Amazon reported its second-quarter earnings on Thursday, beating Wall Street expectations for both earnings and revenue. The company’s profit of $11.6 billion was up 71% from a year ago, and its revenue of $116.4 billion was up 17%.
The big driver of Amazon’s earnings beat was cost cutting. CEO Andy Jassy has been aggressively slashing expenses through layoffs and eliminating unproven bets. In the second quarter, Amazon’s operating expenses were down 12% from a year ago.
Amazon’s revenue growth was also helped by a return to double-digit growth in its e-commerce business. The company’s retail sales grew 17% in the second quarter, after slowing to 7% growth in the first quarter.
Amazon’s cloud computing business, Amazon Web Services (AWS), also continued to grow. AWS revenue grew 37% in the second quarter, to $18.4 billion. The strong earnings report is a sign that Jassy’s cost-cutting efforts are starting to bear fruit. The company is also benefiting from the return of double-digit growth in its e-commerce business.
However, there are some challenges that Amazon is facing. The company is still facing rising costs, and it is also facing increased competition from rivals like Walmart and Target. The strong earnings report is a positive sign for Amazon. The company is executing well on its key priorities, and it is benefiting from the return of double-digit growth in its e-commerce business.