Amazon has played a critical role in the COVID-19 pandemic as more people turn to the online retailer to deliver their goods so they don’t need to leave home.
As a result, the company has experienced a mostly positive Q2 2020, with a revenue of $75.45 billion USD (roughly $103 billion CAD).
Last year in Q1 Amazon posted net sales of $59.7 billion USD (roughly $83.1 billion CAD), so this quarter is a 26 percent increase. In terms of income, the retail giant brought in $2.5 billion USD (roughly $3.4 billion CAD).
At the top of its letter to shareholders, Jeff Bezos, the company’s CEO, stated that the company aims to make $4 billion USD (roughly $5.5 billion CAD) in operating profit, and it’s planning to put all of that amount — if not more — to COVID-19 related expenses. This includes ensuring products are still getting to customers, employee safety, higher wages for hourly workers, more space in its warehouses to allow for better social distancing, and improved protective equipment.
Bezos also mentions that hundreds of millions of dollars will go towards Amazon’s own efforts to develop COVID-19 testing.
This is the first quarter that Amazon Web Service’s (AWS) revenue topped $10 billion USD (roughly $13.9 billion CAD). It’s likely that this was related to more people working from home and relying on cloud-based platforms to get work done. Notably, AWS powered the NFL’s remote draft this year.
Looking forward to Q2, Amazon is aiming to post an operating income loss of $1.5 billion depending on how spending goes next quarter and the amount of money it needs to spend on its coronavirus prevention efforts.