Amazon.com Announces Second Quarter Results

Rhea-AI Summary

Amazon.com (NASDAQ:AMZN) reported strong Q2 2024 financial results, with net sales increasing 10% to $148.0 billion. Operating income rose to $14.7 billion, while net income reached $13.5 billion or $1.26 per diluted share. The company saw growth across all segments, with AWS sales increasing 19% year-over-year. Amazon's free cash flow improved significantly to $53.0 billion for the trailing twelve months. The company highlighted progress in AI initiatives, including new features for consumers and expanded AWS offerings. Amazon also secured streaming rights for NBA games and reported success with original content on Prime Video.

Positive

• Net sales increased 10% to $148.0 billion in Q2 2024
• Operating income rose to $14.7 billion, up from $7.7 billion in Q2 2023
• Net income increased to $13.5 billion, or $1.26 per diluted share
• AWS segment sales increased 19% year-over-year to $26.3 billion
• Free cash flow improved to $53.0 billion for the trailing twelve months
• Prime Day 2024 was the biggest shopping event yet
• Secured exclusive streaming rights for NBA games for 11 seasons starting 2025-26

Negative

• International segment operating income was only $0.3 billion, compared to a loss in Q2 2023
• Foreign exchange rates had a $1.0 billion unfavorable impact on net sales

Insights

Financial Analyst

Amazon's Q2 2024 results demonstrate robust growth and operational efficiency, signaling a strong position in the e-commerce and cloud computing sectors. The 10% increase in net sales to $148.0 billion and the impressive 91% jump in operating income to $14.7 billion highlight the company's ability to scale profitably.

Key takeaways include:

• AWS reacceleration: 19% year-over-year growth, reaching $26.3 billion in sales, with operating income up 72% to $9.3 billion. This suggests Amazon is capitalizing on the AI boom and cloud migration trends.
• North America segment's operating income surge: 59% increase to $5.1 billion, indicating improved efficiency in the core e-commerce business.
• International segment's turnaround: From a $0.9 billion loss to a $0.3 billion profit, showing progress in overseas markets.
• Substantial free cash flow improvement: $53.0 billion for the trailing twelve months, up from $7.9 billion in the previous year, providing ample resources for future investments and potential shareholder returns.

These results, coupled with strategic initiatives in AI, content streaming and international expansion, position Amazon well for sustained growth. However, investors should monitor potential headwinds such as regulatory scrutiny and macroeconomic uncertainties.

Tech Expert

Amazon's Q2 results underscore its technological prowess, particularly in cloud computing and AI. The standout performance of AWS, with its 19% year-over-year growth, reflects the company's strong position in the evolving tech landscape.

Key technological advancements include:

• AI integration: The launch of AI-powered features like Rufus for shopping assistance and Maestro for Amazon Music playlist generation demonstrates Amazon's commitment to enhancing user experience through AI.
• Cloud computing innovations: The introduction of AWS Graviton4-based compute instances, offering up to 30% better price-performance than Graviton3, showcases Amazon's continuous improvement in cloud infrastructure.
• Generative AI capabilities: The addition of advanced models like Anthropic Claude 3.5 Sonnet and Meta Llama 3.1 to Amazon Bedrock indicates the company's focus on providing cutting-edge AI tools to developers and businesses.

These technological advancements, combined with strategic partnerships and the expansion of AWS services, position Amazon as a leader in the AI and cloud computing revolution. The company's ability to attract major clients and AI startups to its cloud platform further solidifies its market position and potential for future growth in high-margin tech services.

Market Research Analyst

Amazon's Q2 2024 results reveal significant market penetration and strategic positioning across various segments. The company's performance indicates strong consumer demand and effective market strategies.

Key market insights:

• E-commerce dominance: The 9% growth in North America segment sales to $90.0 billion suggests Amazon's continued leadership in the e-commerce market, despite increased competition.
• International expansion: The 7% increase in international sales (or 10% excluding forex impact) to $31.7 billion indicates successful market penetration strategies in global markets, including the launch in South Africa.
• Streaming content success: The strong performance of original content like "Fallout" and "The Boys" demonstrates Amazon's growing influence in the streaming market, competing effectively with established players.
• Healthcare market entry: The expansion of Amazon Pharmacy's RxPass program for Medicare members shows Amazon's strategic push into the healthcare sector, potentially disrupting traditional pharmacy models.

