general and administrative expenses		$	192,077			$	182,258
Stock-based compensation expense		(40,941		)		(41,658		)
Acquisition-related costs (6)		—				(205		)
Non-GAAP sales, general and administrative expenses		$	151,136			$	140,395
Combined non-GAAP R&D and SG&A expenses		$	529,837			$	477,308
		Three Months Ended March 31,
		2021				2020
GAAP other expense, net		$	(52,653	)		$	(61,130	)
Decrease in fair value of strategic investments (3)		52,295				44,870
Non-GAAP other expense, net		$	(358	)		$	(16,260	)
GAAP provision for income taxes		$	167,822			$	54,781
Tax adjustments (1)		38,961				129,608
Non-GAAP provision for income taxes (7)		$	206,783			$	184,389
GAAP effective tax rate			20	%			8	%
Non-GAAP effective tax rate (7)			21	%			21	%

Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
		March 31, 2021				December 31, 2020
Assets
Cash, cash equivalents and marketable securities		$	6,923,968			$	6,658,897
Accounts receivable, net		977,551				885,352
Inventories		298,863				280,777
Property and equipment, net		986,123				958,534
Goodwill and intangible assets		1,402,158				1,402,158
Deferred tax assets		815,890				882,779
Other assets		710,506				683,311
Total assets		$	12,115,059			$	11,751,808
Liabilities and Shareholders’ Equity
Accounts payable and accrued expenses		$	1,659,876			$	1,560,110
Finance lease liabilities		572,856				581,476
Contingent consideration		185,700				189,600
Other liabilities		716,373				733,807
Shareholders’ equity		8,980,254				8,686,815
Total liabilities and shareholders’ equity		$	12,115,059			$	11,751,808
Common shares outstanding		258,829				259,890

Notes and Explanations

1: In the three months ended March 31, 2021 and 2020, “Tax adjustments” primarily related to the estimated income taxes related to non-GAAP adjustments to pre-tax income including (i) stock-based compensation (including an adjustment for excess tax benefits related to stock-based compensation), (ii) decreases in the fair value of the company’s strategic investments and (iii) collaborative milestone payments. In the three months ended March 31, 2020, “Tax adjustments” also included a non-recurring discrete benefit to the company’s provision for income taxes of $50.4 million, relating to the write-off of a long-term intercompany receivable, that the company excluded from its Non-GAAP measures.

2: The company’s increased combined GAAP R&D and SG&A expenses guidance reflects the expected effect upon closing of the company’s contemplated transaction with CRISPR, which was announced in April 2021. The difference between the company’s full-year 2021 combined GAAP R&D and SG&A expenses and combined non-GAAP R&D and SG&A expenses guidance relates primarily to $1.12 billion to $1.17 billion of R&D expenses related to existing and contemplated collaboration agreements and $430 million to $455 million of stock-based compensation expense. The guidance regarding combined GAAP R&D and SG&A expenses does not include estimates associated with any potential future business development activities other than the company’s contemplated transaction with CRISPR.

3: “Other expense, net” includes net losses related to changes in the fair value of the company’s strategic investments and from sales of certain investments.

4: During the three months ended March 31, 2021 and 2020, the change in the fair value of contingent consideration relates to potential payments to Exonics Therapeutics’ former equity holders.

5: “Collaborative revenues and expenses” in the three months ended March 31, 2021 and 2020 primarily related to collaborative milestone payments.

6: “Acquisition-related costs” in the three months ended March 31, 2021 and 2020 related to costs associated with the company’s acquisition of Exonics Therapeutics in 2019.

7: The company released its valuation allowance on the majority of its net operating losses and other deferred tax assets as of December 31, 2018. As of December 31, 2020, the company had utilized substantially all of its remaining federal net operating losses. As a result, a larger portion of the company’s tax provision will represent a cash tax payable beginning in 2021, subject to continued utilization of certain tax credits.

Note: Amounts may not foot due to rounding.

About Vertex

Vertex is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company has multiple approved medicines that treat the underlying cause of cystic fibrosis (CF) — a rare, life-threatening genetic disease — and has several ongoing clinical and research programs in CF. Beyond CF, Vertex has a robust pipeline of investigational small molecule medicines in other serious diseases where it has deep insight into causal human biology, including pain, alpha-1 antitrypsin deficiency and APOL1-mediated kidney diseases. In addition, Vertex has a rapidly expanding pipeline of genetic and cell therapies for diseases such as sickle cell disease, beta thalassemia, Duchenne muscular dystrophy and type 1 diabetes mellitus.

Founded in 1989 in Cambridge, Mass., Vertex’s global headquarters is now located in Boston’s Innovation District and its international headquarters is in London. Additionally, the company has research and development sites and commercial offices in North America, Europe, Australia and Latin America. Vertex is consistently recognized as one of the industry’s top places to work, including 11 consecutive years on Science magazine’s Top Employers list and a best place to work for LGBTQ equality by the Human Rights Campaign. For company updates and to learn more about Vertex’s history of innovation, visit www.vrtx.com or follow us on Facebook, Twitter, LinkedIn, YouTube and Instagram.

Special Note Regarding Forward-Looking Statements

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, Dr. Kewalramani’s statements in this press release, the information provided regarding future financial performance and operations, the section captioned “Full-Year 2021 Financial Guidance” and statements regarding (i) anticipated regulatory filings, data submissions, and approvals, (ii) anticipated future label expansions, (iii) the expectations, development plans and anticipated timelines for the company’s medicines, drug candidates and pipeline programs, including clinical site activations, patient enrollment, and data availability, (iv) expectations for the collaborations with CRISPR, including expectations regarding completion of enrollment in the CTX001 clinical studies and anticipated benefits of the collaborations, (v) expectations for uptake of and expanded access to the company’s medicines, including additional reimbursement agreements, (vi) expectations for an increase in the number of CF patients treated with our medicines, (vii) expectations for VX-548, including our plans to advance VX-548 into Phase 2 proof-of-concept studies in the second half of 2021, (viii) expectations for the transactions contemplated by the amended collaboration with CRISPR, including satisfaction of closing conditions, antitrust clearance, anticipated upfront and milestone payments to CRISPR, and anticipated future activities of the parties, (ix) expected effect on our expenses upon the closing of the transaction contemplated by the amended collaboration with CRISPR, and (x) anticipated investment in internal and external innovation. While Vertex believes the forward-looking statements contained in this press release are accurate, these forward-looking statements represent the company’s beliefs only as of the date of this press release and there are a number of risks and uncertainties that could cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Those risks and uncertainties include, among other things, that the company’s expectations regarding its 2021 product revenues, expenses and effective tax rates may be incorrect (including because one or more of the company’s assumptions underlying its expectations may not be realized), that COVID-19 may have different or more significant impacts on the company’s business or operations than the company currently expects, that the closing of the transaction contemplated by the amended collaboration with CRISPR may not occur in a timely manner, or at all, that data from preclinical testing or early clinical trials, especially if based on a limited number of patients, may not be indicative of final results, that the company may not realize the anticipated benefits from our collaborations with third parties, that data from the company’s development programs may not support registration or further development of its potential medicines in a timely manner, or at all, due to safety, efficacy or other reasons, and other risks listed under the heading “Risk Factors” in Vertex’s annual report and subsequent quarterly reports filed with the Securities and Exchange Commission and available through the company’s website at www.vrtx.com and on the SEC’s website at www.sec.gov. You should not place undue reliance on these statements. Vertex disclaims any obligation to update the information contained in this press release as new information becomes available.

Conference Call and Webcast

The company will host a conference call and webcast today at 5:30 p.m. ET. To access the call, please dial (866) 501-1537 (U.S.) or +1 (720) 545-0001 (International). The conference call will be webcast live and a link to the webcast can be accessed through Vertex’s website at www.vrtx.com in the “Investors” section under “Events and Presentations.” To ensure a timely connection, it is recommended that users register at least 15 minutes prior to the scheduled webcast. An archived webcast will be available on the company’s website.

