01—Abstract
Summary
Summary of the 10-K filed February 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Amazon.com, Inc. (AMZN) reported strong financial performance for the fiscal year ending December 31, 2024.
The company achieved consolidated net sales of $637.96 billiona, representing an 11% year-over-year increase, driven by robust growth across its key segments. The North America segment saw a 10% increase in sales, while the International segment grew by 9%. Notably, Amazon Web Services (AWS) demonstrated significant acceleration, with sales up 19% year-over-year, highlighting its continued dominance in the cloud computing market.
Operating income more than doubled to $68.59 billionb, up from $36.85 billion in the prior year, reflecting improved operational efficiencies and strong performance from AWS. Free cash flow also saw a healthy increase, reaching $38.22 billion for the year. Despite the impressive growth and profitability, the company continues to face intense competition and regulatory scrutiny across its various business lines, as detailed in the risk factors.
Future investments are planned in technology infrastructure, particularly to support AWS growth, and continued expansion of the fulfillment network. The company's guidance for the first quarter of 2025 anticipates continued sales growth between 5% and 9%, though at a moderated pace compared to the full year, and operating income between $14.0 billionc and $18.0 billion. Investors should monitor the impact of foreign exchange rates, global economic conditions, and ongoing competitive pressures on future results.
02—Key points
Key Highlights
- Consolidated net sales grew 11% to $637.96 billion in 2024, driven by broad-based growth across segments.
- AWS revenue increased significantly by 19% year-over-year, underscoring its strong market position and demand for cloud services.
- Operating income more than doubled to $68.59 billion, indicating improved profitability and operational leverage.
- Free cash flow increased to $38.22 billion in 2024, demonstrating strong cash generation capabilities.
- The company's capital expenditures increased to $77.7 billion, primarily for investments in technology infrastructure and fulfillment network expansion.
- Amazon provided Q1 2025 guidance projecting net sales growth of 5% to 9%, signaling continued but moderated expansion.
- Despite positive financial results, the company faces ongoing risks related to intense competition, regulatory scrutiny, and global economic uncertainties.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Amazon.com Inc kept $0.09.
- Revenue$637.96B100.0%
- Cost of revenue−$326.29B51.1%
- Gross profit$311.67B48.9%
- Operating costs−$243.08B38.1%
- Operating income$68.59B10.8%
- Interest, other & tax−$9.35B1.5%
- Net income$59.25B9.3%
Where FY2024 revenue went
$637.96B- Cost of revenue: $326.29B, 51% of revenue
- Operating costs: $243.08B, 38% of revenue
- Net income: $59.25B, 9.3% of revenue
- Interest, other & tax: $9.35B, 1.5% of revenue
Kept 9.3% as net incomeNet income $59.25B · 9.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 7, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $637.96B$574.78B | +11.0% |
| Cost of Revenue | $326.29B$304.74B | +7.1% |
| Gross Profit | $311.67B$270.05B | +15.4% |
| Operating Expenses | $569.37B$537.93B | +5.8% |
| Operating Income | $68.59B$36.85B | +86.1% |
| Net Income | $59.25B$30.43B | +94.7% |
| EPS (Basic) | $5.66$2.95 | +91.9% |
| EPS (Diluted) | $5.53$2.90 | +90.7% |
| Shares Outstanding (Basic) | 10.47B10.30B | +1.6% |
| Shares Outstanding (Diluted) | 10.72B10.49B | +2.2% |
05—Questions
Frequently Asked Questions
What is Amazon's overall financial performance for 2024?
Amazon reported strong financial performance in 2024, with consolidated net sales increasing by 11% to $637.96 billion and operating income more than doubling to $68.59 billion. This growth was driven by solid performance across its North America and International segments, and particularly by a significant 19% surge in AWS revenue.
How did Amazon Web Services (AWS) perform in 2024?
AWS was a key growth driver, with its sales increasing by 19% year-over-year to $107.56 billion. This highlights continued strong demand for cloud computing services and AWS's market leadership.
What are Amazon's main areas of investment for the future?
Amazon continues to invest heavily in its core businesses, with capital expenditures increasing to $77.7 billion in 2024. The primary focus areas are technology infrastructure, especially to support AWS, and the expansion and optimization of its fulfillment network to enhance customer experience and delivery speed.
What are the key risks and challenges facing Amazon according to the filing?
Amazon faces numerous risks, including intense competition across all its business segments, evolving government regulations and legal scrutiny (particularly in antitrust and data privacy), cybersecurity threats, foreign exchange rate fluctuations, and macroeconomic conditions such as inflation and geopolitical instability. The company also manages risks related to supply chain disruptions and labor market constraints.
06—Continue