These market developments, coupled with Amazon's strong brand recognition and customer loyalty (evidenced by the success of Prime Day), position the company for continued market share growth across multiple sectors. The diversification of revenue streams and expansion into new markets provide a robust foundation for sustained growth and resilience against market fluctuations.

SEATTLE--(BUSINESS WIRE)-- Amazon.com, Inc. (NASDAQ:AMZN) today 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 as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities like SageMaker for model builders, Bedrock for those leveraging frontier models, Trainium for those where the cost of compute for training and inference matters, and Q for those wanting the most capable GenAI assistant for not just coding, but also software development and business integration.”

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.
• Expanded selection, including brands like Aéropostale, Bumble and bumble, and Kiehl’s.
• Announced that U.S. Prime members can enjoy a Grubhub+ membership worth $120 a year.
• Launched multiple AI-powered features for consumers, including shopping assistant Rufus for all U.S. mobile customers, playlist generator Maestro for Amazon Music, and a new search experience for Fire TV.
• 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.
• Released 19 films and series from Amazon MGM Studios, including:
  • Fallout, the second most watched Original title worldwide ever on Prime Video during its launch.
  • Season 4 of The Boys, reaching No. 1 on Prime Video in over 165 countries in its first two weeks.
  • The Idea of You, attracting ~50 million viewers in its first two weeks on Prime Video.
• Earned 62 Primetime Emmy Award nominations, including 17 for Fallout and 16 for Mr. and Mrs. Smith.
• Secured expansive streaming rights for the NBA for 11 seasons, starting in 2025-26.
• Became the exclusive home of Monday Night National Hockey League games in Canada.
• Launched Anthropic Claude 3.5 Sonnet, Meta Llama 3.1, and Mistral Large 2 models in Amazon Bedrock.
• Shared that companies like AXA, DoorDash, Nasdaq, Rocket Insurance, SAP, Thomson Reuters, Workday, WPP, and Zendesk announced new applications built on Bedrock.
• Delivered new AWS Graviton4-based compute instances, providing up to 30% better price-performance than the industry-leading AWS Graviton3 instances.
• Signed new AWS agreements with Commonwealth Bank of Australia, Databricks, Discover Financial Services, Eli Lilly and Company, Experian, GE HealthCare, NetApp, Scopely, ServiceNow, Shutterfly, and many others—as well as AI startups Perplexity, H Company, and Observea.
• Announced an AUD $2 billion strategic partnership with the Australian Government to provide a “Top Secret” AWS Cloud to enhance the nation’s defense and intelligence capabilities.
• 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.
• Announced an additional $1.4 billion commitment to Amazon's Housing Equity Fund for affordable homes.

For additional highlights from the quarter, visit aboutamazon.com/q2-2024-earnings.

Financial Guidance

The following forward-looking statements reflect Amazon.com’s expectations as of August 1, 2024, and are subject to substantial uncertainty. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic and geopolitical conditions and customer demand and spending (including the impact of recessionary fears), inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, online commerce, cloud services, and new and emerging technologies, and the various factors detailed below.

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.

Conference Call Information

A conference call will be webcast live today at 2:30 p.m. PT/5:30 p.m. ET, and will be available for at least three months at amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company’s financial and operating results.

Forward-Looking Statements

These forward-looking statements are inherently difficult to predict. Actual results and outcomes could differ materially for a variety of reasons, including, in addition to the factors discussed above, the amount that Amazon.com invests in new business opportunities and the timing of those investments, the mix of products and services sold to customers, the mix of net sales derived from products as compared with services, the extent to which we owe income or other taxes, competition, management of growth, potential fluctuations in operating results, international growth and expansion, the outcomes of claims, litigation, government investigations, and other proceedings, fulfillment, sortation, delivery, and data center optimization, risks of inventory management, variability in demand, the degree to which the Company enters into, maintains, and develops commercial agreements, proposed and completed acquisitions and strategic transactions, payments risks, and risks of fulfillment throughput and productivity. Other risks and uncertainties include, among others, risks related to new products, services, and technologies, security breaches, system interruptions, government regulation and taxation, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.

