Shulou(Shulou.com)11/24 Report--

In the early morning of October 28, Beijing time, Amazon today released the company's third-quarter results for fiscal year 2022. According to the report, Amazon's third-quarter net sales were $127.101 billion, up 15% from $110.812 billion in the same period last year, and 19% year-on-year, excluding exchange rate changes; net profit was $2.872 billion, down 9% from $3.156 billion in the same period last year; diluted earnings per share were 28%, compared with 31% per diluted share in the same period last year.

Amazon's diluted earnings per share exceeded Wall Street analysts' expectations in the third quarter, but revenue fell short of expectations and the company's outlook for fourth-quarter revenue fell below expectations, sending its shares down nearly 15 per cent in after-hours trading.

Key results: Amazon's net profit for the quarter ended September 30 was $2.872 billion, or 28 cents per diluted share, compared with the same period a year earlier. In the third quarter of fiscal 2021, Amazon posted net income of $3.156 billion, or $6.12 per diluted share. Amazon's third-quarter operating profit was $2.525 billion, down sharply from $4.852 billion in the same period last year.

Amazon's third-quarter net sales were $127.101 billion, up 15 per cent from $110.812 billion in the same period last year. Excluding the $5 billion negative impact of exchange rate changes on Amazon's net sales, Amazon's net sales rose 19% in the third quarter compared with the same period last year.

Amazon's net product sales were $59.34 billion in the third quarter, compared with $54.876 billion in the same period last year, and net services sales were $67.761 billion, compared with $55.936 billion in the same period last year.

Amazon's third-quarter diluted earnings per share beat Wall Street analysts' expectations, but revenue failed to meet expectations. According to data provided by Yahoo Finance, 38 analysts had expected Amazon's third-quarter revenue to reach $127.45 billion, while 35 analysts had expected Amazon's diluted earnings per share to reach 21 cents per share.

In July, Amazon expected net sales in the third quarter of fiscal 2022 to reach between $125 billion and $130 billion, up 13% to 17% from a year earlier, including a negative impact of about 390 basis points expected from exchange rate changes. the average outlook was $127.5 billion, exceeding analysts' expectations at the time, and operating profit was expected to be between $0 and $3.5 billion.

Division performance:-by region: net sales of Amazon North America (US, Canada) were $78.843 billion in the third quarter, up 20 per cent from $65.557 billion in the same period last year; operating loss was $412 million, compared with operating profit of $880 million in the same period last year, equivalent to a year-on-year decline of 147 per cent and 158 per cent excluding exchange rate changes.

Net sales at Amazon International (UK, Germany, France, Japan and China) were $27.72 billion in the third quarter, down 5% from $29.145 billion in the same period last year, and 12% year-on-year growth excluding exchange rate changes The operating loss was $2.466 billion, compared with an operating loss of $911 million in the same period last year, equivalent to an increase of 171 per cent year-on-year and 147 per cent excluding exchange rate changes.

Net sales of Amazon AWS cloud services were $20.538 billion in the third quarter, up 27 per cent from $16.11 billion in the same period last year, and 28 per cent year-on-year, excluding currency changes, and operating profit was $5.403 billion, up 11 per cent from $4.883 billion in the same period last year.

Sales from the North American division accounted for 62 per cent of total sales in the third quarter, compared with 59 per cent in the same period last year; sales from the international division accounted for 22 per cent of total sales, compared with 26 per cent in the same period last year; and sales from AWS cloud services accounted for 16 per cent of total sales, compared with 15 per cent in the same period last year.

-by service and business type: Amazon's net sales from online stores were $53.489 billion in the third quarter, up 7% from $49.942 billion in the same period last year, and 13% year-on-year growth excluding exchange rate changes.

Amazon's third-quarter net sales from brick-and-mortar stores were $4.694 billion, up 10 per cent from $4.269 billion in the same period last year, and 10 per cent year-on-year, excluding currency changes.

Amazon's net sales from third-party vendor services were $28.666 billion in the third quarter, up 18% from $24.252 billion in the same period last year, and 23% year-on-year, excluding currency changes.

Amazon's third-quarter net sales from subscription services were $8.903 billion, up 9% from $8.148 billion in the same period last year, and 14% year-on-year, excluding currency changes.

Amazon's net sales from AWS cloud services were $20.538 billion in the third quarter, up 27% from $16.11 billion in the same period last year, and 28% year-on-year, excluding currency changes.

Amazon's net sales from other businesses were $1.263 billion in the third quarter, up 163 per cent from $479 million a year earlier, and 168 per cent year-on-year, excluding currency changes.

Operating expenses: Amazon's total operating expenses were $124.576 billion in the third quarter, compared with $105.96 billion in the same period last year. Where:

-the cost of revenue was $70.268 billion, compared with $62.93 billion in the same period last year.

-Compliance expenditure of $20.583 billion, compared with $18.498 billion in the same period last year

-spending on technology and content was $19.485 billion, compared with $14.38 billion in the same period last year

-Marketing expenditure was $11.014 billion, compared with $8.01 billion in the same period last year

-General and administrative expenses were $3.061 billion, compared with $2.153 billion in the same period last year

-other operating income was $165 million, compared with $11 million for the same period last year.

Cash flow information: Amazon's operating cash flow for the 12 months ended September 30, 2022 was $39.7 billion, down 27% from a year earlier, and for the 12 months ended September 30, 2021, Amazon's operating cash flow was $54.7 billion.

Amazon's free cash flow was $19.7 billion in the 12 months ended September 30, 2022, much lower than in the same period a year earlier, and $2.6 billion in the 12 months ended September 30, 2021.

After deducting principal repayments, Amazon's free cash flow was $28.5 billion in the past 12 months, much lower than in the same period a year earlier; in the 12 months ended September 30, 2021, Amazon's free cash flow after deducting the above items was $8.8 billion.

After deducting principal repayments and assets acquired under capital leases, Amazon's free cash flow was $21.5 billion in the past 12 months, much lower than in the same period a year earlier; in the 12 months ended September 30, 2021, Amazon's free cash flow after deducting the above items was $3.9 billion.

Performance outlook: Amazon expects net sales in the fourth quarter of fiscal 2022 to reach between $140 billion and $148 billion, up 2% to 8% year-on-year, including the expected negative impact of exchange rate changes of about 460bp, with an average of $144 billion, below analysts' expectations. On average, 37 analysts expect Amazon's fourth-quarter revenue to reach $155.15 billion, according to Yahoo Finance.

Amazon also expects operating profit of between zero and $4 billion in the fourth quarter of fiscal 2022, compared with $3.5 billion in the same period in fiscal 2021.

The above performance outlook assumes that Amazon will not enter into any other business acquisition, restructuring or legal settlement.

Share price movements: Amazon shares fell $4.70, or 4.06%, to $110.96 in regular Nasdaq trading. Amazon shares fell another $16.23, or 14.63%, to $94.73, below their 52-week low, in after-hours trading as of 05:22 EDT (05:22 Beijing time on Friday). In the 52 weeks to Thursday's close, Amazon's highest price was $188.11 and its lowest price was $101.26.

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