Amazon has announced its results for Q1, reporting as much as 43 percent overall sales growth, with continued rises projected for the remainder of the financial year.
With a strong quarter behind it, Amazon has a lot of work to do to ensure its sales continue to grow over the next nine months. According to its first-quarter sales results, the American headquartered e-commerce business has increased sales by 43 percent, bringing the company’s sales tally to $51 billion for the last three months.
During this time, Amazon’s operating cash flow reportedly grew by four percent to $18.2 billion, while net sales grew to $51 billion, compared to only $35.7 billion in 2017’s first quarter. Even without the $1.6 billion impact from year-on-year changes in foreign exchange rates, which worked in the company’s favour, Amazon still would have walked away from the quarter with a 39 percent increase in net sales from the same period 12-months ago.
Amazon attributes the successful quarter to a number of factors, including its profitable cloud computing business, Amazon Web Services (AWS), which had strong results for its advertising sales and retail performance, where an acquisition of Whole Foods in the US boosted segmented sales by 46 percent year-on-year, which equates to US$30.7 billion.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” said Jeff Bezos, Amazon founder, and CEO. “As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row,” he said.
These positive results have come after Amazon was voted number one in the American Customer Satisfaction Index for Internet Retailing, as well as number five in the UK equivalent poll.
On Tuesday, the online marketplace also announced it would be increasing the global Amazon Prime membership price from US$99 to US$119 in May this year, which could increase Amazon’s projected results for the remainder of the financial year.
Amazon is expecting second-quarter net sales 34 to 42 percent higher than net sales in the corresponding quarter in 2017, inclusive of an estimated $1.2 billion increase from favourable foreign exchange rates.