Additional Information

Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.

About Amazon

Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.

AMAZON.COM, INC. Consolidated Statements of Cash Flows (in millions) (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,								Twelve Months Ended June 30,
		2023				2024				2023				2024				2023				2024
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	$	49,734			$	73,332			$	54,253			$	73,890			$	37,700			$	50,067
OPERATING ACTIVITIES:
Net income		6,750				13,485				9,922				23,916				13,072				44,419
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other		11,589				12,038				22,712				23,722				45,724				49,673
Stock-based compensation		7,127				6,722				11,875				11,683				23,037				23,831
Non-operating expense (income), net		47				(95	)			581				2,639				2,754				1,310
Deferred income taxes		(2,744	)			(785	)			(3,216	)			(1,723	)			(7,408	)			(4,383	)
Changes in operating assets and liabilities:
Inventories		(2,373	)			(3,085	)			(2,002	)			(1,309	)			1,910				2,142
Accounts receivable, net and other		(2,041	)			(2,209	)			2,683				1,475				(2,686	)			(9,556	)
Other assets		(3,126	)			(3,055	)			(6,329	)			(5,756	)			(14,542	)			(11,692	)
Accounts payable		3,029				6,005				(8,235	)			(5,277	)			391				8,431
Accrued expenses and other		(1,938	)			(4,147	)			(7,701	)			(7,075	)			(1,944	)			(1,802	)
Unearned revenue		156				407				974				1,975				1,533				5,579
Net cash provided by (used in) operating activities		16,476				25,281				21,264				44,270				61,841				107,952
INVESTING ACTIVITIES:
Purchases of property and equipment		(11,455	)			(17,620	)			(25,662	)			(32,545	)			(58,632	)			(59,612	)
Proceeds from property and equipment sales and incentives		1,043				1,227				2,180				2,217				4,669				4,633
Acquisitions, net of cash acquired, non-marketable investments, and other		(316	)			(571	)			(3,829	)			(3,925	)			(5,545	)			(5,935	)
Sales and maturities of marketable securities		1,551				3,265				2,666				4,657				8,906				7,618
Purchases of marketable securities		(496	)			(8,439	)			(834	)			(10,404	)			(1,306	)			(11,058	)
Net cash provided by (used in) investing activities		(9,673	)			(22,138	)			(25,479	)			(40,000	)			(51,908	)			(64,354	)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other		4,399				525				17,179				863				40,124				1,813
Repayments of short-term debt, and other		(7,641	)			(229	)			(11,244	)			(633	)			(34,957	)			(15,066	)
Proceeds from long-term debt		—				—				—				—				8,342				—
Repayments of long-term debt		(2,000	)			(4,169	)			(3,386	)			(4,499	)			(4,643	)			(4,789	)
Principal repayments of finance leases		(1,220	)			(538	)			(2,600	)			(1,308	)			(5,705	)			(3,092	)
Principal repayments of financing obligations		(77	)			(79	)			(134	)			(169	)			(244	)			(306	)
Net cash provided by (used in) financing activities		(6,539	)			(4,490	)			(185	)			(5,746	)			2,917				(21,440	)
Foreign currency effect on cash, cash equivalents, and restricted cash		69				(312	)			214				(741	)			(483	)			(552	)
Net increase (decrease) in cash, cash equivalents, and restricted cash		333				(1,659	)			(4,186	)			(2,217	)			12,367				21,606
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	50,067			$	71,673			$	50,067			$	71,673			$	50,067			$	71,673
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of capitalized interest	$	954			$	680			$	1,356			$	949			$	2,289			$	2,201
Cash paid for operating leases		2,528				2,844				4,995				6,176				9,173				11,634
Cash paid for interest on finance leases		77				72				158				146				330				296
Cash paid for interest on financing obligations		41				50				100				114				194				210
Cash paid for income taxes, net of refunds		3,735				5,700				4,354				6,158				6,791				12,983
Assets acquired under operating leases		4,104				3,911				7,730				7,664				19,254				13,986
Property and equipment acquired under finance leases, net of remeasurements and modifications		240				181				248				223				696				617
Property and equipment recognized during the construction period of build-to-suit lease arrangements		84				31				215				68				1,051				210
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating		—				—				720				—				4,766				654

