Amazon crushed Wall Street expectations for its first quarter earnings report Thursday, posting earnings per share of $3.27 on revenue of $51 billion, up 43 percent year-over-year.
Wall Street was expecting revenue of $50 billion and earnings per share of $1.27. Shares were up more than 6 percent in after-hours trading.
Amazon Web Services continues to bolster the company’s bottom line. The company’s cloud computing arm reported $5.4 billion in revenue, up 43 percent from last year, and $1.4 billion in operating income, up from $890 million a year ago. This marked Amazon’s 12th-straight profitable quarter.
Amazon CEO Jeff Bezos focused on AWS for his prepared statement.
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” Bezos said in a press release. “As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day. That’s why you’re seeing this remarkable acceleration in AWS growth, now for two quarters in a row. A huge thank you to all our AWS customers, and you can be sure we’ll keep working hard for you.”
Amazon’s headcount dipped for the first time in years, from 566,000 last quarter to 563,100. The company had job cuts at its Seattle headquarters in February.
It was another busy quarter for Amazon. The company found itself in national headlines after President Trump attacked Amazon again on Twitter. Amazon shares fell more than 4 percent after Axios published a report about the president’s disdain for Bezos and Amazon; it dropped further after Trump tweeted more complaints last month.
Still, Amazon saw its stock rise this quarter from $1,170 in January to $1,517 on Thursday.
Amazon this quarter revealed its Prime membership count for the first time ever, with more than 100 million subscribers to the company’s $99 per year loyalty program. It also launched a new grocery store delivery service with Whole Foods, the Austin-based grocer it acquired last year for $13.7 billion, and inked a surprise partnership with Best Buy, which will sell new TVs running Amazon’s Fire TV Edition.
Amazon in January joined JPMorgan Chase & Co. and Berkshire Hathaway to announce an independent healthcare company focused initially on new technologies to serve their U.S. employees — an unusual and surprising partnership that will attempt to come up with solutions to one of the most complex and costly economic and societal challenges.