Amazon.com Inc. CEO Jeff Bezos promised to release expected profits despite huge sales growth related to the COVID-19 pandemic, but sales grew so fast that instead of making record profits.
Earnings of $ 5.2 billion, or $ 10.30 a share, nearly doubled on Thursday afternoon, from $ 5.22 a share a year ago to a new quarterly record as earnings rose. Amazon reported sales of $ 88.9 billion, up 40% from $ 63.4 billion a year ago, well ahead of Amazon̵
Three months ago, Bezos said he hoped to spend billions on the expected operating profits that are thriving on American shelters from the coronavirus pandemic, buying more goods online, and companies spending more on cloud computing to help workers trapped at home. “If you’re an Amazon shareholder, you might want to take a seat because we don’t think small,” Bezos said in May.
However, the shareholders did not escape. Amazon shares continued to rise to record levels, rising more than 24% in the last three months and increasing the company’s market capitalization by more than 1.5 trillion. USD. Shares rose more than 4% after trading hours, on Thursday immediately after the results were announced.
“It was another very unusual quarter, and I couldn’t be more proud and grateful to my employees around the world,” Bezos said on Thursday. As expected, we spent more than $ 4 billion in revenue over the quarter on COVID-19 to help protect employees and deliver products to customers in this time of high demand – by purchasing personal protective equipment, increasing cleaning of our premises, following new safety process paths, adding new back-up family care benefits and the payment of a special thank-you bonus in excess of € 500 million. USD, for direct employees and delivery partners. ”
Amazon’s core business profits show why investors are following Amazon and joining them even more. The company said its e-commerce business has grown 47.8% since the second quarter of last year, and from $ 31.05 billion. USD revenue was $ 45.9 billion, while analysts expected $ 39.89 billion. In North America, net sales online and in physical Amazon stores such as Whole Foods Markets rose to $ 55.44 billion. USD from 38.65 billion USD a year ago, and sales abroad rose to $ 22.67 billion. USD from 16.37 billion.
Unit sales, tracking real physical orders from Amazon, jumped 57% during the quarter, up sharply from 18% growth a year ago. In a conference conversation on Thursday afternoon, Chief Financial Officer Brian Olsavsky noted that online grocery sales tripled during the quarter, and video traffic worldwide doubled more than a year ago. However, Amazon’s physical stores saw a decline of 13%.
Amazon Web Services, the company’s cloud computing division, jumped revenue to $ 10.8 billion from $ 8.38 billion, while analysts expected an average of $ 11 billion. As usual, AWS was Amazon’s largest profit engine, generating $ 3.36 billion in operating profit, and Amazon reported total operating income of $ 5.84 billion.
Even before the pandemic, Amazon spent funds to increase its logistics operations to deliver faster Prime subscription service to customers, and COVID-19 pushed those costs into hyperdrive. Amazon has now passed 1 million employees, Bezos has revealed testimony to Wednesday’s planned antitrust hearing against a congressional subcommittee, although many are still considered temporary, Amazon said on Thursday that the number is 876,800.
“Our total number of permanent and seasonal employees currently exceeds 1 million,” Olsavsky confirmed in remarks on Thursday.
Amazon said it expects revenue to be between $ 87 billion and $ 93 billion in the third quarter, and has learned from previous guidelines to expect a profit by forecasting operating income of $ 2 billion to $ 5 billion, even if it amounts to $ 2 billion in costs related to COVID- 19. Amazon typically hosts Prime Day sales in the third quarter, but Olsavsky announced in his conference invitation on Thursday that Prime Day will now be scheduled for the fourth quarter in all areas except India, where it will take place in August.