7 months ago| article

The company in its earnings release spotlighted efforts in India
International operations turned a profit of $407 million, while revenue for the company's 'other' category, which is mainly its advertising services, grew 50% year over year.
Oct 30, 2020 05:07:00 AM | Article | Matthew Miller Share -
Expectations for Amazon's third-quarter financial results were high, yet the company surpassed them handily, reporting net income of $6.33 billion on a 37.4% year-over-year increase in revenue, which reached $96.15 billion.
The net-income figure represents nearly a tripling (197%) on a YOY basis. Operating income nearly doubled (96%) to $6.19 billion.
The company reported a 51% YOY 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 $11.6 billion in net sales, a 29% YOY gain, resulting in $3.54 billion in operating income, up 56% YOY.
Amazon Q3 2020 earnings snapshot
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While North America—where net sales increased 39% YOY to $59.37 billion and operating income grew 76% YOY to $2.25 billion—remains the company's primary market, international expansion efforts are paying off. International operations delivered net sales of $25.17 billion for the quarter, up 37% YOY. And whereas the international segment lost $380 million a year ago (and continued to notch losses through Q1 of this year), it delivered $407 million in operating income this quarter.
Looking ahead, Amazon said it expects net sales between $112 billion and $121 billion in Q4, which would represent a YOY improvement between 28% and 38%. It expects operating income between $1 billion and $4.5 billion, compared with $3.9 billion in Q4 of 2019, which takes into account approximately $4 billion in costs related to Covid-19.
As it continues efforts to overcome resistance in India (see "Amazon gets cold shoulder in India: What does this spell for its future?"), the company in its earnings release spotlighted the following:
In Australia, the company launched Amazon Launchpad Innovation Grants, which it bills as an initiative to celebrate innovation by Australian startups, entrepreneurs, and small and medium-sized businesses.