Leading technology company, Amazon, has announced its financial results for Q4 and 2024, with net sales increasing by 10% to USD 187.8 billion in Q4, 2024, compared to USD 170 billion in Q4, 2023.
In Q4, 2024, the company’s operating income rose to USD 21.2 billion, up from USD 13.2 billion during the same period in 2023, while net income for the quarter reached USD 20 billion compared to USD 10.6 billion in Q4, 2023.
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2024 Key Financial Results
In 2024, Amazon’s net sales increased by 11% to USD 638 billion. Operating income reached USD 68.6 billion, doubling from USD 36.9 billion in 2023.
Amazon’s operating cash flow increased by 36% to USD 115.9 billion, while its free cash flow grew to USD 38.2 billion, up from USD 36.8 billion in 2023. This significant growth solidifies the company’s robust performance in 2024.
In continuation of its strong financial results, Amazon Web Services (AWS) attained a 19% year-over-year (YoY) sales increase, totaling USD 28.8 billion. AWS’s operating income significantly grew to USD 10.6 billion, up from the USD 7.2 billion recorded in the same period in 2023.
Andy Jassy, Amazon’s CEO, highlighted AWS’s innovations, stating, “When we look back on this quarter several years from now, I suspect what we’ll most remember is the remarkable innovation delivered across all of our businesses, none more so than in AWS, where we introduced our new Trainium2 artificial intelligence (AI) chip; our own foundational models in Amazon Nova; a plethora of new models and features in Amazon Bedrock; liberating transformations in Amazon Q; and the next edition of Amazon SageMaker to pull data, analytics, and AI together more concertedly.”
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Regional Outlook
In Q1, 2024, Amazon’s North America segment achieved a 10% year-over-year sales increase, culminating in USD 115.6 billion. Operating income grew to USD 9.3 billion, while the segment’s sales increased to USD 387.5 billion in the full year, 2024.
International segments in Q1, 2024, reportedly increased sales by 8%, totaling USD 43.4 billion, with an operating income of USD 1.3 billion. In the full year, 2024, the segment attained a USD 142.9 billion sales increase, and an operating income of USD 3.8 billion.
Furthermore, Amazon launched AWS Asia Pacific in Thailand and AWS Mexico, expanding the global reach of its innovative products and services.
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2025 Key Targets
Amazon also released its financial guidance for Q1, 2025, acknowledging the uncertainties due to various unpredictable factors including fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions, customer demand and spending patterns, inflation, interest rates, regional labor market constraints, world events, the growth rate of internet usage, cloud services, and emerging technologies.
For Q1, 2025, Amazon forecasts net sales to be between USD 151 billion and USD 155.5 billion, representing a 5-9% growth compared to Q1, 2024. The operating income for this year’s first quarter is expected to range between USD 14 billion and USD 18 billion, compared to the USD 15.3 billion achieved in Q1, 2024.
Amazon’s financial results reflect the company’s continued growth, solidifying its position in global technological innovation.
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