Amazon's Jeff Bezos Reuters Amazon just reported disappointing Q3 earnings.

Here are the numbers:

EPS : -$0.95 (analysts were expecting a loss of $0.74).

: -$0.95 (analysts were expecting a loss of $0.74). Revenues : $20.58 billion (analysts were expecting $20.84 billion). That's an increase of 20% year-over-year.

: $20.58 billion (analysts were expecting $20.84 billion). That's an increase of 20% year-over-year. Revenue guidance for next quarter: $27.3 billion - $30.3 billion

This is a miss on both the top and bottom line. The stock was down as much as ~12.89% after-hours.

Besides misses on EPS and revenue, Amazon also spooked investors by reporting a significant operating loss with similarly bleak Q4 guidance.

Operating loss was $544 million in the third quarter (the company had predicted between $410 and $810 million). In the third quarter last year, the operating loss was only $25 million. Amazon reported operating income guidance of between a $570 million loss and $430 million for Q4. About $470 million will be used for stock-based compensation. Net loss was $437 million.

On its earnings call, Amazon also confirmed suspicions that its smartphone — the Amazon Fire — was a bit of a flop. The company said it took a $170 million hit and that it had $83 million worth of unsold inventory on hand at the end of the quarter.

Here's Amazon's historical operating income:

Amazon

Amazon spent $2.6 billion on fulfillment expenses this quarter, up from $2 billion in Q3 last year (Amazon announced in Q2 that it was adding six new fulfillment centers and 15 more "sortation" centers by the end of the year). That's about 12% of the total $21 billion operating expenses.

Operating cash flow increased 15% year-over-year to $5.71 billion and free cash flow increased to $1.08 billion, which is up from $388 million in Q3 2013.

Going into the holiday season, Amazon expects net sales of between $27.3 billion and $30.3 billion, or a growth of between 7% and 18% year-over-year. Analysts were expecting $30.89 billion in revenue for the holiday quarter.

Here's a look at its historical net sales:

Amazon

The company also reported that Amazon Web Services usage had grown nearly 90% year-over-year for the third quarter. CEO Jeff Bezos has said in the past that he one day expects AWS to be the company's biggest business. Amazon doesn't specifically break out AWS revenue — it's part of the "other" category — but it saw 37% year-over-year growth.

On the earnings call, Amazon attributed the slow-down in media growth to the fact that more students are renting their textbooks than ever before, instead of buying them.

Here's where Amazon's growth comes from:

Amazon made a lot of investments in Q3. The company bought video game streaming startup Twitch for nearly $1 billion. It fired shots at Square by launching a mobile card reader called Local Register. Amazon Prime Fresh, the company's delivery service, expanded to New York. Amazon announced last quarter it would spend more than $100 million on original video content (its original TV show "Transparent" thrilled critics this quarter). Although investors generally have accepted Bezos' mantra of taking long-term losses for long-term success, the 10% stock plunge is clearly an indicator that they're running out of patience.

On the earnings call, one testily asked which metrics were important to Amazon because it didn't seem like "any of them are making positive progress."

CFO Tom Szkutak gave a very "Amazon" answer, saying that the company is trying to maximize free cash flow and then use its capital to make investments that will pay off in the long term.

Here's a closer look at some of the numbers:

Amazon

Here's the full report: