Amazon Q3 results: Net sales up 29% to $56.6 billion
Amazon's 'other' category, which mostly comprises its burgeoning advertising business, jumped 123 percent to $2.5 billion in revenue
Published - 26-October-2018
Amazon.com has reported a growth in net sales which is increased 29 per cent to $56.6 billion in its third quarter ended September 30, 2018 compared with $43.7 billion in third quarter 2017.
Excluding the $260 million unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 30 per cent compared with third quarter 2017.
Amazon.com has increasingly become the first stop of people searching for things they want to purchase, advertisers are pulling dollars from Google and Facebook and moving them to the e-commerce giant. Amazon brought in $4.2 billion in revenue to its “other” segment, which is mostly advertising, in the first half of 2018. That was up 135 per cent from the first half of 2017.
Analysts surveyed by financial data provider FactSet expected the segment to post revenue of $2.39 billion in the third quarter, up 113 per cent from the same period a year earlier. In an earnings preview published October 17, Cowen and Company analyst John Blackledge identified advertising as one of Amazon’s three “core levers,” along with e-commerce and Amazon Web Services. Amazon beat those expectations with $2.5 billion in “other” revenue for the third quarter.
Operating income increased to $3.7 billion in the third quarter, compared with operating income of $347 million in third quarter 2017. Net income increased to $2.9 billion in the third quarter, or $5.75 per diluted share, compared with net income of $256 million, or $0.52 per diluted share, in third quarter 2017.
“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organisations in eight countries,” said Jeff Bezos, Amazon Founder and CEO.
He further added, “And we’re not slowing down — Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100. These organisations are choosing Amazon Business because it increases transparency into business spending and streamlines purchasing, with increased control. The team is doing a fantastic job building and innovating for customers.”
- Amazon India announced the launch of Amazon.in in Hindi. Customers can now read detailed product information, find deals and discounts, place the orders, pay for their orders, manage their account information, track their orders and view order history conveniently in Hindi.
- Amazon introduced a new family of Echo devices: the next generation Echo Dot, Echo Plus, and Echo Show; Echo Auto, the new Echo for the car; and companion devices, including Echo Wall Clock, Echo Input, Echo Sub, Echo Link, and Echo Link Amp.
- Prime Video and Comcast announced an agreement to launch Prime Video on Comcast’s Xfinity X1, giving Xfinity TV customers easy access to thousands of additional premium shows and movies online.
- NFL Thursday Night Football (TNF) returned to Prime Video for a second season, reaching more than 8 million combined viewers worldwide in the first 4 games on Prime Video and Twitch.
- Amazon added a new alternative audio feed this season featuring sports journalists Hannah Storm and Andrea Kremer, the first-ever all-female sportscasting team to call NFL games, available exclusively on Prime Video. In addition, Amazon is bringing interactivity to TNF with several innovations including X-Ray for TNF on FireTV, enabling fans to access live stats, player information, and in-app shopping; as well as the TNF on Twitch experience, allowing members of the global interactive community to watch, comment, and predict game outcomes.
- Prime Video debuted Original Series Tom Clancy’s Jack Ryan, The Romanoffs, and season 3 of The Man in the High Castle. Prime Video continues to announce Original Series debuting in 2018, including: Homecoming, a psychological thriller starring Julia Roberts, and produced and directed by Sam Esmail; as well as season 2 of The Marvelous Mrs. Maisel, recent winner of eight Emmy awards including Outstanding Comedy Series.
- Amazon continues to enable flexibility in Prime membership options internationally, launching monthly Prime membership in Canada and Mexico, quarterly Prime membership in China, and monthly Prime Student membership in Germany.
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