The 2020 Mid-Year Economic Update_long

Amazon Sees Net Sales Increase 40% in ‘Highly Unusual Quarter’

The company’s second quarter financial results report $5.2 billion in net income.
SANTA CLARA,CA/USA - FEBRUARY 1, 2014: Amazon building in Santa Clara, California. Amazon is an American international electronic commerce company. It is the world's largest online retailer.

Amazon.com, Inc. (NASDAQ: AMZN) on July 30 announced financial results for its second quarter ended June 30, 2020.

“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, adding that the company spent more than $4 billion on incremental COVID-19-related costs in the quarter.

According to Bezos, the company has created more than 175,000 new jobs since March and is in the process of bringing 125,000 of those new employees into regular, full-time positions.

According to Amazon:

  • Operating cash flow increased 42% to $51.2 billion for the trailing 12 months, compared with $36.0 billion for the trailing 12 months ended June 30, 2019.
  • Free cash flow increased to $31.9 billion for the trailing 12 months, compared with $25.0 billion for the trailing 12 months ended June 30, 2019.
  • Free cash flow less principal repayments of finance leases and financing obligations increased to $21.3 billion for the trailing 12 months, compared with $16.1 billion for the trailing 12 months ended June 30, 2019.
  • Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $19.4 billion for the trailing 12 months, compared with $13.0 billion for the trailing 12 months ended June 30, 2019.
  • Common shares outstanding plus shares underlying stock-based awards totaled 517 million on June 30, 2020, compared with 510 million one year ago.
  • Net sales increased 40% to $88.9 billion in the second quarter, compared with $63.4 billion in second quarter 2019. Excluding the $582 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 41% compared with second quarter 2019.
  • Operating income increased to $5.8 billion in the second quarter, compared with operating income of $3.1 billion in second quarter 2019.
  • Net income increased to $5.2 billion in the second quarter, or $10.30 per diluted share, compared with net income of $2.6 billion, or $5.22 per diluted share, in second quarter 2019.

Amazon Business delivered more than 200 million essential health and safety products to healthcare and government organizations in tens of thousands of locations across the U.S., according to the company.

According to its 2020 Small and Medium-Sized Business (SMB) Impact Report, SMBs selling in Amazon’s U.S. store have sold more than 3.4 billion products in the past year and created an estimated 1.1 million jobs.

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