Skip to main content Inc. (AMZN) - Get Inc. Report is the last of the FANG stocks to report Q1 results, and it will be looking to deliver a performance similar to Netflix (NFLX) - Get Netflix Inc. Report and Facebook (FB) - Get Meta Platforms Inc. Report , which both rallied after reporting strong top-line figures, rather than Alphabet (GOOGL) - Get Alphabet Inc. Report , which also reported strong sales momentum but whose cost and spending growth raised concerns.  

TheStreet is hosting a live blog covering Amazon's first-quarter earnings at 4 p.m. ET. Please join us!

On average, analysts polled by FactSet expect Jeff Bezos' company to report Q1 revenue of $49.92 billion (up 40% annually) and GAAP EPS of $1.24. Second quarter revenue and operating income consensus estimates are $52.22 billion (up 38%) and $1.13 billion, respectively. Revenue growth for both quarters will get a moderate boost from the Whole Foods acquisition, which closed last August.

Here are six key numbers to pay attention to when Amazon reports on Thursday after the close:

1. North American segment revenue - Thanks to share gains, Whole Foods and the U.S. e-commerce market's growth, the consensus is for Amazon's North American segment revenue to rise 43% annually to $30.05 billion.

Scroll to Continue

TheStreet Recommends

2. International segment revenue - The consensus is for International segment revenue to rise 32% to $14.61 billion. Strong European and Indian momentum have been driving much of this segment's growth. A weak dollar has also been acting as a tailwind in recent quarters.

3. AWS - Following Q4's 45% growth, cloud revenue is expected to rise 44% in Q1 to $5.26 billion. Big enterprise migrations and the steady rollout of new features have helped AWS defy the law of large numbers.

4. Subscription revenue - Amazon's subscription services revenue -- dominated by Prime membership fees but also covering the Music Unlimited service and other content subscriptions -- grew 49% annually in Q4. For Q1, the consensus is for subscription revenue to rise 45% to $2.81 billion. Amazon is about a week removed from disclosing in its annual shareholder letter that it now has over 100 million global Prime members.

5. "Other" revenue - This segment, which is dominated by Amazon's burgeoning ad business, saw revenue rise 62% in Q4 (a seasonally big quarter for ads) to $1.74 billion. For Q1, the consensus is for Other revenue to rise 58% to $1.35 billion. Merkle, an online ad firm catering heavily to retailers, reported that its clients grew their spending on Amazon's Sponsored Product Ads and Headline Search Ads by 96% and 90%, respectively, in Q1. Large ad price increases drove much of the growth.

6. Gross margins (GM) - These have been steadily rising due to a mix shift towards higher-margin revenue streams such as AWS, Prime subscription fees and third-party seller services. But rising depreciation expenses (the result of heavy capital spending) are a headwind. In Q4, a seasonally weak quarter for margins, GM rose by 2.5 percentage points to 36.3%. For Q1, the consensus is for GM to rise by only 1 percentage point to 38.2%.

Image placeholder title

Amazon, Facebook and Google are holdings in Jim Cramer'sAction Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AMZN, FB or GOOGL? Learn more now.