Amazon have released their first quarter financial results, and set an extremely hard act for eBay to follow, particularly after the auction site’s dismal performance in the last quarter of 2008.

A quick skim of the press release for details that jump out reveals -

Net sales increased 18% to $4.89 billion in the first quarter, compared with $4.13 billion in first quarter 2008. Excluding the $268 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 25% compared with first quarter 2008.

Operating income increased 23% to $244 million in the first quarter, compared with $198 million in first quarter 2008. Excluding the $32 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, operating income would have grown 39% compared with first quarter 2008.

Net income increased 24% to $177 million in the first quarter, or $0.41 per diluted share, compared with net income of $143 million, or $0.34 per diluted share, in first quarter 2008.

So the summary there is actual net sales up 18% and actual net income up 24% – there’s the markers that eBay have to beat at the simplest analysis. Some further markers when breaking down regions are -

North America segment sales, representing the Company’s U.S. and Canadian sites, were $2.58 billion, up 21% from first quarter 2008.

International segment sales, representing the Company’s U.K., German, Japanese, French and Chinese sites, were $2.31 billion, up 15% from first quarter 2008. Excluding the unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, International sales grew 28%.

Worldwide Media sales grew 7% to $2.72 billion, compared with $2.54 billion in first quarter 2008.

Worldwide Electronics & Other General Merchandise sales grew 38% to $2.05 billion, compared with $1.48 billion in first quarter 2008, and increased to 42% of worldwide net sales compared with 36%.

Items shipped on behalf of sellers who utilized Fulfillment by Amazon increased by more than 300% from the prior year.

OK, summary again – North America up 21%, Rest of World up 15%, and FBA up 300% (unstated, but possibly boosted heavily by eBay sellers worried about shipping DSRs – I know Randy Smythe swears by it).

Also, in spite of heavy seller-fee discounting, and buyer-bribing, on eBay – Amazon’s Media sales worldwide grew 7%, whilst Electronics (another eBay struggle-zone becoming dominated by Diamond Discounters) grew GMV by 38% and expanded within the overall Amazon marketplace by 6% – again, is fallout from eBay seller defections due to Donahoe’s Disruptions?

Looking forward, Amazon’s predictions are in stark contract to the negative news from eBay at last month’s Analyst’s Day -

Net sales are expected to be between $4.30 billion and $4.75 billion, or to grow between 6% and 17% compared with second quarter 2008.

Operating income is expected to be between $110 million and $190 million, or decline between 49% and 12% compared with second quarter 2008. The second quarter 2008 results include the $53 million non-cash gain recognized on the sale of the Company’s European DVD rental assets.

I’m not familiar with the background to that second paragraph and will need to look into it further, however the 6% to 17% net sales growth is again the opposite direction to what eBay are saying they will achieve.

Amazon have a conference call webcast live today (23 April) at 2:00pm Pacific Time / 5:00pm Eastern Time, which they say will be available for at least three months at www.amazon.com/ir.

Deeper analysis from Ed when he wakes up – I’ve been burning the midnight oil.

Gaz