💰 Q3 Earnings Are Here! Here’s What You Need to Know

It's that time of year again, Amazon’s earnings time! 

We asked the Pilothouse Amazon team to sum up their learnings and give up some quick insights, and oh boy did they deliver. 👇 

📈 Revenue up 13% year over year — $127B ▶️ $143B

  • 6% growth in online stores 
  • 18% growth in "3rd party seller services" (seller fees of course)
  • 13% growth in subscription services (Prime)
  • 25% growth in Advertising services  

📈 Profit up 338% year over year — $2.5B ▶️ $11.2B

  • The North American segment (virtually all NA stores, including physical (Whole Foods, etc), subscriptions, ads, and whatnot) showed $4.3B in profit compared to a $412M loss in Q3 2022.
  • International Segment - $95M loss compared to $2.5B loss Q3 2022
  • AWS - $7B profit compared to $5.4B Q3 2022.
  • Now at the point where their NA segment is very close to as much profit as AWS. That's a big deal.

🎉 The team took some notes during the call, here are some notable points

1️⃣ During Prime Big Deal Day, U.S. Prime members purchased more than 25M items with Same-Day or Next-Day Delivery, with hundreds of thousands of items delivered within four hours of purchase.

2️⃣ Amazon announced that they will hire 250,000 full-time, part-time, and seasonal employees in the U.S. this holiday season. This is a 67% jump compared to last years seasonal hires. 

3️⃣ Additionally, Amazon is currently sitting on ~$50B in cold hard CASH. The team wouldn’t be shocked to see some acquisition/expansion plays in the near future.

4️⃣ “The benefits of moving from a single national fulfillment network in the U.S. to eight distinct regions are exceeding our optimistic expectations, and perhaps most importantly, putting us on pace to deliver the fastest delivery speeds for Prime customers in our 29-year history."

5️⃣ In response to a question, Amazon mentioned that they’re making further investments in improving machine learning in sponsored products and other on-platform placements. What could this mean for the ad delivery/relevance algorithm?! 🤔

That’s all for Amazon Q3 earnings. Anything specific standing out to you? Here’s to a strong Q4 for all you DTC Amazon sellers. 🫡