The famously un-profitable Amazon managed another profit in Q2, but it’s streak of record-breaking results is over.
Profit for the quarter was up 3.6 per cent to $2.63 billion, which failed to meet analyst expectations. Amazon’s financial performance was hampered by a loss in its overseas retail business, growing shipping costs and a slow down in its cloud-platform.
The online giant’s revenue skyrocketed 20 per cent to US$63.4 billion compared to US$52.9 billion in second quarter 2018.
The company’s operating cash flow increased 65 per cent to US$36 billion compared with US$21.8 billion in the prior year.
Operating income increased to $3.1 billion in the second quarter, compared with operating income of $3.0 billion in second quarter 2018.
Jeff Bezos, CEO at Amazon said, “Customers are responding to Prime’s move to one-day delivery — we’ve received a lot of positive feedback and seen 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. A big thank you to the team for continuing to make life easier for customers.”
Google parent company Alphabet posted a 19 per cent growth in revenue for the second quarter at US$38.9 billion, beating analysts estimates.
The company’s net income came in at US$9.9 billion, a jump from US$3.19 billion in the prior year.
These results are a bit of good news for the company as its currently being held under the microscope by regulators and Australia could potentially regulate the market power of the tech giant.
Sundar Pichai, CEO at Google said, “Our effort to build a more helpful Google for everyone brings countless opportunities to help users, partners, and enterprise customers every day.
“From improvements in core information products such as Search, Maps, and the Google Assistant, to new breakthroughs in AI and our growing Cloud and Hardware offerings, I’m incredibly excited by the momentum across Google’s businesses and the innovation that is fueling our growth.”
Google’s cloud division is on track to deliver US$8 billion in revenue for the financial year.
Ruth Porat, CFO, Alphabet and Google said, “With revenues of US$38.9 billion, up 19 per cent versus the second quarter of 2018 and up 22 per cent on a constant currency basis, we’re delivering strong growth.
“Our ongoing investments in compute capabilities and engineering talent reflect the compelling opportunities we see across the company.”