Amazon’s net profit jumped 64.2% to $17.1 billion in the first quarter, beating expectations. Total revenue rose 9% to $155.7 billion, driven by online sales and third-party seller revenue.
Breaking Down the Numbers
Online sales brought in $57.4 billion, while third-party sellers contributed $36.5 billion. North American sales grew 8% to $92.9 billion. International sales rose 5% to $33.5 billion.
Amazon Web Services (AWS) remains the company’s most profitable segment. AWS revenue growth slowed to 17% from 19% in the previous quarter. The cloud business is still a key driver of Amazon’s profitability. Advertising revenue also grew 18%.
What’s Driving Growth
Andy Jassy, Amazon’s CEO, said the company is innovating and improving customer experiences. New initiatives include Alexa+, faster delivery for Prime members, and the Trainium2 chip for AWS customers. The company is also working on Project Kuiper, a satellite-based broadband service.
- Alexa+ aims to enhance the virtual assistant experience.
- Trainium2 chip helps AWS customers train AI models more efficiently.
- Project Kuiper targets rural areas with limited broadband access.
Looking Ahead
For the second quarter, Amazon expects revenue to reach $159 billion to $164 billion, up 7% to 11%. Operating profit is projected to be between $13 billion and $17.5 billion. The company notes that uncertainty remains high.