Amazon announced that'quarterly profit doubled from the previous year', far better than expected
Amazon has announced its second quarter 2020 financial results. In the midst of the worldwide recession caused by the new coronavirus infectious disease (COVID-19), it has become a hot topic that the company doubled its net profit compared to the same period last year.
AMAZON.COM ANNOUNCES SECOND QUARTER RESULTS
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Amazon.com Announces Second Quarter Results | Business Wire
Amazon (AMZN) earnings Q2 2020
Amazon posted record sales and profit in the middle of a pandemic-Vox
On local time July 30, 2020, Amazon has released a financial report for the second quarter of 2020 until June 30, 2020. According to this financial report, net sales for the three months of April, May, and June 2020 were $8.7 billion (about 930 billion yen), a 40% increase from the same period of the previous year, and net income was $5.2 billion ( This is about 540 billion yen), which is double the year-on-year rate.
By category, revenue in the 'Other' category, which is centered on the advertising business, increased 41% year on year to $4.22 billion (about 440 billion yen), and subscription services such as Amazon Prime increased 29% year on year Of $6.02 billion (about 630 billion yen), Amazon Web Services (AWS) increased 29% year on year to $ 1.081 billion (about 110 billion yen), only the AWS department in the first quarter Growth has slowed from a 33% increase.
The reason for this record high performance is the nesting demand from COVID-19. Amazon notes that in the second quarter of 2020, online grocery sales sales tripled year over year, with food delivery capacity increasing by over 160%. In the announcement, Amazon CEO Jeff Bezos commented, 'This is another very unusual quarter and I am proud and thankful to all the employees around the world.' ..
COVID-19 Sales of consumables and groceries were strong at the beginning of the COVID-19 pandemic, but as the pandemic continued, special demand for such consumables and other products subsided, and other products became strong. The company's sales for the third quarter of 2020 were $87 billion (about 9.1 trillion yen) to $93 billion (about 9.7 trillion yen), and COVID-19-related costs of $2 billion (about 210 billion yen) ) Is expected to increase from 2 billion dollars to 5 billion dollars (about 520 billion yen), further strengthening COVID-19 measures in the third quarter, and for the holiday shopping season in November It aims to expand the fulfillment center.
Amazon has made a huge profit, but this good performance was unexpected. Bezos said in a Q1 2020 earnings report, ``We will spend about $4 billion to tackle the COVID-19 pandemic, and these costs could eliminate all profits in the next quarter. 'and mention has been, although sales increased, profits had suggested the possibility of reducing.
Amazon has hired about 175,000 new workers during the pandemic, but has faced employee strikes that COVID-19 measures are inadequate.
Employees who are dissatisfied with Amazon's new coronavirus infection measures start strike-GIGAZINE
The AWS department, whose growth is slowing, is the fastest growing department in Amazon from 2015 to 2020, with 12% of total revenue and 57% of total net income in the second quarter of 2020 AWS It depends on the department. According to the announcement, the use of AWS by the World Health Organization (WHO) and Zoom has expanded, but in the second quarter of 2020 the cloud computing service business was sluggish as a whole, and the profit of Microsoft Azure is Growth slowed from 59% in the first quarter to 47% and Google cloud platform revenues from 43% to 43% in the first quarter.
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