Amazon’s revenue growth markedly slowed during the second quarter of 2021 due toaround the world. The company posted an overall revenue for Q2 of $113bn, which constitutes a year-on-year rise of 27% compared with , while its profit was up 50% overall and hit $7.8bn during the quarter.
During the same period, the company achieved a revenue growth rate of 40%, as lockdown restrictions worldwide resulted in consumers becoming more reliant on online retail services to source groceries and other goods than ever before.
In a conference call with analysts to discuss the results, Amazon chief financial officer Brian Olsavsky said the slowdown in the company’s year-on-year sales is the direct result of lockdownacross the world, and “people are getting out of their homes”.
As a result, the company is expecting a pattern of “difficult”, as the demand for online retail services starts to level off and return to pre-pandemic levels.
“[It’s] the impact of people getting vaccinated and getting out in the world, not only shopping offline but also living life and getting out,” he told analysts.
The company’sarm, Amazon Web Services (AWS), posted a revenue of $14.89m for the quarter, up 38% on Q2 2021.
Putting these figures into further context during the conference call, Olsavsky said these results mean AWS is now a $59bn annualized run rate business, and. “AWS set more revenue quarter-over-quarter and year-over-year than any quarter in our history,” he added.
“We can see good trends with newup with AWS and making the journey to the cloud or accelerating their journey to the cloud, or setting up new longer-term contracts with us.”
The publication of Amazon’s second-quarter results coincides with former AWS chief, Andy Jassy, taking over its reins from its long-standing CEO,, who stepped at the start of July.
In his first financial statement as CEO, Jassy thanked Amazon’s staff for all their help with tending to the needs of its customers, both on the retail and cloud side,.
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helpedwith the difficult circumstances of the pandemic,” said Jassy. “At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth reaccelerate as more companies plans to transform their businesses and move to the cloud.
“Thank you to all of our passionate, innovative, mission-driven employees around the world for continuing to stay focused on delivering for customers – I am very excited to work with you as we invent and build for the future.”