Amazon.com, has released its financial results
Amazon.com, has released its financial results for the fourth quarter ending December 31, 2024, showcasing significant growth across all business segments and setting new records in several key areas.
Fourth Quarter 2024 Financial Performance
Amazon reported a 10% increase in net sales, reaching $187.8 billion compared to $170.0 billion in the fourth quarter of 2023. When excluding the $0.9 billion negative impact from foreign exchange rate fluctuations, the growth rate stands at an impressive 11%.
- North America Segment: Sales rose by 10% year-over-year, totaling $115.6 billion.
- International Segment: Sales increased by 8% year-over-year to $43.4 billion, or 9% when adjusted for currency exchange impacts.
- AWS (Amazon Web Services) Segment: Experienced the highest growth, with a 19% year-over-year increase to $28.8 billion.
Operating income surged to $21.2 billion, a substantial rise from $13.2 billion in the same quarter last year. Segment-wise performance includes:
- North America: Operating income grew to $9.3 billion, up from $6.5 billion.
- International: Operating income turned positive at $1.3 billion, reversing a previous loss of $0.4 billion.
- AWS: Operating income reached $10.6 billion, up from $7.2 billion.
Net income doubled to $20.0 billion ($1.86 per diluted share), compared to $10.6 billion ($1.00 per diluted share) in Q4 2023.
Full-Year 2024 Highlights
Amazon’s annual net sales increased by 11%, amounting to $638.0 billion, up from $574.8 billion in 2023. Excluding a $2.3 billion foreign exchange impact, the growth rate remains consistent at 11%.
- North America Sales: Rose 10% to $387.5 billion.
- International Sales: Increased 9% to $142.9 billion, or 10% excluding foreign exchange changes.
- AWS Sales: Saw a robust 19% growth, totaling $107.6 billion.
Operating income for the year reached $68.6 billion, significantly higher than $36.9 billion in 2023. Segment contributions include:
- North America: Operating income at $25.0 billion, up from $14.9 billion.
- International: Operating income improved to $3.8 billion from a loss of $2.7 billion.
- AWS: Operating income climbed to $39.8 billion from $24.6 billion.
Net income nearly doubled to $59.2 billion ($5.53 per diluted share), from $30.4 billion ($2.90 per diluted share) the previous year.
Cash Flow and Financial Position
- Operating cash flow increased 36% to $115.9 billion.
- Free cash flow rose to $38.2 billion, up from $36.8 billion.
- Free cash flow after principal repayments of finance leases grew to $35.5 billion.
- Free cash flow, after considering equipment finance leases, reached $36.2 billion.
Strategic and Operational Highlights
Amazon‘s CEO, Andy Jassy, credited the record-breaking holiday season and notable innovations across the company, particularly within AWS. Key technological advancements include the introduction of the Trainium2 AI chip, Amazon Nova foundation models, and enhanced features within Amazon Bedrock and SageMaker.
Key Milestones and Achievements
- Prime Delivery: Fastest speeds ever, with a 65% increase in same-day or overnight deliveries.
- Sales Events: Record-breaking Black Friday and Cyber Monday, benefiting independent sellers.
- Recognition: Named the lowest-priced U.S. retailer for the eighth consecutive year.
- Entertainment: Red One attracted 50 million viewers in four days, and Thursday Night Football saw a viewership peak of 24.7 million.
- Kindle Sales: Highest Q4 sales in over a decade, with a 30% year-over-year increase.
- AWS re:Invent: Hosted over 55,000 attendees with 1.8 million livestream viewers.
AWS Innovations and Partnerships
- Amazon Nova: Offering competitive intelligence with lower latency and costs.
- Trainium2 UltraServers: Providing superior price-performance.
- Project Rainier: Building the world’s largest AI compute cluster.
- New Client Agreements: Partnerships with U.S. Army, Intuit, PayPal, Reddit, and others.
Corporate Social Responsibility
Amazon demonstrated strong community support through disaster relief efforts, renewable energy leadership, and workplace safety advancements. The company provided over 500,000 essential items for wildfire relief in California and supported flood-affected communities in Spain.
Awards and Recognition
- Ranked No. 3 on Fortune’s World’s Most Admired Companies list.
- Recognized as the largest corporate purchaser of renewable energy globally for the fifth consecutive year.
- Received workplace health and safety awards from prestigious organizations.
