Seattle, WA – Amazon.com, Inc. (NASDAQ: AMZN) has unveiled its financial results for the third quarter ending September 30, 2023, showing a promising 13% surge in net sales amounting to $143.1 billion, a significant leap from the $127.1 billion recorded in the same quarter last year. This growth exceeded market anticipations, propelling a climb in Amazon shares as investors reacted positively to the news.
The success of Amazon Web Services (AWS) continues to be a cornerstone for the tech giant’s robust financial performance. The AWS segment sales alone increased by 12% year-over-year to $23.1 billion. This, along with the persistent consumer spending on its e-commerce platform despite higher interest rates, has played a crucial role in Amazon’s revenue uptick in Q3 2023.
Furthermore, the operating income witnessed a significant rise, reaching $11.2 billion compared to $2.5 billion in Q3 2022. The net income too saw a substantial increase, reaching $9.9 billion, or $0.94 per diluted share, as opposed to $2.9 billion, or $0.28 per diluted share in the same quarter the previous year.
The North America and International segments also demonstrated positive trajectories. The former saw sales jump by 11% to $87.9 billion year-over-year, while the latter experienced a 16% increase to $32.1 billion. After adjusting for foreign exchange rate changes, the international segment sales still showed an 11% growth.
Amazon’s advertising revenue witnessed a notable growth of 26%, thanks to the appeal of faster delivery and robust gains in other areas of its business, further contributing to the revenue increment in Q3 2023.
CEO Andy Jassy expressed satisfaction with the Q3 results, emphasizing the significant strides made in speeding up delivery through their Stores business and the stabilization and continual growth of AWS. The advancement in generative AI, among other technological innovations within AWS, was highlighted as a driving force behind the positive momentum with customers including notable names like adidas, Booking.com, and United Airlines.
Looking ahead, all eyes are now on Amazon’s performance in the upcoming fourth quarter, as stakeholders anticipate how the momentum gained in Q3 will translate into the final quarter of 2023.
