Shillong, August 4: Amazon reported robust financial results for the second quarter ending June 30, with net sales increasing by 11% to reach $134.4 billion. The company achieved a net income of $6.7 billion, a significant improvement compared to a net loss of $2 billion in the same quarter last year.
The Cloud arm, Amazon Web Services (AWS), also showed impressive growth, with segment sales rising by 12% year-over-year to $22.1 billion. AWS’s operating income stood at $5.4 billion for the quarter, slightly lower than the $5.7 billion in the second quarter of 2022.
As per IANS, Amazon CEO Andy Jassy expressed his satisfaction with the company’s progress, highlighting the stabilization of AWS growth as customers transitioned from cost optimization to deploying new workloads. AWS solidified its leadership position in the cloud space, introducing a series of generative AI releases.
The operating income for the quarter reached $7.7 billion, surpassing the upper end of Amazon’s guidance ranges. Jassy emphasized AWS’s position as the clear leader in cloud infrastructure, boasting the highest number of customers, an extensive partner ecosystem, broad functionality, and exceptional operational performance.
Over 50,000 customers now utilize AWS’s Graviton chips and AWS Compute instances, including 98 of the top 100 Amazon EC2 customers. These chips deliver approximately 40% better price performance compared to other leading x86 processors.
Brian Olsavsky, Chief Financial Officer at Amazon, noted improvements in macroeconomic indicators across North America and international segments. However, customers still sought value in their purchases, leading to trading down behaviors. The company’s focus on delivery speed paid off with record levels achieved during Q2. Additionally, advertising revenue remained strong, experiencing a 22% year-over-year growth.