Expectations for Amazon's third-quarter financial results were high, yet the company surpassed them handily, reporting net income of $6.33bn (£4.81bn) on a 37.4% year-over-year increase in revenue, which reached $96.15bn.
The net-income figure represents nearly a tripling (197%) on a year-on-year basis. Operating income nearly doubled (96%) to $6.19bn.
The company reported a 51% year-on-year increase in net sales, to $5.4 billion, in its 'Other' category, which represents primarily its advertising services. The company did not provide income figures for this segment.
Meanwhile, AWS, the company's hosting service, hit $11.6bn in net sales, a 29% year-on-year gain, resulting in $3.54bn in operating income, up 56% year on year.
Amazon Q3 2020 earnings snapshot
While North America—where net sales increased 39% year on year to $59.37bn and operating income grew 76% year on year to $2.25bn—remains the company's primary market, international expansion efforts are paying off. International operations delivered net sales of $25.17bn for the quarter, up 37% year on year. And, whereas the international segment lost $380m a year ago (and continued to notch losses through Q1 of this year), it delivered $407m in operating income this quarter.
Looking ahead, Amazon said it expects net sales between $112bn and $121bn in Q4, which would represent a year-on-year improvement between 28% and 38%. It expects operating income between $1bn and $4.5bn, compared with $3.9bn in Q4 of 2019, which takes into account approximately $4bn in costs related to Covid-19.
Amazon also called attention to "millions of dollars" in product and monetary donations to more than a thousand charities this holiday season in markets including Australia, Canada, China, France, Germany, India, Italy, Japan, Singapore, Spain, the UK and the US.
A version of this article was first published by Campaign Asia-Pacific