Amazon announces second quarter 2024 financial results, with sales of approximately 22.14 trillion yen, up 10% from the same period last year, but below market expectations
On August 1, 2024, Amazon announced its financial results for the second quarter of 2024 (April to June). The report showed that while Amazon's sales and profits are on an upward trend, sales revenue is below market expectations and revenue from the cloud and advertising divisions is increasing.
Amazon.com, Inc. - Amazon.com Announces Second Quarter Results
AWS Q2 earnings report
Amazon says consumers cautious, forecasts revenue below Wall Street targets | Reuters
https://www.reuters.com/technology/amazon-projects-quarterly-revenue-below-estimates-2024-08-01/
Amazon Q2 Ad Revenue up 20% to $12.8B, Short of Wall Street Forecasts
https://variety.com/2024/digital/news/amazon-q2-2024-earnings-ad-revenue-1236093223/
Amazon's sales in the second quarter of 2024 increased 10% year-on-year to $147.9 billion (approximately 22.14 trillion yen), slightly below analysts' average forecast of $148.56 billion (approximately 22.23 trillion yen). In addition, operating profits grew significantly from $7.7 billion (approximately 1.15 trillion yen) in the same period last year to $14.7 billion (approximately 2.199 trillion yen).
In addition, net income for the current fiscal year was $13.485 billion (approximately 2.14 trillion yen), a significant increase from $6.75 billion (approximately 1 trillion yen) in the same period last year.
Amazon's cloud division, Amazon Web Services (AWS), is also seeing an increase in revenue, increasing its revenue from $22.14 billion (approximately 3.3 trillion yen) in the same period last year to $26.28 billion (approximately 3.9 trillion yen). Amazon CEO and President Andy Jassy said, 'We continue to grow in many ways, but nowhere more than AWS.'
In addition, Amazon's advertising revenue in the second quarter of 2024 increased 20% year-on-year to $12.77 billion (approximately 1.9 trillion yen). Meanwhile, analysts have estimated advertising revenue for the same period to be $13 billion (approximately 1.94 trillion yen), below market expectations. In addition, revenue from subscription services such as Amazon Prime increased 10% year-on-year to $10.86 billion (approximately 1.62 trillion yen).
'Consumers are always looking for great deals,' Amazon CFO Brian Olsavsky told reporters, reporting that sales of low-priced items are booming. Jassy agreed, saying, 'Amazon's online retail business faces increasing competition from retailers like Temu and SHEIN that sell cheap products directly from China.'
Olsavsky also said that it's difficult to forecast sales in the third quarter of 2024 because of major topics such as the U.S. presidential election and the Paris Olympics. As a result, Amazon's stock price fell in after-hours trading.
Related Posts:
in Note, Posted by log1r_ut