Amazon.com Announces Third Quarter Results
SEATTLE----October 26, 2023--
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its third quarter ended September 30, 2023.
-- Net sales increased 13% to $143.1 billion in the third quarter,
compared with $127.1 billion in third quarter 2022. Excluding the $1.4
billion favorable impact from year-over-year changes in foreign exchange
rates throughout the quarter, net sales increased 11% compared with third
quarter 2022.
-- North America segment sales increased 11% year-over-year to
$87.9 billion.
-- International segment sales increased 16% year-over-year to
$32.1 billion, or increased 11% excluding changes in foreign
exchange rates.
-- AWS segment sales increased 12% year-over-year to $23.1
billion.
-- Operating income increased to $11.2 billion in the third quarter,
compared with $2.5 billion in third quarter 2022.
-- North America segment operating income was $4.3 billion,
compared with an operating loss of $0.4 billion in third quarter
2022.
-- International segment operating loss was $0.1 billion, compared
with an operating loss of $2.5 billion in third quarter 2022.
-- AWS segment operating income was $7.0 billion, compared with
operating income of $5.4 billion in third quarter 2022.
-- Net income increased to $9.9 billion in the third quarter, or $0.94 per
diluted share, compared with $2.9 billion, or $0.28 per diluted share, in
third quarter 2022.
-- Third quarter 2023 net income includes a pre-tax valuation gain
of $1.2 billion included in non-operating income (expense) from
the common stock investment in Rivian Automotive, Inc., compared
to a pre-tax valuation gain of $1.1 billion from the investment in
third quarter 2022.
-- Operating cash flow increased 81% to $71.7 billion for the trailing
twelve months, compared with $39.7 billion for the trailing twelve months
ended September 30, 2022.
-- Free cash flow improved to an inflow of $21.4 billion for the trailing
twelve months, compared with an outflow of $19.7 billion for the trailing
twelve months ended September 30, 2022.
-- Free cash flow less principal repayments of finance leases and
financing obligations improved to an inflow of $15.9 billion for the
trailing twelve months, compared with an outflow of $28.5 billion for the
trailing twelve months ended September 30, 2022.
-- Free cash flow less equipment finance leases and principal repayments
of all other finance leases and financing obligations improved to an
inflow of $20.2 billion for the trailing twelve months, compared with an
outflow of $21.5 billion for the trailing twelve months ended September
30, 2022.
“We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilize, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” said Andy Jassy, Amazon CEO. “The benefits of moving from a single national fulfillment network in the U.S. to eight distinct regions are exceeding our optimistic expectations, and perhaps most importantly, putting us on pace to deliver the fastest delivery speeds for Prime customers in our 29-year history. The AWS team continues to innovate and deliver at a rapid clip, particularly in generative AI, where the combination of our custom AI chips, Amazon Bedrock being the easiest and most flexible way to build and deploy generative AI applications, and our coding companion (CodeWhisperer) allowing enterprises to have the equivalent of an experienced engineer who understands all of their proprietary code is driving momentum with customers, including adidas, Booking.com, GoDaddy, LexisNexis, Merck, Royal Philips, and United Airlines, all of whom are starting to run generative AI workloads on AWS. Between AWS re:Invent and our 29th holiday shopping season, this is a particularly action-packed time of year at Amazon and we’re excited for what’s to come.”
Highlights
Obsessing over the customer experience
Amazon obsesses over how to make customers’ lives better and easier every day with new and improved products and services. This is true for consumers, sellers, brands, developers, enterprises, and creators. For example, Amazon:
-- Sold hundreds of millions of items worldwide during Prime Big Deal Days,
Amazon's largest two-day October holiday kick-off event ever. Prime
members across 19 countries saved more than $1 billion on millions of
deals. On the first day of the event, U.S. Prime members purchased more
than 25 million items with Same-Day or Next-Day Delivery, with hundreds
of thousands of items delivered within four hours of purchase.