AMAZON.COM, INC. Consolidated Statements of Operations (in millions, except per share data) (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2024				2023				2024
Net product sales	$	59,032			$	61,569			$	116,013			$	122,484
Net service sales		75,351				86,408				145,728				168,806
Total net sales		134,383				147,977				261,741				291,290
Operating expenses:
Cost of sales		69,373				73,785				137,164				146,418
Fulfillment		21,305				23,566				42,210				45,883
Technology and infrastructure		21,931				22,304				42,381				42,728
Sales and marketing		10,745				10,512				20,917				20,174
General and administrative		3,202				3,041				6,245				5,783
Other operating expense (income), net		146				97				369				325
Total operating expenses		126,702				133,305				249,286				261,311
Operating income		7,681				14,672				12,455				29,979
Interest income		661				1,180				1,272				2,173
Interest expense		(840	)			(589	)			(1,663	)			(1,233	)
Other income (expense), net		61				(18	)			(382	)			(2,691	)
Total non-operating income (expense)		(118	)			573				(773	)			(1,751	)
Income before income taxes		7,563				15,245				11,682				28,228
Provision for income taxes		(804	)			(1,767	)			(1,752	)			(4,234	)
Equity-method investment activity, net of tax		(9	)			7				(8	)			(78	)
Net income	$	6,750			$	13,485			$	9,922			$	23,916
Basic earnings per share	$	0.66			$	1.29			$	0.97			$	2.30
Diluted earnings per share	$	0.65			$	1.26			$	0.95			$	2.24
Weighted-average shares used in computation of earnings per share:
Basic		10,285				10,447				10,268				10,420
Diluted		10,449				10,708				10,398				10,689

AMAZON.COM, INC. Consolidated Statements of Comprehensive Income (in millions) (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2024				2023				2024
Net income	$	6,750			$	13,485			$	9,922			$	23,916
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(22), $58, $(32), and $88		264				(637	)			650				(1,733	)
Available-for-sale debt securities:
Change in net unrealized gains (losses), net of tax of $(5), $(69), $(34), and $(227)		17				241				112				777
Less: reclassification adjustment for losses included in “Other income (expense), net,” net of tax of $(5), $(1), $(15), and $(1)		12				3				45				4
Net change		29				244				157				781
Other, net of tax of $0, $(1), $0, and $(2)		—				(2	)			—				(1	)
Total other comprehensive income (loss)		293				(395	)			807				(953	)
Comprehensive income	$	7,043			$	13,090			$	10,729			$	22,963

AMAZON.COM, INC. Segment Information (in millions) (unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
		2023				2024				2023				2024
North America
Net sales	$	82,546			$	90,033			$	159,427			$	176,374
Operating expenses		79,335				84,968				155,318				166,326
Operating income	$	3,211			$	5,065			$	4,109			$	10,048
International
Net sales	$	29,697			$	31,663			$	58,820			$	63,598
Operating expenses		30,592				31,390				60,962				62,422
Operating income (loss)	$	(895	)		$	273			$	(2,142	)		$	1,176
AWS
Net sales	$	22,140			$	26,281			$	43,494			$	51,318
Operating expenses		16,775				16,947				33,006				32,563
Operating income	$	5,365			$	9,334			$	10,488			$	18,755
Consolidated
Net sales	$	134,383			$	147,977			$	261,741			$	291,290
Operating expenses		126,702				133,305				249,286				261,311
Operating income		7,681				14,672				12,455				29,979
Total non-operating income (expense)		(118	)			573				(773	)			(1,751	)
Provision for income taxes		(804	)			(1,767	)			(1,752	)			(4,234	)
Equity-method investment activity, net of tax		(9	)			7				(8	)			(78	)
Net income	$	6,750			$	13,485			$	9,922			$	23,916
Segment Highlights:
Y/Y net sales growth:
North America		11	%			9	%			11	%			11	%
International		10				7				5				8
AWS		12				19				14				18
Consolidated		11				10				10				11
Net sales mix:
North America		61	%			61	%			61	%			60	%
International		22				21				22				22
AWS		17				18				17				18
Consolidated		100	%			100	%			100	%			100	%

