Amazon Blasts Off with $89B Q2 Revenue

July 31, 2020 reported financial results for its second quarter ended June 30, 2020. The firm's earnings were $10.30 per share with only. $1.46 expected, and revenue was noted at $88.91 billion with $81.56 billion expected.

AWS revenue came in at $10.81 billion which was less than the expected number of $11.02 billion.

Brian Olsavsky, Amazon’s CFO sais, "So on AWS, segment revenue, what we see are companies working really hard right now to cut expenses, especially in the more challenged businesses like hospitality and travel, but pretty much across the board. We’re helping them, we’re actively, with our sales force, looking for ways that we can help them save money. This includes things like scaling down the usage where it makes sense or benchmarking their workloads against our architectural best practices. So that’s not going to help our usage growth in the short run, but it helped those customers save money, and we think that’s the right thing to do, not only for their success, so they can come out of this in better shape, but also for the long-term health of our relationship with them ... .

We’re also seeing a lot of companies that are really wishing that they had made more progress on the cloud because they’re seeing all companies that are on the cloud can ... scale up or scale down depending on their particular situation. They realize their on-premises infrastructure is not really flexible up or down, and especially in a time of sinking demand, it’s a big fixed cost for them.

So we expect — we’re seeing migration plans accelerate. They’re certainly not going to happen overnight, but we see companies moving more in that direction. We think that will be a good long-term trend.

And there’s certainly winners in this area right now — things like videoconferencing, gaming, remote learning and entertainment. All are seeing usage growth. And it’s a bifurcated world out there."

“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe,” said Jeff Bezos, Amazon founder and CEO. “As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand—purchasing personal protective equipment, increasing cleaning of our facilities, following new safety process paths, adding new backup family care benefits, and paying a special thank you bonus of over $500 million to front-line employees and delivery partners. We’ve created over 175,000 new jobs since March and are in the process of bringing 125,000 of these employees into regular, full-time positions. And third-party sales again grew faster this quarter than Amazon’s first-party sales. Lastly, even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9 billion in capital projects, including fulfillment, transportation, and AWS.”

Third Quarter 2020 Guidance

•Net sales are expected to be between $87.0 billion and $93.0 billion, or to grow between 24% and 33% compared with third quarter 2019. This guidance anticipates an unfavorable impact of approximately 20 basis points from foreign exchange rates.

•Operating income is expected to be between $2.0 billion and $5.0 billion, compared with $3.2 billion in third quarter 2019. This guidance assumes more than $2.0 billion of costs related to COVID-19.

•This guidance assumes, among other things, that no additional business acquisitions, investments, restructurings, or legal settlements are concluded.

