Amazon has reported a growth in revenue and profits for the first quarter of 2023. The company pulled in $127.4 billion in revenue for the January-March quarter. This is a 9% growth compared to $116.4 billion Amazon raked in in the first quarter of 2022.

Ad revenue for the company also increased from $7.9 billion in Q1 2022 to $9.5 billion this year.

Profits also bumped up to $3.2 billion, higher than the $2.24 billion industry analysts had expected.

Amazon’s stock rose as much as 10% but later dipped 2% after company executives shared during a call with investors challenges with Amazon Web Services.

Brian Olsavsky, CFO, Amazon, said consumers continue to be cautious with their spending amid high inflation and are looking to stretch their budgets further by purchasing lower-priced items.

He added that the company sees bright spots in international sales helped by easing economic pressures in Europe, as well as its advertising businesses and other areas.