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 cash flow increased 69% YoY for the trailing twelve months 
• 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

• North American net sales grew 40% YoY
• 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 

• Third-party seller services grew 60% YoY
• 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 

In Amazon’s Q2 financial guidance, Amazon notes that, “This guidance assumes that Prime Day occurs in second quarter 2021.” With July falling into the third quarter, Amazon’s Q1 earnings report does all but confirm that Prime Day will be in June this year. 

Why Would Amazon Hold Prime Day Early? 

Amazon, along with many in ecommerce, is sailing off of strong tailwinds from the global pandemic, tailwinds which first showed in Amazon’s earning reports in Q2 2020. As vaccines reach more of the globe and the rate of growth for ecommerce gradually normalizes, Amazon’s Q2 earnings for 2021 would have difficulty maintaining such as aggressive growth rates. Even growth that would be impressive any other year risk falling flat after the staggering numbers of the past year. By scheduling Prime Day for June, Amazon is able to inject a shot of adrenaline into their Q2 sales.  

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 fortuitous.  

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

Marketplace Earnings Reviews  

Read our breakdowns of Amazon’s Q4 Earnings Report, Amazon’s Q3 Earnings Report, Q2 Earnings Report, and Q1 Earnings Report.

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

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