With the shift of the online sales pandemic and consumer tense with stimulus measures, Amazon on Thursday reported revenue of $ 108.5 billion in the first three months of the year, up 44% from a years earlier. It also made a profit of 8.1 billion USD, up 220% over the same period last year.
First quarter results beat Wall Street expectations.
The most profitable divisions in Amazon’s retail business boom. Revenue from merchants listing items on their websites and using their warehouse grew 64% to $ 23.7 billion. The “other” business, largely a lucrative advertising business, grew 77% to nearly $ 7 billion.
Amazon previously revealed that 200 million people pay for Prime membership and that subscription revenue for that service and other services hit nearly $ 7.6 billion for the quarter. In addition to paying Amazon $ 119 a year or $ 12.99 a month for free shipping and other perks, Prime member households typically spend $ 3,000 a year on Amazon, many more than double that of households without a spending membership, according to Morgan Stanley.
High order numbers during the pandemic have allowed Amazon to operate more efficiently. It operated its warehouses at nearly full capacity and delivery drivers stopped more on their routes, with less time between customers. The number of items Amazon sold was up 44%, but the cost of fulfilling those orders rose only 31%.
The pandemic’s shift to remote computers was also a boon for Amazon’s profitable cloud business, Amazon Web Services, with $ 13.5 billion in revenue.
Amazon CFO Brian Olsavsky said in a call to reporters: “We have certainly had real mass across all areas of our business. He said the company is investing heavily in future growth. It has spent nearly $ 50 billion in capital spending over the past 12 months, largely on building logistics and data center operations, up 80 percent from a year earlier. Olsavsky said he expected “another strong year” for capital spending.
Amazon’s total workforce decreased slightly from December to the end of March, dropping 27,000 to 1,271,000 employees globally. That number is still 51% more than the number of workers compared with the same period last year. On Wednesday, Amazon announced it would raise salaries for half a million workers and are hiring “tens of thousands” more.