SlideShare a Scribd company logo
Zappos Consolidated Statement of Operations
Q1 2009 vs Q1 2008
                                                                                                        Deltas
                                                                      3/31/2009    3/31/2008    08 v 07 $    08 v 07 %
 Net revenues                                                            143,866      132,708       11,158         8.4%
 Cost of revenues                                                         94,537       84,248       10,289        12.2%

 Gross profit                                                             49,329       48,460         869         1.8%
 Operating expenses:
    Sales, marketing and fulfillment                                      34,818       32,930       1,888         5.7%
    General and administrative                                             5,202        6,127        -925       -15.1%
    Product development                                                    5,747        6,288        -541        -8.6%

 Total operating expenses                                                 45,767       45,345         422         0.9%

 Income from operations                                                    3,562        3,115          447       14.3%
 Interest and other income, net                                               72          192         -120      -62.5%
 Interest (expense) benefit associated with preferred stock warrant        -1281           26       -1,307    -5026.9%
 Other interest expense                                                     -950        -1747          797      -45.6%
 Other financing charges                                                    -123         -158           35      -22.2%

 Income before (provision) benefit for income taxes                        1,280        1,428         -148      -10.4%
 (Provision) benefit for income taxes                                      -1013           12       -1,025    -8541.7%

 Net income from continuing operations                                      267         1,440       -1,173      -81.5%

 Discontinued operations, net of tax                                         -46         -846         800       -94.6%

 Net income                                                                 221          594         -373       -62.8%

Key Ratios
Gross Margin                                                              34.3%        36.5%        -2.2%        -6.1%
Operating Profit Margin                                                    2.5%         2.3%         0.1%         5.5%
Net Income %                                                               0.2%         1.1%        -0.9%       -82.9%
Zappos Consolidated Statement of Operations
                                                                                         Deltas
                                                        12/31/2008 12/31/2007    08 v 07 $    08 v 07 %
 Net revenues                                              635,011    526,829      108,182         20.5%
 Cost of revenues                                          411,650    333,884       77,766         23.3%

 Gross profit                                              223,361    192,945       30,416         15.8%
 Operating expenses:
    Sales, marketing and fulfillment                       153,285    123,260       30,025         24.4%
    General and administrative                              23,041     18,962        4,079         21.5%
    Product development                                     25,262     18,224        7,038         38.6%

 Total operating expenses                                  201,588    160,446       41,142         25.6%

 Income from operations                                     21,773     32,499      (10,726)        -33.0%
 Interest and other income, net                                559        731         (172)        -23.5%
 Interest benefit (expense) associated with preferred
 stock warrant                                                9,670   (10,825)      20,495        -189.3%
 Other interest expense                                     (5,825)    (6,930)       1,105         -15.9%
 Other financing charges                                      (832)      (335)        (497)        148.4%

 Income before provision for income taxes                   25,345      15,140      10,205          67.4%
 Provision for income taxes                                 (5,208)   (10,288)       5,080         -49.4%

 Net income from continuing operations                      20,137      4,852       15,285        315.0%

 Discontinued operations, net of tax                        (9,365)    (3,084)      (6,281)       203.7%

 Net income                                                 10,772      1,768        9,004        509.3%

                                                                                         Deltas
Key Metrics                                             12/31/2008 12/31/2007    08 v 07 $    08 v 07 %
Gross Margin                                                 35.2%      36.6%         -1.4%         -4.0%
Operating Profit Margin                                       3.4%       6.2%         -2.7%       -44.4%

EBTIDA Calculation
Operating Profit                                           21,773      32,499      (10,726)        -33.0%

Add Backs
Depreciation & Amortization                                11,790       9,970        1,820          18.3%
Stock based Compensation                                    2,884       1,997          887          44.4%
Interest & Financing Charges                                6,657       7,265         (608)         -8.4%
Taxes                                                       5,208      10,288       (5,080)        -49.4%
Total Add Backs                                            26,539      29,520       (2,981)        -10.1%

Estimated EBITDA                                           48,312      62,019      (13,707)        -22.1%
EBITDA %                                                     7.6%       11.8%
Zappos Balance Sheet as of 12/31/08

                                                                                                               Deltas
                                                                         12/31/2008     12/31/2007     08 v 07 $    08 v 07 %

 Assets
     Current assets:
         Cash and cash equivalents                                             8,590          6,761        1,829        27.1%
         Restricted cash                                                       2,245          1,687          558        33.1%
         Accounts receivable, net                                              6,772          8,461       (1,689)      -20.0%
         Inventory, net                                                      168,131        161,988        6,143         3.8%
         Deferred income taxes                                                15,890         12,267        3,623        29.5%
         Prepaid expenses and other assets                                     3,253          2,596          657        25.3%

     Total current assets                                                    204,881        193,760       11,121         5.7%
     Property and equipment, net                                              48,962         44,286        4,676        10.6%
     Deferred income taxes                                                       708          3,098       (2,390)      -77.1%
     Intangible assets, net                                                    8,646          4,405        4,241        96.3%
     Other assets, net                                                         2,075            705        1,370       194.3%

 Total assets                                                                265,272        246,254       19,018         7.7%

