Amazon’s First Quarter Fiscal Year 2024 Sees Impressive Net Income Growth
E-commerce titan Amazon has unveiled a staggering net income of $10.4 billion in the initial quarter (Q1) of fiscal year 2024, marking a significant upsurge from the $3.2 billion recorded in the corresponding period of fiscal year 2023.
The company’s earnings per diluted share have also witnessed a substantial spike, soaring from $0.31 in the first quarter of 2023 to $0.98 in Q1 FY24.
This growth encompasses a pre-tax valuation loss of $2 billion attributed to Amazon’s investment in Rivian Automotive, factored into non-operating expenses. This loss contrasts with a smaller $0.5 billion valuation loss in Q1 FY23.
Amazon’s net sales for the quarter ending on March 31, 2024, experienced a 13% increase to $143.3 billion, up from $127.4 billion in Q1 FY23.
The North America segment reported a 12% rise in sales to $86.3 billion, while international sales surged by 10% to $31.9 billion in Q1 FY24.
Operating income for the quarter skyrocketed to $15.3 billion in Q1 FY24, compared to $4.8 billion in the first quarter of 2023. The North American segment’s operating income reached $5 billion, up from $0.9 billion in the preceding year. Meanwhile, operating income for the international segment hit $0.9 billion, a significant turnaround from a loss of $1.2 billion in Q1 FY23.
Amazon’s president and CEO, Andy Jassy, commented, “It was a promising start to the year across the business, evident in both our customer experience enhancements and financial outcomes.”
Jassy added, “Our stores business continues to broaden selection, offer everyday low prices, and expedite delivery, while reducing our cost to serve. Additionally, our advertising endeavors continue to benefit from the expansion of our stores and Prime Video businesses. We are in the early stages across all our ventures, and we remain enthusiastic about enhancing customers’ lives in the future.”
Looking forward to Q2 FY24, Amazon foresees net sales ranging between $144 billion and $149 billion, indicating a growth rate of 7% to 11% compared to Q2 FY23. The company also anticipates operating income to fall within the range of $10.0 billion to $14.0 billion, an increase from $7.7 billion in the corresponding quarter of the previous year.
In April 2024, Amazon introduced a new economical grocery delivery subscription service tailored for Prime members and customers utilizing registered electronic benefit transfer.
