15 February 2019
Amazon has reported a revenue of $72.4 billion for the fourth quarter of 2018, and a net income of $3.0 billion. The fourth quarter is the biggest for Amazon because of holiday sales.
The company beat analysts’ expectations of $71.9 billion in revenue and earnings per share of $5.67. The company’s stock was up 3%. Amazon gave first-quarter revenue guidance in the range of $56 billion and $60 billion.
Amazon’s sales in North America were up 18% to $44.1 billion, while international sales grew 15% to $20.8 billion. Amazon Web Services (AWS) saw a jump of 45% in sales to $7.4 billion. AWS accounted for about 10% of Amazon’s total revenue for the quarter and remains a leader in the cloud computing business.
Amazon’s prime subscriptions were up 25% to $3.96 billion and the company’s “other” category, which mostly comprises of its advertising business, jumped 95% to $3.4 billion in revenue.
“Alexa was very busy during her holiday season. Echo Dot was the best-selling item across all products on Amazon globally, and customers purchased millions of more devices from the Echo family compared to last year,” Amazon CEO Jeff Bezos said in a statement. “The number of research scientists working on Alexa has more than doubled in the past year, and the results of the team’s hard work are clear. In 2018, we improved Alexa’s ability to understand requests and answer questions by more than 20% through advances in machine learning, we added billions of facts making Alexa more knowledgeable than ever, developers doubled the number of Alexa skills to over 80,000, and customers spoke to Alexa tens of billions more times in 2018 compared to 2017. We’re energized by and grateful for the response, and you can count on us to keep working hard to bring even more invention to customers.”