Amazon Bests Wall Street Earnings Estimates as Ad Sales Rise 19% in Q3
by Jennifer Maas · VarietyAmazon reported its third-quarter 2024 earnings, revealing ad sales rose 19% year over year amid the company’s push to insert ads into Prime Video.
Analysts had expected $14.25 billion in ad revenue and the e-commerce giant reported $14.3 billion. Per Amazon, that includes sales of advertising services to sellers, vendors, publishers, authors and others, through programs such as sponsored ads, display and video ads.
The company also reported its subscription services revenue was up 11% in Q3, which ran July 1-Sept. 30, at $11.3 billion.
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“As we get into the holiday season, we’re excited about what we have in store for customers,” Amazon President and CEO Andy Jassy said in a press release. “We kicked off the holiday season with our biggest-ever Prime Big Deal Days and the launch of an all-new Kindle lineup that is significantly outperforming our expectations; and there’s so much more coming, from tens of millions of deals, to our NFL Black Friday game and Election Day coverage with Brian Williams on Prime Video, to over 100 new cloud infrastructure and AI capabilities that we’ll share at AWS re:Invent the week after Thanksgiving.”
Wall Street forecast earnings per share (EPS) of $1.14 on $157.2 billion in revenue, according to analyst consensus data provided by LSEG, formerly Refinitiv. Amazon reported diluted EPS of $1.43 on $158.9 billion in revenue for Q3.
In its Q3 earnings results, Amazon noted its addition of Apple TV+ to Prime Video’s U.S. offering of more than 100 subscription channels.