Amazon has posted its second quarter earnings with revenues growing by 20% to $23.2 billion helped by its fast-growing cloud computing business and customer onboarding initiatives.
While profits were still slim at $92 million or 19 cents per share, Amazon’s Q2 performance beat analyst projections of a $22.4 billion revenue and a loss of 14 cents per share.
Analysts say that Amazon rolled back a few investments in order to show ever restless investors that the company can in fact turn a profit. Ideally, Jeff Bezos, CEO of Amazon has believed in pumping profits back into growing Amazon’s business.
The company reported that operating expenses grew slower than sales, rising 17% to $22.7 billion during the quarter. Spending on marketing and fulfillment centres remained the same as a percentage of sales when compared to the previous year.
AWS, the company’s cloud computing arm, had sales of $1.82 billion, a growth of 81 percent when compared to the same quarter last year. Amazon has predicted that third quarter revenues will be in tune of $23.3 billion to $25.5 billion.