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% 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% 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 LA and SF,
a new Facebook-focused gifting
product, an online store for 3D
printers, and of course there were
those smartphone rumors.