(VRTX-E)

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006057/en/

Investors:

Michael Partridge, 617-341-6108

or

Brenda Eustace, 617-341-6187

or

Manisha Pai, 617-429-6891

Media:

617-341-6992

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology Health Science Pharmaceutical Research

MEDIA:

Logo

Sandbridge X2 Corp. Announces the Separate Trading of its Shares of Class A Common Stock and Redeemable Warrants Commencing April 30, 2021

NEW YORK–(BUSINESS WIRE)–
Sandbridge X2 Corp. (NYSE: SBII.U) (the “Company”) announced that, commencing April 30, 2021, holders of the units sold in the Company’s initial public offering of 23,817,701 units may elect to separately trade the shares of Class A common stock and redeemable warrants included in the units. Those units not separated will continue to trade on the New York Stock Exchange (the “NYSE”) under the symbol “SBII.U,” and the shares of Class A common stock and redeemable warrants that are separated will trade on the NYSE under the symbols “SBII” and “SBII WS,” respectively. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Holders of units will need to have their brokers contact Continental Stock Transfer & Trust Company, the Company’s transfer agent, in order to separate the units into shares of Class A common stock and redeemable warrants.

The units were initially offered by the Company in an underwritten offering. Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. acted as joint book-running managers. Academy Securities, Inc., Drexel Hamilton, LLC, Roberts and Ryan Investments Inc., Siebert Williams Shank & Co., LLC and R. Seelaus & Co., LLC acted as co-managers. A registration statement relating to the units and the underlying securities became effective on March 9, 2021.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities of the Company, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering was made only by means of a prospectus, copies of which may be obtained for free from the Securities and Exchange Commission (the “SEC”) website at www.sec.gov or by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-800-831-9146; or Deutsche Bank Securities Inc., Attn: Prospectus Department, 60 Wall Street, New York, NY 10005, telephone: (800) 503-4611 or email: [email protected].

About Sandbridge X2 Corp.

Sandbridge X2 Corp. is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination with a company in any business, industry, sector or geographical location, it intends to focus its search on the consumer sector and consumer related business, which complements the expertise of its management team, directors and advisors. The Company’s team includes experienced industry operators and investors whose strategic skill sets are being deployed to pursue significant value creation opportunities.

An affiliate of Sandbridge Capital, LLC and certain private funds managed by Pacific Investment Management Company LLC (PIMCO) are members of the Company’s sponsor.

Forward-Looking Statements

This press release may include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including with respect to the anticipated separate trading of the Company’s Class A common stock and redeemable warrants and the pursuit of an initial business combination. All statements other than statements of historical fact included in this press release are forward-looking statements. When used in this press release, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our management team, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in the Company’s filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and prospectus relating to the Company’s initial public offering filed with the SEC. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006086/en/

Sandbridge X2 Corp.

(212) 292-7870

[email protected]

PR Contact

Rebecca Campbell

213.225.4415

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Professional Services Finance

MEDIA:

Posted on April 29, 2021 4:04 pm

Insulet Announces Pricing of New Senior Secured Credit Facilities

Insulet Announces Pricing of New Senior Secured Credit Facilities

ACTON, Mass.–(BUSINESS WIRE)–
Insulet Corporation (NASDAQ:PODD) (Insulet or the Company), the global leader in tubeless insulin pump technology with its Omnipod® brand of products, today announced the pricing of a $500 million senior secured term loan B facility (the term facility) and a $60 million senior secured revolving facility (the revolving facility, and together with the term facility, the credit facilities).

The Company expects that loans under the term facility will be issued at 99.75% of the aggregate principal amount thereof and will bear interest at a rate of LIBOR plus 3.25%, with a 0.50% LIBOR floor, and that loans under the revolving facility will bear interest at a rate of LIBOR plus an applicable margin of 2.75% to 3.25% based on the Company’s total net leverage ratio from time to time. The Company intends to use the proceeds of the credit facilities for general corporate purposes, including to retire indebtedness and/or to fund investments.

The closing under the credit facilities is subject to customary closing conditions. The commitments in respect of the credit facilities and the terms and conditions thereof remain subject to the finalization and execution of definitive documentation.

Morgan Stanley and Citigroup are acting as joint lead arrangers and bookrunners for the transaction.

About Insulet Corporation:

Insulet Corporation (NASDAQ: PODD), headquartered in Massachusetts, is an innovative medical device company dedicated to simplifying life for people with diabetes and other conditions through its Omnipod product platform. The Omnipod Insulin Management System provides a unique alternative to traditional insulin delivery methods. With its simple, wearable design, the disposable Pod provides up to three days of non-stop insulin delivery, without the need to see or handle a needle. Insulet also leverages the unique design of its Pod by tailoring its Omnipod technology platform for the delivery of non-insulin subcutaneous drugs across other therapeutic areas. For more information, please visit: www.insulet.com and www.omnipod.com.

Forward-Looking Statements:

This press release may contain forward-looking statements concerning Insulet’s expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on Insulet’s current expectations and beliefs concerning future developments and their potential effects on Insulet. There can be no assurance that future developments affecting Insulet will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Insulet’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, and other risks and uncertainties described in Insulet’s Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission on February 24, 2021 in the section entitled “Risk Factors,” and in its other filings from time to time with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of its assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Insulet undertakes no obligation to publicly update or revise any forward-looking statements.

© 2021 Insulet Corporation. Omnipod is a registered trademark of Insulet Corporation in the United States of America and other various jurisdictions. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006049/en/

Investor Relations:

Deborah R. Gordon

Vice President, Investor Relations

(978) 600-7717

[email protected]

Media:

Angela Geryak Wiczek

Senior Director, Corporate Communications

(978) 932-0611

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Biotechnology Diabetes Health Medical Devices

MEDIA:

Logo

Amazon.com Announces First Quarter Results

SEATTLE–(BUSINESS WIRE)–
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its first quarter ended March 31, 2021.

• Operating cash flow increased 69% to $67.2 billion for the trailing twelve months, compared with $39.7 billion for the trailing twelve months ended March 31, 2020.
• Free cash flow increased to $26.4 billion for the trailing twelve months, compared with $24.3 billion for the trailing twelve months ended March 31, 2020.
• Free cash flow less principal repayments of finance leases and financing obligations increased to $14.9 billion for the trailing twelve months, compared with $14.3 billion for the trailing twelve months ended March 31, 2020.
• Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $16.8 billion for the trailing twelve months, compared with $11.7 billion for the trailing twelve months ended March 31, 2020.
• Common shares outstanding plus shares underlying stock-based awards totaled 519 million on March 31, 2021, compared with 513 million one year ago.
• Net sales increased 44% to $108.5 billion in the first quarter, compared with $75.5 billion in first quarter 2020. Excluding the $2.1 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 41% compared with first quarter 2020.
• Operating income increased to $8.9 billion in the first quarter, compared with operating income of $4.0 billion in first quarter 2020.
• Net income increased to $8.1 billion in the first quarter, or $15.79 per diluted share, compared with net income of $2.5 billion, or $5.01 per diluted share, in first quarter 2020.

“Two of our kids are now 10 and 15 years old—and after years of being nurtured, they’re growing up fast and coming into their own,” said Jeff Bezos, Amazon founder and CEO. “As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70% year over year. Amazon Studios received a record 12 Academy Award nominations and two wins. Upcoming originals include Tom Clancy’s Without Remorse, The Tomorrow War, The Underground Railroad, and much more. In just 15 years, AWS has become a $54 billion annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating—up 32% year over year. Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of tools and services available, and we continue to invent relentlessly on their behalf. We love Prime Video and AWS, and we’re proud to have them in the family.”

