Amazon reports record quarterly profit

Adjust Comment Print

For the third quarter, revenue of the company still rose by 34% to $43.7 billion beating most analysts estimates of $41.6 billion for their revenue while their net income has also grown from $252 million to $356 million with the earnings of the company beating estimates at $0.52 per share.

Full-year revenues for the company came in at $177.9bn, up 31 per cent year-on-year, while profit reached $3bn, compared to $2.4bn in 2016.

Prime saw more than 4 million sign-ups in one week alone last quarter, and revenue from subscription fees grew 49 percent to US$3.2 billion, Amazon said. AWS reported an operating income of $1.3 billion out Amazon's $1.9 billion net income, which is its record high., Inc. (AMZN) earnings included a benefit of $789 million in connection with the tax reform bill.

Despite a 2.1% growth in daily users (now at 1.4 billion globally), Facebook beat expectations with revenue growth, reaching $12.97 billion, with advertising accounting for 98% of the revenue.

He said: "Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don't see positive surprises of this magnitude very often - expect us to double down". He noted there are now more than 30,000 skills from outside developers that work with Alexa, allowing consumers to control more than 4,000 smart home devices from 1,200 unique brands.

This rise in cloud revenue was bolstered by the likes of Symantec selecting AWS to be its infrastructure provider, along with other major firms such as games publisher Ubisoft, connected products manufacturer Honeywell, National Football League (NFL), and financial services heavy-hitter Capital One.

This week, Amazon partnered with Warren Buffett's Berkshire Hathaway and JPMorgan Chase on a new company to fix the health care industry. AWS is in a $20 billion run rate in top-line revenue, up from $18 billion last quarter.

Amazon today said India continues to be a "good story" for the United States e-tailing giant, even as its losses from its worldwide operations widened to Dollars 919 million for the December 2017 quarter. It has grown into a profitable business because Amazon doesn't take on the risks associated with owning inventory, said Tom Forte, an analyst at DA Davidson & Co.

"In fact, more Prime members joined India's Prime program in the first year than we've seen in any other country in the history of the world, our world", he said.

Amazon expanded its physical retail market when it acquired Whole Foods in June and opened its first checkout-free Amazon Go story in Seattle on January 22.

The company has become notorious for running on a low profit margin.

Amazon is said to now command roughly three quarters of the smart-speaker market with its Echo devices.