Amazon Q1 Earnings Analysis: Amazon Prime Day Planned for June 2021

Amazon released their Q1 earnings report today. It seems that Amazon is still riding tailwinds from COVID-19, as it reported a 44% increase in net sales compared to Q1 2020. Other notable performance metrics include:

Overview

  • Operating income grew 122%, reaching $8.9B in Q1 2021 compared to $4B last year
  • Amazon’s net income increased to $8.1B compared to $2.5B in Q1 2020 and $7.2B in Q4 2020

Segments

  • International sales grew 60% YoY
  • The “Other” segment, which consists largely of Amazon advertising revenue, grew 73% YoY
  • AWS grew 32% YoY

Amazon Marketplace Highlights

  • There are now more than 200M global Prime members
  • Amazon announced “Key In-Garage Grocery Delivery” for 5,000 cities in the US
  • Amazon Business generated $25B in worldwide annualized sales, with more than half of unit sales coming from third-party sales
  • Amazon Air now expects to have more than 85 aircraft by the end of 2022, and has plans to launch new sites in the US and Canada this summer
  • Amazon’s Counterfeit Crimes unit worked with several organizations to battle counterfeits, including “the U.S. National Intellectual Property Rights Coordination Center to prevent counterfeit Super Bowl LV merchandise from reaching consumers and partnering with Pennsylvania-based, family-owned card game maker Dutch Blitz and Italian luxury brand Salvatore Ferragamo to file lawsuits against multiple counterfeiters and hold them accountable to the fullest extent of the law.”

Prime Day Confirmed for June 2021

Why Would Amazon Hold Prime Day Early?

Naturally, an Amazon spokesperson previously denied that earnings reports had any bearing on Prime Day’s scheduling. Even if that’s true, the benefits of the timing are a fortuitous bonus.

With Prime Day anticipated in Q2, Amazon expects net sales to grow between 24% and 30% compared to Q2 2020

Marketplace Earnings Reviews

Want something even more comprehensive? Download the complete State of Amazon: 2021 Report!

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