How to evaluate Amazon's Q3 2023 earnings?

How to evaluate Amazon's Q3 2023 earnings?

How to evaluate Amazon's Q3 2023 earnings?

Nov 13, 2023

TLDR: Amazon's strong Q3 FY23 earnings and positive outlook for the fourth quarter are likely to be well-received by investors. The company's continued growth in its high-margin cloud computing and advertising businesses is particularly encouraging. However, investors should be aware of the potential risks facing Amazon, such as increased competition from other tech giants and antitrust scrutiny.

Amazon's Q3 earnings
Amazon's Q3 earnings
Amazon's Q3 earnings

What?

Strong Revenue Growth and Margin Expansion

Amazon (NASDAQ: AMZN) reported strong financial results for its third quarter of fiscal year 2023, with revenue and operating margin both beating analysts' expectations.

Revenue grew 13% year-over-year to $143.1 billion, while operating margin expanded by 6 percentage points to 8%. The company's trailing twelve-month free cash flow also improved significantly, to $21.4 billion.



The strong performance was driven by a number of factors, including:

Continued growth in Amazon's cloud computing business, AWS, which grew revenue by 12% year-over-year.

Accelerating growth in the company's advertising business, which grew revenue by 26% year-over-year.

Cost efficiencies in the company's non-AWS segments, such as its retail and logistics businesses.

Amazon's management is guiding for revenue growth of between 7% and 12% year-over-year in the fourth quarter of fiscal year 2023, with an operating margin of between 4% and 7%.

Amazon's continued collaboration with Anthropic would be fueling their vision of 'AWS of everything' or the 'AI for AWS'

https://www.aboutamazon.com/news/company-news/amazon-aws-anthropic-ai

Key takeaways

Amazon's Q3 FY23 earnings were strong, with revenue and operating margin both beating analysts' expectations.

The company's cloud computing business, AWS, continued to grow, while its advertising business accelerated its growth.

Amazon's non-AWS segments became firmly profitable, driven by cost efficiencies.

The company's management is guiding for revenue growth of between 7% and 12% year-over-year in the fourth quarter of fiscal year 2023, with an operating margin of between 4% and 7%.



What?

Strong Revenue Growth and Margin Expansion

Amazon (NASDAQ: AMZN) reported strong financial results for its third quarter of fiscal year 2023, with revenue and operating margin both beating analysts' expectations.

Revenue grew 13% year-over-year to $143.1 billion, while operating margin expanded by 6 percentage points to 8%. The company's trailing twelve-month free cash flow also improved significantly, to $21.4 billion.



The strong performance was driven by a number of factors, including:

Continued growth in Amazon's cloud computing business, AWS, which grew revenue by 12% year-over-year.

Accelerating growth in the company's advertising business, which grew revenue by 26% year-over-year.

Cost efficiencies in the company's non-AWS segments, such as its retail and logistics businesses.

Amazon's management is guiding for revenue growth of between 7% and 12% year-over-year in the fourth quarter of fiscal year 2023, with an operating margin of between 4% and 7%.

Amazon's continued collaboration with Anthropic would be fueling their vision of 'AWS of everything' or the 'AI for AWS'

https://www.aboutamazon.com/news/company-news/amazon-aws-anthropic-ai

Key takeaways

Amazon's Q3 FY23 earnings were strong, with revenue and operating margin both beating analysts' expectations.

The company's cloud computing business, AWS, continued to grow, while its advertising business accelerated its growth.

Amazon's non-AWS segments became firmly profitable, driven by cost efficiencies.

The company's management is guiding for revenue growth of between 7% and 12% year-over-year in the fourth quarter of fiscal year 2023, with an operating margin of between 4% and 7%.



What?

Strong Revenue Growth and Margin Expansion

Amazon (NASDAQ: AMZN) reported strong financial results for its third quarter of fiscal year 2023, with revenue and operating margin both beating analysts' expectations.

Revenue grew 13% year-over-year to $143.1 billion, while operating margin expanded by 6 percentage points to 8%. The company's trailing twelve-month free cash flow also improved significantly, to $21.4 billion.



The strong performance was driven by a number of factors, including:

Continued growth in Amazon's cloud computing business, AWS, which grew revenue by 12% year-over-year.

Accelerating growth in the company's advertising business, which grew revenue by 26% year-over-year.

Cost efficiencies in the company's non-AWS segments, such as its retail and logistics businesses.

Amazon's management is guiding for revenue growth of between 7% and 12% year-over-year in the fourth quarter of fiscal year 2023, with an operating margin of between 4% and 7%.

Amazon's continued collaboration with Anthropic would be fueling their vision of 'AWS of everything' or the 'AI for AWS'

https://www.aboutamazon.com/news/company-news/amazon-aws-anthropic-ai

Key takeaways

Amazon's Q3 FY23 earnings were strong, with revenue and operating margin both beating analysts' expectations.

The company's cloud computing business, AWS, continued to grow, while its advertising business accelerated its growth.

Amazon's non-AWS segments became firmly profitable, driven by cost efficiencies.

The company's management is guiding for revenue growth of between 7% and 12% year-over-year in the fourth quarter of fiscal year 2023, with an operating margin of between 4% and 7%.



Amazon Q3 Highlights: AWS Growth at 12%, Ads Jump 26%, Retail Profitable

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Short, accessible reads on finance and stock insights. Catch up on the latest news, developments in artificial intelligence, stock analysis, and specific stock earnings.

Short, accessible reads on finance and stock insights. Catch up on the latest news, developments in artificial intelligence, stock analysis, and specific stock earnings.

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Equity research made simple through LLM powered models to make financial research accessable.

Copyright © 2023 Quantera AI Incorporated

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Equity research made simple through LLM powered models to make financial research accessable.

Copyright © 2023 Quantera AI Incorporated