Amazon has announced its financial results for the first quarter ending March 31, 2024. The company’s advertising revenue climbed to $11.8 billion in the first quarter, up from $9.5 billion a year earlier, marking a 24% increase.
Amazon’s efforts to expand its advertising arm yielded positive outcomes this quarter. Notably, Amazon introduced unskippable ads to its Prime Video streaming service this year, a move that has garnered enthusiasm from marketers. Customers have the option to opt out of these ads for a fee of $2.99 per month.
Net sales increased 13% to $143.3 billion in the first quarter, compared with $127.4 billion in the first quarter of 2023. Net income increased to $10.4 billion, or $0.98 per diluted share, compared with $3.2 billion, or $0.31 per diluted share, in the first quarter of 2023.
According to LSEF data, the company is expecting revenue of $144.0 billion to $149.0 billion for the current quarter ending June, compared with analyst consensus expectations of $150.07 billion.
Andy Jassy, Amazon president and CEO, stated, “It was a good start to the year across the business, and you can see that in both our customer experience improvements and financial results.” He added, “The combination of companies renewing their infrastructure modernisation efforts and the appeal of AWS’s AI capabilities is reaccelerating AWS’s growth rate (now at a $100 billion annual revenue run rate); our Stores business continues to expand selection, provide everyday low prices, and accelerate delivery speed (setting another record on speed for Prime customers in Q1) while lowering our cost to serve.”
This financial performance underscores Amazon’s strong position in the market and its continued growth trajectory.
Also Read: P&G Hygiene and Health Care Reports Q3 Results: A 26% Increase in Ad and Sales Promotion Expenses
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