Second Quarter Results by Amazon 2023

 Second Quarter Results Released by Amazon.com on August 3, 2023 :

SEATTLE—(BUSINESS WIRE)— Amazon.com, Inc. (NASDAQ: AMZN) released its financial results today for the second quarter that concluded on June 30, 2023 :

Comparing the second quarter of 2018 to the second quarter of 2022, net sales climbed by 11% to $134.4 billion. Net sales climbed 11% as compared to the second quarter of 2022, excluding the $0.3 billion unfavorable impact from year-over-year fluctuations in foreign exchange rates throughout the quarter.

Sales for the North America sector rose 11% year over year to $82.5 billion.

Sales for the international segment rose 10% from the prior year to $29.7 billion.

Sales for the AWS segment rose 12% year over year to $22.1 billion.

Comparing the second quarter of 2018 to the second quarter of 2022, operating income grew to $7.7 billion.

Operating income for the North America segment was $3.2 billion, up from an operating loss of $0.6 billion in the second quarter of 2022.

Compared to an operating loss of $1.8 billion in the second quarter of 2022, the international segment's operating loss was $0.9 billion.

Operating income for the AWS sector was $5.4 billion, down from $5.7 billion in the second quarter of 2022.

In the second quarter, net income was $6.7 billion, or $0.65 per diluted share, as opposed to a net loss of $2.0 billion, or $0.20 per diluted share, in the same period in 2022.

A pre-tax valuation gain of $0.2 billion from the common stock investment in Rivian Automotive, Inc. is included in non-operating expense for the second quarter of 2023, as opposed to a pre-tax valuation loss of $3.9 billion from the investment for the same period in 2022.

In comparison to the trailing twelve months ending June 30, 2022, operating cash flow grew 74% to $61.8 billion, from $35.6 billion.

Free cash flow increased to a trailing twelve-month inflow of $7.9 billion from a trailing twelve-month outflow of $23.5 billion for the period ending June 30, 2022.

As opposed to a $33.5 billion outflow for the trailing twelve months ended June 30, 2022, free cash flow less principal repayments of finance leases and financing commitments improved to an inflow of $1.9 billion for the trailing twelve months.

For the trailing twelve months, free cash flow increased to an inflow of $6.7 billion from an outflow of $26.1 billion for the preceding twelve months ended June 30, 2022. This is after deducting equipment finance leases and principal repayments of all other finance leases and financing obligations.

According to Andy Jassy, CEO of Amazon, "It was another strong quarter of progress for Amazon." "We kept reducing the cost to serve in our fulfillment network, and we also gave Prime customers the quickest delivery times we've ever seen. Our AWS growth stabilized as customers shifted from cost optimization to new workload deployment, and AWS has continued to strengthen its significant leadership position in the cloud with a flurry of generative AI releases that make it significantly simpler and more affordable for businesses to train and run models (Trainium and Inferentia chips), adapt Large Language Models to build generative AI applications and agents (Bedrock), and more,Use CodeWhisperer to write code much more quickly. As the team keeps innovating for businesses, including the buildup to Thursday Night Football with the ability for advertisers to personalize their advertisements by audience and create interactive experiences for consumers, we're also continuing to see great demand for our advertising services. We continue to be optimistic about what lies ahead for both customers and the business.

Amazon is constantly thinking of new ways to improve and simplify the lives of its consumers. This holds true for buyers, vendors, brands, programmers, businesses, and artists. Amazon, for instance :

In the third quarter, Amazon delivered its broadest range of goods to US Prime subscribers at its quickest-ever rates. Tens of millions of the most popular things can now be delivered for free on the same day or the next to U.S. Prime members. More than half of Prime member orders arrived the same day or the following day in the quarter across the top 60 largest U.S. metro regions. More than 1.8 billion units have been shipped to U.S. Prime members so far this year, roughly four times as much as at that pace in the same period last year.

In the third quarter, on July 11 and 12, the company had its largest Prime Day event ever, during which time Prime members from all around the world spent more than 375 million dollars and saved more than $2.5 billion. With Home, Fashion, and Beauty among the top-selling deal categories this year, Amazon provided more offers than in previous years during Prime Day. The majority of Amazon's independent merchants, who operate small and medium-sized businesses, experienced their busiest Prime Day ever on this occasion. It was also the first time that Buy with Prime was available to Prime members living in the United States, allowing them to browse deals on merchant websites.

expanded options in the US Amazon shop. In addition to extending its partnership with Victoria's Secret, Amazon acquired new fashion and beauty brands like D'Amelio Footwear, Dyson Hair Care, IT Cosmetics, and Ralph Lauren Fragrances. For the first time ever in North America, Victoria's Secret underwear and clothing can be purchased from a retail partner. The grocery section on Amazon has also been widened to include products from companies like General Mills and Coca-Cola.

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