Highlights

Our Vision to be Earth’s Best Employer and Earth’s Safest Place to Work

• Amazon ranked #1 in the U.S. on LinkedIn’s 2021 Top Companies, an annual list identifying the most sought-after places to work based on their ability to attract and retain the best talent, including promotions, opportunities for employees to learn new skills, hiring people from all backgrounds and levels of education, and gender diversity. In addition, Amazon ranked #2 on the Fortune World’s Most Admired Companies list and #3 on Boston Consulting Group’s Most Innovative Companies list.
• In partnership with government and public health officials across the globe, Amazon is rapidly expanding on-site COVID-19 vaccination programs for its front-line employees and contractors. In addition to offering COVID-19 testing on-site, Amazon has hosted vaccination events at fulfillment centers, sort centers, delivery stations, and AWS data centers in 29 states, reaching more than 300,000 front-line employees and contractors. In some locations, Amazon opened the vaccination program to employee household members. Given the vaccination program’s progress in the U.S., it will soon expand to front-line employees in other countries.
• Amazon is committed to leading the way for workplaces around the world to proactively manage—and prevent—work-related musculoskeletal disorders (MSDs) by drawing on expertise in innovation and technology, and collaborating with proven thought leaders and scientists. MSDs are common in the type of work done in warehouse operations and are more likely to occur during an employee’s first six months. Amazon’s increased attention to early MSD prevention is already achieving results. From 2019 to 2020, overall MSDs decreased by 32% and MSDs resulting in time away from work decreased by more than half.
• Amazon is expanding its workplace health and safety program WorkingWell with the aim of cutting recordable incident rates by 50% by 2025. WorkingWell is currently available to 859,000 employees at 350 sites across North America and Europe. Through the program, small groups of employees are coached on body mechanics, proactive wellness, and safety. In addition to reducing workplace injuries, these concepts have a positive impact on regular day-to-day activities and have contributed to reducing MSD recordable incident rates.
• Since 2020, in partnership with Crossover Health, Amazon opened 17 neighborhood health centers for employees and their families in the areas around Dallas–Fort Worth, Texas; Detroit, Michigan; Louisville, Kentucky; Phoenix, Arizona; and San Bernardino, California. Centers are located next to where employees live and work to provide affordable, convenient, and high quality health care, and patients report a 90% satisfaction score. Amazon is evaluating expansion of the program so that even more employees can access quality care whenever, and wherever, they need it.
• Amazon is fitting delivery vehicles with camera safety technology and artificial intelligence to capture real-time data (such as following safe distance and road conditions) to identify at-risk driving events. These technologies are used to help keep drivers and the communities where Amazon delivers safe. When this technology was piloted in 2020 on over two million miles of delivery routes, crashes decreased 48%, stop sign violations decreased 20%, driving without a seatbelt decreased 60%, and distracted driving decreased 45%.
• Amazon shared comprehensive companywide goals related to diversity, equity, and inclusion efforts for 2021. Goals include increasing representation of women in tech and science roles, doubling the number of Black directors and VPs for the second year in a row, and having 100% of Amazon employees take inclusion training. In addition, to evaluate progress over time, Amazon increased the amount and specificity of the data shared publicly about its employees. The expanded dataset includes representation by job type, such as front-line associates and corporate employees, and expands historical data to the past three years.
• Amazon pulled forward its annual fall pay review for its U.S. Customer Fulfillment, Delivery, Package Sortation, and Specialty Fulfillment teams, and will be rolling out increases from mid-May through early June. More than 500,000 people will see an increase between at least 50 cents and $3 an hour, which is an investment of over $1 billion in incremental pay for these employees.
• In India, Amazon announced it has added nearly 300,000 new direct and indirect jobs since its last announcement in January 2020, putting the company on track to meet its pledge to create an additional one million new jobs in India by 2025.

Supporting Communities

• Amazon donated and delivered relief and emergency aid supplies—including over one million bottles of water and thousands of items such as flashlights, tents, and search and rescue equipment—to communities impacted by the winter storm crisis in Texas and Mississippi in February and severe storms in Tennessee and Alabama in March.
• Amazon Future Engineer, the company’s computer science education program for students from underserved communities, launched in France and Canada. With this expansion, the program now reaches over one million students globally each year. Amazon Future Engineer also donated $15 million to Code.org to develop a new equity-minded Advanced Placement computer science curriculum, which aims to increase access, participation, and long-term success for high school students from communities underrepresented in tech.
• Amazon announced a year-long partnership with The King Memorial Foundation, the organization responsible for building and maintaining the Martin Luther King, Jr. Memorial in Washington, D.C. Over the next year, AWS will support the Memorial Foundation’s Social Justice Fellows Program, which aims to help program participants develop their professional skills by providing them with mentorship opportunities with Amazon employees, as well as free cloud and STEM training and certification. For the partnership kick-off, Amazon joined the Foundation in a Day of Service project, delivering essential, personal care items to shelters in seven D.C. wards.
• Since January, Amazon has opened its Seattle campus to Virginia Mason Franciscan Health for public COVID-19 vaccinations. As of April 15, nearly 50,000 immunizations have been administered to the public through weekend pop-up clinics staffed by Amazon and community volunteers. Amazon is also providing volunteers and technology to support the Washington State vaccine call center. Since the initiative launched in late March, the system has processed over 100,000 calls and has eliminated wait times.
• Amazon continued its efforts to support children in need across Europe during the COVID-19 pandemic. In the UK, Amazon donated 10,000 Fire tablets to schools lacking technology and delivered more than four million breakfasts to children in need through charity partner Magic Breakfast. In Italy and Spain, Amazon donated millions of euros to over 35,000 schools through a program that allows customers to choose the schools to which Amazon will donate.
• Since 2019, Amazon has worked with the U.S. Department of Agriculture and state agencies to ensure customers in nearly all 50 states can shop for groceries on Amazon using Supplemental Nutrition Assistance Program (SNAP) benefits. Amazon remains committed to increasing food access in the U.S.—especially in healthy food priority areas—and is helping raise awareness among residents about the convenient, safe, and affordably priced grocery delivery options Amazon offers their communities. As part of its ongoing work to increase food access, Amazon is establishing partnerships with local anti-hunger organizations to assist communities in need.
• Amazon added new Alexa features to help provide localized answers to questions on COVID-19 testing and vaccine eligibility, including the ability for customers to find and call nearby vaccine locations for booking appointments.
• Ring announced a new community program with Kids Off the Block, a Chicago-based nonprofit focused on providing local at-risk youth a care center for personal growth and empowerment. Ring also donated 1,000 Ring Video Doorbells and Ring subscriptions to support families and individuals in Chicago neighborhoods.
• Amazon introduced the Alexa Hörfilm skill in Germany, providing blind and visually-impaired customers with access to more than 3,500 TV series and movies with audio description. The skill was developed and built together with DBSV, the German association of blind or visually-impaired persons, and participating TV stations ARD, ZDF, and ARTE.

The Climate Pledge

• Amazon continues to make progress toward powering all its businesses with 100% renewable energy by 2025—five years ahead of the original target of 2030. Amazon has announced a total of 206 renewable energy projects globally, including 71 utility-scale wind and solar projects and 135 rooftop solar installations at facilities and stores worldwide. Amazon is now the largest corporate purchaser of renewable energy globally as well as in Europe, where the company is investing in more than 2.5 gigawatts of renewable energy capacity—enough to power more than two million homes a year.
• Amazon welcomed 52 new signatories to The Climate Pledge, a commitment co-founded by Amazon and Global Optimism to meet the goals of the Paris Agreement 10 years early and achieve net-zero carbon by 2040. More than 100 companies representing over $1.4 trillion in global annual revenues and over five million employees have now joined the pledge, sending an important signal to the market that there will be rapid growth in demand for products and services that help reduce carbon emissions. New signatories include Alaska Airlines, Colgate-Palmolive, HEINEKEN, PepsiCo, Telefónica, and Visa.
• The Climate Pledge Fund invested in Infinium, a renewable electrofuels solution provider, and Turntide Technologies, an electric motor company. These investments help Amazon and other companies meet the goals of The Climate Pledge as we all work together to protect the planet.
• Amazon announced a partnership with Mahindra Electric, a manufacturer of electric vehicles (EVs), to deploy nearly 100 Treo Zor electric vehicles in seven Indian cities as part of Amazon India’s plan to include 10,000 EVs in its delivery fleet by 2025. These EVs are in addition to The Climate Pledge’s commitment to have 100,000 EVs in Amazon’s delivery fleet by 2030.

