Summary
Amazon.com Inc. (AMZN) reported strong financial performance for the second quarter and first six months of 2018, demonstrating significant top-line growth across all segments. Total net sales surged by 39% in Q2 2018 and 41% for the first six months compared to the prior year, driven by robust performance in North America, International, and particularly AWS. The company saw substantial increases in operating income, with consolidated operating income reaching $2.98 billion in Q2 2018, a significant jump from $628 million in the same period last year. This improved profitability was fueled by strong sales growth and operational efficiencies, especially within the North America and AWS segments, partially offsetting losses in the International segment. Amazon's balance sheet reflects continued investment in its infrastructure and growth initiatives. While debt levels remain substantial, the company generated strong operating cash flow, enabling it to fund its capital expenditures and investments. Key strategic moves, such as the acquisition of Ring Inc. in April 2018, highlight Amazon's ongoing commitment to expanding its product and service offerings. The company's guidance for the third quarter of 2018 indicated continued optimism for sales growth, albeit with a slightly moderated pace, underscoring Amazon's consistent trajectory of expansion and market penetration.
Financial Highlights
51 data points| Revenue | $52.89B |
| Cost of Revenue | $30.63B |
| Gross Profit | $22.25B |
| Operating Expenses | $49.90B |
| Operating Income | $2.98B |
| Interest Expense | $343.00M |
| Net Income | $2.53B |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.25 |
| Shares Outstanding (Basic) | 9.72B |
| Shares Outstanding (Diluted) | 10.00B |
Key Highlights
- 1Total net sales increased by 39% year-over-year to $52.9 billion in Q2 2018, and by 41% to $103.9 billion for the six months ended June 30, 2018.
- 2Consolidated operating income saw a substantial increase, reaching $2.98 billion in Q2 2018 compared to $628 million in Q2 2017.
- 3AWS segment revenue grew by 49% year-over-year in Q2 2018, reaching $6.1 billion, with operating income of $1.64 billion.
- 4North America segment operating income significantly improved, rising to $1.835 billion in Q2 2018 from $436 million in Q2 2017.
- 5The company acquired Ring Inc. in April 2018 for approximately $853 million, expanding its product and service offerings.
- 6Operating cash flow increased to $7.45 billion for the three months ended June 30, 2018, up from $3.85 billion in the prior year period.
- 7Net income for Q2 2018 was $2.53 billion, or $5.07 per diluted share, a substantial increase from $197 million, or $0.40 per diluted share, in Q2 2017.