Amazon.com Misses - AWS Revenue Surges 39%
October 29, 2021
Amazon.com reported financial results for its third quarter ended September 30, 2021. The firm had earnings of $6.12 with $8.92 per share expected. As to revenue, the big tech giant took in $110.81 billion, but $111.6 billion was expected.
Amazon Web Services notched revenue which rose 39% to $16.11 billion, with expected sales only being $15.48 billion. AWS generated $4.88 billion in operating income in the period, while Amazon.com's operating profit was $880 million.
“We’ve always said that when confronted with the choice between optimizing for short-term profits versus what’s best for customers over the long term, we will choose the latter—and you can see that during every phase of this pandemic,” said Andy Jassy, Amazon CEO. “In the first several months of COVID-19, Amazonians played an essential role to help people secure the requisite PPE, food, and other in-demand items needed, and we worked closely with businesses and governments to leverage AWS to maintain business continuity as they responded to the pandemic. Customers have appreciated this commitment, which is part of what’s driving this past quarter’s AWS growth acceleration to 39% year over year; but, it’s also driven extraordinary investments across our businesses to satisfy customer needs—just one example is that we’ve nearly doubled the size of our fulfillment network since the pandemic began. In the fourth quarter, we expect to incur several billion dollars of additional costs in our Consumer business as we manage through labor supply shortages, increased wage costs, global supply chain issues, and increased freight and shipping costs—all while doing whatever it takes to minimize the impact on customers and selling partners this holiday season. It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners.”