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Amazon witnesses third straight quarter of profits with $30.4Bn revenues and $857 Mn net profit

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After spending many years in growth investment without any profit, Amazon has joined the list of top companies known for smashing earnings expectations of Wall Street. In its latest earnings call, Amazon revealed another stellar quarter with $30.4 billion revenues and $1.78 EPS. Analysts had expected $29.55 billion revenues and $1.11 EPS.

Most importantly. Amazon earned $857 million in net profits and generated $1.3 billion in operating income. This was again a huge jump from $92 million profit and $464 million operating income last year.

It also witnessed an increase of 42% in operating cash flow, a crucial indicator of company’s financial health. The cash flow rose to $12.7 billion from $9.0 billion last year.

Amazon, largely known for its e-commerce business, has also made its mark in the cloud business with Amazon Web Services. Now one of the largest cloud services company, AWS has been making a significant contribution to company’s revenues.

And once again, it has continued to do so this quarter. AWS revenues jumped from $1.8 billion during the same period last year to $2.9 billion this year. In addition to AWS, Amazon also highlighted other key areas of growth in its earnings report. These included Prime business, Fire TV media player, the latest Kindle e-book reader, Amazon Dash buttons, and most importantly the business in India.

CEO Jeff Bezos specifically mentioned the success of Amazon India team. He said,

The team in India is inventing at a torrid pace, and we’re very grateful to our Indian customers for their welcoming response.

Notably, Amazon is rapidly expanding its business in India from e-commerce to other verticals. It has committed a massive investment of $5 billion so far into the country. After making a serious dent into Indian e-commerce, Amazon launched a new AWS Region in the country.

More recently, it came up with its Prime service in the country with unlimited free shipping. The company has also announced plans of launching Prime Video soon to offer exclusive access to Amazon Original Series and Movies to the Prime members in India.

Amazon also witnessed a small traction this quarter with its personal voice assistant device Alexa. However, there were few areas where the experiments of the company did not work out as per expectations. The company did not find success with its Fire phone. It also had to shut down its flash sales division MyHabit.

Still, due to the exceptional performance in past few quarters, Amazon stocks have been up by 43% compared to last year. Since February, there is an increase of 50% in its stock value and the company currently has a market cap of $355 billion. Notably, CEO Jeff Bezos recently became the third richest man in the world.

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