Amazon Web Services

  • Customers are using AWS to lessen the impact of the COVID-19 crisis on families, communities, and businesses. Examples include:
    • With the support of AWS hosting services, the World Health Organization (WHO) launched an app to support health workers around the world in caring for patients with COVID-19, as well as to protect themselves as they do this critical work.
    • Zoom, a provider of enterprise video communications, has long utilized AWS to host a significant portion of its network. In addition to offering a robust free service, since March Zoom has also offered free access to over 100,000 schools to enable them to educate students remotely. Zoom and AWS have worked together to help businesses, schools, and healthcare institutions maintain mission and business continuity as they stay safe at home.
    • Propel, a company focused on building software to help low-income Americans improve their financial health, developed Fresh Electronic Benefit Transfer (EBT), an app built on AWS that has helped more than three million individuals per month manage their benefits under the Supplemental Nutrition Assistance Program (SNAP), save with coupons, and find jobs.
    • UNC Health built a chatbot on AWS to help address increased call volumes to its COVID-19 help line, answering questions from patients seeking guidance on COVID-19 testing and what to do if they or their loved ones were exposed to the virus.
    • Orange County United Way built a highly-secure mobile and web-enabled app on AWS called AssistOC that allows individuals to submit requests for financial assistance to the nonprofit’s Homelessness Prevention Program, launched in response to the current pandemic, via a smartphone or personal computer.
  • AWS announced several significant new customer commitments and migrations during the quarter. Examples include:
    • HSBC, one of the world’s largest financial services organizations, selected AWS as a key, long-term strategic cloud provider to drive their digital transformation and deliver new and personalized banking services for millions of personal banking customers worldwide.
    • Global market intelligence company IHS Markit selected AWS as its preferred cloud provider to help improve scalability and agility to respond to industry changes and develop new products and services.
    • Formula 1 is using a range of AWS services, including machine learning, for six new F1 Insights powered by AWS that will roll out during the 2020 racing season to give fans the ability to compare their favorite drivers and cars and better predict race outcomes.
    • Bundesliga is using AWS machine learning and analytics to enhance the fan experience for Germany’s top football league, delivering new advanced statistics through Bundesliga Match Facts powered by AWS, including Average Positions and xGoals.
    • Capella Space, a provider of on-demand Earth observation data via satellite-based radar, is all-in on AWS, running its entire infrastructure on AWS using a full portfolio of cloud services including AWS Ground Station to deliver satellite data to customers in minutes.
    • Genesys has selected AWS as the preferred cloud provider for Genesys Cloud, an all-in-one solution and leading public cloud contact center platform used by organizations around the world to manage and improve customer relationships across any channel, including voice, text, web chat, and social.
  • AWS announced Amazon Honeycode, a fully-managed service that allows customers to quickly build powerful mobile and web applications – with no programming required. With Amazon Honeycode, customers can create applications using the simplicity and familiarity of a spreadsheet, but with the data management capability of a database, the collaboration and notifications common in business applications, and a truly seamless web and mobile user experience to perform important business functions like managing field agents, performing PO approvals, scheduling weekly events, reporting employee or team activities, tracking task progress, following customer activity, surveying end users, managing content, inventorying resources, and more.
  • AWS announced the general availability of AWS Snowcone, a small, ultra-portable, rugged, and secure edge computing and data transfer device that can fit in a small backpack. At under five pounds, AWS Snowcone is the smallest member of the AWS Snow Family of devices, enabling customers to collect data, process it locally, and move it to AWS. AWS Snowcone is built to withstand harsh conditions, and is designed for a variety of use cases in environments outside of the traditional data center that lack consistent network connectivity and/or require portability.
  • AWS announced the general availability of AWS IoT SiteWise, a managed service that collects data from the plant floor, structures and labels the data, and generates real-time key performance indicators (KPIs) and metrics to help industrial customers make better, data-driven decisions. Customers can use SiteWise to monitor operations across facilities, quickly compute industrial performance metrics, create applications that analyze industrial equipment data to prevent costly equipment issues, and reduce gaps in production.
  • AWS announced the general availability of the sixth generation of Amazon Elastic Compute Cloud (Amazon EC2) with three Arm-based instances (M6g, C6g, R6g) powered by AWS-designed, Arm-based Graviton2 processors, that deliver up to 40% better price and performance than current x86 processor-based instances.
  • AWS announced the general availability of Amazon CodeGuru, a developer-quality service powered by machine learning that provides intelligent recommendations for improving code quality and identifying an application’s most expensive lines of code.
  • AWS announced the general availability of UltraWarm for Amazon Elasticsearch Service, a highly performant, fully-managed, low-cost warm storage tier that provides fast, interactive analytics of log data at one-tenth the cost of existing storage options. UltraWarm for Amazon Elasticsearch Service gives Elasticsearch customers a warm storage tier that both stores large amounts of data cost-effectively and provides the type of interactive experience that Elasticsearch customers expect.
  • AWS announced the general availability of Amazon Kendra, a highly accurate and easy to use enterprise search service powered by machine learning. Amazon Kendra enables organizations to index all of their internal data sources across siloes, makes that data searchable, and allows users to get precise answers to natural language queries instead of trial-and-error keyword search – all with no machine learning expertise required.
  • AWS and Slack announced a multi-year agreement to deliver solutions for enhanced enterprise workforce collaboration. Slack will migrate its Slack Calls capability for all voice and video calling to Amazon Chime, AWS’s communications service that lets users meet, chat, and place business calls. Slack is also leveraging AWS’s global infrastructure to support enterprise customers’ rapid adoption of its platform and to offer them data residency – the ability to choose which country or region their data is stored at rest in while fulfilling compliance requirements.
  • AWS announced a new, global team dedicated to accelerating innovation in the global aerospace and satellite industry. The Aerospace and Satellite Solutions team will bring AWS services and solutions to the space enterprise, and work with customers and partners around the world to: reimagine space system architectures; transform space enterprises; launch new services that process space data on Earth and in orbit; and provide secure, flexible, scalable, and cost-efficient cloud solutions to support government missions and companies advancing space around the world.
  • AWS announced Amazon Interactive Video Service (Amazon IVS), a managed service customers may use to set up live, interactive video streams for web or mobile applications in just a few minutes. Amazon IVS uses the same technology that powers Twitch and allows customers to configure live streams that can be delivered to millions of concurrent viewers globally with interactive features like virtual chat spaces, votes and polls, moderated question and answer sessions, and synchronized promotional elements.

Terms of Use | Copyright © 2002 - 2020 CONSTITUENTWORKS SM  CORPORATION. All rights reserved. | Privacy Statement