AMAZON.COM, INC. Consolidated Balance Sheets (in millions, except per share data) (unaudited)
	December 31, 2023				June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	73,387			$	71,178
Marketable securities		13,393				17,914
Inventories		33,318				34,109
Accounts receivable, net and other		52,253				50,106
Total current assets		172,351				173,307
Property and equipment, net		204,177				220,717
Operating leases		72,513				74,575
Goodwill		22,789				22,879
Other assets		56,024				63,340
Total assets	$	527,854			$	554,818
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	84,981			$	81,817
Accrued expenses and other		64,709				60,351
Unearned revenue		15,227				16,004
Total current liabilities		164,917				158,172
Long-term lease liabilities		77,297				78,084
Long-term debt		58,314				54,889
Other long-term liabilities		25,451				27,226
Commitments and contingencies
Stockholders’ equity:
Preferred stock ($0.01 par value; 500 shares authorized; no shares issued or outstanding)		—				—
Common stock ($0.01 par value; 100,000 shares authorized; 10,898 and 11,005 shares issued; 10,383 and 10,490 shares outstanding)		109				110
Treasury stock, at cost		(7,837	)			(7,837	)
Additional paid-in capital		99,025				110,633
Accumulated other comprehensive income (loss)		(3,040	)			(3,993	)
Retained earnings		113,618				137,534
Total stockholders’ equity		201,875				236,447
Total liabilities and stockholders’ equity	$	527,854			$	554,818

AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except per share data) (unaudited)
	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Y/Y % Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM)	$	54,330		$	61,841		$	71,654		$	84,946		$	99,147		$	107,952		75	%
Operating cash flow -- TTM Y/Y growth		38	%		74	%		81	%		82	%		82	%		75	%	N/A
Purchases of property and equipment, net of proceeds from sales and incentives -- TTM	$	57,649		$	53,963		$	50,220		$	48,133		$	48,998		$	54,979		2	%
Principal repayments of finance leases -- TTM	$	6,544		$	5,705		$	5,245		$	4,384		$	3,774		$	3,092		(46	)%
Principal repayments of financing obligations -- TTM	$	226		$	244		$	260		$	271		$	304		$	306		25	%
Equipment acquired under finance leases -- TTM (1)	$	285		$	269		$	239		$	310		$	306		$	425		58	%
Principal repayments of all other finance leases -- TTM (2)	$	625		$	631		$	694		$	683		$	761		$	794		26	%
Free cash flow -- TTM (3)	$	(3,319	)	$	7,878		$	21,434		$	36,813		$	50,149		$	52,973		572	%
Free cash flow less principal repayments of finance leases and financing obligations -- TTM (4)	$	(10,089	)	$	1,929		$	15,929		$	32,158		$	46,071		$	49,575		N/A
Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations -- TTM (5)	$	(4,455	)	$	6,734		$	20,241		$	35,549		$	48,778		$	51,448		664	%
Common shares and stock-based awards outstanding		10,625			10,794			10,792			10,788			10,788			10,871		1	%
Common shares outstanding		10,258			10,313			10,330			10,383			10,403			10,490		2	%
Stock-based awards outstanding		367			481			462			406			385			381		(21	)%
Stock-based awards outstanding -- % of common shares outstanding		3.6	%		4.7	%		4.5	%		3.9	%		3.7	%		3.6	%	N/A
Results of Operations
Worldwide (WW) net sales	$	127,358		$	134,383		$	143,083		$	169,961		$	143,313		$	147,977		10	%
WW net sales -- Y/Y growth, excluding F/X		11	%		11	%		11	%		13	%		13	%		11	%	N/A
WW net sales -- TTM	$	524,897		$	538,046		$	554,028		$	574,785		$	590,740		$	604,334		12	%
WW net sales -- TTM Y/Y growth, excluding F/X		13	%		13	%		12	%		12	%		12	%		12	%	N/A
Operating income	$	4,774		$	7,681		$	11,188		$	13,209		$	15,307		$	14,672		91	%
F/X impact -- favorable	$	139		$	104		$	132		$	85		$	72		$	29		N/A
Operating income -- Y/Y growth, excluding F/X		26	%		128	%		338	%		379	%		219	%		91	%	N/A
Operating margin -- % of WW net sales		3.7	%		5.7	%		7.8	%		7.8	%		10.7	%		9.9	%	N/A
Operating income -- TTM	$	13,353		$	17,717		$	26,380		$	36,852		$	47,385		$	54,376		207	%
Operating income -- TTM Y/Y growth (decline), excluding F/X		(37	)%		10	%		99	%		197	%		252	%		205	%	N/A
Operating margin -- TTM % of WW net sales		2.5	%		3.3	%		4.8	%		6.4	%		8.0	%		9.0	%	N/A
Net income	$	3,172		$	6,750		$	9,879		$	10,624		$	10,431		$	13,485		100	%
Net income per diluted share	$	0.31		$	0.65		$	0.94		$	1.00		$	0.98		$	1.26		95	%
Net income -- TTM	$	4,294		$	13,072		$	20,079		$	30,425		$	37,684		$	44,419		240	%
Net income per diluted share -- TTM	$	0.42		$	1.26		$	1.93		$	2.90		$	3.56		$	4.18		229	%

