Amazon.com Announces Fourth Quarter Results
SEATTLE--(BUSINESS WIRE)--February 01, 2024--
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2023.
Fourth Quarter 2023
-- Net sales increased 14% to $170.0 billion in the fourth quarter,
compared with $149.2 billion in fourth quarter 2022. Excluding the $1.3
billion favorable impact from year-over-year changes in foreign exchange
rates throughout the quarter, net sales increased 13% compared with
fourth quarter 2022.
-- North America segment sales increased 13% year-over-year to
$105.5 billion.
-- International segment sales increased 17% year-over-year to
$40.2 billion, or increased 13% excluding changes in foreign
exchange rates.
-- AWS segment sales increased 13% year-over-year to $24.2
billion.
-- Operating income increased to $13.2 billion in the fourth quarter,
compared with $2.7 billion in fourth quarter 2022.
-- North America segment operating income was $6.5 billion,
compared with an operating loss of $0.2 billion in fourth quarter
2022.
-- International segment operating loss was $0.4 billion, compared
with an operating loss of $2.2 billion in fourth quarter 2022.
-- AWS segment operating income was $7.2 billion, compared with
operating income of $5.2 billion in fourth quarter 2022.
-- Net income increased to $10.6 billion in the fourth quarter, or $1.00
per diluted share, compared with $0.3 billion, or $0.03 per diluted share,
in fourth quarter 2022.
-- Fourth quarter 2023 net income includes a pre-tax valuation loss
of $0.1 billion included in non-operating income (expense) from
the common stock investment in Rivian Automotive, Inc., compared
to a pre-tax valuation loss of $2.3 billion from the investment in
fourth quarter 2022.
Full Year 2023
-- Net sales increased 12% to $574.8 billion in 2023, compared with $514.0
billion in 2022. Excluding the $0.1 billion unfavorable impact from
year-over-year changes in foreign exchange rates throughout the year, net
sales increased 12% compared with 2022.
-- North America segment sales increased 12% year-over-year to
$352.8 billion.
-- International segment sales increased 11% year-over-year to
$131.2 billion.
-- AWS segment sales increased 13% year-over-year to $90.8
billion.
-- Operating income increased to $36.9 billion in 2023, compared with
$12.2 billion in 2022.
-- North America segment operating income was $14.9 billion,
compared with an operating loss of $2.8 billion in 2022.
-- International segment operating loss was $2.7 billion, compared
with an operating loss of $7.7 billion in 2022.
-- AWS segment operating income was $24.6 billion, compared with
operating income of $22.8 billion in 2022.
-- Net income was $30.4 billion in 2023, or $2.90 per diluted share,
compared with a net loss of $2.7 billion, or $0.27 per diluted share, in
2022.
-- 2023 net income includes a pre-tax valuation gain of $0.8
billion included in non-operating income (expense) from the common
stock investment in Rivian Automotive, Inc., compared to a pre-tax
valuation loss of $12.7 billion from the investment in 2022.
-- Operating cash flow increased 82% to $84.9 billion for the trailing
twelve months, compared with $46.8 billion for the trailing twelve months
ended December 31, 2022.
-- Free cash flow improved to an inflow of $36.8 billion for the trailing
twelve months, compared with an outflow of $11.6 billion for the trailing
twelve months ended December 31, 2022.
-- Free cash flow less principal repayments of finance leases and
financing obligations improved to an inflow of $32.2 billion for the
trailing twelve months, compared with an outflow of $19.8 billion for the
trailing twelve months ended December 31, 2022.
-- Free cash flow less equipment finance leases and principal repayments
of all other finance leases and financing obligations improved to an
inflow of $35.5 billion for the trailing twelve months, compared with an
outflow of $12.8 billion for the trailing twelve months ended December
31, 2022.
