Amazon reported it’s latest quarterly results on Thursday and the numbers have far exceeded street expectations. Amazon’s Revenue is up 43% in the quarter with $51 billion in sales and its profit more than doubled to $1.6 billion for Q1 2018.
Amazon also announced that it will increase its Prime subscription fee from $99 a year to $119 for US prime members, which is close to 20% increase in fee. Based on its huge Prime subscriber base in the region, the increase in fee is expected boost Amazon’s subscription revenue further in coming quarters, which is currently standing at $3.1 billion.
Amazon’s cloud services wing – AWS has posted 49% increase in sales to $5.44 billion.
AWS (Amazon Web Services) alone contributed $1.4 billion in operating income which is 73% of Amazon’s total operating income in the quarter.
According to Amazon CEO Jeff Bezos, AWS has a seven year head start in the cloud business compared to its competition and its team has never slowed down. Though Microsoft Azure is the closest rival to AWS, competition is heating up with major players entering the enterprise cloud business.
The Advertising business is another strong performer contributing close to $2 billion in revenue.
The stronger results had spiked Amazon’s share price by 7% in after-hours trading.
Amazon’s international business though continues to show operating loss which stood at $622 million in the quarter, as Amazon continues to invest in emerging markets like India which it finds promising in the long run. In a statement, the company’s CFO, Brian Olsavsky said “We’ll continue to invest in India where we’re seeing great progress with both sellers and also customers. And we like the momentum we’ve seen there,” he also added “We’re adding local content in India, video content. We’re also adding other benefits, Prime benefits. We’re rolling out devices there, and we’re seeing Indian developers developing skills for Alexa.”