Amazon Q4 net sales jump 10% to $187.8 billion
Amazon reported a strong holiday quarter, but gave disappointing guidance for its current period.
The online giant reported that its net sales increased 10% to $187.8 billion in the quarter ended Dec. 31, compared with $170.0 billion the year-ago period. Analysts had expected sales of $187.3 billion.
Sales in Amazon’s North America unit increased 10% year-over-year to $115.6 billion. International segment sales increased 8% year-over-year to $43.4 billion.
Sales in Amazon’s cloud computing division, AWS, increased 19% year-over-year to $28.8 billion. Sales in Amazon’s digital advertising business jumped 18% to $17.29 billion.
Online shopping revenue rose 7% to $75.5 billion from the year-ago quarter.
Net income in the quarter increased to $20.0 billion in the fourth quarter, or $1.86 per share, compared with $10.6 billion, or $1.00 per share, in the fourth quarter of 2023. Operating income increased to $21.2 billion, compared with $13.2 billion. (AWS operating income rose to $10.6 billion from $7.2 billion.)
“The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners, and employees who helped make it so,” said Andy Jassy, president and CEO, Amazon.
Amazon expanded it same-day delivery sites by more than 60% in 2024 and now serves more than 140 metro areas, Jassy said on the earnings call.
"We delivered over 9 billion units the same or next day around the world,” he said. “We’ve also spent considerable time optimizing the number of items we send customers in the same package, which reduces packaging, is more convenient for customers and less expensive for us to fulfill.”
For the full year, Amazon’s net sales rose 11% to $638.0 billion in 2024. Net income increased to $59.2 billion in 2024, or $5.53 per share, compared with $30.4 billion, or $2.90 per share.
"Amazon finished a strong 2024 with a solid 4Q, characterized by 10% revenue growth, significant margin expansion and good cash generation as the business continues to perform well across e-commerce, cloud computing, and more nascent verticals like advertising, commented David Silverman, senior director, Fitch Ratings. "The company is benefitting from its exposure to growing channels and businesses, its value price positioning, and its leadership position, which allows it the ability to invest in new and strengthened competitive advantages."
Despite its strong fourth-quarter showing, Amazon reported soft guidance for its current quarter. The company expects sales to range between $151 billion and $155.5 billion, or to grow between 5% and 9%. (At the low end of the range, that would mark the slowest growth on record, according to CNBC. Amazon went public in 1997.) Analysts were expecting sales of $158.5 billion.
“This guidance anticipates an unusually large, unfavorable impact of approximately $2.1 billion, or 150 basis points, from foreign exchange rates,” the company said in its earnings release. “Also, as a reminder, in first quarter 2024 the impact from Leap Year added approximately $1.5 billion in net sales."