 Liabilities and stockholders’ equity
     Current liabilities:
           Accounts payable                                                   69,792         76,055       (6,263)       -8.2%
           Accrued and other liabilities                                      51,409         28,467       22,942        80.6%
           Deferred income taxes                                                 559            527           32         6.1%
           Accrued sales returns                                              18,637         16,762        1,875        11.2%
           Current portion of loan obligations                                 4,863          2,747        2,116        77.0%
           Current portion of capital lease obligations                        1,490          1,051          439        41.8%
           Revolving line of credit                                           26,006         29,000       (2,994)      -10.3%

     Total current liabilities                                               172,756        154,609       18,147        11.7%
     Deferred rent                                                             1,514          1,883         (369)      -19.6%
     Deferred income taxes                                                     2,870          3,418         (548)      -16.0%
     Other long term liabilities                                              19,935         28,868       (8,933)      -30.9%
     Loan obligations, noncurrent                                             15,777         20,188       (4,411)      -21.8%
     Capital lease obligations, noncurrent                                     1,702          1,809         (107)       -5.9%

     Total liabilities                                                       214,554        210,775        3,779         1.8%

     Stockholders’ equity:
         Convertible preferred stock; $0.001 par value; 35,997
         authorized, 29,248, and 29,285 issued and outstanding
         (aggregate liquidation preference—$181,466 and $181,469)             61,465         61,465          -           0.0%
         Common stock; $0.001 par value; 60,000 authorized, 15,916 and
         14,260 issued and outstanding                                             16             14           2        14.3%
         Additional paid-in capital                                             6,557          2,092       4,465       213.4%
         Accumulated deficit                                                 (17,320)        -28,092      10,772       -38.3%

     Total stockholders’ equity                                               50,718         35,479       15,239        43.0%

 Total liabilities and stockholders’ equity                                  265,272        246,254       19,018         7.7%
Zappos Cash Flow Statement as of 12/31/08

                                                                                                            Deltas
                                                                      12/31/2008     12/31/2007     08 v 07 $    08 v 07 %
 Operating activities
    Net income                                                            10,772           1,768        9,004       509.3%
        Adjustments to reconcile net income to net cash provided by
        operating activities:
            Amortization of deferred financing costs                          309            288           21         7.3%
            Depreciation and amortization                                 11,481           9,682        1,799        18.6%
            Impairment of fixed assets                                        638          2,133       (1,495)      -70.1%
            Asset retirement obligation                                        59             62           (3)       -4.8%
            Reserves on returns                                             1,875          3,813       (1,938)      -50.8%
            Provision for bad and doubtful debt                               145             63           82       130.2%
            Provision for excess and obsolete inventory                     2,223          2,985         (762)      -25.5%
            Stock-based compensation                                        2,884          1,997          887        44.4%
            Deferred income taxes                                           (927)        (2,980)        2,053       -68.9%
            Cumulative effect of the adoption of FIN 48                         -          (500)          500      -100.0%
            Loss on disposal of property and equipment                          6            350         (344)      -98.3%
            Change in carrying value of preferred stock warrants          (9,670)        10,825       (20,495)     -189.3%
            Changes in operating assets and liabilities:
                 Credit card and other receivables                          1,545        (3,506)        5,051      -144.1%
                 Merchandise inventory                                    (8,366)       (20,681)       12,315       -59.5%
                 Prepaid expenses and other assets                        (2,354)        (1,083)       (1,271)      117.4%
                 Accounts payable                                         (7,443)         16,937      (24,380)     -143.9%
                 Accrued and other liabilities                            22,415          11,494       10,921        95.0%

 Net cash provided by operating activities                                25,592         33,647        (8,055)      -23.9%

 Investing activities
     Purchase of property and equipment                                  (13,471)       (11,108)       (2,363)       21.3%
     Purchase of intangible assets                                        (4,850)              -       (4,850)   #DIV/0!
     Purchase of 6pm.com intangible assets and inventory                        -        (4,000)        4,000      -100.0%
     Decrease in restricted cash                                              404          5,714       (5,310)      -92.9%

 Net cash used in investing activities                                   (17,917)        (9,394)       (8,523)       90.7%

 Financing activities
     Proceeds from exercise of employee stock options                          282            204          78        38.2%
     Repurchase and retirement of stock                                          -        (3,000)       3,000      -100.0%
     Excess tax benefit on stock awards                                      1,301            443         858       193.7%
     Increase in restricted cash                                             (962)          (404)        (558)      138.1%
     Borrowings under revolving line of credit                            666,333        549,184      117,149        21.3%
     Repayment of borrowings under revolving line of credit             (669,327)      (564,965)     (104,362)       18.5%
     Borrowings under loans                                                    271          3,501      (3,230)      -92.3%
     Repayment of loan and construction payables                           (2,566)        (2,595)          29        -1.1%
     Payment of capital leases                                             (1,178)        (1,152)         (26)        2.3%

 Net cash used in financing activities                                    (5,846)       (18,784)       12,938       -68.9%
 Change in cash and cash equivalents                                        1,829          5,469       (3,640)      -66.6%
 Cash and cash equivalents at beginning of year                             6,761          1,292        5,469       423.3%

 Cash and cash equivalents at end of year                                   8,590          6,761        1,829        27.1%

More Related Content

What's hot

Amazon marketing plan
Amazon marketing planAmazon marketing plan
Amazon marketing plan
Freskida Ikonomi
 
Pets
PetsPets
Pets
frit0087
 
Blue Prism Training Demo
Blue Prism Training DemoBlue Prism Training Demo
Blue Prism Training Demo
Shekar S
 
The letter W
The letter WThe letter W
The letter W
wojcmich
 
Robotic process automation
Robotic process automationRobotic process automation
Robotic process automation
Bharadwaj Choudhury
 
