Amazon doubled its profit to a record $5.2 billion in the second quarter.
Amazon CFO Brian Olsavsky shared a few reasons that may have contributed to the increased profits during his call with analysts on Thursday.
Amazon saw huge lockdown-driven sales, but also scaled back its marketing and video production spend, while improving the profitability of its international business.
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Amazon surprised investors on Thursday when it reported record profits for the second quarter, which exceeded Wall Street expectations by almost 600%.
The $5.2 billion in net profit, which doubled from last year, was all the more impressive because Amazon had previously warned it would spend all of the $4 billion it was projected to make in quarterly profits on COVID-related responses, including wage increases for warehouse workers and the development of an in-house testing lab.
Calling it a “highly unusual quarter,” Amazon CFO Brian Olsavsky shared a few factors that may have contributed to the improved bottom line during his call with Wall Street analysts on Thursday, according to a transcript provided by Sentieo:
Lockdown driven sales: The significant increase in customer demand that started in early March remained high throughout the quarter, Olsavsky said. As a result, …read more
Source:: Businessinsider – Tech