10-QPeriod: Q3 FY2023

AMAZON COM INC Quarterly Report for Q3 Ended Sep 30, 2023

Filed October 27, 2023For Securities:AMZN

Summary

Amazon.com Inc. reported a strong third quarter of 2023, with total net sales increasing by 13% year-over-year to $143.1 billion. This growth was driven by robust performance across its key segments, including North America, International, and AWS. Operating income saw a significant surge, reaching $11.2 billion, a substantial increase from $2.5 billion in the prior year's quarter, reflecting improved profitability and operational efficiencies. The company also demonstrated strong operational cash flow, generating $21.2 billion in the third quarter, and ended the period with a healthy cash and cash equivalents balance of $49.6 billion. The strategic acquisition of One Medical for approximately $3.5 billion further signals Amazon's commitment to expanding its service offerings. Despite ongoing investments in technology and infrastructure, particularly to support AWS growth, Amazon's financial results indicate a positive trajectory and enhanced operational performance.

Financial Highlights

53 data points
Beta

Revenue

$143.08B

47.6% Gross Margin

Net Income

$9.88B

6.9% Net Margin

EPS (Diluted)

$0.94

Total Assets

$486.88B

Cash & Equivalents

$50.08B

Free Cash Flow

$21.22B

Financial Statements
Beta
Revenue$143.08B
Cost of Revenue$75.02B
Gross Profit$68.06B
Operating Expenses$131.90B
Operating Income$11.19B
Interest Expense$806.00M
Net Income$9.88B
EPS (Basic)$0.96
EPS (Diluted)$0.94
Shares Outstanding (Basic)10.32B
Shares Outstanding (Diluted)10.56B

Key Highlights

  • 1Total net sales grew 13% to $143.1 billion in Q3 2023, compared to $127.1 billion in Q3 2022.
  • 2Operating income significantly increased to $11.2 billion in Q3 2023, up from $2.5 billion in Q3 2022, indicating improved profitability.
  • 3AWS segment net sales increased by 12% to $23.1 billion in Q3 2023, with operating income rising to $7.0 billion.
  • 4North America segment operating income turned positive, reporting $4.3 billion in Q3 2023, a significant improvement from a $412 million loss in Q3 2022.
  • 5Operating cash flow for the nine months ended September 30, 2023, was $42.5 billion, up from $17.6 billion in the prior year period.
  • 6Amazon completed the acquisition of One Medical in February 2023 for approximately $3.5 billion.
  • 7The company ended the period with $49.6 billion in cash and cash equivalents.

Frequently Asked Questions

Amazon reported strong financial results in Q3 2023. Total net sales increased by 13% year-over-year to $143.1 billion. Operating income saw a substantial increase to $11.2 billion, up significantly from $2.5 billion in Q3 2022, demonstrating improved profitability and operational efficiency.

All segments showed positive momentum. AWS net sales grew 12% to $23.1 billion, with operating income at $7.0 billion. The North America segment saw a remarkable turnaround, achieving $4.3 billion in operating income compared to a loss in the prior year's quarter. The International segment also improved its operating loss to $95 million from $2.5 billion in the prior year period.

Amazon generated robust operating cash flow, with $21.2 billion in the third quarter of 2023 and $42.5 billion for the first nine months. The company ended the quarter with a strong liquidity position, holding $49.6 billion in cash and cash equivalents, and $64.2 billion in cash, cash equivalents, and marketable securities as of September 30, 2023.

A key strategic move was the acquisition of One Medical for approximately $3.5 billion, aimed at expanding healthcare service offerings. The company continues to invest in technology and infrastructure, particularly for AWS growth, and is managing its capital expenditures, with expectations for lower spending in the fulfillment network for the remainder of 2023.