Robotic Process Automation (RPA)
Robotic Process Automation (RPA)Robotic Process Automation (RPA)
Robotic Process Automation (RPA)
Amy Simpson-Grange
 
What are clothes made of
What are clothes made ofWhat are clothes made of
What are clothes made of
CEIPRamonycajallaorotava
 
Robotic process automation Introduction
Robotic process automation IntroductionRobotic process automation Introduction
Robotic process automation Introduction
Priyab Satoshi
 
Robotic Process Automation RPA
Robotic Process Automation RPARobotic Process Automation RPA
Robotic Process Automation RPA
Mohita U
 
Love poems
Love poems Love poems
Love poems
Nabi Luster
 
Amazon
AmazonAmazon
Amazon
diegohs
 
Amazon.com Business Model
Amazon.com Business ModelAmazon.com Business Model
Amazon.com Business Model
Raveena Balani
 
Barbie - Brand Strategy Presentation
Barbie - Brand Strategy PresentationBarbie - Brand Strategy Presentation
Barbie - Brand Strategy Presentation
Erica Santiago
 
3 Amazing Examples of Real-life RPA Use Cases - Signity
3 Amazing Examples of Real-life RPA Use Cases - Signity3 Amazing Examples of Real-life RPA Use Cases - Signity
3 Amazing Examples of Real-life RPA Use Cases - Signity
Megha V
 
How to design RPA performance metrics
How to design RPA performance metricsHow to design RPA performance metrics
How to design RPA performance metrics
ARJUN S MEDA
 

What's hot (15)

Amazon marketing plan
Amazon marketing planAmazon marketing plan
Amazon marketing plan
 
Pets
PetsPets
Pets
 
Blue Prism Training Demo
Blue Prism Training DemoBlue Prism Training Demo
Blue Prism Training Demo
 
The letter W
The letter WThe letter W
The letter W
 
Robotic process automation
Robotic process automationRobotic process automation
Robotic process automation
 
Robotic Process Automation (RPA)
Robotic Process Automation (RPA)Robotic Process Automation (RPA)
Robotic Process Automation (RPA)
 
What are clothes made of
What are clothes made ofWhat are clothes made of
What are clothes made of
 
Robotic process automation Introduction
Robotic process automation IntroductionRobotic process automation Introduction
Robotic process automation Introduction
 
Robotic Process Automation RPA
Robotic Process Automation RPARobotic Process Automation RPA
Robotic Process Automation RPA
 
Love poems
Love poems Love poems
Love poems
 
Amazon
AmazonAmazon
Amazon
 
Amazon.com Business Model
Amazon.com Business ModelAmazon.com Business Model
Amazon.com Business Model
 
Barbie - Brand Strategy Presentation
Barbie - Brand Strategy PresentationBarbie - Brand Strategy Presentation
Barbie - Brand Strategy Presentation
 
3 Amazing Examples of Real-life RPA Use Cases - Signity
3 Amazing Examples of Real-life RPA Use Cases - Signity3 Amazing Examples of Real-life RPA Use Cases - Signity
3 Amazing Examples of Real-life RPA Use Cases - Signity
 
How to design RPA performance metrics
How to design RPA performance metricsHow to design RPA performance metrics
How to design RPA performance metrics
 

Viewers also liked

Zappos case study
Zappos case studyZappos case study
Zappos case study
Toko Bunga Surabaya
 
Zappos final
Zappos finalZappos final
Zappos final
Jamie Jackson
 
Zappos
ZapposZappos
Zappos
Sumeet Kad
 
Zappos Case Analysis Itm Fenway Cohort Team 9
Zappos Case Analysis  Itm  Fenway Cohort  Team 9Zappos Case Analysis  Itm  Fenway Cohort  Team 9
Zappos Case Analysis Itm Fenway Cohort Team 9
Ashish Tandon
 
When Culture Is Everything - A Brief Lesson from Zappos
When Culture Is Everything - A Brief Lesson from ZapposWhen Culture Is Everything - A Brief Lesson from Zappos
When Culture Is Everything - A Brief Lesson from Zappos
Agus Iskandar
 
Zappos Strategic Analysis
Zappos Strategic AnalysisZappos Strategic Analysis
Zappos Strategic Analysis
arfo ardhiyanto
 
Zappos lessons: Building a Customer-Focused Culture
Zappos lessons: Building a Customer-Focused CultureZappos lessons: Building a Customer-Focused Culture
Zappos lessons: Building a Customer-Focused Culture
Thor
 
Zappos
ZapposZappos
Zappos
Min Lee
 
Zappos.com
Zappos.comZappos.com
Zappos.com
Ajoy Raj
 
Евгений Кобзев, Прикладная и абстрактная холакратия
Евгений Кобзев, Прикладная и абстрактная холакратияЕвгений Кобзев, Прикладная и абстрактная холакратия
Евгений Кобзев, Прикладная и абстрактная холакратия
ScrumTrek
 
Zappos com
Zappos comZappos com
Zappos com
Debashish Bagg
 
Zappos.Com, por Tony Hsieh
Zappos.Com, por Tony HsiehZappos.Com, por Tony Hsieh
Zappos.Com, por Tony Hsieh
Now! Digital Business
 
Ewan developing the agile mindset for organizational agility
Ewan   developing the agile mindset for organizational agilityEwan   developing the agile mindset for organizational agility
Ewan developing the agile mindset for organizational agility
Magneta AI
 
