Amazon books a good Q1 touting financial improvements, customer experiences

SEATTLE — With claims by President and CEO Andy Jassy that “it was a good start to the year across the business,” Amazon reported a net sales increase of 13% for the first quarter, reaching $143.3 billion vs. $127.4 billion in the same quarter in 2023.

Both the North America and international segments garnered sales increases of 12% ($86.3 billion) and 10% ($31.9 billion) year-over-year, respectively. And the company’s AWS segment showed the largest percentage jump, up 17% to $25 billion for the quarter ended March 31.

Jassy credited actions such as infrastructure modernization efforts, AWS’s AI capabilities and Amazon’s Stores business, which expanded selection, increased delivery speed and provided everyday low pricing, with improving the financial results along with the overall customer experience.

“It’s very early days in all of our businesses and we remain excited by how much more we can make customers’ lives better and easier moving forward,” he said.

On the topic of customer enhancements, Amazon reported it delivered more than 2 billion global units on the same day or next day to Prime members in the first quarter. Other customer-facing improvements cited were the expanded selection of popular brands, including some geared toward Gen Z.

Operating income increased to $15.3 billion in the first quarter from $4.8 billion in the same quarter of 2023, and net income increased to $10.4 billion or $0.98 per diluted share. Operating cash flow rose by 82% to $99.1 billion for the trailing 12 months vs. $54.3 billion for the trailing 12 months ended March 31, 2023.

Some of the major shopping events in the quarter were Spring Deal Days in Europe; a Ramadan event in Egypt, Saudi Arabia and UAE; and the Big Spring Sale in the U.S. and Canada, which featured savings on outdoor furniture, lawn and garden essentials and fashion.

Amazon continued as well to expand its AI capabilities across products and services under its Amazon Q and Amazon Bedrock platforms.

Guidance for the second quarter shows net sales in the $144 billion to $149 billion range, up 7% to 11% vs. Q2 of 2023. Operating income is expected to range from $10 billion to $14 billion vs. $7.7 billion in the same quarter a year ago.

See also:

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