Summary
Amazon.com, Inc. reported strong performance for the third quarter and the first nine months of 2016, demonstrating robust growth across its key segments. Total net sales increased by 29% year-over-year for both the third quarter and the nine-month period, driven by solid performance in North America, International, and particularly Amazon Web Services (AWS). AWS continued its impressive growth trajectory, with sales up 55% in Q3 and 59% year-to-date. This growth outpaced the company's overall sales expansion, highlighting the strategic importance and profitability of its cloud computing division. Operating income saw a significant increase, rising to $575 million in Q3 2016 from $406 million in the prior year, and to $2.9 billion for the nine months from $1.1 billion in 2015. This improvement reflects disciplined expense management and operating leverage, particularly evident in the strong profitability of AWS and North America. The company continues to invest heavily in technology infrastructure and fulfillment capacity to support its growth, which is reflected in increased operating expenses but is expected to drive future efficiencies and growth. Cash flow from operations also showed substantial improvement, indicating healthy underlying business performance.
Financial Highlights
54 data points| Revenue | $32.71B |
| Cost of Revenue | $21.26B |
| Gross Profit | $11.45B |
| Operating Expenses | $32.14B |
| Operating Income | $575.00M |
| Interest Expense | $118.00M |
| Net Income | $252.00M |
| EPS (Basic) | $0.03 |
| EPS (Diluted) | $0.03 |
| Shares Outstanding (Basic) | 9.48B |
| Shares Outstanding (Diluted) | 9.70B |
Key Highlights
- 1Total net sales grew 29% year-over-year for both the three and nine months ended September 30, 2016.
- 2Amazon Web Services (AWS) demonstrated exceptional growth, with sales up 55% year-over-year in Q3 2016 and 59% for the nine-month period.
- 3Operating income significantly increased to $575 million in Q3 2016 and $2.9 billion for the first nine months of 2016, up from $406 million and $1.1 billion, respectively, in the prior year periods.
- 4Net income for the third quarter of 2016 was $252 million ($0.52 per diluted share), an increase from $79 million ($0.17 per diluted share) in Q3 2015.
- 5Cash provided by operating activities surged to $4.5 billion in Q3 2016 and $5.8 billion for the nine months, up from $2.6 billion and $3.1 billion respectively in the prior year.
- 6The company authorized a new $5.0 billion stock repurchase program in February 2016.
- 7Investment in property and equipment, including for technology infrastructure (AWS) and fulfillment, remained substantial, totaling $1.8 billion in Q3 2016.