October 26, 2012—Amazon.com released their third-quarter results yesterday, reporting a huge loss that many investors and Wall Street experts didn’t expect. Although it’s been almost nine years (July 2003) since Amazon has reported a quarterly loss, the ecommerce giant posted a whopping $274 million loss for July-September due mostly to new FBA distribution centers and spending on its Kindle business.
Part of the quarterly loss can be attributed to Amazon’s minority stake in daily deal company LivingSocial which accounted for a loss of 37 cents per share. Other spending included heavy investments in Kindle e-reader and tablet business, 19 new FBA centers, video content, cloud-storage infrastructure, and new geographic locations like China. Also, Amazon is spending money on hiring 50,000 temporary workers for the holiday season throughout their distribution centers across the U.S.
On the bright side, Amazon reported Thursday they had 188 million active customer accounts with more than 2 million seller accounts. Even with the quarterly loss, Amazon noted their International revenue totaled $.5.92 billion, up 20 percent from last year and North America revenue was $7.88 billion, up 33 percent from a year earlier.
For the fourth quarter, Amazon said it expects revenue of $20.25 billion to $22.75 during the busy holiday shopping period which is less than many analysts expected.
To read the entire Q3 Reporting Transcript go here.