Amazon unveiled on October 27 its financial statement for the third quarter of 2022. She displays an increase in sales despite the economic uncertainty inherent in inflation and the strengthening dollar. Despite this good news, the American company expects slower growth during the end of year celebrations.
Amazon’s growth is taking off again, but for how long?
Over the past three months, Amazon has recorded $127.1 billion in net sales. This is 15% more than the $110.8 billion in the third quarter of 2021. With $2.9 billion net profitthe e-commerce giant is profitable again and ends two quarters of losses.
Amazon is driven by its cloud computing division, which achieved 27% growth over the rolling year and generated $20.5 billion. Amazon Web Services, its cloud subsidiary, represents 16% of turnover while being the only branch to have generated an operating profit.
The Seattle-based company also took advantage of its annual Prime Day event, two days of flash sales reserved for Amazon Prime members. She said it was her biggest release with $6.8 billion in revenue. This is $5 billion more than the sums collected during two classic sales days. In addition, its premium subscription grew 9% and brought in $8.9 billion.
Finally, Amazon explains that the strengthening of the US dollar following the war in Ukraine and the economic difficulties resulted in $2.5 billion in losses in its international operations.
Amazon has no problem with the advertising business
As tech giants such as Meta and Snap grapple with challenges in the online advertising industry, Amazon manages to pull out of the game. Amazon’s advertising business increased by 25% compared to the third quarter of 2021 and grossed $9.5 billion.
In his statement (PDF), Andy Jassy, President and CEO of Amazon, said that ” there’s obviously a lot going on in the macroeconomic environment, and we will balance our investments to be more efficient without compromising our long-term strategic bets “.