Amazon reported better-than-expected Q3 2023 results. Here is a summary;
- Amazon revenue rose 13% y/y to $143.1 billion (expectations: $141.4 billion), EPS was $0.94 vs. $0.58 estimate, ad revenue rose 26% y/y to $12.1 billion vs. $11.6 billion expected.
- The company expects Q4 revenue to come in the range of $160 billion- $167 billion, whose mid-point $163.5 billion (+9.6% y/y) is below $166.6 billion expected by analysts.
- Amazon e-commerce revenue rose 7% y/yin Q3 (Q2 2023: +4%), physical stores revenue rose 6% y/y (Q2 2023: +6%)
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Its Prime Day Event held in July, was the biggest ever.
“Outside of Prime Day, we continue to see strong demand across everyday essentials, including categories like beauty and health and personal care,” CFO Brian Olsavsky said in the earnings call.
“I think that it’s interesting what’s happened in our ads business as if you look around the industry, most advertising-heavy companies have struggled growth-wise as the economy has been difficult. And while we see companies being more cautious on the ad side and the top-of-funnel products, things like display and a little bit of video, we’re still seeing a lot of strength in the lower-funnel ad products like sponsored products,” CEO Andrew Jassy said in the earnings call.