Amazon first reported a full-year net income in 2003: $35.282 million. That was its first profitable year by the usual accounting measure of net income, but the company warned that a fourth-quarter accounting decision affected the result and that it should not be treated as a lasting turning point.
What was Amazon’s first profitable year?
Amazon’s first full-year profit was in 2003. Its fiscal year follows the calendar year and ends on December 31, according to Amazon Investor Relations’ fiscal-year FAQ. In its 2003 Form 10-K, Amazon.com, Inc. reported net income of $35.282 million for the year.
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Here, “profit” means full-year net income: the amount remaining after expenses and other items are accounted for. It does not mean revenue, gross profit, or operating income. Amazon reported $270.595 million in operating income for 2003, a separate measure from its $35.282 million in net income. The figures appear in the company’s 2003 Annual Report / Form 10-K.
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Amazon reported a net loss in each year from 1999 through 2002. The figures below are the annual report’s amounts converted from thousands of U.S. dollars into millions or billions.
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| Fiscal year | Reported net income (loss) |
|---|---|
| 1999 | −$719.968 million |
| 2000 | −$1.411273 billion |
| 2001 | −$567.277 million |
| 2002 | −$149.132 million |
| 2003 | $35.282 million |
The annual report shows losses in every listed year from 1999 to 2002, followed by positive net income in 2003. A 2021 U.S. House Judiciary Committee report independently identifies 2003 as the year Amazon first posted a full-year profit (Investigation of Competition in Digital Markets).
Why Amazon qualified its 2003 profit
Amazon’s filing says that without a change in its intent during the fourth quarter about settling intercompany balances, it would have reported a small net loss for 2003. The company also cautioned that 2003 net income “should not be viewed as a material positive event or should be considered predictive of future results.” This was Amazon.com, Inc.’s own caution in its 2003 Form 10-K, not a qualification added by a later analyst.
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- Alexa is happy to help – Ask Alexa for weather updates and to set hands-free timers, get answers to your questions and even hear jokes. Need a few extra minutes in the morning? Just tap your Echo Dot to snooze your alarm.
- Keep your home comfortable – Control compatible smart home devices with your voice and routines triggered by built-in motion or indoor temperature sensors. Create routines to automatically turn on lights when you walk into a room, or start a fan if the inside temperature goes above your comfort zone.
- Do more with device pairing – Fill your home with music using compatible Echo devices in different rooms, or create a home theatre system with Fire TV.
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So 2003 is the correct answer to “When did Amazon first make a profit?” when profit means reported full-year net income. The filing’s caveat matters: the result was narrow and affected by the company’s stated change concerning intercompany balances.
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- Your favorite music and content – Play music, audiobooks, and podcasts from Amazon Music, Apple Music, Spotify and others or via Bluetooth throughout your home.
- Alexa is happy to help – Ask Alexa for weather updates and to set hands-free timers, get answers to your questions and even hear jokes. Need a few extra minutes in the morning? Just tap your Echo Dot to snooze your alarm.
- Keep your home comfortable – Control compatible smart home devices with your voice and routines triggered by built-in motion or indoor temperature sensors. Create routines to automatically turn on lights when you walk into a room, or start a fan if the inside temperature goes above your comfort zone.
- Do more with device pairing – Fill your home with music using compatible Echo devices in different rooms, or create a home theatre system with Fire TV.
- Say goodbye to drop-offs and buffering - With eero Built-in, Echo Dot doubles as a mesh wifi extender, adding up to 1,000 sq. ft. of wifi coverage to your existing eero network.
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