Amazon (AMZN) Q3 2023 Report, Revenue Beats
In the quarter ending in September, Amazon reported adjusted earnings of 94 cents per share. Their revenue saw a 13% year-over-year increase, reaching 3.1 billion. Analysts, as per estimates gathered by FactSet, had anticipated Amazon to post adjusted earnings of 59 cents per share with revenue of 1.5 billion. In the same quarter the previous year, Amazon had reported adjusted earnings of 28 cents per share and sales of 7.1 billion.
For Amazon’s closely-watched Amazon Web Services Cloud business, there was a 12% year-over-year increase in sales, bringing it to .1 billion. This figure fell slightly short of analysts’ expectations, which were set at sales of .2 billion.
Amazon’s Chief Executive, Andy Jassy, expressed, “We had a strong third quarter as our cost to serve and speed of delivery in our stores business improved, our AWS growth continued to stabilize, our advertising revenue showed robust growth, and overall operating income and free cash flow increased significantly,” in a statement accompanying the earnings report.
Looking ahead, Amazon has set its sales expectations for the current fourth quarter in the range of 0 billion to 7 billion. Analysts, according to FactSet, had been anticipating sales of 7.1 billion.
Amazon Web Services has consistently played a crucial role in driving profits for the company. In the third quarter, AWS reported an operating income of .98 billion, marking a substantial 29% year-over-year increase. This figure comfortably exceeded the expectations of Wall Street, which had estimated it at .6 billion.
However, the revenue from cloud services aligns with the forecasts of some Wall Street analysts, indicating that AWS’s sales growth would remain relatively steady compared to the previous quarter. Both Google and Microsoft have indicated that corporate customers are still being cautious about their software spending.
During the earnings call, Amazon’s stock showed a rebound. During the call, Amazon’s CEO Andy Jassy confirmed that the company is still observing heightened cost optimization practices by businesses, compared to a year ago.
“Companies have moved more slowly in an uncertain economy in 2023 to complete deals,” Jassy said. “But we’re seeing the pace and volume of closed deals pick up. We’re encouraged by the strong last couple of months in new deals signed.”
Amazon Web Services revenue also grew 12% year over year in the second quarter, and 15.8% in the first quarter. For Q3 2022, AWS revenue grew 27.5% year over year.
Know More about 2023 Q3 Report :