Amazon reveals huge growth in Q4 2015 - Insane Visions

Amazon reveals huge growth in Q4 2015

amazon financial results

This Thursday, Amazon reported their final numbers for the last quarter of 2015, which totaled $35.7 billion in sales, reaching a profit of $482 million. The growth was highly influenced by the holiday season, helping the retailer to move away from the status of a company that’s investing into long-term infrastructure, but without earnings payoff to prove this, says The Washington Post.

The results were predictable

In comparison with last year’s results, when $214 million were lost in the same quarter and a $596 profit for the full year, the results are definitely impressive, claims the same source.

Of course, this announcement didn’t came as a big surprise, since back in December, Amazon announced a record number of shipments to Prime members, alongside 3 million new subscribers just in the third week of December.

Analysts from The National Retail Federation reported that overall, online sales grew with up to 9 percent in November and December. Also, Amazon dominated the online retailing, managing to deliver almost 40 percent of the total of online sales between November 1 and December 6.

Investors want even more

Despite Amazon‘s success, the investors are still not pleased, as they have been expecting better stock results after the last month. CFO Brian Olsavsky declared that the Fulfillment By Amazon service, which allows third-party sellers to have their items stored and shipped by Amazon also registered a big growth, but in the same time, increased demand on the warehouses and, naturally, the costs were also higher.

Finally, the cloud computing division, Amazon Web Services, is also increasing, with $1 billion in operation income on $21.5 billion in sales. AWS generated $687 million income, but the revenue base was much smaller, of just $2.4 billion.

A very interesting trend to watch in 2016 will be the integration of Internet of Things, like the Dash program or connected printers, as the retailer has very ambitious plans from this point of view.

Andrei

A finance and tech news journalist with a passion for entrepreneurship and business. Feel free to message me on Twitter and Facebook.