Amazon.com Inc (AMZN, Financial) released its third quarter earnings report on October 26, 2023. The company reported a 13% increase in net sales to $143.1 billion, compared to $127.1 billion in the same period last year. Excluding the $1.4 billion favorable impact from year-over-year changes in foreign exchange rates, net sales increased 11% compared to Q3 2022.
Segment Performance
The North America segment saw sales increase by 11% year-over-year to $87.9 billion. International segment sales increased by 16% year-over-year to $32.1 billion, or 11% excluding changes in foreign exchange rates. AWS segment sales increased by 12% year-over-year to $23.1 billion.
Income and Cash Flow
Operating income increased to $11.2 billion in the third quarter, compared to $2.5 billion in Q3 2022. Net income increased to $9.9 billion in the third quarter, or $0.94 per diluted share, compared to $2.9 billion, or $0.28 per diluted share, in Q3 2022. Operating cash flow increased 81% to $71.7 billion for the trailing twelve months, compared with $39.7 billion for the trailing twelve months ended September 30, 2022.
CEO Commentary
“We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilize, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” said Andy Jassy, Amazon CEO.
Financial Tables
Key financial tables reveal that free cash flow improved to an inflow of $21.4 billion for the trailing twelve months, compared with an outflow of $19.7 billion for the trailing twelve months ended September 30, 2022. Free cash flow less principal repayments of finance leases and financing obligations improved to an inflow of $15.9 billion for the trailing twelve months, compared with an outflow of $28.5 billion for the trailing twelve months ended September 30, 2022.
Performance Analysis
Amazon.com Inc (AMZN, Financial) demonstrated strong performance in Q3 2023, with significant increases in net sales, operating income, and net income. The company's AWS segment continued to show robust growth, contributing to the overall positive financial results. The increase in operating cash flow also indicates a healthy financial position for the company.
Explore the complete 8-K earnings release (here) from Amazon.com Inc for further details.
