Amazon.com, Inc. has announced financial results for its second quarter ended June 30, 2024.
- Net sales increased 10% to $148.0 billion in the second quarter, compared with $134.4 billion in second quarter 2023. Excluding the $1.0 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with second quarter 2023.
- North America segment sales increased 9% year-over-year to $90.0 billion.
- International segment sales increased 7% year-over-year to $31.7 billion, or increased 10% excluding changes in foreign exchange rates.
- AWS segment sales increased 19% year-over-year to $26.3 billion.
- Operating income increased to $14.7 billion in the second quarter, compared with $7.7 billion in second quarter 2023.
- North America segment operating income was $5.1 billion, compared with operating income of $3.2 billion in second quarter 2023.
- International segment operating income was $0.3 billion, compared with an operating loss of $0.9 billion in second quarter 2023.
- AWS segment operating income was $9.3 billion, compared with operating income of $5.4 billion in second quarter 2023.
- Net income increased to $13.5 billion in the second quarter, or $1.26 per diluted share, compared with $6.7 billion, or $0.65 per diluted share, in second quarter 2023.
- Second quarter 2024 net income includes a pre-tax valuation gain of $0.4 billion included in non-operating income (expense) from the common stock investment in Rivian Automotive, Inc., compared to a pre-tax valuation gain of $0.2 billion from the investment in second quarter 2023.
- Operating cash flow increased 75% to $108.0 billion for the trailing twelve months, compared with $61.8 billion for the trailing twelve months ended June 30, 2023.
- Free cash flow increased to $53.0 billion for the trailing twelve months, compared with $7.9 billion for the trailing twelve months ended June 30, 2023.
- Free cash flow less principal repayments of finance leases and financing obligations increased to $49.6 billion for the trailing twelve months, compared with $1.9 billion for the trailing twelve months ended June 30, 2023.
- Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $51.4 billion for the trailing twelve months, compared with $6.7 billion for the trailing twelve months ended June 30, 2023.
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” said Andy Jassy, Amazon President & CEO. “As companies continue to modernize their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers’ top choice”
Some other highlights since the company’s last earnings announcement include that Amazon:
- Held its 10th Prime Day, the biggest Prime Day shopping event yet.
- Delivered to Prime members at its fastest speeds ever in the first half of the year.
- Announced that U.S. Prime members can enjoy a Grubhub+ membership worth $120 a year.
- Launched Amazon’s Stores business in South Africa with same and next-day delivery.
- Expanded Amazon Pharmacy’s RxPass program, which now offers Prime members on Medicare unlimited consumption of 60 broadly-used prescription medications for just $5 a month.
- Shared that companies like AXA, DoorDash, Nasdaq, Rocket Insurance, SAP, Thomson Reuters, Workday, WPP, and Zendesk announced new applications built on Bedrock.
- Added Austin and Miami to where self-driving robotaxi Zoox is deploying its test fleet on public roads.
- Ranked No. 2 on LinkedIn’s Top Companies list and No. 1 in the technology sector.
- Announced that all electricity consumed by Amazon’s operations, including its data centers, was matched with 100% renewable energy in 2023.
- Replaced 95% of plastic air pillows in Amazon’s delivery packaging in North America with paper filler.
Third Quarter 2024 Guidance
- Net sales are expected to be between $154.0 billion and $158.5 billion, or to grow between 8% and 11% compared with third quarter 2023. This guidance anticipates an unfavorable impact of approximately 90 basis points from foreign exchange rates.
- Operating income is expected to be between $11.5 billion and $15.0 billion, compared with $11.2 billion in third quarter 2023.
- This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.
