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Analyzing Amazon

Quarterly revenue for Amazon reached a new high in Q3 but operating income continued to decline. While revenue grew 34% or $11B year-over-year driven more than half by North America, AWS saw the biggest percentage growth. The 40% decline in operating income was due to declines in North America and International segments, though AWS contributes most of the profit despite being only 10% of total sales. Margins are declining as costs for SG&A and technology are growing faster than revenues.

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Cristian Alvayai
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20 views

Analyzing Amazon

Quarterly revenue for Amazon reached a new high in Q3 but operating income continued to decline. While revenue grew 34% or $11B year-over-year driven more than half by North America, AWS saw the biggest percentage growth. The 40% decline in operating income was due to declines in North America and International segments, though AWS contributes most of the profit despite being only 10% of total sales. Margins are declining as costs for SG&A and technology are growing faster than revenues.

Uploaded by

Cristian Alvayai
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Analyzing Amazon’s Performance

Quarterly Financial Trends


Quarterly revenue reached a new high but operating income continued to decline.
Change in Revenue
Revenue grew 34% or $11B YOY in Q3. More than half came from North America but
AWS had the biggest percentage growth.
Change in Operating Income
The 40% decline in operating income was driven by declines in North America and
International. AWS is only 10% of sales but it delivers most of the profit.
Cost Trends
Margins are declining as SG&A and Technology costs grow faster than revenues.

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