10-QPeriod: Q2 FY2023

AMAZON COM INC Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 4, 2023For Securities:AMZN

Summary

Amazon.com, Inc. reported a strong second quarter of 2023, demonstrating significant year-over-year growth in both net sales and operating income. Net sales increased by 11% to $134.4 billion, driven by robust performance across all segments, particularly North America and AWS. The company also saw a substantial improvement in profitability, with operating income more than doubling to $7.7 billion, a testament to improved efficiencies and a stronger focus on profitable growth. Cash flow from operations also showed remarkable strength, increasing to $16.5 billion for the quarter. This robust financial performance indicates continued operational effectiveness and strategic execution. The company's guidance for the third quarter of 2023 suggests continued optimism, expecting net sales growth of 9% to 13%, indicating management's confidence in sustained demand and market position.

Financial Highlights

53 data points
Beta

Revenue

$134.38B

48.4% Gross Margin

Net Income

$6.75B

5.0% Net Margin

EPS (Diluted)

$0.65

Total Assets

$477.61B

Cash & Equivalents

$50.07B

Free Cash Flow

$16.48B

Financial Statements
Beta
Revenue$134.38B
Cost of Revenue$69.37B
Gross Profit$65.01B
Operating Expenses$126.70B
Operating Income$7.68B
Interest Expense$840.00M
Net Income$6.75B
EPS (Basic)$0.66
EPS (Diluted)$0.65
Shares Outstanding (Basic)10.29B
Shares Outstanding (Diluted)10.45B

Key Highlights

  • 1Total net sales increased by 11% year-over-year to $134.4 billion for the three months ended June 30, 2023.
  • 2Operating income significantly improved, reaching $7.7 billion for the quarter, compared to $3.3 billion in the prior year period.
  • 3Net cash provided by operating activities was $16.5 billion for the three months ended June 30, 2023, a substantial increase from $9.0 billion in the prior year period.
  • 4North America segment operating income turned positive, showing $3.2 billion compared to a loss of $0.6 billion in the same period last year.
  • 5AWS segment net sales grew 12% year-over-year to $22.1 billion, with operating income at $5.4 billion.
  • 6Stock-based compensation expense increased to $7.1 billion for the quarter, up from $5.2 billion in the prior year.
  • 7The company anticipates net sales for the third quarter of 2023 to be between $138.0 billion and $143.0 billion.

Frequently Asked Questions

Amazon reported strong financial results for the second quarter of 2023, with net sales growing 11% year-over-year to $134.4 billion and operating income more than doubling to $7.7 billion. This performance reflects improved profitability across segments and solid top-line growth.

The North America segment showed significant improvement, turning profitable with $3.2 billion in operating income compared to a loss in the prior year. International sales grew 10%, though operating loss narrowed. AWS continued its growth, with net sales up 12% and operating income at $5.4 billion.

Amazon expects net sales for the third quarter of 2023 to be between $138.0 billion and $143.0 billion, representing a growth of 9% to 13% compared to the third quarter of 2022. Operating income is projected to be between $5.5 billion and $8.5 billion.

The company generated strong operating cash flow of $16.5 billion in the second quarter of 2023. Investing activities show continued capital expenditures, with a focus on technology infrastructure and fulfillment network capacity, though the company anticipates a decrease in cash capital expenditures for the full year 2023 compared to 2022.