Zappos Analysis and Implementation Pitch
Zappos Analysis and Implementation PitchZappos Analysis and Implementation Pitch
Zappos Analysis and Implementation Pitch
Sabina Chaudhuri
 
Organicational Structure of Islamic Banking Institutions
Organicational Structure of Islamic Banking InstitutionsOrganicational Structure of Islamic Banking Institutions
Organicational Structure of Islamic Banking Institutions
rehaniltifat
 
iStrategy AMS 2011 - Michael Aidan, Evian
iStrategy AMS 2011 - Michael Aidan, EvianiStrategy AMS 2011 - Michael Aidan, Evian
iStrategy AMS 2011 - Michael Aidan, Evian
iStrategy
 
Zappos Ppt
Zappos PptZappos Ppt
Zappos Ppt
Adreka
 
IKEA Digital Marketing Strategy
IKEA Digital Marketing StrategyIKEA Digital Marketing Strategy
IKEA Digital Marketing Strategy
Jonathan B
 
Starbucks Digital Strategy Plan
Starbucks Digital Strategy PlanStarbucks Digital Strategy Plan
Starbucks Digital Strategy Plan
westmorelandtaylor
 
Marketing Positioning Tesla / Positioning a product
Marketing Positioning Tesla / Positioning a product Marketing Positioning Tesla / Positioning a product
Marketing Positioning Tesla / Positioning a product
Kseniia Udovitskaia
 

Viewers also liked (20)

Zappos case study
Zappos case studyZappos case study
Zappos case study
 
Zappos final
Zappos finalZappos final
Zappos final
 
Zappos
ZapposZappos
Zappos
 
Zappos Case Analysis Itm Fenway Cohort Team 9
Zappos Case Analysis  Itm  Fenway Cohort  Team 9Zappos Case Analysis  Itm  Fenway Cohort  Team 9
Zappos Case Analysis Itm Fenway Cohort Team 9
 
When Culture Is Everything - A Brief Lesson from Zappos
When Culture Is Everything - A Brief Lesson from ZapposWhen Culture Is Everything - A Brief Lesson from Zappos
When Culture Is Everything - A Brief Lesson from Zappos
 
Zappos Strategic Analysis
Zappos Strategic AnalysisZappos Strategic Analysis
Zappos Strategic Analysis
 
Zappos lessons: Building a Customer-Focused Culture
Zappos lessons: Building a Customer-Focused CultureZappos lessons: Building a Customer-Focused Culture
Zappos lessons: Building a Customer-Focused Culture
 
Zappos
ZapposZappos
Zappos
 
Zappos.com
Zappos.comZappos.com
Zappos.com
 
Евгений Кобзев, Прикладная и абстрактная холакратия
Евгений Кобзев, Прикладная и абстрактная холакратияЕвгений Кобзев, Прикладная и абстрактная холакратия
Евгений Кобзев, Прикладная и абстрактная холакратия
 
Zappos com
Zappos comZappos com
Zappos com
 
Zappos.Com, por Tony Hsieh
Zappos.Com, por Tony HsiehZappos.Com, por Tony Hsieh
Zappos.Com, por Tony Hsieh
 
Ewan developing the agile mindset for organizational agility
Ewan   developing the agile mindset for organizational agilityEwan   developing the agile mindset for organizational agility
Ewan developing the agile mindset for organizational agility
 
Zappos Analysis and Implementation Pitch
Zappos Analysis and Implementation PitchZappos Analysis and Implementation Pitch
Zappos Analysis and Implementation Pitch
 
Organicational Structure of Islamic Banking Institutions
Organicational Structure of Islamic Banking InstitutionsOrganicational Structure of Islamic Banking Institutions
Organicational Structure of Islamic Banking Institutions
 
iStrategy AMS 2011 - Michael Aidan, Evian
iStrategy AMS 2011 - Michael Aidan, EvianiStrategy AMS 2011 - Michael Aidan, Evian
iStrategy AMS 2011 - Michael Aidan, Evian
 
Zappos Ppt
Zappos PptZappos Ppt
Zappos Ppt
 
IKEA Digital Marketing Strategy
IKEA Digital Marketing StrategyIKEA Digital Marketing Strategy
IKEA Digital Marketing Strategy
 
Starbucks Digital Strategy Plan
Starbucks Digital Strategy PlanStarbucks Digital Strategy Plan
Starbucks Digital Strategy Plan
 
Marketing Positioning Tesla / Positioning a product
Marketing Positioning Tesla / Positioning a product Marketing Positioning Tesla / Positioning a product
Marketing Positioning Tesla / Positioning a product
 

Similar to Zappos Financials

itw confrence call-Q32005O riginal
itw confrence call-Q32005O riginalitw confrence call-Q32005O riginal
itw confrence call-Q32005O riginal
finance16
 
itw confrencecall-Q12006 Original
itw confrencecall-Q12006 Originalitw confrencecall-Q12006 Original
itw confrencecall-Q12006 Original
finance16
 
itw_050127
itw_050127itw_050127
itw_050127
finance16
 
itw_041019
itw_041019itw_041019
itw_041019
finance16
 
ITW_041905
ITW_041905ITW_041905
ITW_041905
finance16
 
ITW_Q405
ITW_Q405ITW_Q405
ITW_Q405
finance16
 
itw_q205
itw_q205itw_q205
itw_q205
finance16
 
itw_Q206
itw_Q206itw_Q206
itw_Q206
finance16
 
itw confrence_call-Q3_2003_Original
itw confrence_call-Q3_2003_Originalitw confrence_call-Q3_2003_Original
itw confrence_call-Q3_2003_Original
finance16
 
