Amazin’ Amazon

It sounds like a broken record when it comes to Amazon’s (Nasdaq: AMZN) earnings. The company delivered another stellar quarter that even recorded its biggest profits ever. And most of it is thanks to the cloud.

Amazon’s Financials

Amazon’s second quarter revenues grew 31% over the year to $30.4 billion, compared with the market’s expectations of $29.6 billion. EPS of $1.78 also shot past the Street’s forecast of $1.11 per share.

17333815339_091357bfaa_z

Photo Credit: C_osett /Flickr.com

By segment, net product sales increased 23% to $21.12 billion with its North America commerce segment growing 28% to $17.67 billion and International sales growing 30% at $9.84 billion. Net services sales grew 53% to $9.29 billion. Within the Net services segment, revenues from AWS grew 58% over the year and 13% over the quarter to $2.886 billion. In fact, Salesforce selected AWS as its preferred public cloud infrastructure provider and for the first time, Salesforce will expand use of AWS to Salesforce’s core services — including Sales Cloud, Service Cloud, App Cloud, Community Cloud, and Analytics Cloud.

For the current quarter, Amazon projected revenues of $31 billion-$33.5 billion, compared with the market’s forecast of $31.62 billion. It forecast an operating income of $50 million-$650 million, compared with the Street’s projections of $831 million. The recently held Amazon Prime Day is expected to impact the profits for the current quarter.

Amazon’s International Expansion

During the quarter, Amazon continued to push its services in newer markets, especially in India. The company launched its Prime service in India. Amazon Prime in the country will allow Indian customers in more than 100 cities to enjoy unlimited free one-day and two-day delivery on thousands of products. Sellers using Fulfillment by Amazon will benefit from the unlimited fast, free delivery. Amazon also plans to launch Prime Video in India so that consumers there will have exclusive access to Amazon Original Series and Movies, premium movies, and TV shows. Amazon.in has already become one of the most visited e-commerce sites in India and the most downloaded mobile shopping app as well.

1 2 3
View single page >> |

More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book,  more

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Stock Loverrrrr 2 years ago Member's comment

Interesting to see how much of an impact $AMZN is having all over the world. As it keeps expanding, the price will continue to keep rising. Just as you thought, #Amazon was at it's biggest, it keeps building. I'm interested to see if Amazon will ever be on the same level as Netflix. Never say never with that kind of stuff, especially with Amazon's deep pockets.

Alexa Graham 2 years ago Member's comment

Stock Loverrrrr, do you mean in general or in the streaming video market? #Amazon is already far larger than #Netflix as a company. But Prime members get its streaming for free. Hard for Netflix to compete with that. $AMZN $NFLX

Stock Loverrrrr 2 years ago Member's comment

Unexpected error occurred while trying to load comment content. Please try again later.

Michele Kalker 2 years ago Member's comment

Does Amazon have more Prime members than Netflix has subscribers? $AMZN $NFLX