Summary
Amazon.com, Inc. reported solid performance in the third quarter of 2015, with total net sales increasing by 23% year-over-year to $25.4 billion. This growth was driven by strong performance across all segments, particularly the North America and AWS (Amazon Web Services) segments, which saw sales increase by 28% and 78% respectively. The company also demonstrated a significant improvement in profitability, with income from operations swinging from a loss of $544 million in Q3 2014 to a profit of $406 million in Q3 2015. This turnaround was supported by increased unit sales and improved cost efficiencies, especially within the AWS segment. While the company continues to invest heavily in infrastructure and technology, evidenced by increased operating expenses in fulfillment and technology and content, the growth in revenue and operating income indicates a strengthening operational leverage. Amazon's cash flow generation remains robust, with operating cash flow increasing significantly. The company's liquidity position is strong, with substantial cash and marketable securities. Despite ongoing investments and potential risks outlined, Amazon's Q3 2015 results signal a positive trajectory for growth and profitability.
Financial Highlights
54 data points| Revenue | $25.36B |
| Cost of Revenue | $16.75B |
| Gross Profit | $8.60B |
| Operating Expenses | $24.95B |
| Operating Income | $406.00M |
| Interest Expense | $116.00M |
| Net Income | $79.00M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 9.36B |
| Shares Outstanding (Diluted) | 9.56B |
Key Highlights
- 1Total net sales increased 23% year-over-year to $25.36 billion.
- 2Income from operations improved significantly, turning from a loss of $544 million in Q3 2014 to a profit of $406 million in Q3 2015.
- 3AWS (Amazon Web Services) segment sales grew by 78% year-over-year to $2.09 billion, highlighting continued strong demand for cloud services.
- 4North America segment sales increased by 28% year-over-year to $15.01 billion, indicating robust domestic market performance.
- 5Operating cash flow for the nine months ended September 30, 2015, was $3.11 billion, a substantial increase from $127 million in the prior year period.
- 6The company's free cash flow for the trailing twelve months ended September 30, 2015, was $5.4 billion, up from $1.1 billion in the prior year period.
- 7Stock-based compensation expense increased to $544 million in Q3 2015 from $377 million in Q3 2014, reflecting continued investment in employee incentives.