Business

Amazon’s Net Sales Increase to $638 Billion in FY24

Amazon, the American multinational technology company, said that the net sales increased 11% to $638 billion during the full year in 2024, compared with $574.8 billion in 2023 the company said in its financial results on Thursday.

Excluding the $2.3 billion unfavourable impact from y-o-y changes in foreign exchange rates throughout the year, net sales increased 11% compared with 2023.North America segment sales increased 10% year-over-year to $387.5 billion.

International segment sales increased 9% y-o-y to $142.9 billion, or increased 10% excluding changes in foreign exchange rates. The AWS segment sales increased 19% to $107.6 billion while operating income increased to $68.6 billion in 2024, compared with $36.9 billion in 2023.

North America segment operating income was $25 billion, compared with operating income of $14.9 billion in 2023. The international segment operating income was $3.8 billion, compared with an operating loss of $2.7 billion in 2023.

AWS segment operating income was $39.8 billion and net income increased to $59.2 billion in 2024, or $5.53 per diluted share, compared with $30.4 billion, or $2.90 per diluted share, in 2023.

Operating cash flow increased 36% to $115.9 billion for the trailing twelve months, compared with $84.9 billion for the trailing twelve months ended 31 December 2023.

Q4-2024 Performance

The net sales increased 10% to $187.8 billion in the fourth quarter of 2024, compared with $170 billion during the same period the previous year.

Excluding the $0.9 billion unfavourable impact from y-o-y changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with fourth quarter 2023.

The North America segment sales increased 10% y-o-y to $115.6 billion and the international segment sales increased 8% y-o-y to $43.4 billion, or increased 9% excluding changes in foreign exchange rates. AWS segment sales also increased 19% y-o-y to $28.8 billion.

Operating income increased to $21.2 billion in the fourth quarter, compared with $13.2 billion in fourth quarter 2023. North America segment operating income was $9.3 billion, compared with operating income of $6.5 billion in Q4 of 2023.

International segment operating income was $1.3 billion, compared with an operating loss of $400 million in fourth quarter 2023. AWS segment operating income was $10.6 billion, compared with operating income of $7.2 billion during the same period in 2023.

Net income increased to $20 billion in the fourth quarter, or $1.86 per diluted share, compared with $10.6 billion, or $1.00 per diluted share, in Q4 of the previous year, the results showed.

Holiday Season Sales

Andy Jassy, President and CEO, Amazon, said that the holiday shopping season was the most successful yet for Amazon and they appreciate the support of customers, selling partners, and employees who helped make it so.

“When we look back on this quarter several years from now, I suspect what we will most remember is the remarkable innovation delivered across all of our businesses, none more so than in AWS where we introduced our new Trainium2 AI chip, our own foundation models in Amazon Nova, a plethora of new models and features in Amazon Bedrock that give customers flexibility and cost savings, liberating transformations in Amazon Q to migrate from old platforms, and the next edition of Amazon SageMaker to pull data, analytics, and AI together more concertedly,” Jessy said.

“These benefits are often realised by customers (and the business) several months down the road, but these are substantial enablers in this emerging technology environment and we’re excited to see what customers build,” Jessy added.

Global Business Magazine

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