Amazon’s earnings report on Thursday will be the first time it will be led by CEO Andy Jassy.
Although it may be tempting to see these numbers as the tone of the new era, it’s worth remembering that these results were booked on June 30th, when Jassy officially succeeded founder Jeff Bezos in early June. Bezos) a few days ago.
Actually if you buy Bezos’s old saying, The result was determined many years ago.
One exception is Prime Day, an annual two-day sales event held in June this year. Although the company usually does not disclose detailed Prime Day financial results, its overall figures will provide new clues about how things are going.Industry analysts believe that Prime member daily sales Increase at a slower rate.
What number to look at: Wall Street expects Amazon’s overall net sales to reach $115 billionOn average, this was an increase of 29% year-on-year. This is close to the high end of Amazon’s previous forecast of net sales between US$110 and US$116 billion.
Analysts expect earnings per share of $12.22, higher than the $10.30 per share a year ago.
Amazon has previously stated that it expects operating profit to be between US$4.5 billion and US$8 billion, compared with US$5.8 billion a year ago. This assumes a COVID-19 cost of $1.5 billion.
Sales mix: This has become one of the most noteworthy charts, showing which parts of Amazon’s business are growing and where most of the revenue comes from. Although online stores are still the company’s main business, the growth of third-party seller fees and the “other” category (including advertising) is a significant trend.
Amazon Web Services: Although the overall result does not necessarily reflect Jassy’s effectiveness as the new CEO, as the former CEO of Amazon Web Services, he will be able to take responsibility or assume responsibility for the company’s cloud department.
Investors usually pay close attention to AWS’s revenue growth rate, which is in line with the law of large numbers. After years of growth of more than 40%, the growth rate in the last few quarters was as low as 28%.
Even with a low percentage growth, this sector is also a financial powerhouse for the company. In the first quarter, AWS revenue was $13.5 billion, an increase of 32%, and operating profit reached a record $4.2 billion, accounting for 47% of the company’s total operating profit of $8.9 billion.
Earlier this week, Google Cloud reports revenue of $4.6 billion In the June quarter, the base figure was small, with an increase of 54%. Microsoft said that its Azure cloud platform revenue increased by 51%, contributing to Redmond’s heavy revenue, although Microsoft did not disclose specific Azure revenue data.
Employment growth: At the end of the first quarter, the total number of full-time and part-time Amazon employees fell to 1.271 million, a decrease of 27,000 positions from the end of 2020. The company’s job growth usually slows at the end of the holiday shopping season, so this is not a huge anomaly.
However, due in part to Amazon’s current scale, this is the largest quarter-on-quarter decline in the history of its raw data, which will make today’s employment data more interesting than normal.
Check out the full report on Amazon’s earnings on GeekWire on Thursday afternoon.