Amazon has reeled in a US$3.56 billion net income for Q1 2019, the highest profit it has made for a quarter and double the US$1.6 billion it made a year earlier.
The online giant also announced it is cutting down its shipping time with its Prime members able to receive goods within one day rather than the usual two, according to Brian Olsavsky, Amazon CFO.
However, this is for US customers only with no word on when it will be reaching Australian shores. Australia currently has two day delivery for its Prime members.
Consumers can also pick a day they want their products delivered through the new Amazon Day service.
Speaking during an earnings call last week, Olsavsky said in 2018 there was a lower growth for key cost areas such as headcount and fulfilment capacity.
He said these metrics stayed the same or slightly declined in Q1 giving the company continued efficiency.
“But my point from the last call still holds in that, we do expect those growth rates to be higher for all of 2019.
“So most of that will happen in the next three quarters, and we have that built into the Q2 guidance. We also hit the high-end of the revenue range, which is always good from an efficiency standpoint and the drop-through on the higher end of the revenue.”
The company released its results for the quarter ended March 31, showing its operating cash flow jumped 89 per cent to US$34.4 billion.
Net sales increased 17 per cent to US$59.7 billion in the first quarter, compared with $51 billion in first quarter 2018.
Operating income increased to US$4.4 billion in the first quarter, compared with operating income of $1.9 billion in first quarter 2018.
Amazon’s marketing spend grew 36 per cent year-on-year from US$2.7 billion to US$3.7 billion.
Amazon Web Services also had a strong quarter with its net sales jumping from US$5.4 billion to $7.7 billion and operating income at US$2.2 billion an increase from the 2018 result of US$1.4 billion.