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Sep 30, 2023
Amazon Q3 2023 Earnings Report
Amazon's Q3 2023 results revealed a significant increase in operating income and free cash flow, driven by cost efficiencies and strong performance in AWS and Advertising.
Key Takeaways
Amazon reported a strong third quarter with net sales increasing by 13% to $143.1 billion. Operating income rose significantly to $11.2 billion, and net income reached $9.9 billion, or $0.94 per diluted share. The company saw robust growth in AWS and Advertising revenue, along with improvements in cost to serve and delivery speed.
Net sales increased by 13% to $143.1 billion, with an 11% increase excluding foreign exchange rate changes.
Operating income surged to $11.2 billion, compared to $2.5 billion in the third quarter of 2022.
AWS segment sales grew by 12% year-over-year to $23.1 billion, with operating income at $7.0 billion.
Net income rose to $9.9 billion, or $0.94 per diluted share, compared to $2.9 billion, or $0.28 per diluted share, in the same quarter last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Amazon expects net sales to be between $160.0 billion and $167.0 billion, representing a growth of 7% to 12% compared to the fourth quarter of 2022. Operating income is projected to be between $7.0 billion and $11.0 billion, compared to $2.7 billion in the fourth quarter of 2022.
Positive Outlook
- Net sales are expected to grow between 7% and 12% compared with fourth quarter 2022.
- Favorable impact of approximately 40 basis points from foreign exchange rates is anticipated.
- Operating income is expected to increase significantly compared to the previous year.
- The company's investments in new business opportunities are expected to contribute to growth.
- Continued focus on customer satisfaction and innovation is expected to drive positive results.
Challenges Ahead
- Results may be affected by fluctuations in foreign exchange rates.
- Changes in global economic and geopolitical conditions could impact customer demand and spending.
- Inflation and interest rates may affect the company's financial performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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