Amazon.com Inc, which has benefited from a surge in online shopping during the pandemic, believes the trend will continue even as consumers get back to work and get what is left of normal life.
A year ago, Jeff Bezos, Amazon’s chief executive officer, warned investors that the spread of Covid-19 would be costly in terms of new facilities to meet domestic customer demand and operational safety precautions. Amazon hired hundreds of thousands of workers and continued to open warehouses at the rate of one every 24 hours.
The quarterly results announced on Thursday show that these big stakes continue to pay off. The pandemic has given the retailer’s business a huge boost, allowing the Seattle-based company to deliver more profitable packages, cloud computing services and streamed movies.
Total revenue increased 44% from $ 75.5 billion year over year, while AWS revenue increased 32% from $ 10.22 billion over the same period. Income rose to $ 8.1 billion, tripling the $ 2.5 billion posted in the first quarter of last year. “In just 15 years, AWS has grown into a $ 54 billion annual revenue company that competes with the world’s largest technology companies and is growing at an accelerating pace,” said Jeff Bezos, CEO of Amazon, in a Explanation.
“Fantastic quarter,” said Poonam Goyal, senior analyst at Bloomberg Intelligence. “All in all good, and it shows the continued strength of consumer behavior changes that are going to be more digital.”
The company said its annual Prime Day megadeals event would revert to a summer slot after being postponed to October last year due to a disruption from the pandemic. The rate of return should boost sales in the second quarter, which the company is projected to land between $ 110 billion and $ 116 billion. The company also expects to spend approximately $ 1.5 billion on expenses related to COVID-19.
Amazon surpassed 200 million Prime subscribers earlier this month, up from 150 million at the beginning of 2020. Bezos said, “175 million Prime members streamed shows and movies last year, and streaming hours are up from last year increased than 70%. ”
On Wednesday, the company announced a $ 1 billion investment to provide 500,000 workers with wage increases between $ 0.50 and $ 3 an hour, affecting four teams: fulfillment, delivery, package sorting and fulfillment of specialties.