The tech giant reported quarterly earnings of a whopping $ 8.1 billion on Thursday, up 224% over the same period last year, undermining Wall Street analysts’ forecast of $ 4.98 billion. Earnings reached $ 15.79 per diluted share.
Total net revenue for the quarter rose 44% year over year to $ 108.5 billion, surpassing analysts’ forecast of $ 104.5 billion.
“Amazon has the near-perfect business for the world right now,” said James Harris, Mindshare Worldwide’s global chief strategy officer, in an email following the report. “The world’s leading e-commerce platform, a growing cloud business, and a smaller but growing advertising ability all work together. It’s a compelling proposition.”
The company’s cloud entity and largest money maker, Amazon Web Services, had net revenue of $ 13.5 billion for the quarter, up 32% year over year. This is an acceleration in quarter-on-quarter growth as more companies adopt hybrid workforce management technology.
Among the other highlights of the quarter: Amazon now has more than 200 million paid Prime subscribers and Prime Video streaming hours are up more than 70% year-over-year.
Despite a difficult year-over-year comparison due to the surge in demand caused by the 2020 pandemic
, Amazon continues to expect net sales of between $ 110 billion and $ 116 billion for the second year, up 24% to 30% from the same period last year Quarter of 2021. That is
assuming the annual Prime Day event occurs as usual during the quarter.
On Wednesday, the day before the earnings report, Amazon announced it was spending $ 1 billion to raise wages by up to $ 3 an hour for more than 500,000 hourly workers as the company continues its hiring surge, which is its worldwide Workforce has increased to over 1.3 million people
worldwide. However, the company won’t raise its $ 15 an hour minimum wage.
Early in the first quarter, Amazon faced landmark union action at an Alabama warehouse that scrutinized its labor practices. Despite popular support from celebrities and even US President Joe Biden, the union vote was unsuccessful.
The last part of this year will fundamentally change the company as Amazon founder Jeff Bezos steps down from his role as managing director and is replaced by the current CEO of Amazon Web Services, Andy Jassy. The cloud unit receives a new market leader.