Amazon’s Q2 Earnings Report 2019 – The Buyer’s Journey 80

As marketers we use a lot of platforms for our marketing efforts. This is the first in a series of episodes focusing on the Q2 earnings reports of each of a few of those platforms. Today, we’re looking at Amazon’s Q2 earnings report and we’ve got a breakdown of everything you need to know.

Q2 Earnings Report Quick Numbers

Here are a couple quick-hit numbers on one of the largest social media platforms via Eugene Kim on CNBC:

  • EPS: $5.22 vs. $5.57, according to analysts surveyed by Refinitiv
  • Revenue: $63.4 billion vs. $62.5 billion, according to Refinitiv
  • AWS: $8.38 billion vs. $8.5 billion, according to analysts surveyed by FactSet

An In-Depth Look

Amazon’s revenue is on the rise, a 20% increase from a year ago. This is a 16.8% increase from the first quarter. This recovery comes on the heels of Amazon’s pledge to improve warehouse and delivery infrastructure. The improvements aim to help it’s one-day shipping plans with a price tag of $800 million. That said, Kim reports that Amazon’s net income of $2.6 billion was the lowest since the second quarter of last year, putting an end to a record profit streak of four straight quarters. 

“Q2′s results were negatively impacted by margin compression in North America due to the investments in next day Prime delivery, which we continue to believe is an example of short-term pain for long-term gain,” Moody’s Amazon Analyst Charlie O’Shea told Kim in an email statement.

In the earnings release, CEO Jeff Bezos said the development of prime 1-day shipping “a lot of positive feedback” and “accelerating sales growth.”

“Free one-day delivery is now available to Prime members on more than ten million items, and we’re just getting started,” Bezos said in the statement.

Amazon Web Services continues to be Amazon’s most lucrative business. AWS reported a 37% growth. 

As an advertising agency, Amazon’s “Other” category is of most interest to us. This broad category houses their online ad business. For this section, revenue climbed 37% to $3 billion. And we discuss in today’s episode, we’re expecting this to continue to grow in the future. In many respects, Amazon’s ad business is creeping into the Big Two territory, especially for e-comm. As we’re seeing them make improvements now, we can expect even more in the future.

On a final note, Prime Day did significantly well this quarter for the company, setting another sales record.

Check out our next episode where we’ll discuss Snapchat’s Q2 earnings report.

Tune into more of The Buyer’s Journey by checking out our YouTube and Soundcloud, and take us on the go on the iTunes, TuneIn, Google Play Music, and Stitcher.

Join the Commexis mailing list