Amazon's profit more than doubles on cloud computing growth

  • Amazon's profit more than doubles on cloud computing growth

Amazon's profit more than doubles on cloud computing growth

Olsavsky reminded listeners that Amazon has long offered options like one-day and same-day shipping for standard Amazon orders, along with Prime Now delivery windows of one and two hours, which he attributes to "20-plus years of expanding our fulfillment and logistics network".

Amazon's latest earnings conference call included the reveal of a major shift for the paid Amazon Prime subscription service: an "evolution" to one-day shipping as a nationwide default.

The retailer has been buoyed in recent quarters by increasing sales in cloud-computing, digital advertising, and services for third-party sellers on Amazon's retail site, all of which are more profitable than the company's central online business.

In a report published this week, Consumer Intelligence Research Partners estimated that Amazon has 103 million US -based Prime members and said membership growth has "flattened" year-over-year.

In the same time a year ago, it reported net income of US$1.63b.

Inc. reported quarterly profit that exceeded analysts' estimates, demonstrating the company's focus on cloud-computing, advertising, and other high-margin businesses continues to pay off.

The area is getting more competitive: Microsoft has also been growing its cloud business, and both Amazon and Microsoft are vying for a multibillion contract with the U.S. military.

One of the perks of Amazon's Prime membership is free two-day shipping on Prime-eligible purchases. Amazon doesn't say exactly how much its ad business makes, but lists it as part of its "other" revenue, which was up 34% from a year ago.

Total revenue rose 17 per cent to US$59.7b, which also beat expectations.

For the current quarter ending in July, Amazon said it expects revenue in the range of US$59.5b to US$63.5b.

Amazon's guidance estimate hints at an expectation that default one-day shipping will drive increased revenue for product sales.

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.