(1)		For the twelve months ended June 30, 2023 and 2024, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $696 million and $617 million.
(2)		For the twelve months ended June 30, 2023 and 2024, this amount relates to property included in “Principal repayments of finance leases” of $5,705 million and $3,092 million.
(3)		Free cash flow is cash flow from operations reduced by “Purchases of property and equipment, net of proceeds from sales and incentives.”
(4)		Free cash flow less principal repayments of finance leases and financing obligations is free cash flow reduced by “Principal repayments of finance leases” and “Principal repayments of financing obligations.”
(5)		Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations is free cash flow reduced by equipment acquired under finance leases, which is included in “Property and equipment acquired under finance leases, net of remeasurements and modifications,” principal repayments of all other finance lease liabilities, which is included in “Principal repayments of finance leases,” and “Principal repayments of financing obligations.”

AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions) (unaudited)
	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Y/Y % Change
Segments
North America Segment:
Net sales	$	76,881		$	82,546		$	87,887		$	105,514		$	86,341		$	90,033		9	%
Net sales -- Y/Y growth, excluding F/X		11	%		11	%		11	%		13	%		12	%		9	%	N/A
Net sales -- TTM	$	323,517		$	331,633		$	340,677		$	352,828		$	362,288		$	369,775		12	%
Operating income	$	898		$	3,211		$	4,307		$	6,461		$	4,983		$	5,065		58	%
F/X impact -- favorable (unfavorable)	$	41		$	(7	)	$	(27	)	$	(13	)	$	8		$	8		N/A
Operating income -- Y/Y growth, excluding F/X		N/A			N/A			N/A			N/A			454	%		58	%	N/A
Operating margin -- % of North America net sales		1.2	%		3.9	%		4.9	%		6.1	%		5.8	%		5.6	%	N/A
Operating income (loss) -- TTM	$	(381	)	$	3,457		$	8,176		$	14,877		$	18,962		$	20,816		502	%
Operating margin -- TTM % of North America net sales		(0.1	)%		1.0	%		2.4	%		4.2	%		5.2	%		5.6	%	N/A
International Segment:
Net sales	$	29,123		$	29,697		$	32,137		$	40,243		$	31,935		$	31,663		7	%
Net sales -- Y/Y growth, excluding F/X		9	%		10	%		11	%		13	%		11	%		10	%	N/A
Net sales -- TTM	$	118,371		$	121,003		$	125,420		$	131,200		$	134,012		$	135,978		12	%
Operating income (loss)	$	(1,247	)	$	(895	)	$	(95	)	$	(419	)	$	903		$	273		N/A
F/X impact -- favorable (unfavorable)	$	(174	)	$	32		$	228		$	160		$	(3	)	$	(94	)	N/A
Operating income (loss) -- Y/Y growth (decline), excluding F/X		(16	)%		(48	)%		(87	)%		(74	)%		N/A			N/A		N/A
Operating margin -- % of International net sales		(4.3	)%		(3.0	)%		(0.3	)%		(1.0	)%		2.8	%		0.9	%	N/A
