Amazon is back in the black to start the year.

The world's largest online retailer on Thursday April 27 2023 announced a profit of $3.2 billion for the first quarter, a significant improvement from the period's $3.8 billion loss and much over analysts' expectations.

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.

“The results indicate that ongoing cost-cutting measures are having a positive impact on Amazon’s business prospects,” said Jesse Cohen, senior analyst at Investing.com. “Amazon’s strong guidance for Q2 revenue is another indicator that the company may be starting to come out of the woods.”