Presentation CCR - 3Q09
Presentation CCR - 3Q09Presentation CCR - 3Q09
Presentation CCR - 3Q09
CCR Relações com Investidores
 
Anthem Southeast Historical Data
Anthem Southeast Historical DataAnthem Southeast Historical Data
Anthem Southeast Historical Data
finance4
 
ITW_Q306
ITW_Q306ITW_Q306
ITW_Q306
finance16
 
Erin Parker Atvidcf V1
Erin Parker Atvidcf V1Erin Parker Atvidcf V1
Erin Parker Atvidcf V1
Caneskid05
 
itw confrence call-Q4_2003_Original
itw confrence call-Q4_2003_Originalitw confrence call-Q4_2003_Original
itw confrence call-Q4_2003_Original
finance16
 
Second Quarter 2007 Earnings Presentation
Second Quarter 2007 Earnings PresentationSecond Quarter 2007 Earnings Presentation
Second Quarter 2007 Earnings Presentation
QuarterlyEarningsReports3
 
Investors' Meeting Presentation - 4Q09 Results
Investors' Meeting Presentation - 4Q09 ResultsInvestors' Meeting Presentation - 4Q09 Results
Investors' Meeting Presentation - 4Q09 Results
CCR Relações com Investidores
 
itw_040721
itw_040721itw_040721
itw_040721
finance16
 
Ppt ideko spx_team
Ppt ideko spx_teamPpt ideko spx_team
Ppt ideko spx_team
Marcos Salama
 
Press release Hera Group 3q 2008
Press release Hera Group 3q 2008Press release Hera Group 3q 2008
Press release Hera Group 3q 2008
Hera Group
 
itw 072203
 itw 072203 itw 072203
itw 072203
finance16
 

Similar to Zappos Financials (20)

itw confrence call-Q32005O riginal
itw confrence call-Q32005O riginalitw confrence call-Q32005O riginal
itw confrence call-Q32005O riginal
 
itw confrencecall-Q12006 Original
itw confrencecall-Q12006 Originalitw confrencecall-Q12006 Original
itw confrencecall-Q12006 Original
 
itw_050127
itw_050127itw_050127
itw_050127
 
itw_041019
itw_041019itw_041019
itw_041019
 
ITW_041905
ITW_041905ITW_041905
ITW_041905
 
ITW_Q405
ITW_Q405ITW_Q405
ITW_Q405
 
itw_q205
itw_q205itw_q205
itw_q205
 
itw_Q206
itw_Q206itw_Q206
itw_Q206
 
itw confrence_call-Q3_2003_Original
itw confrence_call-Q3_2003_Originalitw confrence_call-Q3_2003_Original
itw confrence_call-Q3_2003_Original
 
Presentation CCR - 3Q09
Presentation CCR - 3Q09Presentation CCR - 3Q09
Presentation CCR - 3Q09
 
Anthem Southeast Historical Data
Anthem Southeast Historical DataAnthem Southeast Historical Data
Anthem Southeast Historical Data
 
ITW_Q306
ITW_Q306ITW_Q306
ITW_Q306
 
Erin Parker Atvidcf V1
Erin Parker Atvidcf V1Erin Parker Atvidcf V1
Erin Parker Atvidcf V1
 
itw confrence call-Q4_2003_Original
itw confrence call-Q4_2003_Originalitw confrence call-Q4_2003_Original
itw confrence call-Q4_2003_Original
 
Second Quarter 2007 Earnings Presentation
Second Quarter 2007 Earnings PresentationSecond Quarter 2007 Earnings Presentation
Second Quarter 2007 Earnings Presentation
 
Investors' Meeting Presentation - 4Q09 Results
Investors' Meeting Presentation - 4Q09 ResultsInvestors' Meeting Presentation - 4Q09 Results
Investors' Meeting Presentation - 4Q09 Results
 
itw_040721
itw_040721itw_040721
itw_040721
 
Ppt ideko spx_team
Ppt ideko spx_teamPpt ideko spx_team
Ppt ideko spx_team
 
Press release Hera Group 3q 2008
Press release Hera Group 3q 2008Press release Hera Group 3q 2008
Press release Hera Group 3q 2008
 
itw 072203
 itw 072203 itw 072203
itw 072203
 

More from John Mecke

How to build a M&A strategy
How to build a M&A strategyHow to build a M&A strategy
How to build a M&A strategy
John Mecke
 
10 Lies Angels Tell
10 Lies Angels Tell10 Lies Angels Tell
10 Lies Angels Tell
John Mecke
 
Acquisition Candidate Analysis
Acquisition Candidate AnalysisAcquisition Candidate Analysis
Acquisition Candidate Analysis
John Mecke
 
11 Creative Excuses for Skipping Work
11 Creative Excuses for Skipping Work11 Creative Excuses for Skipping Work
11 Creative Excuses for Skipping Work
John Mecke
 
The Real Meaning Of Words
The Real Meaning Of WordsThe Real Meaning Of Words
The Real Meaning Of Words
John Mecke
 
Why Dont People Like Me
Why Dont People Like MeWhy Dont People Like Me
Why Dont People Like Me
John Mecke
 
