Amazon reports $638bn in 2024 revenue, net income soars 95%

Overview

Amazon reported strong financial performance in Q4 and full-year 2024, with net sales reaching $187.8bn in Q4 and $638.0bn for the full year. AWS revenue surged to $28.8bn in Q4, reinforcing Amazon’s leadership in cloud computing and AI infrastructure.

CEO Andy Jassy emphasized the company’s innovation and operational efficiency, stating: “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. 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 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.”

Q4 2024 vs. Q4 2023:

Total revenues were $187.8bn (+10% YoY), fueled by AWS expansion and record-breaking holiday sales.
- North America segment sales increased to $115.6bn (+10% vs. 2023), with operating income of $9.3bn (+43% YoY).
- International segment sales increased to a value of $43.4bn (+8% vs. 2023), with a return to profitability at $1.3bn (vs. a $400m loss in 2023).
- AWS segment sales experienced the most significant growth, reaching a value of $28.8bn (+19% vs. 2023), with operating income at $10.6bn (+47% YoY).
- Advertising revenue grew 18% YoY, benefiting from Prime Video ads and sponsored search ads.
Operating income rose to $21.2bn (+61% YoY), driven by cost efficiency and cloud growth.
Net income almost doubled, reaching a value of $20.0bn (+88% YoY), or $1.86 per diluted share (+86% vs. Q4 2023).

Full-Year 2024 performance:

Total revenues remained on an upward trend and reached a record level, reaching the value of $638.0bn (+11% YoY), maintaining double-digit growth across all segments.
- North America segment sales increased to $387.5bn (+10% vs. 2023), with operating income of $25.0bn (+68% YoY).
- International segment sales increased to $142.9bn (+9% vs. 2023), with operating income of $3.8bn (vs. a $2.7bn loss in 2023).
- AWS segment sales recorded a value of $107.6bn (+19% vs. 2023), with operating income of $39.8bn (+62% YoY), strengthening Amazon’s dominance in cloud computing. AWS saw strong demand for AI-powered solutions, including Amazon Bedrock and SageMaker.
Operating income have experienced a significant growth, reaching a value of $68.6bn (+86% YoY), reflecting cost control and AI-driven cloud demand.
Net income increased to a record high of $59.2bn (+95% YoY), translating to EPS of $5.53 (+91% vs. 2023).
Operating cash flow was $115.9bn (+36% YoY), supporting Amazon’s continued investments in AI, logistics, and innovation.
Free cash flow was also on an upward trend, reaching a value of $38.2bn (+4% YoY).

For 2025 outlook, Amazon expects continued strong revenue and profitability growth, with Q1 net sales projected between $151.0bn and $155.5bn (+5% – 9% YoY), despite potential currency headwinds. AWS growth remains a key driver, fueled by AI and cloud expansion, with major enterprise clients such as PayPal, Northrop Grumman, and Japan Airlines. Operating income is forecasted between $14.0bn and $18.0bn, reflecting sustained operational efficiency gains. Additionally, Amazon continues to invest in AI and logistics innovation, with a strong focus on Amazon Bedrock, the Trainium2 AI chip, and automation in fulfillment and delivery operations, positioning the company for long-term success.

Even though the results reported by the company were above analysts’ estimates, the forecasts for Q1 2025 were slightly below initial expectations, so the investor reaction was quite unexpected, with AMZN’s share price falling by over 4% in just one day after the results were published.