In the Amazon 2001 Q4 fund letter, Amazon (AMZN, Financial) was highlighted for its strategic shift towards balancing growth with cost efficiency. This pivot came after years of focusing solely on growth followed by a period dedicated to cost reduction. The company reported a 13% increase in sales from $2.76 billion in 2000 to $3.12 billion in 2001, achieving its first billion-dollar quarter in Q4. International sales grew by 74%, with significant contributions from the U.K. and Germany, and Japan reaching a $100 million annual run rate. Despite these achievements, Amazon faced challenges with an accumulated deficit of $2.86 billion and significant long-term indebtedness of $2.16 billion. The company emphasized its commitment to generating meaningful, sustained free cash flow and maintaining a relentless focus on customer satisfaction, as evidenced by its top score in the American Customer Satisfaction Index.
"Our goal for 2002 reflects just that. As we said in January when we reported our fourth quarter results, we plan this year to generate positive operating cash flow, leading to free cash flow..." — Jeffrey P. Bezos, Amazon.com, Inc., Amazon 2001 Q4 Fund Letter
Read full letter at gurufocus Amazon 2001 Q4 page.
