May 22, 2024

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Amazon reported strong first-quarter results driven by its cloud computing unit and Prime Video ad dollars

Amazon reported strong first-quarter results driven by its cloud computing unit and Prime Video ad dollars

NEW YORK (AP) — Amazon on Tuesday reported strong first-quarter results, driven by growth at its cloud computing unit and a new increase in ad dollars from its streaming video service Prime Video.

The Seattle-based e-commerce giant said it generated $143.31 billion in revenue in the first three months of this year, an increase of 13% compared to the same period last year. Net income was $10.43 billion, or 98 cents per share. That beat Wall Street analysts' expectations of 84 cents per share, according to FactSet.

“It's been a good start to the year across the business, and you can see that in the customer experience improvements and financial results,” Amazon CEO Andy Jassy said in a statement.

The nation's largest online retailer is reporting better-than-expected results for the holiday shopping period, when it saw strong consumer spending fueled by discounts and faster shipping speeds. Amazon held another discount event in late March, just before the end of the first quarter.

Aside from its core retail business, Amazon reported first-quarter sales at its cloud computing unit, Amazon Web Services. It amounted to $25.04 billion, an increase of 17% over the same period last year.

Sales in the company's online advertising business also rose 24%, due in part to an influx of advertising dollars coming from Prime Video. After years of giving Prime subscribers ad-free access to their favorite movies and TV shows, Amazon implemented a new policy in late January that allows viewers to avoid ads only if they pay an extra $2.99 ​​per month.

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Shares of Amazon.com Inc. rose. 3% after trading hours.

The company says it expects to achieve net sales of between $144 billion and $149 billion during the second quarter. Analysts expect $150.2 billion, according to FactSet.