Early Access

10-QPeriod: Q2 FY2019

AMAZON COM INC Quarterly Report for Q2 Ended Jun 30, 2019

Filed July 26, 2019For Securities:AMZN

Summary

Amazon.com, Inc. reported robust financial performance for the second quarter and first half of 2019. Total net sales demonstrated strong growth, increasing by 20% year-over-year for the quarter to $63.4 billion and by 18% for the first six months to $123.1 billion. This growth was driven by solid performance across all segments, particularly AWS, which saw a 37% increase in sales for the quarter. Operating income also showed significant improvement, growing to $3.1 billion for the quarter and $7.5 billion for the first half, reflecting effective cost management and increasing customer usage of AWS. Financially, the company maintained a strong liquidity position with substantial cash, cash equivalents, and marketable securities. Investing activities saw significant outflows, primarily related to capital expenditures for expanding fulfillment and technology infrastructure, a key driver for future growth. The company also highlighted a substantial increase in free cash flow, demonstrating efficient operational management and strong cash generation capabilities.

Financial Statements
Beta
Revenue$63.40B
Cost of Revenue$36.34B
Gross Profit$27.07B
Operating Expenses$60.32B
Operating Income$3.08B
Interest Expense$383.00M
Net Income$2.63B
EPS (Basic)$0.27
EPS (Diluted)$0.26
Shares Outstanding (Basic)9.86B
Shares Outstanding (Diluted)10.06B

Key Highlights

  • 1Total net sales grew by 20% year-over-year to $63.4 billion in Q2 2019.
  • 2AWS segment sales increased by 37% year-over-year in Q2 2019, reaching $8.4 billion.
  • 3Operating income for Q2 2019 was $3.1 billion, an increase from $3.0 billion in Q2 2018.
  • 4Free cash flow for the twelve months ended June 30, 2019, significantly increased to $25.0 billion.
  • 5Purchases of property and equipment were $2.9 billion in Q2 2019, reflecting continued investment in infrastructure.
  • 6Diluted earnings per share rose to $5.22 in Q2 2019 from $5.07 in Q2 2018.

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