10-KPeriod: FY2023

AMAZON COM INC Annual Report, Year Ended Dec 31, 2023

Filed February 2, 2024For Securities:AMZN

Summary

Amazon.com, Inc. reported a strong financial performance for the fiscal year ending December 31, 2023. The company demonstrated significant growth in net sales, which increased by 12% year-over-year to $574.8 billion. This growth was observed across its key segments, with North America sales up 12%, International sales up 11%, and AWS sales increasing by 13%, indicating broad-based demand for its diverse offerings. The company also showed a substantial improvement in profitability, with operating income more than tripling to $36.9 billion, driven by improved performance in the North America segment and continued strength in AWS. Looking ahead, Amazon provided guidance for the first quarter of 2024, expecting net sales to grow between 8% and 13% and operating income to be between $8.0 billion and $12.0 billion. The company continues to invest in technology and infrastructure, particularly in AWS, and its fulfillment network to support future growth. Despite facing intense competition and various risk factors inherent in its global operations, Amazon's financial results and forward-looking guidance suggest a positive outlook for continued expansion and profitability.

Financial Highlights

54 data points
Beta

Revenue

$574.78B

47.0% Gross Margin

Net Income

$30.43B

5.3% Net Margin

EPS (Diluted)

$2.90

Total Assets

$527.85B

Cash & Equivalents

$73.89B

Free Cash Flow

$84.95B

Financial Statements
Beta
Revenue$574.78B
Cost of Revenue$304.74B
Gross Profit$270.05B
Operating Expenses$537.93B
Operating Income$36.85B
Interest Expense$3.18B
Net Income$30.43B
EPS (Basic)$2.95
EPS (Diluted)$2.90
Shares Outstanding (Basic)10.30B
Shares Outstanding (Diluted)10.49B

Key Highlights

  • 1Net sales grew 12% year-over-year to $574.8 billion, driven by solid performance across North America, International, and AWS segments.
  • 2Operating income significantly increased to $36.9 billion, more than tripling from the previous year, reflecting improved profitability, particularly in the North America segment.
  • 3AWS segment revenue grew 13% year-over-year to $90.8 billion, demonstrating continued demand for cloud services.
  • 4The North America segment returned to strong operating income ($14.9 billion) after an operating loss in the prior year, driven by increased unit sales and advertising.
  • 5Free cash flow turned positive, reaching $36.8 billion for the year, a significant improvement from the negative free cash flow in the prior year.
  • 6Amazon provided optimistic guidance for Q1 2024, expecting net sales growth of 8-13% and operating income between $8.0 billion and $12.0 billion.

Frequently Asked Questions

Amazon reported strong financial results for 2023, with net sales increasing by 12% to $574.8 billion and operating income surging to $36.9 billion, more than tripling from the prior year. The company also saw a significant improvement in free cash flow, turning positive at $36.8 billion.

All three segments showed growth. North America net sales increased by 12%, International net sales grew by 11%, and AWS net sales rose by 13%. Notably, the North America segment returned to profitability with a strong operating income of $14.9 billion, while AWS continued its robust performance with $24.6 billion in operating income.

Amazon highlighted several key risks, including intense competition across all its business lines, potential disruptions from global economic and geopolitical conditions, reliance on third-party sellers, cybersecurity threats, international operational risks, and regulatory scrutiny. The company also noted the variability in its retail business and the strain on its operations from continuous expansion.

For the first quarter of 2024, Amazon expects net sales to be between $138.0 billion and $143.5 billion, representing a growth of 8% to 13% compared to Q1 2023. Operating income is projected to be between $8.0 billion and $12.0 billion. This outlook includes a favorable impact from foreign exchange rates and a reduction in depreciation expense due to an increase in the estimated useful life of servers.