Amazon Revenue And Profits Soar
Yesterday afternoon Amazon announced its Q1 earnings, and let’s just say it’s good to be Jeff Bezos. Revenue was up 17% to just under $60B (in an single quarter), and profits jumped to an all-time record of $3.6B.
In Q1 two of the best growth drivers for Amazon were its infamous “Other” category and Cloud Computing. Other, which is mostly made up of ad sales, grew 34% to $2.7B. Cloud Computing, aka Amazon Web Services (AWS), performed even better with 41% YoY growth on $2.2B in sales.
One significant operational change noted during the call is Amazon’s plan to decrease the Prime delivery time from two days down to one. This will cost Amazon $800M over the remainder of 2019, and will also turn up the heat on other eComms to match their offering.
Impressive results all around, to be sure. Don’t expect this freight train to slow down anytime soon.