Amazon’s Q1 earnings and revenue exceeded expectations, emphasised by the expansion of its advertising and cloud computing sectors.
- Earnings per share: 98 cents vs. 83 cents expected
- Revenue: $143.3 billion vs. $142.5 billion expected
The operating income surged over 200% to $15.3 billion in the period, significantly exceeding revenue growth, indicating that the company’s cost-reduction strategies and efficiency improvements are enhancing its financial performance.
AWS contributed to 62% of the total operating profit. The net income also saw a more than threefold increase to $10.4 billion, or 98 cents per share, up from $3.17 billion, or 31 cents per share, in the previous year. There was a 13% rise in sales from $127.4 billion the previous year.
One year Amazon chart May 2023 – April 2024
Amazon expects a continued rise in profitability for the Q2, albeit at a more consistent pace. The company projects its operating income to range from $10 billion to $14 billion, marking an increase from the previous year’s $7.7 billion.
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