Amazon Q1 2021 Earnings Report
Key Takeaways
Amazon.com announced strong financial results for the first quarter ended March 31, 2021. Net sales increased by 44% to $108.5 billion, operating income rose to $8.9 billion, and net income reached $8.1 billion, or $15.79 per diluted share.
Net sales increased 44% to $108.5 billion, compared to $75.5 billion in Q1 2020.
Operating income increased to $8.9 billion, compared to $4.0 billion in Q1 2020.
Net income increased to $8.1 billion, or $15.79 per diluted share, compared to $2.5 billion, or $5.01 per diluted share, in Q1 2020.
AWS has grown into a $54 billion annual sales run rate business, with growth accelerating to 32% year over year.
Amazon
Amazon
Amazon Revenue by Segment
Forward Guidance
For the second quarter of 2021, Amazon expects net sales to be between $110.0 billion and $116.0 billion, representing growth between 24% and 30% compared to Q2 2020. Operating income is expected to be between $4.5 billion and $8.0 billion, compared to $5.8 billion in Q2 2020, including approximately $1.5 billion of costs related to COVID-19.
Positive Outlook
- Net sales are expected to grow between 24% and 30% compared with second quarter 2020.
- Guidance anticipates a favorable impact of approximately 200 basis points from foreign exchange rates.
- Prime Day is assumed to occur in second quarter 2021.
- Continued growth in AWS and subscription services.
- Innovation in delivery services and expansion of Amazon Scout.
Challenges Ahead
- Operating income is expected to be lower compared to Q1 2021.
- Guidance assumes approximately $1.5 billion of costs related to COVID-19.
- Results are inherently unpredictable and may be materially affected by many factors.
- Impacts on consumer demand and spending patterns, due to concerns over the current economic outlook.
- Additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks.