Amazon posts $113bn net sales as CEO Andy Jassy starts tenure
E-commerce and cloud computing giant Amazon’s net sales increased 27% to $113.1 billion in the second quarter, compared with $88.9 billion in second quarter 2020.
The company yesterday announced financial results for its second quarter ended 30 June 2021.
The results come as CEO Andy Jassy starts his tenure after replacing founder Jeff Bezos, who had spent 27 years at the helm.
Jassy led Amazon Web Services (AWS) since its inception in 2003. He replaced Bezos as president and CEO of Amazon on 5 July 2021, and Bezos became executive chairman.
In its results, Amazon says operating cashflow increased 16% to $59.3 billion for the trailing 12 months, compared with $51.2 billion for the trailing 12 months ended 30 June 2020.
Free cashflow decreased to $12.1 billion for the trailing 12 months, compared with $31.9 billion for the trailing 12 months ended 30 June 2020.
The company notes that free cashflow less principal repayments of finance leases and financing obligations decreased to $0.6 billion for the trailing 12 months, compared with $21.3 billion for the trailing 12 months ended 30 June 2020.
It adds that free cashflow less equipment finance leases and principal repayments of all other finance leases and financing obligations decreased to $4.2 billion for the trailing 12 months, compared with $19.4 billion for the trailing 12 months ended 30 June 2020.
Common shares outstanding plus shares underlying stock-based awards totalled 522 million on 30 June 2021, compared with 517 million one year ago.
Excluding the $2.5 billion favourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24% compared with second quarter 2020.
Operating income increased to $7.7 billion in the second quarter, compared with $5.8 billion in second quarter 2020.
Net income increased to $7.8 billion in the second quarter, or $15.12 per diluted share, compared with $5.2 billion, or $10.30 per diluted share, in second quarter 2020.
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE [personal protective equipment], food and other products that helped communities around the world cope with the difficult circumstances of the pandemic,” says Jassy.
“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.
“Thank you to all of our passionate, innovative, mission-driven employees around the world for continuing to stay focused on delivering for customers – I am very excited to work with you as we invent and build for the future.”
Providing guidance for the third quarter of 2021, the company says net sales are expected to be between $106 billion and $112 billion, or to grow between 10% and 16% compared with third quarter 2020.
It notes that this guidance anticipates a favourable impact of approximately 70 basis points from foreign exchange rates.
According to Amazon, operating income is expected to be between $2.5 billion and $6 billion, compared with $6.2 billion in third quarter 2020. This guidance assumes approximately $1 billion of costs related to COVID-19.
This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings or legal settlements are concluded.