Amazon releases financial results for the third quarter of 2023, sales exceed market expectations with 21.5 trillion yen, an increase of 13% from the previous year, and the advertising business is also rapidly growing
Amazon, which operates the world's largest e-commerce site and cloud service Amazon Web Services (AWS), has announced its financial results for the third quarter of 2023 (July to September). Sales increased 13% year on year to $143.1 billion (approximately 21.5 trillion yen), and while the digital advertising business was growing steadily, AWS sales were slightly lower than expected.
Amazon.com Announces Third Quarter Results | Business Wire
Amazon (AMZN) Q3 earnings report 2023
https://www.cnbc.com/2023/10/26/amazon-amzn-q3-earnings-report-2023.html
AWS Q3 earnings report 2023
https://www.cnbc.com/2023/10/26/aws-q3-earnings-report-2023.html
Amazon announced its financial results for the third quarter of 2023 on October 26, 2023 local time. Sales increased 13% to $143.1 billion from $127.1 billion (approximately 19.7 trillion yen) in the third quarter of fiscal 2022, significantly exceeding the market forecast of $141.4 billion (approximately 21.25 trillion yen). It has become. Of this, sales in the North American segment increased 11% year-on-year to $87.9 billion (approximately 13.21 trillion yen), international segment sales increased 16% year-on-year to $32.1 billion (approximately 4.82 trillion yen), and AWS segment increased by 12% year on year to $23.1 billion (approximately 3.47 trillion yen).
In addition, net income for the third quarter of 2023 was $9.9 billion (approximately 1.49 trillion yen), more than triple the $2.9 billion (approximately 436 billion yen) in the third quarter of 2022. This year's net income also includes a pre-tax valuation gain of $1.2 billion (approximately 180 billion yen) from an investment in electric vehicle manufacturer Rivian Automotive .
Foreign media CNBC reports that although Amazon saw a slowdown in growth in 2022 due to accelerating inflation and rising interest rates, the latest quarterly results show that the company has recovered from that and its business is accelerating. . Amazon expanded rapidly during the pandemic, but in the face of economic decline, it cut costs and laid off more than 18,000 people, the largest number in its history, from fall 2022 to January 2023.
Amazon begins laying off more than 18,000 people, the largest number in history, mainly affecting the retail and human resources departments - GIGAZINE
In the third quarter financial results of fiscal year 2023, it was also reported that Amazon's digital advertising department has grown significantly, and Amazon's advertising revenue increased by 26% compared to the same period last year. This is much higher than Google's advertising revenue growth rate (9%).
On the other hand, the AWS division's sales were $23.1 billion, slightly lower than the market forecast of $23.2 billion (approximately 3.49 trillion yen), and the growth rate was only 12% compared to the same period last year. AWS's growth rate is lower than competing services Microsoft Azure (29%) and Google Cloud (22%).
Brian Olsavsky, Amazon's chief financial officer (CFO), explains that AWS's growth rate is stagnant due to cost optimization by customers. 'There are still companies working to reduce costs, but that movement is slowing and more and more new workloads are starting to emerge,' Olsavsky told reporters. He claimed to see signs.
Amazon CEO Andy Jassy said, 'We had a strong third quarter, and we took another step forward in service costs and delivery speeds in our store business. AWS growth continues to be stable and advertising revenue is up strong. 'Overall, operating income and free cash flow grew significantly.'
In terms of sales for the fourth quarter of 2023, including the holiday season, Amazon's sales for the fourth quarter of fiscal 2023 will be $149.2 billion (approximately 22.43 trillion yen) compared to the same period last year, but next year's sales will be $160 billion to 167 billion (approximately 24 trillion to 2.5 trillion yen). The company predicted that it would be between 1 trillion yen and 100 billion yen.
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