Amazon reports increased Q1 profits and net sales fueled by cloud computing demand

People stand in the lobby for Amazon offices in New York, Feb. 14, 2019. (AP Photo/Mark Lennihan, File)

NEW YORK — Amazon on Wednesday reported a strong increase in profits and net sales during its fiscal first quarter, helped by surging growth in its prominent cloud computing unit.

The e-commerce and technology company said that sales in its cloud computing unit were up by 28 per cent, the fastest increase in 15 quarters.

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The number surpassed Amazon Web Services’ 24 per cent growth in the fourth quarter, which followed 20 per cent growth in the third quarter.

Amazon reported earnings of US$30.3 billion, or $2.78 per share, for the three-month period ended March 31. That compared with US$17.1 billion, or US$1.59 per share, in the year-ago period.

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Net sales rose 17 per cent to US$181.5 billion in the quarter, compared with US$155.7 billion in the year-ago quarter.

Analysts were expecting US$1.63 per share on sales of US$177.28 billion, according to analysts surveyed by FactSet.

Revenue from Amazon Web Services reached US$37.58 billion. Analysts were expecting US$36.6 billion, according to FactSet.

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Anne D’innocenzio, The Associated Press