Earnings: Amazon Crushes It On Sales, Profit In Q1′ 21
E-commerce giant Amazon rounded up a very strong year in 2020 as the pandemic forced a lot of reliance on online commerce to make up for lost physical commerce. In fact, the company reported its first-ever quarter with over $100 billion in sales in Q4 2020.
After a fiscal blowout in 2020, the first quarter of this year 2021 was even more of that for Amazon as indicated by the earnings results just disclosed by the company for that period. It reported record revenue and profit like never seen before.
By the numbers:
- Amazon reported $108.5 billion in revenue, up 44% year-over-year. By our analysis, it’s the highest year-over-year revenue growth rate reported by Amazon in the span of a decade and the second-highest in two decades. It’s impressive that Amazon can maintain very high revenue growth like this even as it gets mammoth revenues.
- As to profit, Amazon disclosed a record net income of $8.1 billion in Q1′ 21, buoyed by its much profitable cloud-computing division called AWS. The $8.1 billion profit is more than triple Amazon’s profit numbers year-over-year.
- By its forecast, Amazon expects its sales home run to continue. It expects to post between $110 billion and $116 billion in sales in the second quarter of this year.
- Amazon disclosed that its cloud division AWS has become a $54 billion annual sales run rate business.
- In March, Amazon made a major expansion by launching a dedicated website in Poland. It had however operated in the country since 2014 employing over 18,000 people.
- Amazon’s global procurement solution called Amazon Business now serves over 5 million businesses and generated $25 billion in worldwide annualized sales.
- Amazon recently added 11 aircraft to its dedicated cargo fleet and now has more than 85 cargo aircraft under its control.
- Coming 2 America, the movie produced by Amazon Studios, had a very strong debut across the globe.
Bottom line: Amazon had a blockbuster Q1′ 21. It matches with that reported by other e-commerce companies such as Canada’s Shopify. Surely, the pandemic of 2020 very much favored e-commerce companies financially.
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