Total revenue increased 29 percent from last year. North American sales were $34.3 billion, up 35 percent from last year, while international sales grew just 13 percent to $15.5 billion. AWS continued to show strong growth, jumping 46 percent in sales, although it narrowly missed expectations. Amazon’s “other” category, mostly comprised of its burgeoning advertising business, jumped 123 percent to $2.5 billion in revenue.
Net income, meanwhile, grew more than 10-times from the year-ago period, to a record-high $2.8 billion, marking the fourth straight quarter of topping $1 billion in profits. The $3.7 billion in operating income far-exceeded Street estimates of $2.1 billion. The widening profits are largely driven by the growth of Amazon’s high-margin businesses, including its cloud, advertising and third-party seller services.
“We were particularly impressed by the continued YoY operating margin expansion, which is consistent with our view the company has transformed into a ‘profit machine,’ driven by multiple tailwinds (most notably AWS, which posted an over 30% operating margin for the first time),” Loop Capital’s Anthony Chukumba said in a note published on Thursday.
In a prepared statement, Amazon CEO Jeff Bezos highlighted the growth of Amazon Business, its marketplace for business customers.
“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” Bezos said in a statement.
Amazon’s quarterly report comes amid a broader market sell-off that saw other tech stocks get hammered in recent weeks. Amazon stock is up roughly 49 percent this year.