“This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon,” said Andy Jassy, Amazon CEO. “While we made meaningful revenue, operating income, and free cash flow progress, what we’re most pleased with is the continued invention and customer experience improvements across our businesses. The regionalization of our U.S. fulfillment network led to our fastest-ever delivery speeds for Prime members while also lowering our cost to serve; AWS’s continued long-term focus on customers and feature delivery, coupled with new genAI capabilities like Bedrock, Q, and Trainium have resonated with customers and are starting to be reflected in our overall results; our Advertising services continue to improve and drive positive results; our newer businesses are progressing nicely, and along with our more established businesses, collectively making customers’ lives easier and better every day. As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about.”
Highlights
Obsessing over the customer experience
Amazon obsesses over how to make customers’ lives better and easier every day with new and improved products and services. This is true for consumers, sellers, brands, developers, enterprises, and creators. For example, Amazon:
-- Held a record-breaking Black Friday and Cyber Monday holiday shopping
event. Customers worldwide purchased more than 1 billion items on Amazon
and saved nearly 70% more during the 11 days of deals compared to the
same period in 2022. In the U.S., customers ordered more than 500 million
items from independent sellers, most of which are small and medium-sized
businesses, and millions of customers signed up for a Prime membership.
Through the entire holiday season, customers purchased more items on
Amazon than during any previous holiday season.
-- Continued to delight customers with fast and convenient delivery. In
2023, Amazon delivered to Prime members at the fastest speeds ever
globally, with more than 7 billion units arriving the same or next day,
including more than 4 billion in the U.S. and more than 2 billion in
Europe. Amazon now offers Same-Day Delivery in more than 110 U.S. metro
areas and operates more than 55 dedicated Same-Day sites across the U.S.
The company increased the number of items delivered through these sites
the same day or overnight by more than 65% year-over-year in the fourth
quarter and celebrated the delivery of its billionth package from a
Same-Day site in December 2023.
-- Entered a strategic partnership with Hyundai to bring innovative new
experiences to customers. In 2024, Amazon will launch online vehicle
sales in the U.S., starting with Hyundai. In addition, Hyundai selected
AWS as its preferred cloud provider to accelerate its digital
transformation, and starting in 2025, customers who purchase Hyundai's
next-generation vehicles will have access in their vehicles to the same
hands-free Alexa experience that they have at home.
-- Announced that Prime members in the U.S. can now add health care from
One Medical to their Prime membership for $9 per month (or $99 annually)
and include up to five additional family members for $6 per month each,
making it easier for Prime members to get high-quality primary care in
the U.S. This represents savings of up to $100 off the standard One
Medical membership fee for individuals and up to $133 for families.
-- Expanded Amazon Fresh grocery delivery and free pickup to customers
without a Prime membership in the U.S. The company also redesigned
multiple Amazon Fresh stores in the UK and U.S. and opened several new
Whole Foods Market stores in the U.S. It also expanded third-party
grocery delivery with additional Weis Markets supermarkets in the U.S.
and ARCS Supermarket in Japan.
-- Added three Buy with Prime shopping benefits for Prime members,
including the ability for customers to view, track, and manage orders
from participating retailers in their Amazon account; access 24/7 to
live-chat support managed by Amazon; and access to an expanded number of
return locations, as well as box and label-free returns.
-- Had approximately 1 billion customer visits to Amazon.in during Amazon
India's month-long Great Indian Festival sales event. During the event,
more than 4 million customers made a purchase on Amazon.in for the first
time.
-- Announced that Prime Air drone deliveries will expand to Italy, the UK,
and an additional location in the U.S. in late 2024. Amazon will also
integrate drone deliveries into the company's Same-Day sites, which will
provide customers with faster delivery on a greater selection of items.
Prime Air uses drones to safely deliver packages weighing up to five
pounds in one hour or less.
-- Expanded tools and resources for Amazon sellers in China, including
announcing an Innovation Center dedicated to sellers, introducing Supply
Chain by Amazon for sellers in China, and establishing five regional