Amazon Announces Q1 Profits, Sales up $51 Billion
SEATTLE, WA - The report is in, and things are looking better and better for Amazon. The e-tailer announced fiscal results for its first quarter, which ended March 31st.
While Amazon has seemingly seen growth throughout the entirety of its business, some successes are a direct result of its relationship with Whole Foods. In addition to offering delivery options to Whole Foods shoppers, the retail giant launched its Amazon Prime rewards program, offering shoppers at Whole Foods 5 percent back on their groceries. These actions have resulted in strong leg of business growth, which can be seen in the boost in Prime memberships and within our industry.
In the report, the company outlines its growth trajectory. Its operating cash flow jumped 4 percent to $18.2 billion for the trailing twelve months, compared to the same time last year that showed $17.5 billion. Free cash flow decreased to $7.2 billion for the trailing twelve months, the company reports in its recent report, compared with the $10.1 billion for the same time the year prior.
Net sales skyrocketed 43 percent—from 2017’s Q1, $35.7 billion, to 2018’s Q1, $51.0 billion. Net sales ultimately increased 39 percent compared with the first quarter for 2017 when the $1.6 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter are taken into account.
Operating income also spiked 92 percent, from $1.0 billion during 2017’s Q1 to $1.9 billion this year’s Q1.
The company’s net income grew astronomically, as well. It reports $724 million, or $1.48 per diluted share during Q1 of 2017, and this year, the company reports $1.6 billion for Q1, or $3.27 per diluted share.
Common shares outstanding plus shared underlying stock-based awards grew to 504 million for 2018’s Q1, a climb from 498 million for 2017’s.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” said Founder and CEO Jeff Bezos, who commented on the propitious success of Amazon Web Services (AWS). “As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row. A huge thank you to all our AWS customers, and you can be sure we’ll keep working hard for you.”
Additionally, Amazon announced plans to raise the price of Prime membership, during a conference call this week; the Wall Street Journal reported on the matter, noting that the price increase will be only the second in its 13-year history.
The report also remarked on the following Q1 highlights:
- Amazon, Chase, and Whole Foods Market announced that eligible Prime members can earn 5% back on Whole Foods Market purchases when using the Amazon Prime Rewards Visa Card.
- Amazon introduced grocery delivery from Whole Foods Market in 10 cities in the U.S., offering customers free two-hour delivery on thousands of natural and organic groceries and locally-sourced items.
For more details on what pushed Amazon to such high heights, check out the report in full here.
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