Amazon reported strong third-quarter results on Thursday, with revenue growth and operating income both tripling year-over-year.
Net sales increased 13% to $143.1 billion in the third quarter, compared with $127.1 billion in third quarter 2022. Operating income increased to $11.2 billion in the third quarter, compared with $2.5 billion in third quarter 2022.
Amazon recorded an operating margin of 7.8%, which was the highest since the first quarter of 2021.It seems like Amazon’s cost-cutting measures — including sacking thousands of employees — have worked. This was the highest operating margin that Amazon has recorded in over two years.
Brian Oslavsky, chief financial officer, Amazon shed light on cost-cutting measures the company has adopted. He told investors that an increase of income of $1.6 billion quarter over quarter for AWS, is driven by “primarily by our headcount reductions in Q2 and also continued slowness in hiring, rehiring open positions.”
He also said that other cost-cutting measures have helped. “There’s been also a lot of cost control in non-people categories, things like infrastructure costs and also discretionary costs,” he told the investors.
Impressive numbers in third quarter
The strong results were driven by continued growth in Amazon’s e-commerce business, as well as its cloud computing business, Amazon Web Services (AWS).
“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 stabilise, our advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,”said Amazon CEO Andy Jassy in a statement.
Amazon’s e-commerce business continued to grow in the third quarter, with sales increasing 7%. The company’s third-party seller marketplace also continued to grow, with sales increasing 9% to $34.3 billion. Third-party sellers now account for over half of Amazon’s total e-commerce sales, revealed the company.
AWS continued to be a key driver of growth for Amazon in the third quarter, with sales increasing 12% to $23.1 billion. AWS is the world’s leading cloud computing platform, and it provides a wide range of services to businesses of all sizes.AWS’s growth was driven by strong demand for its cloud computing services, such as compute, storage, database, and networking services. AWS is also seeing strong growth in its emerging services, such as machine learning and artificial intelligence, said Amazon.
Net sales increased 13% to $143.1 billion in the third quarter, compared with $127.1 billion in third quarter 2022. Operating income increased to $11.2 billion in the third quarter, compared with $2.5 billion in third quarter 2022.
Amazon recorded an operating margin of 7.8%, which was the highest since the first quarter of 2021.It seems like Amazon’s cost-cutting measures — including sacking thousands of employees — have worked. This was the highest operating margin that Amazon has recorded in over two years.
Brian Oslavsky, chief financial officer, Amazon shed light on cost-cutting measures the company has adopted. He told investors that an increase of income of $1.6 billion quarter over quarter for AWS, is driven by “primarily by our headcount reductions in Q2 and also continued slowness in hiring, rehiring open positions.”
He also said that other cost-cutting measures have helped. “There’s been also a lot of cost control in non-people categories, things like infrastructure costs and also discretionary costs,” he told the investors.
Impressive numbers in third quarter
The strong results were driven by continued growth in Amazon’s e-commerce business, as well as its cloud computing business, Amazon Web Services (AWS).
“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 stabilise, our advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,”said Amazon CEO Andy Jassy in a statement.
Amazon’s e-commerce business continued to grow in the third quarter, with sales increasing 7%. The company’s third-party seller marketplace also continued to grow, with sales increasing 9% to $34.3 billion. Third-party sellers now account for over half of Amazon’s total e-commerce sales, revealed the company.
AWS continued to be a key driver of growth for Amazon in the third quarter, with sales increasing 12% to $23.1 billion. AWS is the world’s leading cloud computing platform, and it provides a wide range of services to businesses of all sizes.AWS’s growth was driven by strong demand for its cloud computing services, such as compute, storage, database, and networking services. AWS is also seeing strong growth in its emerging services, such as machine learning and artificial intelligence, said Amazon.
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