Martech: Martech is Marketing Logo
  • Topics
    Digital Transformation
    Marketing Operations
    Data
    Customer & Digital Experience
    Performance Marketing
    Marketing Management
    Special Reports
    All Topics
  • Conference
  • Webinars
  • Intelligence Reports
  • White Papers
  • What is MarTech

Processing...Please wait.

MarTech » Performance Marketing » Amazon’s advertising and cloud units drive huge profitability in Q2

Amazon’s advertising and cloud units drive huge profitability in Q2

Ad revenues were roughly $2.2 billion, the second consecutive quarter they exceeded $2 billion.

Greg Sterling on July 27, 2018 at 4:13 pm | Reading time: 2 minutes

Amazon reported quarterly earnings yesterday. It missed on top-line revenue, which was up 39 percent from the year-ago second quarter, but dramatically beat analysts’ earnings expectations. Revenues were $52.9 billion for the quarter compared with Wall Street expectations of $53.41 billion.

Earnings, however, came in at $5.07 per share, which was more than double what analysts had expected ($2.48 a share). This translates into net income of $2.5 billion.

Among a long list of accomplishments and launches in the quarter, Amazon touted the success of Prime Day as its “biggest global shopping event ever.” Prime Day sales will be reported in third-quarter results. But Amazon pointed out that small and medium-sized businesses sold more than $1.5 billion of products on Prime Day.

The real stars of the quarter were Amazon’s high-margin business units, including Amazon Web Services and its fast-growing ad business. Combined with a slowdown in hiring, these units propelled the growth in net income.

Amazon’s ad revenues (reported as “other”) were roughly $2.2 billion. That was up more than 130 percent year over year and the second consecutive quarter that they exceeded $2 billion.

Amazon CFO Brian T. Olsavsky said, on the earnings call, “Advertising is also starting to make an impact on gross profit. Although advertising is smaller in the International segment than it is in North America, it’s growing at the same rapid clip year over year.”

AWS saw revenues of $6.1 billion, which were up 49 percent or $2 billion from a year ago. The division was also more profitable than a year ago. Investors reacted enthusiastically, sending Amazon’s stock up. Today, its market cap is $907.6 billion, on the way to a probable $1 trillion in the near term.


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


New on MarTech

    Only 38% of marketers very confident in their customer data and analytics systems
    Does your email copy persuade or sell?
    The latest jobs in martech
    74% of B2B marketers expect budgets to increase next year
    How Cherry Bombe uses email to make customers smile

About The Author

Greg Sterling
Greg Sterling is a Contributing Editor to Search Engine Land, a member of the programming team for SMX events and the VP, Market Insights at Uberall.

Related Topics

Performance Marketing

Get the daily newsletter digital marketers rely on.

Processing...Please wait.

See terms.

ATTEND OUR EVENTS The MarTech Conference logo.

September 28-29, 2022: Fall

Start Training Now: Master Classes

Start Discovering Now: Spring



The SMX Conference logo.

Start Training Now:: SMX Advanced

November 14-15, 2022: SMX Next

March 8-9, 2022: Master Classes

Webinars

SEO Recon: The What, Why, and How for Building Amazing Links

Unlock the Cutting-Edge Potential of QR Codes

Why Finding the Right Platform is the Key to Winning in Email Marketing

See More Webinars
Intelligence Reports

Enterprise Marketing Performance Management Platforms: A Marketer’s Guide

Enterprise Customer Journey Orchestration Platforms: A Marketer’s Guide

Enterprise Account-Based Marketing Platforms: A Marketer’s Guide

See More Intelligence Reports
Featured White Paper

The Definitive Buyer’s Guide to Collaborative Work Management for Marketers

See More Whitepapers
Search Our Site

Receive daily marketing news & analysis.

Processing...Please wait.

Topics

  • Transformation
  • Operations
  • Data
  • Experience
  • Performance
  • Management
  • All Topics
  • Home

Our Events

  • MarTech
  • Search Marketing Expo - SMX

About

  • What is MarTech
  • Contact
  • Privacy
  • Terms Of Use
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS

© 2022 Third Door Media, Inc. All rights reserved.