Still seeing net losses despite huge sales numbers; no Kindle Fire sales figures given
Amazon has just posted its Q3 2013 earnings report, and the line seems to follow much the same trend as previous quarters. While the retail and online service giant posted a massive $17.09 billion in sales, up 24 percent year-over-year, it still posted an operating loss of $25 million (net loss of $41 million) for the quarter. That loss is improved from an operating loss of $28 million in the same quarter last year, and Amazon claims $7 million of that loss was due to negative foreign exchange impact, but losses are still never good to see.
As is the case every quarter, Amazon chose not to break out any sales figures of its Kindle Fire tablets, although it did take a moment to remind everyone that it has launched three new models and is offering a great experience with the Mayday button: "average Mayday response times are just 11 seconds!” said CEO Jeff Bezos.
The earnings report also pointed out some successes in the Amazon Appstore, including the launch of the Appstore Developer Select program. It's clear that Amazon is putting a lot of weight behind its mobile devices and services, but without any specific numbers on them its hard to nail down just exactly how well they're performing independent of the rest of its business.
Source: Amazon
Reader comments
Amazon Q3 2013 earnings are out - $17.09 billion in sales, operating loss of $25 million
to be honest... I hate Amazon since they ripped off google service from Android. they are nothing more than Apple with their walled garden
+100
Posted from the Google Nexus 7 2012 via Android Central App
Love Amzn, but I'm disappointed with them raising the minimum free ship order to $35. Boo! I wonder if that will cause people not to order from them just to meet that min amt. I know my smaller orders will reduce significantly now...
Posted via Android Central App on my white Nexus 4 with StraightTalk
I suspect that's in part to motivate people to subscribe to Prime, like I have (though not because of that).
Oh for sure that's what they're going for and the few times I've tried prime it was great, but I just can't get past spending the cheese for it. That and to offset the shipping costs of those smaller orders.
Posted via Android Central App on my white Nexus 4 with StraightTalk
Prime is less than I pay for Netflix, having both makes for a great media selection. You can also share your Prime membership with others (up to three people I think), so I went in with a friend and we split the cost.
Hmm good idea, haven't considered that. Thx!
Posted via Android Central App on my white Nexus 4 with StraightTalk
That's awesome. $3 per month, for Prime, is an absolute steal. I have a few friends that order exclusively from Amazon. I should consider looking into this.
That is a fantastic idea if you have roommates who shop on Amazon. I place an Amazon order at least once a month, and last year I bought 80% of my Christmas gifts via lightning deals. The money I saved on lightning deals paid for Amazon Prime for the year.
Doesn't even have to be roommates. The friend I split it with lives in the next town over. She's on my Prime account and places her orders normally with them arriving at her door. She also get access to Prime movies.
It sounds way too good to be true, yet it is.
If Samsung made penis implants, would they have TouchWiz? - dchawk81
Amazon make money selling EVERY form of tablet, as well as their own. They took Android and turned it into their "personal" store front tablet! Meanwhile every iPad and Android tablet going STILL gets used to buy from them; and they sell millions of them as well. WOW!
Really clever people use other peoples talent to make themselves rich. Amazon have become like the Godfather, while selling the book, film and probably the blasted horses head!
Even James Bond wont beat Amazon. THE Supervillain.
Awesome A C
Except, as these quarterly results show, Amazon doesn't actually make money. Amazon is a very odd business in that its shareholders don't seem to care if it makes a profit.
Posted via Android Central App
Actually they are making a lot of money. As with many companies, a posted loss doesn't actually mean they are losing money in the core businesses. Those loses include special items, writedowns, and other things that don't reflect how the business is actually performing. Looking at the financials more closely, these losses are related to forex, which investors could care less about. Also included in op expense is $281 million in stock based comp. Adding those two items back and they are very profitable. But for GAAP purposes they are required to show a loss.
Bottom line, amzn is very lucrative, as is evidenced by their love in the Street.
Posted via Android Central App on my white Nexus 4 with StraightTalk
This. People seem to forget: no loss equals no write-down.
Yup. And that 'loss' was less than 0.2%.
If Samsung made penis implants, would they have TouchWiz? - dchawk81
Exactly.
Posted via Android Central App
How can a company make so much money, only to end up in the red?
Very low margins.
True, I guess they make their money on Prime, content.
they laugh at $25m
Love Amazon. Cost for Prime is worth it. I consider it like a Costco or Sam's membership, only I don't have to leave the house.
- not a fan of their fork in Android though.
Posted via Android Central App
I like Amazon a lot, but I find it hard to believe they are losing money. If they have been for so many years, then how is the CEO one of the richest people. Unless he is taking all the money for himself.
The stock goes up. People who invest in Amazon are betting long. They know that Amazon is spending a lot of money crushing traditional brick and mortar stores. Once the market sorts out they will be in to of the pile of rubble.
Operating loss!!! They opened more warehouses in the UK this year, total cost who knows but I imagine they are improving their network worldwide.
Posted via Android Central App
Also Amazon is now going after PayPal customers with a login and pay system now for online payment transactions.
I have to imagine they are taking losses now because they are probably getting ready for big things coming up. Just a hunch.
I love them. With a couple of big warehouses in Phoenix I order standard shipping and get it in 1 or 2 days.