3 Ws Of Visibility And Demand Management Final
3 Ws Of Visibility And Demand Management    Final3 Ws Of Visibility And Demand Management    Final
3 Ws Of Visibility And Demand Management Final
John Mecke
 
Stuck In Neutral
Stuck In NeutralStuck In Neutral
Stuck In Neutral
John Mecke
 
Financial Literacy: Money Wheel Analysis
Financial Literacy: Money Wheel AnalysisFinancial Literacy: Money Wheel Analysis
Financial Literacy: Money Wheel Analysis
John Mecke
 
SaaS Revenue Primer Tiering Analysis
SaaS Revenue Primer   Tiering AnalysisSaaS Revenue Primer   Tiering Analysis
SaaS Revenue Primer Tiering Analysis
John Mecke
 

More from John Mecke (10)

How to build a M&A strategy
How to build a M&A strategyHow to build a M&A strategy
How to build a M&A strategy
 
10 Lies Angels Tell
10 Lies Angels Tell10 Lies Angels Tell
10 Lies Angels Tell
 
Acquisition Candidate Analysis
Acquisition Candidate AnalysisAcquisition Candidate Analysis
Acquisition Candidate Analysis
 
11 Creative Excuses for Skipping Work
11 Creative Excuses for Skipping Work11 Creative Excuses for Skipping Work
11 Creative Excuses for Skipping Work
 
The Real Meaning Of Words
The Real Meaning Of WordsThe Real Meaning Of Words
The Real Meaning Of Words
 
Why Dont People Like Me
Why Dont People Like MeWhy Dont People Like Me
Why Dont People Like Me
 
3 Ws Of Visibility And Demand Management Final
3 Ws Of Visibility And Demand Management    Final3 Ws Of Visibility And Demand Management    Final
3 Ws Of Visibility And Demand Management Final
 
Stuck In Neutral
Stuck In NeutralStuck In Neutral
Stuck In Neutral
 
Financial Literacy: Money Wheel Analysis
Financial Literacy: Money Wheel AnalysisFinancial Literacy: Money Wheel Analysis
Financial Literacy: Money Wheel Analysis
 
SaaS Revenue Primer Tiering Analysis
SaaS Revenue Primer   Tiering AnalysisSaaS Revenue Primer   Tiering Analysis
SaaS Revenue Primer Tiering Analysis
 

Recently uploaded

Best Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management StudentsBest Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management Students
zoyaws1
 
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
emmanuelpulido003
 
Corporate Governance for South African Mining Companies
Corporate Governance for South African Mining CompaniesCorporate Governance for South African Mining Companies
Corporate Governance for South African Mining Companies
James AH Campbell
 
AI at Work​ The demystification of AI and real-world stories on how to apply ...
AI at Work​ The demystification of AI and real-world stories on how to apply ...AI at Work​ The demystification of AI and real-world stories on how to apply ...
AI at Work​ The demystification of AI and real-world stories on how to apply ...
Auxis Consulting & Outsourcing
 
Satta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatkaSatta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatka
➑➌➋➑➒➎➑➑➊➍
 
Business Model Canvas for Successful Business
Business Model Canvas for Successful BusinessBusiness Model Canvas for Successful Business
Business Model Canvas for Successful Business
SuganthiPrakash1
 
Zodiac Signs and Fashion: Dressing to Suit Your Astrological Style
Zodiac Signs and Fashion: Dressing to Suit Your Astrological StyleZodiac Signs and Fashion: Dressing to Suit Your Astrological Style
Zodiac Signs and Fashion: Dressing to Suit Your Astrological Style
my Pandit
 
Luxury Lifestyle Summit 2024 - Sponsorship
Luxury Lifestyle Summit 2024 - SponsorshipLuxury Lifestyle Summit 2024 - Sponsorship
Luxury Lifestyle Summit 2024 - Sponsorship
uitdiedosfinance
 
Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...
Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...
Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...
IMARC Group
 
1234567891011121314151617181920212223242
12345678910111213141516171819202122232421234567891011121314151617181920212223242
1234567891011121314151617181920212223242
fauzanal343
 
Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...
Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...
Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...
Aggregage
 
foodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docxfoodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docx
PraghyaBhandari
 
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Philip M Caputo
 
Mandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your roleMandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your role
khidalgo2
 
New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...
New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...
New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...
44annissa
 
Module 4 Business Strategy competitive advantages
Module 4 Business Strategy competitive advantagesModule 4 Business Strategy competitive advantages
Module 4 Business Strategy competitive advantages
Seta Wicaksana
 
A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024
Dubiz
 
Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...
margaretblush
 
Connected Small Boat Protection Solution | July 2024
Connected Small Boat Protection Solution | July  2024Connected Small Boat Protection Solution | July  2024
Connected Small Boat Protection Solution | July 2024
Hector Del Castillo, CPM, CPMM
 
Millionaire track government application
Millionaire track government applicationMillionaire track government application
Millionaire track government application
pragyasharma659549
 

Recently uploaded (20)

Best Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management StudentsBest Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management Students
 
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
 
Corporate Governance for South African Mining Companies
Corporate Governance for South African Mining CompaniesCorporate Governance for South African Mining Companies
Corporate Governance for South African Mining Companies
 
AI at Work​ The demystification of AI and real-world stories on how to apply ...
AI at Work​ The demystification of AI and real-world stories on how to apply ...AI at Work​ The demystification of AI and real-world stories on how to apply ...
AI at Work​ The demystification of AI and real-world stories on how to apply ...
 
