Disclosing ad revenue for the first time, the e-commerce giant said advertising services grew 32% year over year to $9.7 billion during the quarter
Amazon on Thursday reported a 9.4 per cent hike in its revenue at $137.4 billion
in the fourth quarter. The company reported $14.3 billion in net income for Q4.
The e-commerce giant for the first time disclosed revenue from its fast growing advertising business. Previously, Amazon included advertising revenue in its “other” business segment. Advertising services grew 32% year over year to $9.7 billion during the quarter. In online ad business, Amazon is now third biggest company after Google-parent Alphabet and Facebook-parent Meta.
“It had been the majority of other revenue,” media reports quoted Amazon CFO Brian Olsavsky as saying.
“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron,” Jassy reportedly said in the earnings statement. “Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandem”
Amazon also hiked the price of its Prime membership in the US for the first time in four years. The company said it will hike annual Prime membership charge to $139 from $119.
The AWS business generated $17.78 billion in revenue in the quarter. That works out to a 39.5% year-over-year increase.
