Amazon’s Q2 Disappoints, Sales Up 22 Percent To $15.7B, Net Loss Of $7M
Amazon just reported second-quarter earnings, with sales increasing 22 percent to $15.7 billion in the second quarter, compared with $12.83 billion in second quarter 2012. Net loss was $7 million in the second quarter, or $0.02 per diluted share, compared with net income of $7 million, or $0.01 per diluted share, in second quarter 2012. Analysts expected $15.74 billion in revenue, and $0.05 on earnings per share.
Operating income decreased 26 percent to $79 million in the second quarter, compared with $107 million in second quarter 2012.
“We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Amazon founder and CEO Jeff Bezos, in a statement.
“The Kindle service keeps getting better. The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else. Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love.”
Bezos didn’t address why Amazon missed on expectations for the quarter, but perhaps this will be revealed in the call. According to analyst estimates, the ecommerce giant was expected to post net income of $28.3 million.
It’s been an eventful quarter for Amazon. Towards the end of the first quarter, Amazon purchased social reading service Goodreads, which now has 20 million members. Amazon also expanded its international footprint, including expansion to India. Additionally the company bought screen technology company Liquavista from Samsung.
Other news included the expansion of its grocery delivery service to L.A. and San Francisco, a new Facebook-focused gifting product, an online store for 3D printers, and of course there were those smartphone rumors.