Thursday, 22 February, 2018

Amazon grows Q4 sales 38%, better than expected

Alexa Allows Text Messages in Android Devices Amazon jumps after earnings beat
Nellie Chapman | 03 February, 2018, 03:36

"Our 2017 projections for Alexa were very optimistic, and we far exceeded them", he said.

Overall sales increased by 31% to nearly $178bn for the year vs $136bn in 2016, but the income figures tell a familiar tale of continued lagging behind top line revenue numbers growing by about 25% from $2.4bn to $3bn. The company reported a profit of almost $2 billion, the largest in its history and the first time it topped $1 billion in a quarter.

Amazon's cloud business sales jumped 45 per cent in the fourth quarter, the company has recently announced.

In the fourth quarter 2017, AWS had $5.11 billion in sales, which was 17% rise from the same quarter in 2016.

Amazon.com reported on Thursday a profit of US$1.9 billion for the three months to December, the company's highest ever quarterly income, on strong sales growth and a tax boost. Amazon noticed that the final quarter profit incorporates a tax reduction of generally $789 million because of the change in US assess code. "We don't see surprises of this magnitude very often - expect us to double down".

"It's the same story as always, revenue's up and profits are still anemic", said Sucharita Kodali, an Amazon analyst with Forrester Research. Analysts had forecast an earnings per-share of $1.85. The e-commerce giant posted $3.75 in earnings per share (EPS) and $60.5 billion in revenue, which compares to consensus estimates from Thomson Reuters of $1.85 in EPS and $59.83 billion in revenue.

Inc.'s stock, which is up more than 22 percent so far this year, jumped 6 percent to $1,477 in after-hours trading Thursday. Amazon's Alexa, the business centered on the artificial intelligence (AI)-driven, voice-activated assistant, performed much better than the company expected, which also helped results.

The company has so far earmarked $5 billion for India, and has deployed most of this amount.

Amazon has been in substantial speculation mode in late quarters, emptying cash into distribution center and server farm development, while including more video content for its Prime Video advertising.

He also said that the company's Prime membership service has been a huge success in the country with an adoption rate that even surpassed that of the US.

However, Bezos did say that Amazon sold "tens of millions" of Echo devices in 2017. Last year, Amazon launched Prime in the Netherlands, Luxembourg, and Singapore.

The company said that the Alexa Skills store offers over 30,000 skills, including tools for gamers, and that customers can use Alexa to control more than 4,000 devices.

A big part of what top analyst Daniel Ives describes as a "blow out quarter" for Amazon was artificial intelligence.

Amazon is stressing groceries and consumables as a result of the Whole Foods acquisition, Olsavsky said.