Amazon (NASDAQ: AMZN) today released its financial report for the third quarter of fiscal 2021 ending September 30. The financial report shows that Amazon’s total net sales in the third quarter were US$110.12 billion, an increase of 15% from US$96.145 billion in the same period last year; net profit was US$3.156 billion, a decrease of 49% from US$6.331 billion in the same period last year.
In the U.S. stock market on Thursday, Amazon opened at $3,402.09; as of the close, Amazon’s stock price rose 54.08 yuan to close at $3,446.57, an increase of 1.59%; in the after-hours trading market, as of 16:08 Eastern Time on October 28 (Beijing (Time October 29th 4:08), Amazon’s stock price fell 120.08 US dollars, temporarily reported 3,326.49 US dollars, a decrease of 3.48%. The floating range of Amazon’s stock price in the past 52 weeks is: US$2881.00-US$3773.08.
Amazon’s main financial data for the third quarter of fiscal 2021:
Net sales: total net sales in the third quarter of fiscal 2021 were US$110.12 billion, an increase of 15% from US$96.145 billion in the same period of the previous year; excluding the favorable impact of US$500 million caused by exchange rate changes, Amazon ranked third Quarterly net sales increased by 15% year-on-year.
Net profit: Net profit was US$3.156 billion, a decrease of 49% from US$6.331 billion in the same period last year. Basic and diluted earnings per share were US$6.23 and US$6012, respectively. In the same period last year, Amazon’s basic and diluted earnings per share were US$12.63 and US$12.37.
Operating expenses: In the third quarter of fiscal 2021, Amazon’s operating expenses were US$105.96 billion, an increase of 18% from US$89.951 billion in the same period last year.
Operating profit: In the third quarter of fiscal 2021, Amazon’s operating profit was US$4.852 billion, a decrease of 22% from US$6.194 billion in the same period last year.
Cash flow: In the past 12 months ending September 30, 2021, operating cash flow decreased by 1% to 54.7 billion U.S. dollars, while operating cash flow was 553 in the 12 months ending September 30, 2020 One hundred million U.S. dollars.
Compared with the US$29.5 billion in the past 12 months as of September 30, 2020, the free cash flow in the past 12 months has fallen to US$2.6 billion.
In the past 12 months ending September 30, 2021, Amazon issued 523 million shares of common outstanding shares and underlying stock award shares, compared with 518 million shares a year ago.
By region
North American business: In the third quarter of fiscal 2021, Amazon’s North American division’s net sales were US$65.557 billion, an increase of 10% from US$59.373 billion in the same period of the previous year; operating expenses were US$64.677 billion, compared with US$57.121 billion in the same period last year, an increase of 13 year-on-year. %; operating profit was 880 million yuan, compared with 2.252 billion yuan in the same period last year, down 61% year-on-year;
International business: In the third quarter of fiscal 2021, the net sales of Amazon’s international division were US$29.145 billion, an increase of 20% from US$24.171 billion in the same period of the previous year; operating expenses were US$30.056 billion and US$24.764 billion in the same period last year, an increase of 22% year-on-year. %; Operating loss was 991 million yuan, and operating profit in the same period last year was 407 million yuan, a year-on-year decrease of 61%;
AWS Cloud Services: Net sales of Amazon AWS cloud services in the third quarter of fiscal 2021 were US$16.11 billion, an increase of 39% from US$11.601 billion in the same period last year; operating expenses were US$11.227 billion, and US$8.066 billion in the same period last year. An increase of 38%; operating profit was 4.883 billion yuan, compared with 3.535 billion yuan in the same period last year, a year-on-year increase of 39%;
Divided by product
Online store business: In the third quarter, Amazon’s net sales from its online store business were US$49.942 billion, an increase of 3% from US$48.350 billion in the same period last year;
Physical store business: In the third quarter, Amazon’s net sales from physical store business were US$4.269 billion, an increase of 13% from US$3.788 billion in the same period last year;
Third-party seller business: Net sales from retail third-party seller business were US$24.252 billion, an increase of 19% from US$20.436 billion in the same period last year;
Subscription services: Net sales from subscription services were US$8.148 billion, an increase of 24% from US$6.572 billion in the same period last year;
AWS cloud services: Net sales from AWS cloud services were US$16.11 billion, an increase of 39% from US$11.601 billion in the same period last year;
Other businesses: Net sales from other businesses were US$8.091 billion, an increase of 50% from US$5.398 billion in the same period last year.
Performance Outlook
The fourth quarter of fiscal year 2021: Amazon expects net sales for the quarter to be between US$130 billion and US$140 billion, an increase of 4% to 12% year-on-year; this guidance expectation includes approximately 60 basis points of adverse effects of exchange rate changes ；
Operating profit is expected to be between US$0 billion and US$3 billion, compared to US$6.9 billion in the same period last year; this guidance is based on the premise that Amazon did not have additional business acquisitions, restructurings, or legal settlements during the quarter.
This guiding expectation assumes that it does not include other commercial acquisitions, investments, reorganizations, or litigation settlements.
Executive Comments
Amazon CEO Andy Jassy (Andy Jassy) said: “We always believe that when faced with the choice of optimizing short-term profits and long-term benefits for customers, we will choose the latter-you can see that in this pandemic This is true at every stage of the epidemic.”
“In the first few months of the COVID-19 pandemic, Amazonians played an important role in helping people ensure necessary personal protective equipment, food, and other urgently needed items. We work closely with companies and governments to use them as they respond to the pandemic. AWS maintains business continuity. Customers appreciate this commitment, which is also part of the reason for AWS’s 39% year-on-year growth in the last quarter; and this also promotes our temporary investment in the entire business area to meet customer needs—— To give just one example, since the outbreak of the epidemic, our logistics network has almost doubled in size.” Iasi said.
When talking about the business in the next four quarters, Iasi said, “In the fourth quarter, as we deal with labor shortages, rising wage costs, and global supply chain issues, we expect the consumer business to incur billions of dollars in additional costs. Increase shipping and transportation costs. However, Amazon will also make every effort to minimize the impact on customers and sales partners. This will make Amazon pay a high price in the short term, but for our customers and partners, this is correct Order of precedence.”
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