10-QPeriod: Q3 FY2024

AMAZON COM INC Quarterly Report for Q3 Ended Sep 30, 2024

Filed November 1, 2024For Securities:AMZN

Summary

Amazon.com, Inc. reported a strong third quarter and year-to-date performance for 2024, demonstrating robust revenue growth and significant improvements in profitability. Total net sales reached $158.9 billion for the third quarter, an increase of 11% year-over-year, driven by broad-based growth across its segments, including North America, International, and AWS. For the first nine months of 2024, net sales grew 11% to $450.2 billion. Net income saw substantial growth, reaching $15.3 billion for the third quarter and $39.2 billion year-to-date, reflecting improved operating leverage and efficiency gains. The company's cloud computing segment, AWS, continued its strong performance with a 19% year-over-year sales increase in the third quarter, highlighting its critical role in Amazon's overall financial health. Amazon's strategic investments in technology and infrastructure, coupled with operational efficiencies, are translating into enhanced profitability and free cash flow generation, signaling a positive outlook for investors.

Financial Statements
Beta
Revenue$158.88B
Cost of Revenue$80.98B
Gross Profit$77.90B
Operating Expenses$141.47B
Operating Income$17.41B
Net Income$15.33B
EPS (Basic)$1.46
EPS (Diluted)$1.43
Shares Outstanding (Basic)10.50B
Shares Outstanding (Diluted)10.73B

Key Highlights

  • 1Total net sales for Q3 2024 increased by 11% to $158.9 billion, compared to $143.1 billion in Q3 2023. For the nine months ended September 30, 2024, net sales grew 11% to $450.2 billion.
  • 2Net income for Q3 2024 more than doubled to $15.3 billion, or $1.43 per diluted share, compared to $9.9 billion, or $0.94 per diluted share, in Q3 2023. Year-to-date net income reached $39.2 billion.
  • 3AWS sales grew 19% year-over-year in Q3 2024, reaching $27.5 billion, and 18% for the nine months ended September 30, 2024, at $78.8 billion, underscoring continued strong demand for cloud services.
  • 4Operating income surged by 56% to $17.4 billion in Q3 2024, demonstrating improved operational efficiency and profitability across segments.
  • 5Free cash flow for the twelve months ended September 30, 2024, significantly increased to $47.7 billion, up from $21.4 billion in the prior year period, reflecting strong operational performance and effective capital management.
  • 6The company reported an increase in property and equipment investments, with capital expenditures of $21.3 billion for Q3 2024, primarily for technology infrastructure to support AWS growth and fulfillment network expansion.
  • 7Amazon's cash and cash equivalents and marketable securities totaled $88.1 billion as of September 30, 2024, providing substantial liquidity and financial flexibility.

Frequently Asked Questions

Amazon's total net sales increased by 11% to $158.9 billion in the third quarter of 2024, compared to $143.1 billion in the same period of 2023. This growth was driven by all segments, with AWS showing a notable 19% increase.

Profitability significantly improved. Net income more than doubled to $15.3 billion in Q3 2024 from $9.9 billion in Q3 2023. Operating income also saw a substantial increase of 56% to $17.4 billion.

The AWS segment continues to be a strong performer, with sales growing 19% year-over-year in the third quarter of 2024. This indicates sustained demand for its cloud computing services and suggests continued contribution to the company's overall revenue and profitability.

Amazon generated strong free cash flow of $47.7 billion for the twelve months ended September 30, 2024. The company invested $21.3 billion in capital expenditures during Q3 2024, primarily focused on technology infrastructure for AWS and expanding its fulfillment network, demonstrating continued investment in growth.