Amazon Q1 2019 Earnings Surge as AWS and Advertising Soar
Amazon reports massive gains in Q1 2019, with earnings per share easily crushing analyst expectations. AWS, Prime subscriptions, and advertising all experience significant growth.
Amazon reports strong first-quarter earnings for 2019, generating $59.7 billion in revenue and $3.6 billion in net income. The retail giant easily beats analyst expectations for earnings per share, hitting $7.09 compared to the expected $4.72. North American sales grow 17% to $35.8 billion, while international sales increase 9% to $16.2 billion, pushing the stock up 1% in after-hours trading.
Amazon Web Services continues to drive growth, with sales surging 41% to $7.7 billion and accounting for 13% of total revenue. Subscription services, primarily driven by Amazon Prime, jump 40% to $4.3 billion. Additionally, the company's advertising business, listed under the "other" category, grows 34% to $2.7 billion as Amazon leverages customer data for targeted ads.
Beyond the financial numbers, Amazon reveals that Fire TV now boasts over 30 million active users. CEO Jeff Bezos uses the earnings report to highlight the Amazon Future Engineer program, which provides scholarships and internships to students from underrepresented groups. The company provides second-quarter revenue guidance between $59.5 billion and $63.5 billion.