Results
EPS: $15.12 vs $12.30 per share, an earnings surprise of 22.9%
EPS smashed expectations despite revenue falling short due to its highly profitable cloud-computing, subscriptions and advertising business listed under ‘Other’, which grew 87% YoY
Revenue: $113.08 billion vs $115.2 billion, missing revenue by 1.9%
Grew 27% YoY, which is a slowdown from Q2 2021 YoY growth of 41%
Amazon Web Services (AWS) revenue of $14.81 billion, beating expectations of $14.2 billion
Up 37% YoY, which is higher than Q1 YoY growth of 32%
Headcount: 1.33 million, up 52% YoY
Free cash flow decreased to $12.1 billion for the trailing twelve months, compared with $31.9 billion for the trailing twelve months ended June 30, 2020
Market Reaction
Fell 7% in afterhours trading due to the first revenue miss in three years, weak guidance for Q3, and standing out as the underperformer this quarter out of the big tech giants
Guidance
Revenue between $106-112 billion, 10-16% YoY growth
Well below consensus of $119.2 billion
More tempered growth due to easing of restrictions worldwide, leading to less demand for certain categories of products and less online shopping in general
Operating income between $2.5-6 billion, compared with $6.2 billion in third quarter 2020, a notably wide range