Amazon.com, Inc. (NADAQ:AMZN) delivered an amazing Q1, posting its highest profit ever. Amazon’s presence in cloud computing with its Amazon Web Services has become a key the focus of the future trajectory of the company.
The stock rose more than 9.5 percent on Friday, closing at $659.59.
Here are seven key takeaways from Amazon’s strong first quarter.
- Amazon Devices were the top selling products on Amazon, with twice as many Kindle Fires sold compared to 2015’s Q1.
- Amazon crushed analyst’s estimates delivering a Q1 EPS of $1.07; consensus estimates were $0.58 per share.
- Despite unfavorable forex impact, Amazon still managed to beat revenue estimates by over $1.15 billion, as sales increased 28 percent to $29.1 billion.
- The company expects a strong Q2, providing revenue guidance in the range of $28-30.5 billion against consensus estimates of $28.5 billion.
- Amazon International Presence continued to grow, as International Retail Revenue accelerated at a 26 percent growth rate on a FX neutral basis, the strongest growth rate in 3 ½ years.
- Amazon Prime Subscriptions were up 51 percent year-over-year in 2015 — 47 percent coming from U.S. customers.
- Amazon Web Services (AWS) was a key reason for the strong quarter, which saw a 64 percent increase ($2.57 billion) and is now a $10 billion a year business
The company continues to bolster its content offerings of its wildly popular Prime Subscription Service touted as the best deal in retail. “We think there is a lot of room to grow not only our international countries, but also in the US, we continue to build the benefits of the prime program,” said CEO Jeff Bezos.
The future continues to appear very bright for Amazon with strong international growth coupled with Amazon’s Web Services remarkable growth performance. Despite crushing analyst estimates, Amazon remains optimistic about its future growth prospects of prime and its cloud computing business.
Bezos has a lot to be happy about as well, he made about $6 billion in 20 minutes after earnings released.