In This Article:
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Revenue: $155.7 billion, up 10% year-over-year, excluding foreign exchange impact.
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Operating Income: $18.4 billion, up 20% year-over-year.
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Free Cash Flow: $25.9 billion trailing 12-month.
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North America Revenue: $92.9 billion, an increase of 8% year-over-year.
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International Revenue: $33.5 billion, an increase of 8% year-over-year, excluding foreign exchange.
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Advertising Revenue: $13.9 billion, growing 19% year-over-year.
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AWS Revenue: $29.3 billion, an increase of 17% year-over-year.
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AWS Annualized Revenue Run Rate: Over $117 billion.
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Net Income: $17.1 billion, includes a pretax gain of $3.3 billion from investment in Anthropic.
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Capital Expenditure: $24.3 billion in Q1, primarily for technology infrastructure and fulfillment network.
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Q2 Revenue Guidance: Expected between $159 billion and $164 billion.
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Q2 Operating Income Guidance: Expected between $13 billion and $17.5 billion.
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Amazon.com Inc (NASDAQ:AMZN) reported a 10% year-over-year increase in revenue, reaching $155.7 billion, excluding the impact of foreign exchange rates.
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Operating income rose by 20% year-over-year to $18.4 billion, showcasing strong financial performance.
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Amazon Web Services (AWS) achieved a 17% year-over-year growth, reaching a $117 billion annualized revenue run rate.
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The company set new delivery speed records, delivering more items in the same day or next day than any other quarter in its history.
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Amazon's advertising revenue grew by 19% year-over-year, generating $13.9 billion, indicating strong growth in this segment.
Negative Points
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Amazon.com Inc (NASDAQ:AMZN) faces uncertainty due to potential heightened tariffs, which could impact pricing and demand.
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The company recorded onetime charges related to historical customer returns and costs to receive inventory pulled forward due to anticipated tariffs.
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AWS capacity constraints are limiting the ability to capture more AI revenue, despite high demand.
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The macroeconomic environment remains complex, with uncertainties around consumer demand and global trade impacting future guidance.
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Stock-based compensation expenses are expected to increase in Q2, impacting operating income.
Q & A Highlights
Q: How is Amazon addressing the supply-demand imbalance for AI workloads in AWS, and when can we expect acceleration in AI revenue? A: Andrew Jassy, CEO, explained that Amazon is rapidly increasing its capacity for AI workloads by adding more P5 GPU instances and Trainium 2 instances. The AI business is currently a multibillion-dollar annual run rate, growing at triple-digit percentages year-over-year. The company expects supply chain issues to improve as the year progresses, which will help capture more AI revenue.