Amazon Posted 47% Year-over-Year Growth in Q2 2021

The e-commerce giant Amazon posted second-quarters (Q2) results on Thursday. Even though the company reported USD 113.08 Billion in revenue, up 27% year-over-year, its shares tanked 7% yesterday on missing the Wall Street expectations. In Q2 2020, the firm delivered 47% year-over-year growth. Its net income grew to USD 7.8 Billion in this June quarter or USD 15.12 per diluted share.

On the slow growth in the June quarter, Amazon’s CFO Brian Olsavsky said that the company encountered a tough quarter due to the stringent COVID-19 lockdowns. “We’re starting to lap that and that’s why you see some of the growth rate coming down,” he said. . The company said that it expects to generate revenue between USD 106 Billion and USD 112 Billion for the coming quarter. This is just 10% to 16% growth since the last year.

“Our customers are safe and healthy and ordering from us. And we know that there’ll be more vacations or be more mobility. They’ll be things that probably people shied away from last year and that’s all good,” Olsavsky said on a call. Amazon’s operating income increased to USD 7.7 Billion in this June quarter, up by 75% since Q2 2020. The company said that its operating profits are expected to be in the range of USD 2.5 Billion and USD 6 Billion. This is quite low as last year amidst the strict restrictions, the company reported USD 6.2 Billion in Q3 2020.

Amazon’s CEO Statement on Earnings Report

The June quarter represents the last quarter of Jeff Bezos as a CEO. Earlier this month, the founder relinquished its title and handed the responsibility to former Amazon Web Services (AWZ) CEO Andy Jassy. Bezos didn’t provide any commentary on the earnings call, as he’s not participating in the event since 2009. “I am very excited to work with you as we invent and build for the future,” Andy Jassy said in a statement. However, he was not present in the conference call on Thursday.

“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic. At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies bring forward plans to transform their businesses and move to the cloud,” said Andy Jassy, Amazon CEO in a press release.

Company’s Commitment Toward Employees

Recently, Amazon announced that it is creating over 10,000 new corporate and operating jobs in the UK. Moreover, it will be investing £10 Million (approximately USD 13.9 Million) to train at least 5,000 employees in new skills in the country. In the press release, the company addressed that it has fulfilled its commitment to employ 25,000 US veterans and military spouses by 2021. It added the aim to hire up to 100,000 US veterans and military spouses by 2024.

In the midst of the increasing awareness about mental health, Amazon said that it will provide one-on-one counseling sessions and personalized support to all its 950,000 US employees and their families. The company extended its helping hand in India by vaccinating 100,000 employees and their household members. Its headcount has increased by 52% year-over-year to 1.33 Million across the globe.

Amazon’s Other Business Segment Grew 87% Y-o-Y

The US-based company’s “other’’ business unit, which includes advertising and service offerings, generated over USD 7.9 Billion in revenue. The company said that its advertising segment has launched “over 40 new features and self-service capabilities, making it easier for sellers, companies, and authors to grow their businesses by helping customers discover their brands and products.” Amazon Advertising has extended its services to Japan, India, Saudi Arabia, Australia, and Europe.