Empowering Small and Medium-Sized Businesses

• In recognition of International Women’s Day and Women’s History Month, Amazon partnered with Diane von Furstenberg to help empower more than 100 women-owned businesses by launching dedicated women-owned small business stores in the U.S. and a dozen other countries around the world, making it easy for customers to discover and learn about women-owned sellers and shop from their selection of thousands of products. To help raise awareness of women-owned businesses and support their success, von Furstenberg hosted a virtual event on Amazon Live and shared her own experience and insights on being an entrepreneur.
• Amazon celebrated Black History Month by launching a Black-owned small business store with products from third-party sellers, enabling customers to discover and shop from Black business owners. Amazon also hosted an Amazon Live event with celebrities and entrepreneurs Tia Mowry and Karamo Brown during which Black Amazon sellers shared their insights about launching and building a small business.
• Amazon announced the Amazon Launchpad Innovation Awards, a free competition designed to support emerging, innovative European startups. A judging panel will select five startups to each win a €10,000 grant and free access to Amazon Launchpad for one year. The “Startup of the Year” winner will receive an additional €90,000 grant.
• Amazon India announced it has digitized 2.5 million small and medium-sized businesses, enabled cumulative exports worth $3 billion, and announced the $250 million Amazon Smbhav Venture Fund. The fund will encourage the best ideas to digitize small and medium-sized businesses, drive technology-led innovation in agriculture to improve farmer productivity, and enable healthcare access.
• Amazon India announced that more than 50,000 offline retailers and neighborhood stores joined the Local Shops on Amazon program in its first year. It also committed to bringing one million Local Shops online by 2025. Launched in April 2020, the Local Shops on Amazon program helps sellers sustain their livelihoods and jumpstart their businesses.

Shopping

• There are now more than 200 million paid Prime members worldwide. Members have exclusive access to deals every day and especially during Prime Day, which will take place later in the second quarter.
• Amazon continues to innovate and invest in fast, free, and convenient delivery for customers. In the U.S., Same-Day Delivery in as fast as five hours is free on orders over $35 on over three million items in select cities. This is in addition to Free Same-Day Delivery on millions of items in thousands of cities and towns across 47 major U.S. metro areas, plus over 10 million items available for Free One-Day Delivery coast to coast. These fast and efficient deliveries are powered by Amazon’s last mile network of delivery driver partners—small businesses creating tens of thousands of new jobs across the country.
• Amazon continues to expand Amazon Scout, a fully electric autonomous delivery system. Similar in size to a small cooler on wheels, Amazon Scout rolls down the sidewalk at walking pace and delivers items right to customers. Since its launch, Scout has delivered tens of thousands of packages to customers in California, Georgia, Tennessee, and Washington, and the program is continuing to expand to new communities in the U.S.
• The new Prime prescription savings benefit offers pharmacy savings at more than 60,000 participating pharmacies in the U.S., including Amazon Pharmacy. Amazon has helped Prime members save millions of dollars on prescription medications so far this year when paying without insurance, both at Amazon Pharmacy and other local pharmacies.
• Amazon expanded Discover Rooms, an immersive shopping experience that helps customers browse and shop from thousands of home room designs and instantly discover home furnishing product inspiration based on visual attributes. The experience is now available in nine countries, including Canada, France, Germany, India, Italy, Japan, Spain, UK, and the U.S.
• Prime Wardrobe, Amazon’s “try before you buy” offering, expanded selection and launched new innovations for customers, including the ability to chat live with Amazon Stylists for personalized recommendations and trial items recommended by their favorite fashion influencers and websites.
• In the U.S., Amazon launched an expanded assortment of NFL merchandise, including replica jerseys and hats, at amazon.com/NFL. Customers can now shop thousands of additional products on Amazon from NFL Pro Line, Fanatics, New Era, Outerstuff, ’47, and other top brands. Amazon also made enhancements to the sports fan shopping experience, including improved navigation in Your Fanshop and personalized game celebrations for customers’ favorite teams.
• Amazon’s Counterfeit Crimes Unit continues to work aggressively with law enforcement, industry associations, brand owners, and academics to bring counterfeit to zero. Examples this quarter include working with the U.S. National Intellectual Property Rights Coordination Center to prevent counterfeit Super Bowl LV merchandise from reaching consumers and partnering with Pennsylvania-based, family-owned card game maker Dutch Blitz and Italian luxury brand Salvatore Ferragamo to file lawsuits against multiple counterfeiters and hold them accountable to the fullest extent of the law.
• In March, Amazon launched Amazon.pl, offering Polish customers a selection of more than 100 million products across more than 30 categories, including products from thousands of European and local Polish businesses. Amazon has been operating in Poland since 2014, has created over 18,000 permanent jobs, and will open its tenth fulfillment center in Swiebodzin in 2021, adding more than 1,000 new jobs to Amazon’s existing network in Poland.
• Amazon opened its first international physical retail stores powered by Just Walk Out technology with the launch of three Amazon Fresh locations in London. These new convenience grocery stores sell a range of products, including the new “by Amazon” private brand, and enable shoppers to enter a store, grab what they want, and leave without stopping to check out. There are now 15 Amazon Fresh physical stores around the world.
• Amazon Fresh grocery stores expanded into four new communities in the U.S.: Oak Lawn, Illinois; Bloomingdale, Illinois; Fullerton, California; and Long Beach, California, creating hundreds of regular full- and part-time jobs in each community with starting wages of at least $15 per hour and comprehensive benefits.
• Amazon announced that millions of Prime members now have access to Key In-Garage Grocery Delivery in more than 5,000 cities and towns in the U.S., enabling them to enjoy free, contactless, and secure in-garage delivery of grocery orders from Whole Foods Market and Amazon Fresh.
• Amazon One—a fast, convenient, contactless way for people to use their palm to enter, identify, and pay—launched as a payment option at Whole Foods Market, starting with the Madison Broadway store in Seattle. Amazon One will be added as a payment option at additional Whole Foods Market stores in the Seattle area in the coming months.
• Delaware North, a global leader in hospitality and food service, announced the opening of two checkout-free convenience stores using Amazon’s Just Walk Out technology at TD Garden, an entertainment venue in Boston and home of the Boston Celtics and Boston Bruins.
• Amazon Business, the company’s global procurement solution, now serves more than five million businesses and generated $25 billion in worldwide annualized sales. More than half of unit sales are from third-party sellers, such as women-, minority-, or veteran-owned businesses that have been certified by U.S. diversity-certifying organizations such as the Department of Veterans Affairs and Women’s Business Enterprise National Council. In the U.S., Amazon Business serves 45 states and 80 of the Fortune 100 companies, including Citigroup, Intel, Cisco, and ExxonMobil.
• Amazon continues to expand its air cargo network to meet growing customer demand. In January, the company announced the purchase of 11 aircraft from Delta and WestJet to expand its Amazon Air fleet to more than 85 aircraft by the end of 2022. Amazon also announced new Amazon Air sites in Toledo, Ohio and Fairbanks, Alaska, and plans to expand existing operations in Canada this summer.

