On April 30, Amazon released its financial report for the first quarter of the 2021 fiscal year ending March 31, local time on Thursday. According to the report, Amazon's revenue in the first quarter was $108.5 billion, up 44% year on year; Net profit was US $8.1 billion, up 224% year on year; Earnings per share was $15.79, up 215% year on year. Amazon's share price rose more than 3% after hours, thanks to revenue and net profit exceeding Wall Street analysts' expectations.
Here are the highlights of Amazon's first quarter results:
Since the outbreak novel coronavirus pneumonia, the online shopping craze has benefited Amazon. The company's first quarter results showed that its performance continued to be boosted by the epidemic, with revenue surging 44% year-on-year to $108.5 billion.
Amazon's second quarter performance forecast shows that the company expects this momentum to continue, which should help ease investors' concerns that Amazon's business growth may slow after the epidemic. The company expects revenue of $110 billion to $116 billion in the second quarter, exceeding Wall Street's forecast of $108.6 billion.
Amazon's streaming service prime video is a key component of the company's prime subscription service, which charges $119 a year and includes a range of other benefits, such as free two-day delivery. Bezos revealed earlier this month that it now has 200 million prime subscribers, an increase of 50 million from early 2020.
Amazon's physical store revenue, including other physical products such as whole foods market and Amazon books, continued to decline, with revenue falling 16% to $3.9 billion.
In the first quarter, sales in Amazon's international division (UK, Germany, France, Japan and China) grew faster than those in North America (US, Canada). International sector revenue reached US $30.65 billion, up 60% year on year; North America's revenue was $64.37 billion, up 40% year on year.
Amazon's transportation costs have risen sharply in recent years as the company strives to speed up delivery by promoting the same day service. In the first quarter, Amazon spent $17.1 billion on transportation, up 57% from a year earlier. Amazon's distribution center network will grow by 50% in 2020.
As expected, Amazon will spend less on epidemic security measures this year. Amazon expects its novel coronavirus pneumonia related expenses to be $1 billion 500 million, which will be between $4 billion 500 million and $8 billion in the second quarter. This is in line with Amazon executives' forecast last quarter.
Amazon previously said it would spend more than $1 billion to raise more than 500000 U.S. warehouse workers, with the company's current minimum hourly wage of $15. The Internet giant has been recruiting on a large scale to meet the surge in orders. As of the end of March, the company had 1.27 million employees (excluding seasonal temporary workers and contract workers), up 51% year on year, and more than 430000 last year.
Amazon shares rose slightly to close at $3471.31 local time on Thursday. The stock rose more than 3% in after hours trading after the results, reaching $3581 a share at the time of this article. Boosted by the epidemic, the stock has risen about 45% in the past 12 months. However, Amazon shares have underperformed the S & P 500 so far this year. So far this year, the stock is up about 8.5%, while the S & P 500 is up 13%（ (small)