Amazon reported robust first-quarter 2024 results, with revenue of US$143.31 billion, a 31% increase compared to the same period last year. Net income reached US$10.43 billion, or US$0.98 per share, significantly exceeding Wall Street analysts' expectations, who had predicted US$0.84 per share.
"It was a strong start to the year across all business segments, as evidenced both by improvements in customer experience and financial results," said Andy Jassy, Amazon CEO, in a statement.
The Seattle-based e-commerce giant has reported exceeding expectations during the Christmas shopping period, driven by strong consumer spending, aided by discounts and faster delivery times. The company held another promotional event in late March, just before the first quarter closed.
According to Brian Olsavsky, Amazon's chief financial officer, US customers are being "very cautious" with their spending, looking for promotions and opting for more affordable products. He noted that the company is particularly seeing a reduction in spending in Europe.
AWS accelerating
The company's cloud computing division, Amazon Web Services (AWS), recorded US$25.04 billion in sales during the first quarter, a 17% increase compared to the same period last year. AWS, whose clients are primarily businesses, has been a cornerstone of Amazon's strategy in the competitive artificial intelligence race among major tech companies.
Jassy stated that AI resources have accelerated the growth rate of AWS, which is now on track to reach US$100 billion in annual revenue. Hours before the results announcement, Amazon unveiled the full launch of a business chatbot called Q, promising to help employees be more productive at work.
Advertising is strong, including Prime Video
Online advertising sales for the company jumped by 24%, primarily driven by sponsored product ads. Olsavsky noted that Amazon, which began displaying ads on Prime Video in late January, currently has a "light" number of ads on the streaming service compared to television or other providers.
"Ad campaigns are performing well and attracting several new advertisers who weren't previously using Amazon's advertising services," said the chief financial officer, referring to the Prime Video initiative allowing customers to avoid ads for an extra monthly fee of US$2.99."
Amazon shares rose by approximately 2% in after-hours trading, reflecting investor confidence in the reported results.
For the second quarter, Amazon anticipates net sales between US$144 billion and US$149 billion, while analysts estimate US$150.2 billion.