Entertainment

• This quarter marked Amazon Studios’ most successful awards season to date and the first time a streaming service has won a best picture Golden Globe award from the Hollywood Foreign Press Association. Original titles earned 10 Golden Globe nominations and three awards for Small Axe (Supporting Actor John Boyega) and Borat Subsequent Moviefilm (Best Picture Musical/Comedy and Best Actor Musical/Comedy). Amazon Studios also earned 12 Academy Award nominations, a record for the studio, across four films: One Night in Miami…, Borat Subsequent Moviefilm, Time, and Sound of Metal, which won two awards (Best Sound and Best Film Editing).
• Coming 2 America launched worldwide on Prime Video, becoming the #1 streamed movie its opening weekend and the #1 opening weekend for a streamed movie this year according to Screen Engine/ASI. Regina King’s feature directorial debut One Night in Miami… also launched to critical acclaim, receiving numerous accolades, including a Critics’ Choice Award as well as Golden Globe, SAG, and Oscar nominations. In addition, new Amazon Original Invincible premiered to praise from TV critics, and Prime Video debuted Local Originals The Stand (Canada), Guerra de Likes (Mexico), The Great Escapists (UK), La Templanza (Spain), and We Children from Bahnhof Zoo (Germany).
• Amazon Studios continues to invest in diverse creators and content. This quarter, Amazon Studios announced new series for Prime Video, including a Mr. and Mrs. Smith remake created by and starring Phoebe Waller-Bridge and Donald Glover, as well as a young adult series The Summer I Turned Pretty from writer Jenny Han. The studio also announced that the sci-fi action film The Tomorrow War from Skydance Media starring Chris Pratt will premiere on July 2.
• Amazon announced that Prime Video will become the exclusive home for Thursday Night Football beginning in 2023—making Prime Video the first streaming service to secure an exclusive national broadcast package from the NFL. The 10-year deal gives tens of millions of U.S. Prime members exclusive access to must-watch live football on Prime Video and also expands the Thursday Night Football package from 11 to 15 regular-season games.
• Amazon, the New York Yankees, and YES Network announced 21 regular-season games will stream on Prime Video in 2021. All games will be available to stream throughout New York State, Connecticut, northeast Pennsylvania, and north and central New Jersey at no additional cost to Prime members. All Yankees games on Prime Video this season will feature Amazon’s exclusive X-Ray technology, which gives real-time access to live in-game stats, team and player details, and real-time play-by-play information. In addition, Prime Video will air a new 15-minute pregame show ahead of the first pitch for every Prime Video broadcast.
• The Live Sports offering for Prime Video continues to grow internationally. In the first quarter, Prime Video broadcast five additional Premier League football matches in the UK. Prime Video also kicked off 2021 coverage of the ATP and WTA Tour tennis tournaments, including exclusive coverage of the Miami Open. In Australia, Prime Video announced an exclusive, two-year, live broadcast streaming deal to distribute the Australian Swimming championship events globally on Prime Video at no additional cost to Prime members.
• Amazon Music continues to expand its international reach of podcasts, launching localized offerings in France, Italy, Spain, and India for customers across all streaming tiers, at no additional cost. Amazon Music also announced the integration of artist merchandise into the Amazon Music app, providing a new shopping experience for music fans. Customers can now shop a curated, Prime-eligible selection of artist merchandise while listening to their favorite music, uninterrupted.

Amazon Devices and Services

• Amazon introduced the next generation of Echo Buds, featuring an all-new design, premium audio, custom-designed Active Noise Cancellation technology, wireless charging capabilities, improved microphones, and hands-free access to Alexa.
• Amazon announced Build It, a new Day 1 Editions program that gives customers a say in the devices Amazon builds next. The first wave of concepts included a Smart Sticky Note Printer, a Smart Nutrition Scale, and a Smart Cuckoo Clock. In just three days, the Smart Sticky Note Printer hit its pre-order goal and is being built.
• Amazon announced new Alexa features, such as Music Sharing with Alexa, which allows users to share songs with friends and family who are Alexa contacts, and Alexa for Xbox, which gives U.S. and Canadian customers more ways to interact with their consoles using their voice—such as asking Alexa to download games remotely through Xbox’s Game Pass service.
• Amazon launched a new Alexa Prize TaskBot Challenge, in which university teams will compete to develop conversational AI agents to help customers complete tasks requiring multiple steps and decisions. It is the first conversational AI challenge to incorporate multimodal—voice and vision—customer experiences.
• As part of the Fairness in AI program, the National Science Foundation and Amazon announced the next cohort of 37 researchers focused on 11 projects covering a range of topics, including: theoretical and algorithmic foundations; principles for human interaction with AI systems; technologies such as natural language understanding and computer vision; and applications including hiring decisions, education, criminal justice, and human services.
• Ring introduced Ring Video Doorbell Pro 2 and Ring Floodlight Cam Wired Pro, both featuring 3D Motion Detection and Bird’s Eye View powered by radar technology. Ring also announced several other products and features, including Ring Video Doorbell 4, Smart Responses and Geofence for compatible devices, and Ring Alarm (2nd Gen) for the UK and Europe.
• Amazon launched the Alexa Built-in experience in Lamborghini’s Huracán EVO, the first vehicle to offer online car control capabilities with Alexa embedded. Amazon also launched the first application of the Alexa Connected Vehicle Skills API with Nissan, and Garmin announced it is the first Tier 1 automotive supplier to integrate Alexa Custom Assistant in its In-Vehicle Infotainment systems. Jeep announced Wagoneer and Grand Wagoneer models will be the first to launch Fire TV for Auto, an on-the-go entertainment experience.

