Amazon has announced third-quarter results, with data in line with what we expected.
In particular, we note that:
- Net sales increased by 11% to $158.9 billion in Q3 2024, compared to $143.1 billion in the same quarter of 2023. Excluding the unfavorable impact of $0.2 billion from currency exchange rate fluctuations, net sales increased by 11% year-over-year.
- Operating income was $17.4 billion, up from $11.2 billion in the third quarter of 2023. Net income grew to $15.3 billion, or $1.43 per share, compared to $9.9 billion, or $0.94 per share, in the previous year.
- Cash flows increased. Operating cash flow rose to $112.7 billion (+57%), while free cash flow increased to $47.7 billion.
Amazon’s updates did not disappoint
As always, the quarterly data release was also an opportunity to share the positive effects of some new features introduced by Amazon.
Although not all of the updates affected the European market, it’s worth summarizing them in a table.
| Update | Description |
| Prime Big Deal Days | LSales reached record levels. Prime members’ cumulative savings were $1 billion. |
| Fuel Savings | In the U.S., the first fuel-saving offer for Prime was launched, benefiting members with a $0.10 discount per gallon. |
| Brand | Amazon expanded its selection of brands like AllSaints, Beats x Ki, Estée Lauder, Kate Spade New York, and others. |
| Pharmacy | The company announced plans to expand same-day delivery of medications via Amazon Pharmacy to about half of the U.S. by 2025 and to open new pharmacies in 20 U.S. cities over the same period. |
| Artificial Intelligence | Rufus, the AI-based shopping assistant, will be available in Italy, France, Germany, Spain, and the UK. Among other updates, Project Amalia, an AI assistant for sellers. |
Those interested in learning more about Amazon’s strategic and operational updates can view the full report here.
Moreover, Amazon recently announced a collaboration with Energy Northwest, a state-owned utility consortium in Washington State, to develop four SMR reactors, new-generation small modular reactors, which will power Amazon’s data centers with nuclear energy.
What about the fourth quarter of 2024?
For the fourth quarter of 2024, Amazon has released some forecasts. Specifically:
- Net sales are expected to range between $181.5 billion and $188.5 billion, with a projected year-over-year growth of 7% to 11%, considering a roughly 10 basis points adverse currency impact.
- Operating income is expected to range from $16 billion to $20 billion, showing a clear improvement over $13.2 billion in the fourth quarter of 2023.
If you also want to do your part, take a look at how to prepare for year-end sales!
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