Amazon's "Supplemental Revenue" category, which includes advertising, Web services and co-branded credit cards, raked in $1.3 billion in Q3, up 40% YoY from $960 million. Amazon's supplemental revenue fared less favorably in international markets, as the company reported a 17% decrease to $42 million in that category.
A number of analysts called out the "vast difference" in growth rate between domestic and international markets. Szkutak acknowledged "the softer growth rate across a number of geographies," despite Amazon's interest and investment in global expansion.
Amazon, which in the last quarter, launched the Fire Phone and dropped about $1 billion on live gaming platform Twitch, reported operating losses that were close to $550 million, citing a $170 million charge for supplier commitments due to weak Fire Phone sales (it had $83 million in unsold inventory in Q3).
Szkutak didn't offer much about Twitch, saying: "It’s a really creative team doing innovative things on behalf of their customers and we are excited to have them as part of Amazon." (more…)