Here’s how the company did:
- EPS: Losing 20 cents
- he won: $121.23 billion versus $119.09 billion forecast, according to Refinitiv
Here’s how other key Amazon segments performed during the quarter:
- Amazon Web Services: $19.7 billion versus the $19.56 billion forecast, according to StreetAccount
- Advertising: $8.76 billion versus the $8.65 billion forecast, according to StreetAccount
Revenue growth of 7% in the second quarter beat estimates, defying the trend among its big tech peers, which all reported disappointing results before Thursday. Apple, along with Amazon, outperformed expectations.
Amazon said it expects third-quarter revenue to be between $125 billion and $130 billion, representing growth of 13% to 17%. Analysts had expected sales of $126.4 billion, according to Refinitiv.
Amazon was dealing with rising costs, as pandemic-driven expansion left the company with too many workers and too much storage capacity.
“Despite continued inflationary pressures in fuel, energy and transportation costs, we are making progress on the more manageable costs we have signaled in the past quarter, particularly improving the productivity of our fulfillment network,” CEO Andy Gacy said in a statement.
Amazon reduced its number of employees from 99,000 people to 1.52 million by the end of the second quarter after it nearly doubled in size during the pandemic.
technology companies layoffs announcedHiring freezes and job offers canceled amid economic uncertainty. On a call with reporters, Chief Financial Officer Brian Olsavsky said Amazon will continue to hire engineers for units like Amazon Web Services and advertising, but will be cautious about hiring in other regions.
“I think it’s only right for people to step back and question their hiring plans,” Olsavsky said. “We’re doing that too. I don’t think you’ll see us hiring as quickly as we’ve done over the last year, or the last few years.”
Amazon registered Its investment in Rivian lost $3.9 billion after shares of the electric car maker plunged 49% in the second quarter. This brings his total investment loss this year to $11.5 billion.
Due to Rivian’s write-off, Amazon incurred a total loss of $2 billion in the quarter. Analysts’ EPS estimates have varied widely, making it difficult to compare actual results to an agreed-upon number.
Rivian CEO RJ Scaringe and Udit Madan pose in front of the new Amazon EV powered by Rivian. Amazon and Rivian unveil their electric end-delivery vehicles (EDV) to begin using them for customer delivery, in Chicago, Illinois, July 21, 2022.
Jim Vondroska | Reuters
Amazon’s core e-commerce business continues to struggle as online sales are no longer as booming as they were at the height of the Covid-19 lockdown. The company’s online stores segment is down 4% year over year. In-store sales continued to rebound from the same period last year, growing 12%.
Amazon’s advertising business is a bright spot in a bleak online advertising quarter, and it shows the company is gaining a stake in one of its fastest growing businesses.
Ad revenue increased by 18% in this period. FacebookMeanwhile, it posted its first ever drop in revenue and expects another drop in the third quarter. in the alphabetAd growth slowed to 12%, and YouTube showed a significant slowdown to 4.8% from 84% a year earlier.
Amazon’s cloud part continues to hum. Sales at Amazon Web Services jump 33% from a year earlier to $19.74 billion, higher than the $19.56 billion Wall Street had expected.
Operating income, which excludes investment-related loss, shrank to $3.3 billion from $7.7 billion a year earlier. AWS generated $5.7 billion in operating income, which is all of Amazon’s earnings plus some of the profits in that period.
The upbeat results can also help lift the mood around Jassy, who has replaced Jeff Bezos As CEO for just over a year. jassi First year on the job It has been marred by challenges, including an ongoing business battle, a market downturn, increased regulatory pressure and an exodus of top talent.
It is also under pressure to show it can return Amazon’s core retail business to the growth investors are used to seeing, a difficult task given the overall pressures the company is facing, such as rising inflation and slowing discretionary consumer spending.