Amazon’s profit and sales skyrocket in Q1
Amazon reported huge sales and profit surges in the first quarter, increases that were fueled by its fast-growing cloud services business (AWS) and Prime loyalty members.
For the quarter ended March 31, net income was $1.6 billion, or $3.27 per share, compared with net income of $724 million, or $1.48 per share, in first quarter 2017. This beat analysts’ expectations of $1.26 per share.
Net sales increased 43% to $51.0 billion, compared with $35.7 billion a year ago.
Operating income increased 92% to $1.9 billion in the first quarter, compared with $1.0 billion in last year’s first quarter.
Prime memberships contributed to Amazon’s jump in revenue. Members — which are more than 100 million globally — spend above average on Amazon. Sales from Prime fees and other subscriptions grew 60% to $3.1 billion.
AWS, which handles data and computing for large enterprises in the cloud, also increased its profit for the quarter. The division reported $5.44 billion in sales, a 49% increase. This beat analyst estimates of $5.25 billion.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” said Jeff Bezos, Amazon founder and CEO.
Looking ahead to the second quarter, net sales are expected to be between $51.0 billion and $54.0 billion. This growth will range between 34% and 42% over the second quarter of 2017. This guidance is based on the fact that no additional business acquisitions, investments, restructuring, or legal settlements will take place.
For the quarter ended March 31, net income was $1.6 billion, or $3.27 per share, compared with net income of $724 million, or $1.48 per share, in first quarter 2017. This beat analysts’ expectations of $1.26 per share.
Net sales increased 43% to $51.0 billion, compared with $35.7 billion a year ago.
Operating income increased 92% to $1.9 billion in the first quarter, compared with $1.0 billion in last year’s first quarter.
Prime memberships contributed to Amazon’s jump in revenue. Members — which are more than 100 million globally — spend above average on Amazon. Sales from Prime fees and other subscriptions grew 60% to $3.1 billion.
AWS, which handles data and computing for large enterprises in the cloud, also increased its profit for the quarter. The division reported $5.44 billion in sales, a 49% increase. This beat analyst estimates of $5.25 billion.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” said Jeff Bezos, Amazon founder and CEO.
Looking ahead to the second quarter, net sales are expected to be between $51.0 billion and $54.0 billion. This growth will range between 34% and 42% over the second quarter of 2017. This guidance is based on the fact that no additional business acquisitions, investments, restructuring, or legal settlements will take place.