Amazon’s primary business was its core online store business, which grew 15%, the slowest rate since 2019, despite postponing its flagship Prime Day sales event to June.
Brian Olsavsky, chief financial officer of Amazon, told reporters the deceleration was “essentially a combination of the strength of Covid from last year,” when demand for online shopping hit record highs.
Communities vaccinated with relaxed lockdown rules meant he “saw among our customers especially in the United States and Europe, people are going out more doing something other than shopping,” he added, noting that the spending of customers with Prime subscriptions had “moderate”.
Amazon revenue at a glance
Real compared to estimates
Income: $ 113.1 billion against $ 115.1 billion
Net revenue $ 7 billion against $ 6.4 billion
EPS 15,12 $ against $ 12.32
marge brute 43.3 percent against 41.6 percent
AWS (cloud) revenue $ 14.8 billion against $ 14.2 billion
Sources of estimates: S&P Capital IQ and FactSet
Amazon’s cloud computing division, AWS, continued to perform well, with companies accelerating their cloud migration plans. The segment posted $ 14.8 billion in revenue in the second quarter, up from $ 10.8 billion in the same period last year – the second consecutive quarter of growth above 30%.
Overall revenue rose 27% from a year ago to $ 113 billion, below expectations of around $ 115 billion, according to consensus data from FactSet. Profit rose 50% from the same period last year, to $ 7.8 billion.
Amazon also forecast that its profits would fall in the current quarter compared to the same period last year, and that expected operating profit for July to September would be between $ 2.5 billion and $ 6 billion, compared to the same period last year. $ 6.2 billion a year ago.
The company’s “other” business, which consists primarily of its nascent advertising efforts, continued to show strong growth. Revenue for the segment jumped 88% from the same period last year to $ 7.9 billion, a time when companies slashed advertising budgets as the pandemic took hold.
Profits mark Amazon’s final quarter under the leadership of founder Jeff Bezos, who stepped down as chief executive earlier this month on the 25th anniversary of the company’s founding. He was replaced by Andy Jassy, former managing director of AWS.
The shares fell about 7 percent in after-hours trading. The company had grown just over 12% since the start of the year.
“Over the past 18 months, our consumer business has been called upon to deliver an unprecedented number of items, including PPE, food and other products that have helped communities around the world cope with the difficult circumstances of the pandemic, ”Jassy said in a statement. declaration.
“At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS’s growth accelerate as more businesses come up with plans for transform their businesses and migrate to the cloud.
The company said it incurred $ 1.5 billion in costs directly related to the treatment of Covid-19, such as distancing measures at its warehouses. This brings the total cost since the start of the pandemic to around $ 15 billion.
Olsavsky said Amazon would not follow other tech groups, such as Google and Facebook, in forcing vaccines on its staff. He said his plan to return to office in September was still in effect.