In the second quarter, the firm of Jeff Bezos inflated its revenues, but not its profits, the fault of too heavy investments.
Amazon released its quarterly results on Thursday, July 25. The e-commerce giant, already in the grip of a US government investigation linked to potentially anti-competitive practices, surprised by revealing a lower balance sheet than analysts forecast. Prime's one-day delivery program is very expensive for the company.
A lower than expected profit for Amazon
In the second quarter, Amazon generated revenue of $ 63.40 billion (or € 56.91 billion), a net increase of 19.9%, well above expectations ($ 62.48 billion). ). This is also higher than the first-quarter revenue ($ 59.7 billion), probably an effect of the Prime Days event. The Seattle firm expects a turnover of between 66 and 70 billion dollars in the third quarter.
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It's more about the benefits that Amazon is disappointing. While these were in the range of $ 3.6 billion in the first quarter, the profit of the last three months did not exceed $ 2.6 billion. Analysts expected a result of around 2.8 billion. Earnings per share are $ 5.22. For the next quarter, the company expects a profit of between 2.1 and 3.1 billion dollars.
AWS progresses on the cloud, which is maturing
On the side of Amazon Web Services (AWS), the cloud division of the king of e-commerce, yes, earnings growth is less strong than last year, from 49 to 37%. But in the second quarter, AWS revenue grew 37 percent year-on-year to $ 8.4 billion ($ 6.1 billion in the previous year).
AWS also continues to grow in Amazon, from 12% of the company's total revenue in the first quarter to 13% in the second. If these revenues on the cloud remain considerable, we are still witnessing the gradual maturing of the market.
Finally, the delivery in one day, available to Prime subscribers who are more than 100 million in the world, had some consequences on the balance sheet of Amazon. The program is very expensive: more than 800 million dollars invested in the second quarter. " We have had additional costs in our warehouses, and our rapid expansion has cost us a lot of productivity, " said Brian Olsavsky, CFO of the group.
As at Google or the side of Microsoft, the time is not the crisis so far from it.
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