Amazon Web Services

• AWS announced significant customer momentum, with new commitments and migrations from customers spanning many major industries.
  • In telecommunications, DISH is leveraging AWS’s advanced, reliable, and secure infrastructure to build a cloud-based, 5G Open Radio Access Network (O-RAN) to deliver consistent, cost-effective performance from the cloud to the edge of the network.
  • The media and entertainment industry continues to move to AWS at a rapid pace with The Walt Disney Company working with AWS on the expansion of Disney+ to more than 100 million subscribers around the world.
  • Some of the world’s most renowned sports leagues are choosing AWS as their technology provider to transform the fan experience. For example, the National Hockey League (NHL) uses artificial intelligence, machine learning, and other AWS technologies to create new viewing experiences and in-depth stats and analytics, and the PGA TOUR (TOUR) uses AWS cloud and machine learning technologies to transform the way golf content is created, distributed, and experienced. The German Bundesliga, Germany’s top national football league, uses AWS to power three new Bundesliga Match Facts to give fans deeper insights into action on the pitch, while Formula 1 (F1) uses a range of AWS technologies, including machine learning, for six new F1 Insights for the 2021 season that help motor racing fans understand the strategy of their favorite driver.
  • Automotive companies continue to choose AWS to support the development of their next-generation vehicles. Continental, one of the world’s largest automotive parts manufacturers, announced they are collaborating with AWS to develop the Continental Automotive Edge Platform (CAEdge), which will allow automakers to develop, deploy, and manage code to run connected and autonomous vehicles. In addition, AWS and Torc Robotics, a subsidiary of Daimler Truck AG, are collaborating to scale an autonomous truck development platform in the cloud so that Torc Robotics can accelerate testing and commercialization of autonomous driving technology. And ABB announced a collaboration with AWS to create a cloud-based fleet management system for electric vehicles, helping companies accelerate electrification of their fleets while maintaining business continuity.
• AWS announced the launch of a second full region in Japan—the AWS Asia Pacific (Osaka) Region—which is an expansion of the existing AWS Osaka Local Region. The new region consists of three Availability Zones (AZs) and joins the existing 25 Availability Zones in eight AWS Regions across Asia Pacific in Beijing, Hong Kong, Mumbai, Ningxia, Seoul, Singapore, Sydney, and Tokyo. Globally, AWS has 80 Availability Zones across 25 geographic regions, with plans to launch 15 more Availability Zones and five more AWS Regions in Australia, India, Indonesia, Spain, and Switzerland.
• AWS and Red Hat announced the general availability of Red Hat OpenShift Service on AWS (ROSA), a new managed service that makes it easier for Red Hat OpenShift customers to build, scale, and manage containerized applications on AWS. With ROSA, customers can enjoy more simplified Kubernetes cluster creation without the burden of manually scaling and managing the underlying infrastructure. ROSA streamlines moving on-premises Red Hat OpenShift workloads to AWS and offers a tighter integration with other AWS technologies.
• AWS announced the general availability of AQUA (Advanced Query Accelerator) for Amazon Redshift, an innovative new distributed and hardware-accelerated cache that delivers up to ten times better query performance than other cloud data warehouses. AQUA brings compute to the storage layer, helping customers avoid networking bandwidth limitations by eliminating unnecessary data movement between where data is stored and compute clusters. With AQUA, customers have more up-to-date dashboards, save development time, and their systems are easier to maintain.
• AWS announced the general availability of Amazon Elastic Compute Cloud (EC2) X2gd instances, the next generation of advanced, memory-optimized instances powered by AWS-designed, Arm-based Graviton2 processors. New X2gd instances deliver up to 55% better price/performance compared to current generation x86-based X1 instances, while also offering increased memory per vCPU compared to other Graviton2-based instances. Together, the higher performance and additional memory of X2gd instances make it possible for customers to more efficiently run memory intensive workloads like in-memory databases, relational databases, electronic design automation (EDA) workloads, real-time analytics, and real-time caching servers.
• AWS announced Amazon Lookout for Equipment, a new service that uses AWS-developed machine learning models to help customers perform predictive maintenance on the equipment in their facilities. Amazon Lookout for Equipment ingests sensor data from a customer’s industrial equipment (e.g., pressure, flow rate, RPMs, temperature, and power), and then trains a unique machine learning model to accurately predict early warning signs of machine failure or suboptimal performance using real-time data streams from the customer’s equipment. With Amazon Lookout for Equipment, customers can detect abnormalities with speed and precision, quickly diagnose issues, reduce false alerts, and avoid expensive downtime by taking action before machine failures occur.
• AWS announced the general availability of Amazon Lookout for Vision, a service that analyzes images using computer vision and sophisticated machine learning capabilities to spot product or process defects and anomalies. By employing advanced machine learning techniques, Amazon Lookout for Vision is able to train a model using as few as 30 images, which can help detect manufacturing and production defects (e.g., cracks, dents, incorrect color, irregular shape, etc.) in their products and prevent costly errors from progressing down an operational line and reaching customers.
• AWS announced the general availability of Amazon Lookout for Metrics, a new fully managed machine learning service that helps customers monitor the most important metrics for their business (e.g., revenue, web page views, active users, transaction volume, and mobile app installations) with greater speed and accuracy. The service also makes it easier to diagnose the root cause of anomalies like unexpected dips in revenue, high rates of abandoned shopping carts, spikes in payment transaction failures, increases in new user sign-ups, and more.
• AWS announced new Amazon Elastic File System (EFS) One Zone storage classes that reduce storage costs by 47%, compared to existing Amazon EFS storage classes, while delivering the same features and benefits. One Zone storage classes redundantly store data within a single Availability Zone (AZ). These are ideal for customers who want cost-optimized file storage for workloads and applications (e.g., content management, developer applications, etc.) that do not require the level of availability and durability offered by regional Amazon EFS storage classes, which redundantly store data across multiple geographically separated AZs.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of April 29, 2021, 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. This guidance reflects our estimates as of April 29, 2021 regarding the impact of the COVID-19 pandemic on our operations, including those discussed above, and is highly dependent on numerous factors that we may not be able to predict or control, including: the duration and scope of the pandemic, including any recurrence; actions taken by governments, businesses, and individuals in response to the pandemic; the impact of the pandemic on global and regional economies and economic activity, workforce staffing and productivity, and our significant and continuing spending on employee safety measures; our ability to continue operations in affected areas; and consumer demand and spending patterns, as well as the effects on suppliers, creditors, and third-party sellers, all of which are uncertain. This guidance also assumes the impacts on consumer demand and spending patterns, including impacts due to concerns over the current economic outlook, will be in line with those experienced during the second quarter of 2021 to date, and the additional assumptions set forth below. However, it is not possible to determine the ultimate impact on our operations for the second quarter of 2021, or whether other currently unanticipated direct or indirect consequences of the pandemic are reasonably likely to materially affect our operations.

Second Quarter 2021 Guidance

• Net sales are expected to be between $110.0 billion and $116.0 billion, or to grow between 24% and 30% compared with second quarter 2020. This guidance anticipates a favorable impact of approximately 200 basis points from foreign exchange rates.
• Operating income is expected to be between $4.5 billion and $8.0 billion, compared with $5.8 billion in second quarter 2020. This guidance assumes approximately $1.5 billion of costs related to COVID-19.
• This guidance assumes that Prime Day occurs in second quarter 2021.
• This 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 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s 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 Amazon.com invests 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 claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, 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, additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Our investor relations website is amazon.com/ir and 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 SEC, 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 Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

AMAZON.COM, INC. Consolidated Statements of Cash Flows (in millions) (unaudited)
	Three Months Ended March 31,								Twelve Months Ended March 31,
	2020				2021				2020				2021
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$	36,410			$	42,377			$	23,507			$	27,505
OPERATING ACTIVITIES:
Net income	2,535				8,107				10,563				26,903
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other	5,362				7,508				22,297				27,397
Stock-based compensation	1,757				2,306				7,347				9,757
Other operating expense (income), net	67				30				244				(108		)
Other expense (income), net	565				(1,456		)		451				(4,603		)
Deferred income taxes	322				1,703				704				827
Changes in operating assets and liabilities:
Inventories	1,392				(304		)		(2,605		)		(4,545		)
Accounts receivable, net and other	1,262				(2,255		)		(6,018		)		(11,686		)
Accounts payable	(8,044		)		(8,266		)		6,532				17,258
Accrued expenses and other	(2,761		)		(4,060		)		(1,213		)		4,455
Unearned revenue	607				900				1,430				1,558
Net cash provided by (used in) operating activities	3,064				4,213				39,732				67,213
INVESTING ACTIVITIES:
Purchases of property and equipment	(6,795		)		(12,082		)		(20,365		)		(45,427		)
Proceeds from property and equipment sales and incentives	1,367				895				4,970				4,624
Acquisitions, net of cash acquired, and other	(91		)		(630		)		(1,384		)		(2,864		)
Sales and maturities of marketable securities	11,626				17,826				31,664				56,437
Purchases of marketable securities	(15,001		)		(14,675		)		(39,938		)		(72,153		)
Net cash provided by (used in) investing activities	(8,894		)		(8,666		)		(25,053		)		(59,383		)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other	617				1,926				1,934				8,105
Repayments of short-term debt, and other	(631		)		(2,001		)		(1,860		)		(7,547		)
Proceeds from long-term debt	76				111				842				10,560
Repayments of long-term debt	(36		)		(39		)		(1,140		)		(1,556		)
Principal repayments of finance leases	(2,600		)		(3,406		)		(10,013		)		(11,448		)
Principal repayments of financing obligations	(17		)		(67		)		(43		)		(103		)
Net cash provided by (used in) financing activities	(2,591		)		(3,476		)		(10,280		)		(1,989		)
Foreign currency effect on cash, cash equivalents, and restricted cash	(484		)		(293		)		(401		)		809
Net increase (decrease) in cash, cash equivalents, and restricted cash	(8,905		)		(8,222		)		3,998				6,650
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	27,505			$	34,155			$	27,505			$	34,155
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt	$	290			$	276			$	879			$	902
Cash paid for operating leases	1,029				1,640				3,680				5,086
Cash paid for interest on finance leases	168				157				650				601
Cash paid for interest on financing obligations	22				33				59				113
Cash paid for income taxes, net of refunds	305				801				1,017				2,209
Assets acquired under operating leases	2,408				3,536				9,403				17,345
Property and equipment acquired under finance leases	2,166				2,067				13,262				11,489
Property and equipment acquired under build-to-suit arrangements	379				887				1,304				2,775

