01—Abstract
Summary
Summary of the 10-Q filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb and $14.0 billion, indicating continued confidence in its growth trajectory and operational execution.
02—Key points
Key Highlights
- Total net sales increased 13% year-over-year to $143.3 billion.
- Operating income more than tripled to $15.3 billion, up from $4.8 billion in Q1 2023.
- AWS segment sales grew 17% year-over-year, reaching $25.0 billion.
- North America segment sales increased 12% year-over-year to $86.3 billion.
- Net income significantly improved to $10.4 billion, a substantial increase from $3.2 billion in Q1 2023.
- Operating cash flow for the trailing twelve months reached $99.1 billion, a significant increase from $54.3 billion in the prior year period.
- The company provided strong guidance for Q2 2024, anticipating net sales between $144.0 billion and $149.0 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Amazon.com Inc kept $0.07.
- Revenue$143.31B100.0%
- Cost of revenue−$72.63B50.7%
- Gross profit$70.68B49.3%
- Operating costs−$55.37B38.6%
- Operating income$15.31B10.7%
- Interest, other & tax−$4.88B3.4%
- Net income$10.43B7.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 1, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $143.31B$127.36B | +12.5% |
| Cost of Revenue | $72.63B$67.79B | +7.1% |
| Gross Profit | $70.68B$59.57B | +18.7% |
| Operating Expenses | $128.01B$122.58B | +4.4% |
| Operating Income | $15.31B$4.77B | +220.6% |
| Interest Expense | $644.00M$823.00M | −21.7% |
| Net Income | $10.43B$3.17B | +228.8% |
| EPS (Basic) | $1.00$0.31 | +222.6% |
| EPS (Diluted) | $0.98$0.31 | +216.1% |
| Shares Outstanding (Basic) | 10.39B10.25B | +1.4% |
| Shares Outstanding (Diluted) | 10.67B10.35B | +3.1% |
05—Questions
Frequently Asked Questions
What was Amazon's overall financial performance in Q1 2024?
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.
How did the different business segments perform?
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.
What is the outlook for Q2 2024 based on the guidance provided?
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.
How did Amazon's cash flow look in the first quarter?
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.
06—Continue