10-QPeriod: Q1 FY2024

AMAZON COM INC Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 1, 2024For Securities:AMZN

Summary

Amazon.com, Inc. reported a robust first quarter for 2024, demonstrating significant top-line growth and a substantial improvement in profitability. Total net sales increased by 13% year-over-year to $143.3 billion, driven by strong performance across all segments, with AWS and North America showing particularly strong sales growth of 17% and 12% respectively. The company also achieved a remarkable surge in operating income, which more than tripled to $15.3 billion from $4.8 billion in the prior year period. This profitability improvement was fueled by increased sales, operational efficiencies, and a favorable impact from changes in accounting estimates for server useful lives, leading to a significant reduction in depreciation and amortization. Cash flow generation was exceptionally strong, with operating cash flow increasing substantially. The company's strategic investments in technology infrastructure and fulfillment network continue, reflected in capital expenditures. Amazon's financial health remains solid, supported by substantial cash and marketable securities balances. The company provided optimistic guidance for the second quarter of 2024, expecting net sales growth between 7% and 11% and operating income between $10.0 billion and $14.0 billion, indicating continued confidence in its growth trajectory and operational execution.

Financial Highlights

53 data points
Beta

Revenue

$143.31B

49.3% Gross Margin

Net Income

$10.43B

7.3% Net Margin

EPS (Diluted)

$0.98

Total Assets

$530.97B

Cash & Equivalents

$72.85B

Free Cash Flow

$18.99B

Financial Statements
Beta
Revenue$143.31B
Cost of Revenue$72.63B
Gross Profit$70.68B
Operating Expenses$128.01B
Operating Income$15.31B
Interest Expense$644.00M
Net Income$10.43B
EPS (Basic)$1.00
EPS (Diluted)$0.98
Shares Outstanding (Basic)10.39B
Shares Outstanding (Diluted)10.67B

Key Highlights

  • 1Total net sales increased 13% year-over-year to $143.3 billion.
  • 2Operating income more than tripled to $15.3 billion, up from $4.8 billion in Q1 2023.
  • 3AWS segment sales grew 17% year-over-year, reaching $25.0 billion.
  • 4North America segment sales increased 12% year-over-year to $86.3 billion.
  • 5Net income significantly improved to $10.4 billion, a substantial increase from $3.2 billion in Q1 2023.
  • 6Operating cash flow for the trailing twelve months reached $99.1 billion, a significant increase from $54.3 billion in the prior year period.
  • 7The company provided strong guidance for Q2 2024, anticipating net sales between $144.0 billion and $149.0 billion.

Frequently Asked Questions

Amazon reported a very strong Q1 2024 with total net sales of $143.3 billion, a 13% increase year-over-year. Operating income saw a substantial jump to $15.3 billion, up from $4.8 billion in Q1 2023. Net income also rose significantly to $10.4 billion.

All segments showed growth. AWS sales increased by 17% to $25.0 billion and operating income grew to $9.4 billion. The North America segment's net sales rose 12% to $86.3 billion with operating income surging to $5.0 billion. The International segment turned profitable with $903 million in operating income on $31.9 billion in net sales, an improvement from a loss in the prior year.

Amazon expects Q2 2024 net sales to be between $144.0 billion and $149.0 billion, representing growth of 7% to 11% compared to Q2 2023. Operating income is projected to be between $10.0 billion and $14.0 billion, up from $7.7 billion in Q2 2023.

Operating cash flow for the trailing twelve months ended March 31, 2024, was a strong $99.1 billion, a significant increase from $54.3 billion in the prior year period. Investing activities used $17.9 billion, primarily for property and equipment purchases, while financing activities resulted in a net outflow of $1.3 billion.