Amazon Q2 2014 earnings: Wide $126M net loss despite sales being up 23 per cent yoy
Amazon has posted financial results for the second quarter of 2014, and like usual, it didn't provide specific numbers for product sales or usage.
The Fire TV, which launched earlier this year, has "significantly exceeded" sales forecasts, according to Amazon, forcing the company to increase manufacturing output. Prime Music, which also just launched, is supposedly doing well too, because Prime members streamed "tens of millions of songs" and added millions of songs and playlists to their libraries within a week of the service's release.
And finally, Amazon's new Sunday delivery service is handling "millions of packages". Although all of this sounds like Amazon has done great for the second quarter, the financial figures sing a different tune. The world’s largest online retailer reported its biggest quarterly loss since 2012. Amazon had a net loss of $126 million for the quarter that ended on 30 June, even though revenue soared 23 per cent year over year to $19.3 billion. Operating expenses increased 24 per cent to $19.4 billion.
Jeff Bezos, founder and CEO of Amazon, said in a press release that Amazon will "continue working hard on making the Amazon customer experience better and better,” and he emphasised on a more positive note that the new Fire Phone has just released in the US: "Customers all over the US will begin receiving their new Fire phones — including Firefly, Dynamic Perspective, and one full year of Prime - we can’t wait to get them in customers’ hands," he added.
In reaction to these financial results, Amazon shares have now started to fall in after-hours trading by as much as 5 per cent. Check out Amazon's live-streamed conference call at 2 PM PST for more information and forward-looking statements.