Summary
Amazon.com, Inc. reported strong top-line growth for the third quarter and first nine months of 2019, with consolidated net sales increasing by 24% and 20% year-over-year, respectively. This growth was driven by robust performance across all segments, particularly AWS, which saw sales increase by 35% year-over-year in Q3. Despite revenue growth, operating income for the third quarter saw a slight decrease due to increased costs in fulfillment and marketing, particularly in the North America segment. However, for the nine-month period, operating income showed a significant increase, driven by strong AWS performance and improved international operational efficiency. Cash flow from operations remained strong, increasing to $35.3 billion for the trailing twelve months ended September 30, 2019, and free cash flow also saw a healthy rise to $23.5 billion. The company's balance sheet remains robust, with total assets growing to nearly $200 billion. Significant investments continue in property and equipment, primarily to support fulfillment operations and AWS infrastructure. The company provided cautious guidance for the fourth quarter of 2019, expecting net sales growth between 11% and 20%, but a decrease in operating income compared to the prior year's Q4, suggesting continued investment and cost pressures are anticipated.
Financial Highlights
52 data points| Revenue | $69.98B |
| Cost of Revenue | $41.30B |
| Gross Profit | $28.68B |
| Operating Expenses | $66.82B |
| Operating Income | $3.16B |
| Interest Expense | $396.00M |
| Net Income | $2.13B |
| EPS (Basic) | $0.22 |
| EPS (Diluted) | $0.21 |
| Shares Outstanding (Basic) | 9.90B |
| Shares Outstanding (Diluted) | 10.08B |
Key Highlights
- 1Consolidated net sales grew 24% year-over-year in Q3 2019 to $69.98 billion, and 20% for the nine months ended September 30, 2019, to $193.09 billion.
- 2AWS revenue increased by 35% in Q3 2019 and 38% for the nine months ended September 30, 2019, reaching $8.99 billion and $25.07 billion respectively, highlighting its continued strength.
- 3Operating income for the nine months ended September 30, 2019, increased to $10.66 billion, up from $8.64 billion in the prior year period, primarily driven by AWS and improved international results.
- 4Free cash flow increased significantly to $23.46 billion for the twelve months ended September 30, 2019, up from $15.37 billion in the prior year period, indicating strong operational cash generation.
- 5Total assets grew to $199.10 billion as of September 30, 2019, up from $162.65 billion at the end of 2018, reflecting continued investment and growth.
- 6The company adopted new lease accounting guidance (ASU 2016-02) effective January 1, 2019, resulting in the recognition of significant operating lease assets and liabilities on the balance sheet.