Amazon's Quarterly Revenue Rises 15%, Shares Soar

Earnings FOXBusiness

(Reuters)

Internet retailing giant Amazon.com (AMZN) on Thursday reported first quarter earnings that included for the first time profits from its cloud services business, numbers that sent its stock soaring in after-hours trading.

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The company beat Wall Street’s expectations for revenue and earnings per share.

Amazon’s shares were up $18, or 4.6% in after-hours trading.

Amazon’s net sales increased 15% to $22.72 billion in the first quarter, compared with $19.74 billion in first quarter 2014. Analysts had forecast revenue of $22.39 billion.

Excluding $1.3 billion in losses from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 22% compared to first quarter 2014, the company said.

Net loss was $57 million in the first quarter, or 12 cents per diluted share, compared with net income of $108 million, or 23 cents per diluted share, in first quarter 2014.

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The cloud service, called Amazon Web Services (AWS), saw revenue of $1.57 billion last quarter, or a run rate of more than $6 billion a year, the company said in its earnings statement. That's an increase of 49% over last year and in line with analysts’ expectations.

AWS reported profits of $265 million, up from $245 million a year ago.

 It’s the first time Amazon has broken out the finances of its decade-old cloud services.

“Amazon Web Services is a $5 billion business and still growing fast -- in fact it’s accelerating,” Jeff Bezos, founder and CEO of Amazon, said in a statement. “Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon. We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence.”

Operating income increased 74% to $255 million in the first quarter, compared with operating income of $146 million in first quarter 2014.

Operating cash flow increased 47% to $7.84 billion for the trailing twelve months, compared with $5.35 billion for the trailing twelve months ended March 31, 2014. Free cash flow increased to $3.16 billion for the trailing twelve months, compared with $1.49 billion for the trailing twelve months ended March 31, 2014.

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