Amazon Q1 results meet expectations

By

Cloud, digital content boost revenue.

 

Amazon Q1 results meet expectations

Amazon.com Inc's first-quarter revenue jumped 22 percent to US$16.07 billion, propelled by growing sales of digital content, cloud computing services and gains in its main retail business.

The world's largest internet retailer had been expected to record revenue of US$16.1 billion in the typically slower first quarter, according to average forecasts on Wall Street.

Amazon shares rose 1.6 percent to US$279 in after-hours trading following the results.

Amazon, which has been on a spending spree in recent years, posted a 37 percent drop in net income to US$82 million, or 18 cents a share, compared to US$130 million, or 28 cents a share, in the year-earlier quarter.

Operating income was US$181 million, down 6 percent from the same period last year, Amazon said.

Amazon forecast second-quarter revenue of US$14.5 billion to US$16.2 billion and operating results from break-even to $350 million. The latter guidance excludes stock-based compensation expenses and other items such as amortization of intangible assets.

Wall Street was looking for second-quarter revenue of US$15.94 billion and operating results of US$452 million, according to Mark Mahaney, an analyst at RBC Capital Markets.

The company's profit has shrunk in recent years as it invests for longer-term growth, building distribution warehouses across the country, developing a Kindle Fire tablet and a digital content business in competition with Apple Inc, and expanding into cloud services.

(Reporting By Alistair Barr; Editing by Bernard Orr)

Got a news tip for our journalists? Share it with us anonymously here.
Tags:

Most Read Articles

Microsoft had three staff at Australian data centre campus when Azure went out

Microsoft had three staff at Australian data centre campus when Azure went out

NSW Education Standards Authority embarks on Records REMAP

NSW Education Standards Authority embarks on Records REMAP

Defence picks Lockheed Martin for mammoth compute deal

Defence picks Lockheed Martin for mammoth compute deal

Rio Tinto sets up data analytics centre in India

Rio Tinto sets up data analytics centre in India

Log In

  |  Forgot your password?