Satta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatkaSatta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatka
 
Business Model Canvas for Successful Business
Business Model Canvas for Successful BusinessBusiness Model Canvas for Successful Business
Business Model Canvas for Successful Business
 
Zodiac Signs and Fashion: Dressing to Suit Your Astrological Style
Zodiac Signs and Fashion: Dressing to Suit Your Astrological StyleZodiac Signs and Fashion: Dressing to Suit Your Astrological Style
Zodiac Signs and Fashion: Dressing to Suit Your Astrological Style
 
Luxury Lifestyle Summit 2024 - Sponsorship
Luxury Lifestyle Summit 2024 - SponsorshipLuxury Lifestyle Summit 2024 - Sponsorship
Luxury Lifestyle Summit 2024 - Sponsorship
 
Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...
Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...
Singapore Pharmaceutical Market PPT: Growth, Outlook, Demand, Keyplayer Analy...
 
1234567891011121314151617181920212223242
12345678910111213141516171819202122232421234567891011121314151617181920212223242
1234567891011121314151617181920212223242
 
Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...
Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...
Don’t Get Left Behind: Leveraging Modern Product Management Across the Organi...
 
foodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docxfoodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docx
 
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
 
Mandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your roleMandated reporting powerpoint to help with understanding your role
Mandated reporting powerpoint to help with understanding your role
 
New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...
New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...
New Girls Call Mumbai 9910780858 Provide Best And Top Girl Service And No1 in...
 
Module 4 Business Strategy competitive advantages
Module 4 Business Strategy competitive advantagesModule 4 Business Strategy competitive advantages
Module 4 Business Strategy competitive advantages
 
A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024
 
Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...
Girls Call Andheri West 9910780858 Provide Best And Top Girl Service And No1 ...
 
Connected Small Boat Protection Solution | July 2024
Connected Small Boat Protection Solution | July  2024Connected Small Boat Protection Solution | July  2024
Connected Small Boat Protection Solution | July 2024
 
Millionaire track government application
Millionaire track government applicationMillionaire track government application
Millionaire track government application
 

