Amazon Blows Past Q3 Expectations, Ad Revenue Jumps 26%
26.10.2023 - 21:13
/ variety.com
Todd Spangler NY Digital Editor Amazon kept the cash register ringing in the third quarter, including a strong 26% uptick in advertising revenue, turning in results that came in above Wall Street forecasts. Overall, Amazon reported Q3 revenue of $143.1 billion, up 13%, and net income up more than threefold to $9.88 billion (94 cents per share).
The quarter included sales during the first of two sets of Amazon Prime Day deal events, from July 11-12 (followed by the second installment earlier this month). Analyst consensus estimates were for revenue of $141.5 billion and net income of $6.05 billion (59 cents per share), according to FactSet.
“We had a strong third quarter as our cost to serve and speed of delivery in our Stores business took another step forward, our AWS growth continued to stabilize, our Advertising revenue grew robustly, and overall operating income and free cash flow rose significantly,” Amazon CEO Andy Jassy said in announcing the results. Amazon’s ad revenue for Q3 was $12.06 billion, an increase of 26%, continuing the tech giant’s market share grab in the digital-advertising space.
Analysts had forecast ad revenue hitting $11.6 billion. The segment includes sales of advertising services to sellers, vendors, publishers, authors and other third parties, through programs such as sponsored ads, display ads and video advertising.
That includes ads sold for Prime Video’s exclusive “Thursday Night Football” games package and the Freevee ad-supported video service. The company touted the performance of “Thursday Night Football” on Prime Video, which through the first six games in the 2023 NFL season has averaged 12.9 million viewers, an increase of 25% from last season’s six-game average, according to
.