For the first time ever, Amazon.com Inc. raked in more than $2 billion in profit, on the back of solid performance of its cloud computing services and its advertising business.
Earning $2.5 billion in Q2 2018, the e-commerce giant delivered its third consecutive quarter of ‘$1 billion- and-over' profit – thereby vindicating the firm’s long held invest-more-to-grow-more strategy. Amazon’s Q2 profits marked a massive climb from the year-ago period’s $197 million.
A key driver of the company’s solid performance was its cloud computing segment, Amazon Web Services, which generated $6.1 billion in sales – a 49% surge compared to the same quarter a year ago. Amazon’s cloud division has a fatter margin compared to the firm’s core retail segment.
Another trump card for Amazon turned out to be its “other” segment - (mainly consisting of the firm’s relatively new advertising business) which grew at around + 130% year-over-year to produce $2.2 billion revenues in Q2.
The company has also been aiming to boost profits of its retail business by cutting jobs and focusing on automation.
The company’s overall sales came in at $52.9 billion for the quarter, a year-over-year increase of 39% (slightly less than Wall Street estimates).