Amazon reports strong 1Q results driven by its cloud-computing unit and Prime Video ad dollars

NEW YORK — Amazon reported strong first-quarter results on Tuesday, driven by growth in its cloud computing unit and a further increase in advertising revenue from its Prime Video streaming service.

The Seattle-based e-commerce giant said it generated $143.31 billion in revenue during the first three months of this year, up 13% from the same period last year. Net income was $10.43 billion, or 98 cents per share. That far exceeded Wall Street analysts’ expectations of 84 cents per share, according to FactSet.

“It’s been a strong start to the year across the company, and it shows in both our improved customer experience and our financial results,” said Amazon CEO Andy Jassy , in a press release.

The nation’s largest online retailer reported better-than-expected results for the holiday shopping period, when it reported strong consumer spending supported by discounts and faster shipping speeds. Amazon held another discount event in late March, just before the end of the first quarter.

In addition to its core retail business, Amazon reported first-quarter sales of its cloud computing unit, Amazon Web Services. was $25.04 billion, up 17% from the same period last year.

Sales in the company’s online advertising business also climbed 24%, driven in part by an influx of ad dollars from Prime Video. After years of giving Prime subscribers ad-free access to their favorite movies and TV shows, Amazon implemented a new policy in late January that lets viewers avoid ads only if they pay $2.99 additional per month.

Shares of Amazon.com Inc. rose 3% in after-hours trading.

The company says it expects to achieve net sales of between $144 billion and $149 billion during the second quarter. Analysts expect $150.2 billion, according to FactSet.