Amazon’s first quarter revenue up 23 per cent to $19.7 billion
Company introduced its first set-top video streaming box earlier this month
Amazon’s chief executive Jeff Bezos.The company’s revenue grew 23 per cent to almost $20 million in the first quarter. Photo: Bloomberg
Amazon’s first-quarter revenue has risen 23 per cent as shoppers continue to flock to the online mega retailer to buy goods.
Nevertheless, the company forecasts an operating loss for the second quarter as it continues to invest heavily both internationally and at home.
On Wednesday, it launched Prime Pantry, a grocery delivery service for Prime members. And earlier this month, it introduced its first set-top video streaming box called Amazon Fire.
“We get our energy from inventing on behalf of customers, and 2014 is off to a kinetic start,” said chief executive Jeff Bezos.
While investors have largely given Amazon a pass for focusing on growth and investing rather than turning a strong profit, it has been making some moves lately to strengthen its bottom line.
Net income for the quarter rose to $108 million, or 23 cents per share. That compares with net income of $82 million, or 18 cents per share last year. Analysts expected 21 cents per share, according to FactSet.
Revenue rose 23 per cent to $19.74 billion from $16.07 billion. Analysts expected $19.42 billion dollars.
In fiscal 2014, the company expects revenue of $18.1 to $19.8 billion. Analysts expect $19.01 billion. It expects an operating loss between $55 million and $455 million dollars in the second quarter compared with operating income of $79 million last year.
In a call with investors, Tom Szkutak, Amazon’s chief financial officer, said the predicted loss was due to investing “heavily” in its international operations as well as other areas of its business, including the content it provides.
The stock reached an all-time high of 408.06 on January 22. Since then, it has dropped 17 per cent.