Amazon.com, Inc. has announced financial results for its third quarter ended September 30, 2023.
Net sales increased 13% to $143.1bn in the third quarter, compared with $127.1bn in third quarter 2022. Excluding the $1.4bn favorable impact from y-o-y changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with third quarter 2022.
North America segment sales increased 11% y-o-y to $87.9bn.
International segment sales increased 16% y-o-y to $32.1bn, or increased 11% excluding changes in foreign exchange rates.
AWS segment sales increased 12% y-o-y to $23.1bn.
Operating income increased to $11.2bn in the third quarter, compared with $2.5bn in third quarter 2022.
North America segment operating income was $4.3bn, compared with an operating loss of $0.4bn in third quarter 2022.
International segment operating loss was $0.1bn, compared with an operating loss of $2.5bn in third quarter 2022.
AWS segment operating income was $7.0bn, compared with operating income of $5.4bn in third quarter 2022.
Net income increased to $9.9bn in the third quarter, or $0.94 per diluted share, compared with $2.9bn, or $0.28 per diluted share, in third quarter 2022.
Third quarter 2023 net income includes a pre-tax valuation gain of $1.2bn included in non-operating income (expense) from the common stock investment in Rivian Automotive, Inc., compared to a pre-tax valuation gain of $1.1bn from the investment in third quarter 2022.
Operating cash flow increased 81% to $71.7bn for the trailing twelve months, compared with $39.7bn for the trailing twelve months ended September 30, 2022.
Free cash flow improved to an inflow of $21.4bn for the trailing twelve months, compared with an outflow of $19.7bn 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 $15.9bn for the trailing twelve months, compared with an outflow of $28.5bn 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 $20.2bn for the trailing twelve months, compared with an outflow of $21.5bn 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.”
