Amazon Reports Q3 Sales Of $17.09B, Up 24%, But Records Second Straight Loss

Next Story

TechStars Seattle Demo Day Showcases Google Glass Apps And More From 11 Startups

Amazon managed to beat expectations in its third quarter, with net sales of $17.09 billion, and a per-share loss of $0.09, or $41 million. The street had expected Amazon to lose $0.10 per share on sales of $16.8 billion.

In after-hours trading, Amazon is up a strong 7 percent. Investors are clearly heartened by what they see. As Blair Frank of GeekWire points out, however, this is Amazon’s second straight quarterly loss, and the company expects to lose a stunning $500 million in its fourth quarter.

Component to that loss, however, is $350 million for stock-based compensation, and amortization of intangibles. So, the cash loss should be somewhat blunted.

The company is growing like a weed, but not a very profitable weed. Amazon expects its net sales for the coming fourth quarter to land between $23.5 billion and $26.5 billion. Those figures represent a 10 percent to 25 percent year over year gain for the company.

amazon-q313

Amazon has around $7.7 billion in cash and equivalents, so it is hardly running low on funds. In its year-ago quarter, on $13.81 billion in net sales, Amazon lost $274 million. So, the quarter is progress of a sort.

The company is infamous for its lackadaisical view towards profits, instead pouring money into growing its various business units. Amazon sells tablets, streams video, delivers all sort of goods — even groceries — while also providing enterprise-grade cloud computing solutions. It’s a diverse firm.

Amazon could slow investment, and reach higher levels of profitability. But not soon, it seems. On the good ship Bezos steams.

Top Image Credit: Carl Malamud