Pandemic fuels Amazon’s explosive first quarter financial results

Amazon CEO and Founder Jeff Bezos.

U.S. tech giant Amazon posted strong results for the first quarter ended March 31, 2021, as online shopping spikes due to the COVID-19 pandemic.

Among the highlights, the company’s operating cash flow increased 69% to $ 67.2 billion for the 12 months, from $ 39.7 billion for the 12 months ended March 31, 2020.

Free cash flow increased from $ 24.3 billion to $ 26.4 billion, while free cash flow less capital lease payments and finance obligations increased by 14. $ 3 billion to $ 14.9 billion.

According to the company, outstanding common shares and the shares underlying the stock-based awards totaled 519 million from 513 million a year ago.

Net sales rose 44% to $ 108.5 billion in the first quarter, from $ 75.5 billion in the first quarter of 2020.

Excluding the favorable $ 2.1 billion impact of year-over-year changes in exchange rates throughout the quarter, net sales increased 41% from the first quarter of 2020.

Operating profit increased to $ 8.9 billion in the first quarter, compared to operating profit of $ 4 billion in the first quarter of 2020.

Net income increased to $ 8.1 billion in the first quarter, or $ 15.79 per diluted share, compared to net income of $ 2.5 billion, or $ 5.01 per diluted share, in the first quarter 2020.

Reuters reports that since the onset of the coronavirus outbreak, shoppers have increasingly relied on Amazon for the delivery of home staples, and the company sees this trend continuing after the pandemic, particularly for groceries.

As physical stores have closed, Amazon has now posted four consecutive record quarterly profits, attracted more than 200 million Prime subscribers and recruited more than 500,000 employees to meet growing demand, it adds.

“Two of our kids are now 10 and 15 – and after being fed for years, they are quickly growing up and becoming theirs,” says Jeff Bezos, founder and CEO of Amazon.

“As Prime Video turns 10, more than 175 million Prime members have watched shows and movies in the past year, and broadcast hours are up more than 70% year over year. the other. Amazon Studios received a record 12 Oscar nominations and two wins.

“In just 15 years, AWS [Amazon Web Services] has grown into a company with an annual sales rate of $ 54 billion competing with the world’s biggest tech companies, and its growth is accelerating – up 32% year-over-year. “


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