Summary
Amazon.com, Inc.'s Q3 2012 report reveals a mixed financial performance with notable increases in net sales but a significant net loss for the quarter and year-to-date. Total net sales grew by 27% year-over-year in the third quarter to $13.8 billion, driven by robust performance in both North America and International segments. However, the company reported a net loss of $274 million for the quarter, a substantial shift from a net income of $63 million in the prior year period. This loss was primarily influenced by increased operating expenses, particularly in technology and content, and a substantial equity-method investment loss related to LivingSocial. Despite the quarterly loss, the company continues to invest heavily in its infrastructure and growth initiatives, as evidenced by increased capital expenditures.
Financial Highlights
48 data points| Revenue | $13.81B |
| Cost of Revenue | $10.32B |
| Gross Profit | $3.49B |
| Operating Expenses | $13.83B |
| Operating Income | -$28.00M |
| Interest Expense | $22.00M |
| Net Income | -$274.00M |
| EPS (Basic) | $-0.03 |
| EPS (Diluted) | $-0.03 |
| Shares Outstanding (Basic) | 9.04B |
| Shares Outstanding (Diluted) | 9.04B |
Key Highlights
- 1Net sales increased by 27% year-over-year to $13.8 billion in Q3 2012, reflecting strong growth in both North America (33%) and International (20%) segments.
- 2Amazon reported a net loss of $274 million ($0.60 per diluted share) for Q3 2012, a significant decline from a net income of $63 million ($0.14 per diluted share) in Q3 2011.
- 3Operating expenses rose by 28.1% year-over-year in Q3 2012, outpacing sales growth, with significant increases in Fulfillment, Technology and Content, and Marketing.
- 4Capital expenditures increased to $716 million in Q3 2012 from $529 million in Q3 2011, highlighting continued investment in infrastructure and capacity.
- 5The company reported an equity-method investment loss of $169 million in Q3 2012, primarily due to impairment charges and operating losses from its investment in LivingSocial.
- 6Amazon repurchased $960 million of its common stock in Q1 2012, demonstrating a commitment to returning value to shareholders.
- 7The company expects Q4 2012 net sales between $20.25 billion and $22.75 billion, representing 16% to 31% growth over Q4 2011, but anticipates an operating loss for the quarter.