Amazon brought in $134.4 billion in revenue during the second quarter of 2023, the company reported Thursday, beating the Wall Street estimates of $131.5 billion and making for a stronger-than-expected haul. That also represents a 10.9% year-over-year jump/dip from the same quarter a year ago, when Amazon pulled in $121.1 billion.
The company touted its Hollywood standing in the earnings release, boasting of the success of “Air,” which arrived on Prime Video following an acclaimed and commercially robust theatrical run pulling in $90 million worldwide at the box office, and the final seasons of “Jack Ryan” and “The Marvelous Mrs. Maisel.” It also noted how “Jury Duty” became the first advertising-based video-on-demand series nominated in a major Emmy category. That nod was among 68 nominations earned this year for Amazon-specific shows.
Amazon reported $6.7 billion in net income, a massive upward swing from last year’s respectively quarterly loss of $2 billion. Earnings per share came in at $0.65, nearly double Zacks’ estimate of $0.34. The share price closed on Thursday at $128.91. By 4:20 pm EST, it had lept to $138.72.
“It was another strong quarter of progress for Amazon,” said Amazon CEO Andy Jassy. “We continued lowering our cost to serve in our fulfillment network, while also providing Prime customers with the fastest delivery speeds we’ve ever recorded.”
Amazon, like others in Big Tech, saw layoffs in 2023, axing 27,000 jobs.
During the quarter, the FTC sued Amazon. The lawsuit argues the company has been sneakily trapping users into Prime subscriptions and making it hard for them to unenroll via “dark patterns,” otherwise known as manipulative design methods built to trick customers.
Amazon rejected the FTC’s allegations, saying that “customers love Prime, and by design, we make it clear and simple for customers to both sign up for or cancel their Prime membership.” The company said it looked forward to proving its case in court.
Amazon Prime Video is reportedly gearing up to introduce an ad-supported subscription tier for its streaming service. This will presumably exist alongside the current Amazon Freevee, an ad-driven service that recently broke through with “Jury Duty.”
The earnings statement also noted the formation of Amazon MGM Studios Distribution and their licensing of Amazon Original and MGM library films and shows to third parties following their Prime Video debuts. Among the titles being marketed are “Coming 2 America” and “The Marvelous Mrs. Maisel.”
