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E-commerce giant Amazon have published their Q3 financial statement, which reveals a 37% increase in net sales in Q3 2020 compared to the previous year. The company are also on course for a very profitable Q4.

Jeff Bezos, Amazon founder and CEO, said that the company is expecting an „unprecedented” season after observing increased holiday season purchases from consumers:

We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season.

However, the pandemic has also increased costs as well as sales. This holiday season’s costs are estimated at $4 billion, an increase of $2.5 billion compared to Q3. Part of these costs can attributed to the company’s plans to purchase PPE and test employees for Covid-19. Social distancing at its warehouses is also negatively impacting productivity, according to Chief Financial Officer Brian Olsavsky.

Net sales in Q4 are expected to be between $112.0 billion and $121.0 billion, which is higher than analyst expectations of $112.7bn, writes the Guardian.

A summary of the Q3 statement is provided below:

  • Operating cash flow increased 56% to $55.3 billion for the trailing twelve months, compared with $35.3 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow increased to $29.5 billion for the trailing twelve months, compared with $23.5 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow less principal repayments of finance leases and financing obligations increased to $18.4 billion for the trailing twelve months, compared with $14.6 billion for the trailing twelve months ended September 30, 2019.
  • Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $17.9 billion for the trailing twelve months, compared with $10.5 billion for the trailing twelve months ended September 30, 2019.
  • Common shares outstanding plus shares underlying stock-based awards totaled 518 million on September 30, 2020, compared with 511 million one year ago.
  • Net sales increased 37% to $96.1 billion in the third quarter, compared with $70.0 billion in third quarter 2019. Excluding the $691 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 36% compared with third quarter 2019.
  • Operating income increased to $6.2 billion in the third quarter, compared with operating income of $3.2 billion in third quarter 2019.
  • Net income increased to $6.3 billion in the third quarter, or $12.37 per diluted share, compared with net income of $2.1 billion, or $4.23 per diluted share, in third quarter 2019.

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