CEM REPORT, MARKET | After recording a loss of $3.8 billion in the closing quarter of 2022, Amazon has announced a profit of $3.2 billion for the first quarter of 2023.
The e-commerce giant revenue increased by 9 per cent in the review quarter compared to the previous quarter.
The revenue growth has been linked to the company’s cost-cutting measures in recent months.
The company announced two rounds of layoffs, cancelled products and suspended physical store expansions.
Another factor attributed to the increase is steady growth in key areas of Amazon’s business despite lingering recession fears possibly weighing on corporate and consumer spending, CNN reports.
Amazon in its earnings report stated a projection of between 5 per cent and 10 per cent in the second quarter of the year on net sales as it did in the same quarter of the previous year, or between $127 billion and $133 billion.
Similarly, Amazon Web Services recorded experienced double-digit percentage growth during the quarter.
Amazon Web Services segment sales rose 16% from the year before to $21.4 billion. That comes after sales growth slowed in the previous quarter, as cloud customers were reserved in spending over uncertainty about the economy’s strength
CEO Andy Jassy said, “while our AWS business navigates companies spending more cautiously in this macro environment, we continue to prioritize building long-term customer relationships.”