Amazon CFO had to explain it's not a bad thing Amazon had its highest quarterly profit ever
Getty / Drew Angerer
But not everyone was impressed by it, as some reporters on the company's conference call with the media wondered whether it might be a sign of Amazon not finding enough new investment opportunities to reinvest its profits.
To defend the company and prove it's not becoming an old, aging tech empire, Amazon CFO Brian Olsavsky had to go through all the investments he's made over the past quarter:
Digital video content: Amazon plans to double its online video content spend in the second half of this year compared to same period of last year. It's also tripling the amount of original content.
Fulfillment centers: It's adding 18 new fulfillment centers next quarter versus just 6 in the same quarter of last year.
Prime: Amazon continues to invest in Prime through faster delivery, more video and music content, and additional discounts through big events like Prime Day.
Alexa and Echo: Amazon's doubling down on making Alexa more popular among developers to make it a much broader platform.
International: Last quarter, Amazon announced it would make an additional $3 billion investment in India and $500 million investment in Italy.
AWS: Amazon's cloud computing services already added 422 new features this year vs. 722 in all of last year.
"We have a lot of investments going on at any point in time. And there's no shortage of them right now," Olsavsky said.
If anything, Olsavsky said all the investments are translating into higher growth, as Amazon recorded 28% paid unit growth in the second quarter, up from 22% it saw in the same quarter of last year.
"I would not take our financial result as an indication that we're running out of investment opportunities in any way, shape, or form," he added.
Instead, Olsavsky said the profit growth is a result of operating efficiency. Amazon's headcount, for example, jumped another 47% to reach 268,000 last quarter, yet it broke its net profit record, set in the previous quarter.
"We're investing wisely on behalf of shareholders...but we also work very hard on efficiency, making sure our increase in revenue is met with very strong operating efficiencies and the benefits of operating scale," Olsavsky said.
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.
NOW WATCH: You can print your photos as pancakes now
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- 9 health benefits of drinking sugarcane juice in summer
- 10 benefits of incorporating almond oil into your daily diet
- From heart health to detoxification: 10 reasons to eat beetroot
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market