AMZN Q2 2020 Earnings

Call Details

• Call Title: Amazon.com, Inc. Q2 2020 Earnings Call
• Date: July 30, 2020 at 9:30 PM UTC
• Management Team:
  • David Field (Director of Investor Relations)
  • Brian Olsavsky (Chief Financial Officer)
  • Jeff Bezos (Chief Executive Officer)

Call Summary

Financial Performance

• Consolidated revenue and operating income significantly exceeded the top end of the company's prior guidance range for the quarter.
• The company reported an approximate $89B revenue quarter as referenced on the call and ended Q2 at about a 41% year-over-year growth rate on an FX-neutral basis.
• AWS is a $43B annualized run-rate business and added nearly $10B of run-rate in the last 12 months.
• Gross margin for the quarter was 40.8% and was down 200 basis points from the comparable prior-year period.
• Third-party seller services revenue grew faster than online stores revenue in Q2, and third-party units represented more than half of total unit volume.
• The company incurred more than $4.0B of COVID-related expenses in Q2, which meaningfully influenced reported profitability.

Guidance

• Q3 revenue guidance was provided as a range of $87B to $93B, representing growth of approximately 24% to 33% year over year off an $89B quarter.
• The company expects to incur more than $2.0B of COVID-related expenses in Q3, which management stated will be lower than Q2 primarily due to improved cost efficiency.
• Prime Day for Western markets was moved from Q3 to Q4 this year, while Amazon India will host Prime Day on August 6 and August 7.
• Guidance explicitly assumes no additional business acquisitions, investments, restructurings, or legal settlements during the guidance period.
• The company warned guidance is highly dependent on pandemic duration, recurrence, government actions, workforce productivity, and other uncertain factors.