News

Q1 busy and profitable for Amazon

April 25, 2016

Amazon's cash flow spiked 44 percent, hitting $11.3 billion, and net sales increased 28 percent, hitting $29.1 billion, in Q1. The net income was $513 million, a healthy rebound from a net loss of $57 million a year ago.

The financials, according to CEO and Founder Jeff Bezos, illustrates the leading online retailer is building premium products at non-premium prices.

"Amazon devices are the top selling products on Amazon, and customers purchased more than twice as many Fire tablets than first quarter last year," said Bezos, in a statement. "Earlier this week, the $39 Fire TV Stick became the first product ever to pass 100,000 customer reviews, including over 62,000 five star reviews, also more than any other product ever sold on Amazon. Echo too is off to an incredible start, and we can't yet manage to keep it in stock despite all efforts."

Other financial highlights in Q1 include:

• Amazon introduced Kindle Oasis;
• Amazon announced two Alexa-enabled devices: Amazon Echo Dot and Amazon Tap.
• Amazon announced Spotify Premium is available in the U.S. on Echo.
• Amazon Dash Button has more than tripled the lineup of available brands.
• Amazon entered into agreements with Air Transport Services Group to lease 20 air cargo planes to support one and two-day delivery for U.S. customers. ATSG will operate the planes for Amazon.
• Prime Free Same-Day Delivery expanded to 11 new metro areas.
• Amazon was ranked #1 in corporate reputation among the 100 most visible companies in America, according to the 23,000-person Harris Poll.
• U.K. consumers ranked Amazon #1 in customer satisfaction in a nationwide poll from the Institute of Customer Service.
• Amazon Home Services now serves more than 40,000 U.S. zip codes with more than 1,200 service options across 45 categories.
• Amazon launched the Amazon Payments Partner Program, a global program that offers unique tools and services to help ecommerce service providers and developers integrate their merchant customers with Amazon Payments.
• Amazon Business, a B2B offering that includes features and benefits tailored to businesses, now serves more than 300,000 businesses.