Zappos Financials

  • 1. Zappos Consolidated Statement of Operations Q1 2009 vs Q1 2008 Deltas 3/31/2009 3/31/2008 08 v 07 $ 08 v 07 % Net revenues 143,866 132,708 11,158 8.4% Cost of revenues 94,537 84,248 10,289 12.2% Gross profit 49,329 48,460 869 1.8% Operating expenses: Sales, marketing and fulfillment 34,818 32,930 1,888 5.7% General and administrative 5,202 6,127 -925 -15.1% Product development 5,747 6,288 -541 -8.6% Total operating expenses 45,767 45,345 422 0.9% Income from operations 3,562 3,115 447 14.3% Interest and other income, net 72 192 -120 -62.5% Interest (expense) benefit associated with preferred stock warrant -1281 26 -1,307 -5026.9% Other interest expense -950 -1747 797 -45.6% Other financing charges -123 -158 35 -22.2% Income before (provision) benefit for income taxes 1,280 1,428 -148 -10.4% (Provision) benefit for income taxes -1013 12 -1,025 -8541.7% Net income from continuing operations 267 1,440 -1,173 -81.5% Discontinued operations, net of tax -46 -846 800 -94.6% Net income 221 594 -373 -62.8% Key Ratios Gross Margin 34.3% 36.5% -2.2% -6.1% Operating Profit Margin 2.5% 2.3% 0.1% 5.5% Net Income % 0.2% 1.1% -0.9% -82.9%
  • 2. Zappos Consolidated Statement of Operations Deltas 12/31/2008 12/31/2007 08 v 07 $ 08 v 07 % Net revenues 635,011 526,829 108,182 20.5% Cost of revenues 411,650 333,884 77,766 23.3% Gross profit 223,361 192,945 30,416 15.8% Operating expenses: Sales, marketing and fulfillment 153,285 123,260 30,025 24.4% General and administrative 23,041 18,962 4,079 21.5% Product development 25,262 18,224 7,038 38.6% Total operating expenses 201,588 160,446 41,142 25.6% Income from operations 21,773 32,499 (10,726) -33.0% Interest and other income, net 559 731 (172) -23.5% Interest benefit (expense) associated with preferred stock warrant 9,670 (10,825) 20,495 -189.3% Other interest expense (5,825) (6,930) 1,105 -15.9% Other financing charges (832) (335) (497) 148.4% Income before provision for income taxes 25,345 15,140 10,205 67.4% Provision for income taxes (5,208) (10,288) 5,080 -49.4% Net income from continuing operations 20,137 4,852 15,285 315.0% Discontinued operations, net of tax (9,365) (3,084) (6,281) 203.7% Net income 10,772 1,768 9,004 509.3% Deltas Key Metrics 12/31/2008 12/31/2007 08 v 07 $ 08 v 07 % Gross Margin 35.2% 36.6% -1.4% -4.0% Operating Profit Margin 3.4% 6.2% -2.7% -44.4% EBTIDA Calculation Operating Profit 21,773 32,499 (10,726) -33.0% Add Backs Depreciation & Amortization 11,790 9,970 1,820 18.3% Stock based Compensation 2,884 1,997 887 44.4% Interest & Financing Charges 6,657 7,265 (608) -8.4% Taxes 5,208 10,288 (5,080) -49.4% Total Add Backs 26,539 29,520 (2,981) -10.1% Estimated EBITDA 48,312 62,019 (13,707) -22.1% EBITDA % 7.6% 11.8%
  • 3. Zappos Balance Sheet as of 12/31/08 Deltas 12/31/2008 12/31/2007 08 v 07 $ 08 v 07 % Assets Current assets: Cash and cash equivalents 8,590 6,761 1,829 27.1% Restricted cash 2,245 1,687 558 33.1% Accounts receivable, net 6,772 8,461 (1,689) -20.0% Inventory, net 168,131 161,988 6,143 3.8% Deferred income taxes 15,890 12,267 3,623 29.5% Prepaid expenses and other assets 3,253 2,596 657 25.3% Total current assets 204,881 193,760 11,121 5.7% Property and equipment, net 48,962 44,286 4,676 10.6% Deferred income taxes 708 3,098 (2,390) -77.1% Intangible assets, net 8,646 4,405 4,241 96.3% Other assets, net 2,075 705 1,370 194.3% Total assets 265,272 246,254 19,018 7.7% Liabilities and stockholders’ equity Current liabilities: Accounts payable 69,792 76,055 (6,263) -8.2% Accrued and other liabilities 51,409 28,467 22,942 80.6% Deferred income taxes 559 527 32 6.1% Accrued sales returns 18,637 16,762 1,875 11.2% Current portion of loan obligations 4,863 2,747 2,116 77.0% Current portion of capital lease obligations 1,490 1,051 439 41.8% Revolving line of credit 26,006 29,000 (2,994) -10.3% Total current liabilities 172,756 154,609 18,147 11.7% Deferred rent 1,514 1,883 (369) -19.6% Deferred income taxes 2,870 3,418 (548) -16.0% Other long term liabilities 19,935 28,868 (8,933) -30.9% Loan obligations, noncurrent 15,777 20,188 (4,411) -21.8% Capital lease obligations, noncurrent 1,702 1,809 (107) -5.9% Total liabilities 214,554 210,775 3,779 1.8% Stockholders’ equity: Convertible preferred stock; $0.001 par value; 35,997 authorized, 29,248, and 29,285 issued and outstanding (aggregate liquidation preference—$181,466 and $181,469) 61,465 61,465 - 0.0% Common stock; $0.001 par value; 60,000 authorized, 15,916 and 14,260 issued and outstanding 16 14 2 14.3% Additional paid-in capital 6,557 2,092 4,465 213.4% Accumulated deficit (17,320) -28,092 10,772 -38.3% Total stockholders’ equity 50,718 35,479 15,239 43.0% Total liabilities and stockholders’ equity 265,272 246,254 19,018 7.7%
  • 4. Zappos Cash Flow Statement as of 12/31/08 Deltas 12/31/2008 12/31/2007 08 v 07 $ 08 v 07 % Operating activities Net income 10,772 1,768 9,004 509.3% Adjustments to reconcile net income to net cash provided by operating activities: Amortization of deferred financing costs 309 288 21 7.3% Depreciation and amortization 11,481 9,682 1,799 18.6% Impairment of fixed assets 638 2,133 (1,495) -70.1% Asset retirement obligation 59 62 (3) -4.8% Reserves on returns 1,875 3,813 (1,938) -50.8% Provision for bad and doubtful debt 145 63 82 130.2% Provision for excess and obsolete inventory 2,223 2,985 (762) -25.5% Stock-based compensation 2,884 1,997 887 44.4% Deferred income taxes (927) (2,980) 2,053 -68.9% Cumulative effect of the adoption of FIN 48 - (500) 500 -100.0% Loss on disposal of property and equipment 6 350 (344) -98.3% Change in carrying value of preferred stock warrants (9,670) 10,825 (20,495) -189.3% Changes in operating assets and liabilities: Credit card and other receivables 1,545 (3,506) 5,051 -144.1% Merchandise inventory (8,366) (20,681) 12,315 -59.5% Prepaid expenses and other assets (2,354) (1,083) (1,271) 117.4% Accounts payable (7,443) 16,937 (24,380) -143.9% Accrued and other liabilities 22,415 11,494 10,921 95.0% Net cash provided by operating activities 25,592 33,647 (8,055) -23.9% Investing activities Purchase of property and equipment (13,471) (11,108) (2,363) 21.3% Purchase of intangible assets (4,850) - (4,850) #DIV/0! Purchase of 6pm.com intangible assets and inventory - (4,000) 4,000 -100.0% Decrease in restricted cash 404 5,714 (5,310) -92.9% Net cash used in investing activities (17,917) (9,394) (8,523) 90.7% Financing activities Proceeds from exercise of employee stock options 282 204 78 38.2% Repurchase and retirement of stock - (3,000) 3,000 -100.0% Excess tax benefit on stock awards 1,301 443 858 193.7% Increase in restricted cash (962) (404) (558) 138.1% Borrowings under revolving line of credit 666,333 549,184 117,149 21.3% Repayment of borrowings under revolving line of credit (669,327) (564,965) (104,362) 18.5% Borrowings under loans 271 3,501 (3,230) -92.3% Repayment of loan and construction payables (2,566) (2,595) 29 -1.1% Payment of capital leases (1,178) (1,152) (26) 2.3% Net cash used in financing activities (5,846) (18,784) 12,938 -68.9% Change in cash and cash equivalents 1,829 5,469 (3,640) -66.6% Cash and cash equivalents at beginning of year 6,761 1,292 5,469 423.3% Cash and cash equivalents at end of year 8,590 6,761 1,829 27.1%