Jeff Bezos is breathing easy today. Amazon released a few details from their quarterly SEC filing and it looks like Bezos managed to narrowly avoid being penalized by one of the secret clauses in his contract.
According to the press release, Amazon lost $7 million last quarter.
Net sales increased 22% to $15.70 billion in the second quarter, compared with $12.83 billion in second quarter 2012. Excluding the $392 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 25% compared with second quarter 2012.
Operating income decreased 26% to $79 million in the second quarter, compared with $107 million in second quarter 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million.
Net loss was $7 million in the second quarter, or $0.02 per diluted share, compared with net income of $7 million, or $0.01 per diluted share, in second quarter 2012.
A net loss might be bad news for Amazon but it’s good news for Jeff Bezos. Sources have told me that his contract is structured to discourage turning a net profit. Whenever that happens, Bezos is required to pay back an equal amount of stock options.
I’m kidding, of course; Amazon tends to make a net profit, though it has usually been a narrow one. During this quarter last year, for example, the net profit was around half a percent of revenue. And in Q1 2013, net profit was a freakishly high 5%.