Amazon.com has clocked in $9,509 million in sales from Advertising services in the January-March quarter of 2023, marking a 21% year-on-year increase from the $7,877 million it had reported in the corresponding quarter of the previous year.
Additionally, the e-commerce player’s sales from Subscription services also rose to $9657 million, up 15% YoY, from the $8,410 million it had clocked in last year’s Q1.
The company’s Net Sales, inclusive of Online stores, Physical stores, Third-party seller services, Subscription services, Advertising services, AWS and Other, has also risen 9% to $1,27,358 million in the past quarter, as compared to $1,16,444 million it had amassed in the corresponding period of 2022.
On the other hand, the e-commerce player stated that it spent $10,172 million in Sales and Marketing in Q1 of 2023, juxtaposed with $8,320 million in Q1 of 2022.
According to Andy Jassy, CEO, Amazon, “There’s a lot to like about how our teams are delivering for customers, particularly amidst an uncertain economy.”
“Our Advertising business continues to deliver robust growth, largely due to our ongoing machine learning investments that help customers see relevant information when they engage with us, which in turn delivers unusually strong results for brands,” he added.
However, Amazon CFO Brian Olsavsky told investors on the company's earnings call that Amazon Web Services (AWS) customers are continuing "optimisations" in their spending which could lead to slowdown in the segment’s growth.
Despite this, the company has projected revenue between $127 billion and $133 billion in the ongoing second quarter.