Amazon, e-commerce giant, on Thursday reported a profit of $3.2 billion for the first quarter, up from a loss of $3.8 billion in the year ago quarter and far exceeding analysts estimates.
The swing to a profit comes as Amazon (AMZN) has ramped up its cost-cutting measures in recent months. The company has announced two rounds of layoffs, canceled products and nixed physical store expansions.
It also comes as key areas of Amazon’s business continue to grow despite lingering recession fears possibly weighing on corporate and consumer spending.
The company’s revenue increased 9% during the quarter from the prior year. Amazon expects second-quarter net sales to grow between 5% and 10% from the same period the year before, or be between $127 billion and $133 billion.
Amazon Web Services, which has long served as a profit engine for the company, also experienced double-digit percentage growth during the quarter, in another positive sign for its overall business.