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Amazon sees Q1 profits surge to $8.1bn

In the same period, its net sales increased 44% to $108.5bn in the first quarter, compared with $75.5bn in the first quarter of 2020

Amazon has revealed that net income soared to $8.1bn (£5.8bn) in its first quarter results, up from a net income of $2.5bn (£1.8bn) the year prior, as more customers turned to online shopping amid the global pandemic. 

In the same period, its net sales increased 44% to $108.5bn (£78bn) in the first quarter, compared with $75.5bn (£54bn) in the first quarter of 2020. 

Meanwhile, operating cash flow increased by 69% to $67.2bn (£48bn) for the trailing twelve months, compared with $39.7bn (£29bn) for the trailing twelve months ended 31 March, 2020.

During the period, Amazon opened its first international physical retail stores powered by Just Walk Out technology with the launch of three Amazon Fresh locations in London

These new convenience grocery stores enable shoppers to enter a store, grab what they want, and leave without stopping to check out. There are now 15 Amazon Fresh physical stores around the world.

In its latest results, Jeff Bezos, Amazon founder and CEO, also noted the anniversary of Prime Video and AWS, its web-services division. 

He said: “Two of our kids are now 10 and 15 years old—and after years of being nurtured, they’re growing up fast and coming into their own. As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70% year over year. Amazon Studios received a record 12 Academy Award nominations and two wins. 

“In just 15 years, AWS has become a $54bn (£39bn) annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating—up 32% year over year. Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of tools and services available, and we continue to invent relentlessly on their behalf.”

Looking ahead, net sales are expected to be between $110bn (£79bn) and $116bn (£83bn), or to grow between 24% and 30% compared with second quarter 2020. 

Operating income is expected to be between $4.5bn (£3.2bn) and $8bn (£5.7bn), compared with $5.8bn (£4.1bn) in second quarter 2020. This guidance assumes approximately $1.5bn (£1bn) of costs related to Covid-19.

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