-- Announced new Buy with Prime features to help merchants grow their
businesses on their own websites, such as the ability to integrate Buy
with Prime with Shopify. The Buy with Prime app for Shopify will make it
easier for Shopify merchants to manage their businesses, with inventory,
pricing, and promotions automatically synced in one place. In addition,
Buy with Prime Assist enables merchants to offer 24/7 post-order customer
service support at no additional cost, and the Buy with Prime cart
feature allows customers to purchase multiple Buy with Prime products in
one transaction from a single merchant.
-- Announced new offerings to help customers get and stay healthy,
including an expanded Amazon Clinic virtual health care marketplace now
available across the U.S. to provide care for more than 35 conditions,
and 60-minute delivery of medications through Amazon Pharmacy using Prime
Air drones in College Station, Texas. Additionally, Amazon Pharmacy
partnered with Blue Shield of California on a first-of-its-kind model to
provide more affordable pharmacy care to its members, where Amazon
Pharmacy will offer fast, free home delivery of prescription medications
to more than 4.8 million Blue Shield of California members, starting in
2025.
-- Partnered with BuzzFeed, Hearst Newspapers, Pinterest, Raptive, and
Ziff Davis brands like Lifehacker and Mashable, among others, to display
sponsored product ads on their apps and websites for products sold in
Amazon's U.S. store. These third-party ad partnerships will make it
easier for customers to move from inspiration to buying in one or two
clicks.
-- Attracted 15.1 million viewers for the Thursday Night Football (TNF)
season opener, Prime Video's most watched TNF game ever, according to
Nielsen. Through the first six games, TNF averaged 12.9 million viewers,
an increase of 25% from last season's six-game average, according to
Nielsen. Season to date, the median age for TNF viewers is 47, which is
seven years younger than the median age watching the NFL on linear
networks.
-- Debuted the second season of Amazon Original series The Summer I Turned
Pretty, which had double the global audience in the first three days
compared to Season One. In addition, for the first seven weeks after its
debut, it was the most viewed series on Prime Video in over 100
countries.
-- Released Amazon Original films and series A Million Miles Away, the
real-life story of NASA flight engineer José Hernández; Red,
White & Royal Blue, the romantic comedy based on Casey McQuiston's New
York Times best-selling novel; The Burial, a true story exposing
corporate corruption and racial injustice, starring Jamie Foxx and Tommy
Lee Jones; Sitting in Bars with Cake, the story of baking and best
friends; and Gen V, an expansion of The Boys Universe. Amazon also
premiered the second seasons of the hit young-adult drama The Summer I
Turned Pretty and the fantasy series The Wheel of Time, and rebooted the
globally beloved soap opera Neighbours.
-- Premiered new films from Amazon MGM Studios, including American Fiction,
which won the People's Choice Award at the Toronto International Film
Festival. The film will begin its theatrical release in December. Amazon
MGM Studios also released the indie film Bottoms, which opened in select
U.S. markets on August 25.
-- Launched Prime Video Channels and the Prime Video Store in Chile and
Colombia, and grew Prime Video's international slate of content with more
than 40 local Amazon Originals and live sporting events. This includes:
The Lost Flowers of Alice Hart (Australia), Cangaço Novo (Brazil),
Los Iniciados (Colombia), All or Nothing: The German National Team in
Qatar (Germany), Made in Heaven (India), The Ferragnez - The Series
(Italy), Sanremo Special (Italy), and Wilderness (UK).
-- Entered a strategic collaboration to advance generative AI with
Anthropic. As part of the expanded collaboration, Anthropic selected AWS
as its primary cloud provider and will build and deploy future
generations of its foundation models on AWS Trainium and AWS Inferentia
chips. Anthropic plans to run the majority of its workloads on AWS and
will also provide AWS customers with access to future generations of its
foundation models via Amazon Bedrock. Amazon developers and engineers
will have the opportunity to build with Anthropic models to enhance
existing applications and create new customer experiences.
-- Announced new AI-driven commitments and expansions from AWS customers.