Amazon (AMZN) Q2 2021 Earnings


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