Amazon’s net profit of $3.156 billion in the third quarter was lower than expected, and its share price fell more than 5% after hours

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Tencent technology news on October 29, Amazon released its third quarter financial report as of September 30, 2021 on Thursday. According to the financial report, Amazon’s net revenue in the third quarter was $110.8 billion, exceeding $100 billion for the third consecutive quarter, an increase of 15% over $96.1 billion in the same period last year, less than the $111.6 billion expected by Wall Street; The net profit was US $3.156 billion, down 50% from US $6.331 billion in the same period last year.
In the third quarter ended September 30, Amazon’s net profit was $3.156 billion and diluted earnings per share was $6.12, which was lower than the same period last year and Wall Street’s expected $8.92. In the third quarter of fiscal year 2020, Amazon’s net profit was $6.331 billion and diluted earnings per share was $12.37. Affected by the fact that the third quarter results were lower than Wall Street’s expectations, Amazon’s share price plunged more than 5% in subsequent after hours trading at the time of publication.
Main financial data of the third quarter:
Amazon’s operating profit in the third quarter was $4.852 billion, down 22% from $6.194 billion in the same period last year. Net revenue was $110.8 billion, up 15% from $96.1 billion in the same period last year. Excluding the favorable impact of US $500 million caused by exchange rate changes, Amazon’s net revenue in the third quarter increased by 15% year-on-year. Among them, Amazon’s net product revenue in the third quarter was $54.876 billion, higher than $52.774 billion in the same period last year; Net service revenue was $55.936 billion, up from $43.371 billion in the same period last year.
In the 12 months ended September 30, 2021, Amazon’s operating cash flow was $54.7 billion, down 1% from the same period last year; For the 12 months ended September 30, 2020, Amazon’s operating cash flow was $55.3 billion.
In the 12 months ended September 30, 2021, Amazon’s free cash flow was $2.6 billion, lower than that in the same period last year; For the 12 months ended September 30, 2020, Amazon’s free cash flow was $29.5 billion. After deducting the principal repayment, Amazon’s free cash outflow in the past 12 months was $8.8 billion, lower than that in the same period last year; In the 12 months ended September 30, 2020, Amazon’s free cash inflow after deducting the above items was $18.4 billion.
After deducting the principal repayment and the assets obtained under the capital lease, Amazon’s free cash outflow in the past 12 months was $3.9 billion, lower than that in the same period last year; In the 12 months ended September 30, 2020, Amazon’s free cash inflow after deducting the above items was $17.9 billion.
By region, the net revenue of Amazon’s North America Department (the United States and Canada) in the third quarter was US $65.557 billion, an increase of 10% over US $59.373 billion in the same period last year; Operating profit was $880 million, compared with $2252 million in the same period last year.
Amazon International (UK, Germany, France, Japan and China) had a net revenue of US $29.145 billion in the third quarter, an increase of 16% over US $25.171 billion in the same period last year; The operating loss was $911 million, compared with an operating profit of $407 million in the same period last year.
The net revenue of Amazon AWS cloud services in the third quarter was US $16.11 billion, an increase of 39% over US $11.601 billion in the same period last year; Operating profit was $4883 million, up from $3535 million in the same period last year.
Amazon’s total operating expenses in the third quarter were $105.96 billion, up from $89.951 billion in the same period last year. Among them, the revenue cost was US $62.930 billion, higher than US $57.106 billion in the same period last year; Logistics expenditure was US $18.498 billion, higher than US $14.705 billion in the same period last year; The marketing expenditure was US $8.010 billion, higher than US $5.434 billion in the same period last year; Technology and content expenditure was $14.38 billion, up from $10.976 billion in the same period last year; General and administrative expenditure was $2.153 billion, up from $1.668 billion in the same period last year; Other operating income was $11 million, compared with other operating expenses of $62 million in the same period last year.
Amazon estimates that the net revenue in the fourth quarter of fiscal year 2021 will be US $130 billion to US $140 billion, with a year-on-year increase of 4% to 12%, including the adverse impact of about 60 basis points expected to be brought by exchange rate changes. Amazon expects an operating profit of $0 billion to $3 billion, compared with $6.9 billion in the same period in 2020.
Thomson Reuters survey showed that analysts had expected Amazon’s fourth quarter net revenue to be $142.05 billion on average; Diluted earnings per share was $12.14.
Executive comments

“Novel coronavirus pneumonia is a common choice for us. We always say that when we choose between short-term profit optimization and long-term customer best choice, we will choose the latter — this can be seen in every stage of the new crown pneumonia epidemic,” said Amazon Jassy Andy Andy. “Novel coronavirus pneumonia has played an important role in helping the users to get the necessary personal protective equipment, food and other required goods in the first few months of the new crown pneumonia. We have worked closely with the enterprises and the government to maintain business continuity in the face of the pandemic. The customers appreciate this commitment very much, which is also part of the reason for the AWS growth of 39% over the previous quarter to reach AWS. However, it has also driven extraordinary investment throughout our enterprise to meet customer needs. For example, since the beginning of the arrogance epidemic, the size of our logistics network has almost doubled. In the fourth quarter, we expect to generate billions of dollars in additional costs in our consumer business because we have to deal with labor shortages, increased wage costs Global supply chain issues and increased freight and transportation costs, while making every effort to minimize the impact on customers and sales partners during this holiday. In the short term, this is expensive for us, but it is the right priority for our customers and partners. ”
Stock price performance
Amazon’s shares rose $54.08, or 1.59%, to $3446.57 in regular trading on the Nasdaq stock market on Thursday. In subsequent after hours trading, Amazon’s shares plunged $175.52, or 5.09%, to $3271.05 at press time. According to Thursday’s closing price, Amazon’s market value is about $1.745 trillion. In the past 52 weeks, Amazon has been the largest The low share price was US $2881.00 and the high share price was US $3773.08