TapTechNews August 5th news, Amazon released the company's fiscal 2024 second quarter financial report last week: net sales of $148 billion (TapTechNews note: currently about 1.06 trillion yuan), an increase of 10% year-on-year, and a 11% increase year-on-year without taking into account the impact of exchange rate changes; the net profit was $13.5 billion (currently about 96.803 billion yuan), a significant increase of 100% year-on-year; the diluted earnings per share was $1.26, a significant increase compared to the diluted earnings per share of $0.65 in the same period last year.
Amazon's revenue and adjusted diluted earnings per share in the second quarter both exceeded the expectations of Wall Street analysts. But at the same time, Amazon's outlook for third-quarter fiscal 2024 revenue failed to meet expectations.
In the fiscal quarter ending June 30, Amazon's net profit was $13.485 billion, and the diluted earnings per share was $1.26, which was much better than the same period last year. In the second quarter of fiscal 2023, Amazon's net profit was $6.75 billion, and the diluted earnings per share was $0.65.
Amazon's net sales in the second quarter was $147.977 billion, an increase of 10% compared to $134.383 billion in the same period last year. Without taking into account the $1 billion negative impact brought by exchange rate changes, Amazon's net sales in the second quarter also increased by 11% compared to the same period last year.
Amazon's operating profit in the second quarter was $14.7 billion, a significant increase compared to $7.7 billion in the same period last year.
In May this year, when Amazon released the first quarter financial report of fiscal 2023, it predicted that the company's net sales in the second quarter of fiscal 2024 would be between $144 billion and $149 billion, an increase of 7% to 11% year-on-year, including the expected negative impact of about 60 basis points brought by exchange rate changes. The average value is $146.5 billion. Amazon also predicted at that time that the operating profit in the second quarter of fiscal 2024 would be between $10 billion and $14 billion. This means that Amazon's revenue and operating profit in the second quarter both exceeded the company's previous expectations.
At the same time, Amazon's revenue and diluted earnings per share in the second quarter both exceeded the expectations of Wall Street analysts. According to data provided by Yahoo Finance Channel, the average of 40 analysts previously expected Amazon's net sales in the second quarter to be $148.56 billion, and the average of 37 analysts previously expected Amazon's earnings per share in the second quarter to be $1.03.
Amazon's total operating expenses in the second quarter was $133.305 billion, which increased compared to $126.702 billion in the same period last year. Among them, the cost of sales was $73.785 billion, which increased compared to $69.373 billion in the same period last year; the fulfillment expense was $23.566 billion, which increased compared to $21.305 billion in the same period last year; the technology and infrastructure expense was $22.304 billion, which increased compared to $21.931 billion in the same period last year; the sales and marketing expense was $10.512 billion, which decreased compared to $10.745 billion in the same period last year; the general and administrative expense was $3.041 billion, which decreased compared to $3.202 billion in the same period last year; the other operating expense was $97 million, which decreased compared to the other operating expense of $146 million in the same period last year.
Amazon's product net sales in the second quarter was $61.569 billion, an increase compared to $59.032 billion in the same period last year; the service net sales was $86.408 billion, which also increased compared to $75.351 billion in the same period last year.
By region:
Amazon's North American division (United States, Canada) had a net sales of $90.033 billion in the second quarter, an increase of 9% compared to $82.546 billion in the same period last year; the operating profit was $5.065 billion, an increase of 58% compared to the operating profit of $3.211 billion in the same period last year.
Amazon's international division (United Kingdom, Germany, France, Japan and China) had a net sales of $31.663 billion in the second quarter, an increase of 7% compared to $29.697 billion in the same period last year, and a 10% increase year-on-year without taking into account the impact of exchange rate changes; the operating profit was $2.73 billion, turning from an operating loss of $8.95 billion in the same period last year to a profit.
Amazon's AWS cloud service had a net sales of $26.281 billion in the second quarter, an increase of 19% compared to $22.140 billion in the same period last year, and also a 19% increase without taking into account the impact of exchange rate changes; the operating profit was $9.334 billion, an increase of 74% compared to $5.365 billion in the same period last year.
In the second quarter, the proportion of sales from the North American division in total sales was 61%, the same as the proportion of 61% in the same period last year; the proportion of sales from the international division in total sales was 21%, a decrease of 1 percentage point compared to the proportion of 22% in the same period last year; the proportion of sales from the AWS cloud service in total sales was 18%, an increase of 1 percentage point compared to the proportion of 17% in the same period last year.
By service and business type, Amazon's performance by department in the second quarter is as follows:
The net sales from the online store was $55.392 billion, an increase of 5% compared to $52.966 billion in the same period last year, and a 6% increase without taking into account the impact of exchange rate changes;
The net sales from the physical store was $52.06 billion, an increase of 4% compared to $50.24 billion in the same period last year, and also a 4% increase without taking into account the impact of exchange rate changes;
The net sales from the third-party seller service was $36.201 billion, an increase of 12% compared to $32.332 billion in the same period last year, and a 13% increase without taking into account the impact of exchange rate changes;
The net sales from the advertising service was $12.771 billion, an increase of 20% compared to $10.683 billion in the same period last year, and also a 20% increase without taking into account the impact of exchange rate changes;
The net sales from the subscription service was $10.866 billion, an increase of 10% compared to $9.894 billion in the same period last year, and a 11% increase without taking into account the impact of exchange rate changes;
The net sales from the AWS cloud service was $26.281 billion, an increase of 19% compared to $22.140 billion in the same period last year, and also a 19% increase without taking into account the impact of exchange rate changes;
The net sales from other businesses was $12.60 billion, a decrease of 6% compared to $13.44 billion in the same period last year, and also a 6% decrease without taking into account the impact of exchange rate changes.
Amazon expects that in the third quarter of fiscal 2024, the company's net sales will be between $154 billion and $158.5 billion (currently about $1.1 trillion to $1.14 trillion), an increase of 8% to 11%, which includes the expected negative impact of about 90 basis points brought by exchange rate changes.
Amazon also expects that in the third quarter of fiscal 2024, the company's operating profit will be between $115 billion and $150 billion, an increase compared to the operating profit of $112 billion in the same period of 2023.