AMAZON.COM, INC. Consolidated Statements of Operations (in millions, except per share data) (unaudited)
	Three Months Ended March 31,
	2020				2021
Net product sales	$	41,841			$	57,491
Net service sales	33,611				51,027
Total net sales	75,452				108,518
Operating expenses:
Cost of sales	44,257				62,403
Fulfillment	11,531				16,530
Technology and content	9,325				12,488
Marketing	4,828				6,207
General and administrative	1,452				1,987
Other operating expense (income), net	70				38
Total operating expenses	71,463				99,653
Operating income	3,989				8,865
Interest income	202				105
Interest expense	(402		)		(399		)
Other income (expense), net	(406		)		1,697
Total non-operating income (expense)	(606		)		1,403
Income before income taxes	3,383				10,268
Provision for income taxes	(744		)		(2,156		)
Equity-method investment activity, net of tax	(104		)		(5		)
Net income	$	2,535			$	8,107
Basic earnings per share	$	5.09			$	16.09
Diluted earnings per share	$	5.01			$	15.79
Weighted-average shares used in computation of earnings per share:
Basic	498				504
Diluted	506				513

AMAZON.COM, INC. Consolidated Statements of Comprehensive Income (in millions) (unaudited)
	Three Months Ended March 31,
	2020				2021
Net income	$	2,535			$	8,107
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $21 and $13	(874		)		(374		)
Net change in unrealized gains (losses) on available-for-sale debt securities:
Unrealized gains (losses), net of tax of $12 and $30	(203		)		(98		)
Reclassification adjustment for losses (gains) included in “Other income (expense), net,” net of tax of $0 and $4	—				(14		)
Net unrealized gains (losses) on available-for-sale debt securities	(203		)		(112		)
Total other comprehensive income (loss)	(1,077		)		(486		)
Comprehensive income	$	1,458			$	7,621

AMAZON.COM, INC. Segment Information (in millions) (unaudited)
	Three Months Ended March 31,
	2020				2021
North America
Net sales	$	46,127			$	64,366
Operating expenses	44,815				60,916
Operating income	$	1,312			$	3,450
International
Net sales	$	19,106			$	30,649
Operating expenses	19,504				29,397
Operating income (loss)	$	(398	)		$	1,252
AWS
Net sales	$	10,219			$	13,503
Operating expenses	7,144				9,340
Operating income	$	3,075			$	4,163
Consolidated
Net sales	$	75,452			$	108,518
Operating expenses	71,463				99,653
Operating income	3,989				8,865
Total non-operating income (expense)	(606		)		1,403
Provision for income taxes	(744		)		(2,156		)
Equity-method investment activity, net of tax	(104		)		(5		)
Net income	$	2,535			$	8,107
Segment Highlights:
Y/Y net sales growth:
North America	29		%		40		%
International	18				60
AWS	33				32
Consolidated	26				44
Net sales mix:
North America	61		%		59		%
International	25				28
AWS	14				13
Consolidated	100		%		100		%

AMAZON.COM, INC. Consolidated Balance Sheets (in millions, except per share data)
	December 31, 2020				March 31, 2021
					(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	42,122			$	33,834
Marketable securities	42,274				39,436
Inventories	23,795				23,849
Accounts receivable, net and other	24,542				24,289
Total current assets	132,733				121,408
Property and equipment, net	113,114				121,461
Operating leases	37,553				39,328
Goodwill	15,017				15,220
Other assets	22,778				25,660
Total assets	$	321,195			$	323,077
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	72,539			$	63,926
Accrued expenses and other	44,138				40,939
Unearned revenue	9,708				10,539
Total current liabilities	126,385				115,404
Long-term lease liabilities	52,573				53,067
Long-term debt	31,816				31,868
Other long-term liabilities	17,017				19,418
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares — 500
Issued and outstanding shares — none	—				—
Common stock, $0.01 par value:
Authorized shares — 5,000
Issued shares — 527 and 528
Outstanding shares — 503 and 504	5				5
Treasury stock, at cost	(1,837		)		(1,837		)
Additional paid-in capital	42,865				45,160
Accumulated other comprehensive income (loss)	(180		)		(666		)
Retained earnings	52,551				60,658
Total stockholders’ equity	93,404				103,320
Total liabilities and stockholders’ equity	$	321,195			$	323,077

AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except per share data) (unaudited)
	Q4 2019			Q1 2020			Q2 2020			Q3 2020			Q4 2020			Q1 2021			Y/Y % Change
Cash Flows and Shares
Operating cash flow — trailing twelve months (TTM)	$	38,514		$	39,732		$	51,220		$	55,292		$	66,064		$	67,213		69	%
Operating cash flow — TTM Y/Y growth	25		%	16		%	42		%	56		%	72		%	69		%	N/A
Purchases of property and equipment, net of proceeds from sales and incentives — TTM	$	12,689		$	15,395		$	19,368		$	25,791		$	35,044		$	40,803		165	%
Principal repayments of finance leases — TTM	$	9,628		$	10,013		$	10,504		$	11,054		$	10,642		$	11,448		14	%
Principal repayments of financing obligations — TTM	$	27		$	43		$	56		$	68		$	53		$	103		140	%
Equipment acquired under finance leases — TTM (1)	$	12,916		$	12,209		$	11,952		$	11,116		$	9,104		$	8,936		(27	)%
Principal repayments of all other finance leases — TTM (2)	$	392		$	407		$	415		$	413		$	427		$	525		29	%
Free cash flow — TTM (3)	$	25,825		$	24,337		$	31,852		$	29,501		$	31,020		$	26,410		9	%
Free cash flow less principal repayments of finance leases and financing obligations — TTM (4)	$	16,170		$	14,281		$	21,292		$	18,379		$	20,325		$	14,859		4	%
Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations — TTM (5)	$	12,490		$	11,678		$	19,429		$	17,904		$	21,436		$	16,846		44	%
Common shares and stock-based awards outstanding	512			513			517			518			518			519			1	%
Common shares outstanding	498			499			501			502			503			504			1	%
Stock-based awards outstanding	14			14			16			16			15			15			5	%
Stock-based awards outstanding — % of common shares outstanding	2.9		%	2.8		%	3.2		%	3.3		%	3.0		%	2.9		%	N/A
Results of Operations
Worldwide (WW) net sales	$	87,437		$	75,452		$	88,912		$	96,145		$	125,555		$	108,518		44	%
WW net sales — Y/Y growth, excluding F/X	21		%	27		%	41		%	36		%	42		%	41		%	N/A
WW net sales — TTM	$	280,522		$	296,274		$	321,782		$	347,946		$	386,064		$	419,130		41	%
WW net sales — TTM Y/Y growth, excluding F/X	22		%	23		%	28		%	31		%	37		%	40		%	N/A
Operating income	$	3,879		$	3,989		$	5,843		$	6,194		$	6,873		$	8,865		122	%
F/X impact — favorable (unfavorable)	$	16		$	63		$	111		$	133		$	142		$	107		N/A
Operating income — Y/Y growth (decline), excluding F/X	2		%	(11		)%	86		%	92		%	74		%	120		%	N/A
Operating margin — % of WW net sales	4.4		%	5.3		%	6.6		%	6.4		%	5.5		%	8.2		%	N/A
Operating income — TTM	$	14,541		$	14,109		$	16,868		$	19,905		$	22,899		$	27,775		97	%
Operating income — TTM Y/Y growth (decline), excluding F/X	16		%	(6		)%	11		%	36		%	54		%	93		%	N/A
Operating margin — TTM % of WW net sales	5.2		%	4.8		%	5.2		%	5.7		%	5.9		%	6.6		%	N/A
Net income	$	3,268		$	2,535		$	5,243		$	6,331		$	7,222		$	8,107		220	%
Net income per diluted share	$	6.47		$	5.01		$	10.30		$	12.37		$	14.09		$	15.79		215	%
Net income — TTM	$	11,588		$	10,563		$	13,180		$	17,377		$	21,331		$	26,903		155	%
Net income per diluted share — TTM	$	23.01		$	20.93		$	26.04		$	34.21		$	41.83		$	52.59		151	%

______________________________

(1)		For the twelve months ended March 31, 2020 and 2021, this amount relates to equipment included in “Property and equipment acquired under finance leases” of $13,262 million and $11,489 million.
(2)		For the twelve months ended March 31, 2020 and 2021, this amount relates to property included in “Principal repayments of finance leases” of $10,013 million and $11,448 million.
(3)		Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”
(4)		Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by “Principal repayments of finance leases” and “Principal repayments of financing obligations.”
(5)		Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment acquired under finance leases, which is included in “Property and equipment acquired under finance leases,” principal repayments of all other finance lease liabilities, which is included in “Principal repayments of finance leases,” and “Principal repayments of financing obligations.”

AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions) (unaudited)
	Q4 2019			Q1 2020			Q2 2020			Q3 2020			Q4 2020			Q1 2021			Y/Y % Change
Segments
North America Segment:
Net sales	$	53,670		$	46,127		$	55,436		$	59,373		$	75,346		$	64,366		40	%
Net sales — Y/Y growth, excluding F/X	22		%	29		%	44		%	39		%	40		%	39		%	N/A
Net sales — TTM	$	170,773		$	181,088		$	197,871		$	214,606		$	236,282		$	254,521		41	%
Operating income	$	1,900		$	1,312		$	2,141		$	2,252		$	2,946		$	3,450		163	%
F/X impact — favorable (unfavorable)	$	(3	)	$	5		$	(4	)	$	—		$	7		$	8		N/A
Operating income — Y/Y growth (decline), excluding F/X	(16		)%	(43		)%	37		%	76		%	55		%	162		%	N/A
Operating margin — % of North America net sales	3.5		%	2.8		%	3.9		%	3.8		%	3.9		%	5.4		%	N/A
Operating income — TTM	$	7,033		$	6,057		$	6,634		$	7,604		$	8,651		$	10,789		78	%
Operating margin — TTM % of North America net sales	4.1		%	3.4		%	3.4		%	3.5		%	3.7		%	4.2		%	N/A
International Segment:
Net sales	$	23,813		$	19,106		$	22,668		$	25,171		$	37,467		$	30,649		60	%
Net sales — Y/Y growth, excluding F/X	15		%	20		%	41		%	33		%	50		%	50		%	N/A
Net sales — TTM	$	74,723		$	77,637		$	83,935		$	90,758		$	104,412		$	115,955		49	%
Operating income (loss)	$	(617	)	$	(398	)	$	345		$	407		$	363		$	1,252		N/A
F/X impact — favorable (unfavorable)	$	(7	)	$	(5	)	$	32		$	152		$	232		$	270		N/A
Operating income/loss — Y/Y growth (decline), excluding F/X	(5		)%	338		%	N/A			N/A			N/A			347		%	N/A
Operating margin — % of International net sales	(2.6		)%	(2.1		)%	1.5		%	1.6		%	1.0		%	4.1		%	N/A
Operating income (loss) — TTM	$	(1,693	)	$	(2,001	)	$	(1,055	)	$	(262	)	$	717		$	2,367		N/A
Operating margin — TTM % of International net sales	(2.3		)%	(2.6		)%	(1.3		)%	(0.3		)%	0.7		%	2.0		%	N/A
AWS Segment:
Net sales	$	9,954		$	10,219		$	10,808		$	11,601		$	12,742		$	13,503		32	%
Net sales — Y/Y growth, excluding F/X	34		%	33		%	29		%	29		%	28		%	32		%	N/A
Net sales — TTM	$	35,026		$	37,549		$	39,976		$	42,582		$	45,370		$	48,654		30	%
Operating income	$	2,596		$	3,075		$	3,357		$	3,535		$	3,564		$	4,163		35	%
F/X impact — favorable (unfavorable)	$	26		$	63		$	83		$	(20	)	$	(96	)	$	(171	)	N/A
Operating income — Y/Y growth, excluding F/X	18		%	36		%	54		%	57		%	41		%	41		%	N/A
Operating margin — % of AWS net sales	26.1		%	30.1		%	31.1		%	30.5		%	28.0		%	30.8		%	N/A
Operating income — TTM	$	9,201		$	10,053		$	11,289		$	12,563		$	13,531		$	14,619		45	%
Operating margin — TTM % of AWS net sales	26.3		%	26.8		%	28.2		%	29.5		%	29.8		%	30.0		%	N/A

AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except employee data) (unaudited)
	Q4 2019			Q1 2020			Q2 2020			Q3 2020			Q4 2020			Q1 2021			Y/Y % Change
Net Sales
Online stores (1)	$	45,657		$	36,652		$	45,896		$	48,350		$	66,451		$	52,901		44	%
Online stores — Y/Y growth, excluding F/X	15		%	25		%	49		%	37		%	43		%	41		%	N/A
Physical stores (2)	$	4,363		$	4,640		$	3,774		$	3,788		$	4,022		$	3,920		(16	)%
Physical stores — Y/Y growth, excluding F/X	(1		)%	8		%	(13		)%	(10		)%	(7		)%	(16		)%	N/A
Third-party seller services (3)	$	17,446		$	14,479		$	18,195		$	20,436		$	27,327		$	23,709		64	%
Third-party seller services — Y/Y growth, excluding F/X	31		%	31		%	53		%	53		%	54		%	60		%	N/A
Subscription services (4)	$	5,235		$	5,556		$	6,018		$	6,572		$	7,061		$	7,580		36	%
Subscription services — Y/Y growth, excluding F/X	32		%	29		%	30		%	32		%	34		%	34		%	N/A
AWS	$	9,954		$	10,219		$	10,808		$	11,601		$	12,742		$	13,503		32	%
AWS — Y/Y growth, excluding F/X	34		%	33		%	29		%	29		%	28		%	32		%	N/A
Other (5)	$	4,782		$	3,906		$	4,221		$	5,398		$	7,952		$	6,905		77	%
Other — Y/Y growth, excluding F/X	41		%	44		%	41		%	49		%	64		%	73		%	N/A
Stock-based Compensation Expense
Cost of sales	$	43		$	41		$	76		$	75		$	91		$	90		116	%
Fulfillment	$	286		$	260		$	417		$	316		$	364		$	342		31	%
Technology and content	$	1,007		$	961		$	1,421		$	1,267		$	1,412		$	1,228		28	%
Marketing	$	322		$	332		$	456		$	446		$	476		$	456		38	%
General and administrative	$	182		$	163		$	231		$	184		$	219		$	190		16	%
Total stock-based compensation expense	$	1,840		$	1,757		$	2,601		$	2,288		$	2,562		$	2,306		31	%
Other
WW shipping costs	$	12,884		$	10,936		$	13,652		$	15,063		$	21,465		$	17,162		57	%
WW shipping costs — Y/Y growth	43		%	49		%	68		%	57		%	67		%	57		%	N/A
WW paid units — Y/Y growth (6)	22		%	32		%	57		%	46		%	47		%	44		%	N/A
WW seller unit mix — % of WW paid units (6)	53		%	52		%	53		%	54		%	55		%	55		%	N/A
Employees (full-time and part-time; excludes contractors & temporary personnel)	798,000			840,400			876,800			1,125,300			1,298,000			1,271,000			51	%
Employees (full-time and part-time; excludes contractors & temporary personnel) — Y/Y growth	23		%	33		%	34		%	50		%	63		%	51		%	N/A

________________________

(1)		Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital product subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”
(2)		Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(3)		Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
(4)		Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(5)		Primarily includes sales of advertising services, as well as sales related to our other service offerings.
(6)		Excludes the impact of Whole Foods Market.

Amazon.com, Inc.

Certain Definitions

Customer Accounts

• References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

Seller Accounts

• References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

AWS Customers

• References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period.

Units

• References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429006037/en/

Amazon Investor Relations

Dave Fildes, [email protected]

amazon.com/ir

Amazon Public Relations

Dan Perlet, [email protected]

amazon.com/pr

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Technology Retail Entertainment Supply Chain Management Small Business Online Retail General Entertainment Professional Services Other Philanthropy Philanthropy Transport Software Internet Logistics/Supply Chain Management

MEDIA:

Logo