With the pandemic shifting gross sales on-line and customers flush with stimulus checks, Amazon on Thursday reported $108.5 billion in gross sales within the first three months of the 12 months, up 44 p.c from a 12 months earlier. It additionally posted $8.1 billion in revenue, a rise of 220 p.c from the identical interval final 12 months.
The primary-quarter outcomes surpassed Wall Avenue’s expectations.
Probably the most worthwhile components of Amazon’s retail enterprise boomed. Income from retailers itemizing gadgets on its web site and utilizing its warehouses was up 64 p.c, to $23.7 billion. Its “different” enterprise phase, which is essentially its profitable promoting enterprise, elevated 77 p.c, to nearly $7 billion.
Amazon beforehand disclosed that 200 million individuals pay for Prime memberships, and subscription income for that service and others reached nearly $7.6 billion within the quarter. Along with paying Amazon $119 a 12 months or $12.99 a month totally free transport and different perks, households with Prime memberships sometimes spend $3,000 a 12 months on Amazon, greater than twice what households with out the membership spend, based on Morgan Stanley.
The excessive quantity of orders throughout the pandemic has let Amazon function extra effectively. It has run its warehouses nearer to full capability, and supply drivers have made extra stops on their routes, with much less time driving between clients. The variety of gadgets Amazon offered grew 44 p.c, however the price to meet these orders was up solely 31 p.c.
The pandemic’s shift to distant computing was additionally a boon to Amazon’s worthwhile cloud computing enterprise, Amazon Internet Providers, which had $13.5 billion in gross sales.
“In simply 15 years, AWS has grow to be a $54 billion annual gross sales run price enterprise competing in opposition to the world’s largest know-how firms, and its progress is accelerating,” Jeff Bezos, Amazon’s founder and chief government, stated in a press release. Mr. Bezos plans to step down as chief executive later this 12 months and transition into the position of government chairman.
Amazon’s whole work drive dipped barely between December and the tip of March, falling by 27,000 to 1,271,000 workers globally. That was nonetheless 51 p.c extra employees than the identical interval final 12 months. On Wednesday, Amazon announced it could enhance pay for half one million employees and was hiring “tens of 1000’s” extra.