Amazon reported 1Q18 revenues of $51.04 billion, up 42.9% year over year and beating the consensus estimate of $49.92 billion.
Operating income was $1.93 billion, ahead of the consensus estimate of $1.01 billion and guidance of $300 million to $1 billion.
EPS was $3.27, handily beating the $1.24 consensus estimate and up 121.4% year over year.
Amazon also mentioned that it would raise its annual fee for Prime subscriptions to $119 from $99 starting June 16.
Details from the Quarter
- Amazon acquired home security company Ring. The two companies will work together to develop affordable, effective home security products and services.
- Tens of millions of paying customers are using Amazon Music, and Amazon Music Unlimited subscriptions grew by more than 100% over the last six months.
- Amazon, Chase and Whole Foods Market announced that eligible Prime members can earn 5% back on Whole Foods purchases when using the Amazon Prime Rewards Visa Card.
- Amazon introduced grocery delivery from Whole Foods in 10 cities in the US, offering customers free two-hour delivery on thousands of natural and organic and locally sourced items.
- Amazon launched Fulfillment by Amazon in Australia, offering small and medium-sized businesses selling on Amazon.com.au the ability to use the Amazon fulfillment network.
- AWS announced that it added several enterprise customers during the quarter, including GoDaddy, Cox Automotive, Shutterfly and NextGen Healthcare.
- AWS also launched two availability zones and one local region in Osaka, Japan. AWS now operates 54 availability zones within 18 geographic regions, and one local region. The business plans to launch 12 more availability zones and four more regions in Bahrain, Hong Kong and Sweden, and a second AWS GovCloud Region in the US is to come online by early 2019.
Results by Segment
- North America revenues were $30.7 billion, up 46.4% year over year, and operating profit was $1.1 billion, compared with $0.6 billion in the year-ago quarter.
- International revenues were $14.9 billion, up 34.5% year over year, and operating loss was $0.6 billion, compared with a loss of $0.5 billion in the year-ago quarter.
- AWS revenues were $5.4 billion, up 48.6% year over year, and operating profit was $1.4 billion, compared with $0.9 billion in the year-ago quarter.
Amazon offered guidance for 2Q18 revenues of $51–$54 billion, whose midpoint of $52.5 billion is ahead of the consensus estimate of $52.22 billion. The company issued operating income guidance of $1.1–$1.9 billion, whose midpoint of $1.5 billion is above the consensus estimate of $1.12 billion.