Business News: Amazon gives a massive revenue beat heading into Jeff Bezos’ final quarter.
Amazon.com Inc, which benefited from it from an increase in online shopping during the pandemic, the trend is expected to continue even as consumers return to work and the remains of normal life.
A year ago, Jeff Bezos, Amazon’s chief executive, warned investors that the spread of Covid-19 would be costly in terms of new facilities to meet home shopper demand and precautions to keep operations safe. Amazon hired hundreds of thousands of workers and continued to open warehouses at the rate of one every 24 hours.
The quarterly results announced on Thursday show that these big bets continue to pay off. The pandemic has given a huge boost to the retailer’s business, allowing the Seattle-based company to provide more profitable packages, cloud computing services and streaming movies.
Total revenue increased 44% year-over-year from $ 75.5 billion, while AWS sales increased 32% from $ 10.22 billion in that period. Profits increased to $ 8.1 billion, more than tripling the $ 2.5 billion recorded in the first quarter of last year. “In just 15 years, AWS has grown into a $ 54 billion annual revenue business competing with the world’s largest technology companies and its growth is accelerating,” Amazon CEO Jeff Bezos said in a statement.
“Fantastic quarter,” said Poonam Goyal, senior analyst at Bloomberg Intelligence. “All in all good and shows the continuing strength of the changing habits of consumers who will move more towards digital”.
The company said its annual Prime Day megadeals event will return to a summer slot after being postponed to October last year due to disruptions. from the pandemic. The return is expected to boost second-quarter sales, which the company expected to reach between $ 110 and $ 116 billion. The company also said it plans to spend about $ 1.5 billion on COVID-19 related expenses.
Amazon surpassed 200 million Prime subscribers earlier this month, up from 150 million in early 2020. Bezos said, “175 million Prime members have streamed shows and movies over the past year and streaming hours have increased more than 70% year-over-year.”
On Wednesday, the company announced a $ 1 billion investment to provide salary increases to 500,000 workers, ranging from $ 0.50 to $ 3 per hour, which will affect four teams: fulfillment, delivery, parcel sorting and special fulfillment.