Summary of Amazon's Financial Report

Amazon reported its financial performance and business progress in the third quarter of 2023 during its earnings conference call.

1) Financial Performance: Amazon reported a revenue of 143.1 billion USD, an 11% year-on-year growth; operating profit reached 11.2 billion USD, a 343% year-on-year growth; free cash flow for the past 12 months adjusted to 20.2 billion USD, an increase of 41.7 billion USD compared to the same period last year.

2) Storage Business: Amazon transformed the single nationwide fulfillment network in the United States into eight independent regions, achieving significant reform in fulfillment network. This reform exceeded the company's initial expectations and resulted in faster delivery to customers by increasing local inventory levels, optimizing the connection between fulfillment centers and distribution stations, shortening transportation distances, and reducing service costs.

3) AWS and AI: Amazon's cloud computing business (AWS) revenue increased by 12% year-on-year to reach $23.1 billion. AWS is aggressively investing in generative artificial intelligence (AI) and has established partnerships with leading large language model (LLM) manufacturers such as Anthropic. Amazon has also launched services such as Amazon Bedrock, which allows customers to access, customize, and deploy third-party and Amazon's own LLM.

4) Advertising Business: Amazon's advertising business continues to grow, mainly driven by sponsored products. The application of machine learning algorithms has improved the relevance and effectiveness of advertising.

5) International Business: Amazon's international business is close to achieving break-even, thanks to factors such as reducing service costs, improving productivity, and reducing inflationary pressures.

6) Emerging Business and Plans: Amazon is excited about emerging businesses and plans such as Prime Video, healthcare and medical, Prime Day promotions, and new logistics services. In particular, Prime Video will introduce limited advertising in early 2024 and offer additional monthly fee options for US members who want an ad-free experience.

Amazon's earnings conference call showcased the company's progress in improving efficiency, expanding cloud computing and AI capabilities, and optimizing advertising and international business. The company continues to maintain an optimistic outlook on its long-term growth and innovation capabilities.