Operating income (loss) -- TTM	$	(7,712	)	$	(6,836	)	$	(4,465	)	$	(2,656	)	$	(506	)	$	662		N/A
Operating margin -- TTM % of International net sales		(6.5	)%		(5.6	)%		(3.6	)%		(2.0	)%		(0.4	)%		0.5	%	N/A
AWS Segment:
Net sales	$	21,354		$	22,140		$	23,059		$	24,204		$	25,037		$	26,281		19	%
Net sales -- Y/Y growth, excluding F/X		16	%		12	%		12	%		13	%		17	%		19	%	N/A
Net sales -- TTM	$	83,009		$	85,410		$	87,931		$	90,757		$	94,440		$	98,581		15	%
Operating income	$	5,123		$	5,365		$	6,976		$	7,167		$	9,421		$	9,334		74	%
F/X impact -- favorable (unfavorable)	$	272		$	79		$	(69	)	$	(62	)	$	67		$	115		N/A
Operating income -- Y/Y growth (decline), excluding F/X		(26	)%		(8	)%		30	%		39	%		83	%		72	%	N/A
Operating margin -- % of AWS net sales		24.0	%		24.2	%		30.3	%		29.6	%		37.6	%		35.5	%	N/A
Operating income -- TTM	$	21,446		$	21,096		$	22,669		$	24,631		$	28,929		$	32,898		56	%
Operating margin -- TTM % of AWS net sales		25.8	%		24.7	%		25.8	%		27.1	%		30.6	%		33.4	%	N/A

AMAZON.COM, INC. Supplemental Financial Information and Business Metrics (in millions, except employee data) (unaudited)
	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Y/Y % Change
Net Sales
Online stores (1)	$	51,096		$	52,966		$	57,267		$	70,543		$	54,670		$	55,392		5	%
Online stores -- Y/Y growth, excluding F/X		3	%		5	%		6	%		8	%		7	%		6	%	N/A
Physical stores (2)	$	4,895		$	5,024		$	4,959		$	5,152		$	5,202		$	5,206		4	%
Physical stores -- Y/Y growth, excluding F/X		7	%		7	%		6	%		4	%		6	%		4	%	N/A
Third-party seller services (3)	$	29,820		$	32,332		$	34,342		$	43,559		$	34,596		$	36,201		12	%
Third-party seller services -- Y/Y growth, excluding F/X		20	%		18	%		18	%		19	%		16	%		13	%	N/A
Advertising services (4)	$	9,509		$	10,683		$	12,060		$	14,654		$	11,824		$	12,771		20	%
Advertising services -- Y/Y growth, excluding F/X		23	%		22	%		25	%		26	%		24	%		20	%	N/A
Subscription services (5)	$	9,657		$	9,894		$	10,170		$	10,488		$	10,722		$	10,866		10	%
Subscription services -- Y/Y growth, excluding F/X		17	%		14	%		13	%		13	%		11	%		11	%	N/A
AWS	$	21,354		$	22,140		$	23,059		$	24,204		$	25,037		$	26,281		19	%
AWS -- Y/Y growth, excluding F/X		16	%		12	%		12	%		13	%		17	%		19	%	N/A
Other (6)	$	1,027		$	1,344		$	1,226		$	1,361		$	1,262		$	1,260		(6	)%
Other -- Y/Y growth (decline), excluding F/X		57	%		26	%		(3	)%		8	%		23	%		(6	)%	N/A
Stock-based Compensation Expense
Cost of sales	$	165		$	251		$	193		$	227		$	174		$	266		6	%
Fulfillment	$	603		$	932		$	732		$	823		$	636		$	944		1	%
Technology and infrastructure	$	2,574		$	4,043		$	3,284		$	3,533		$	2,772		$	3,670		(9	)%
Sales and marketing	$	993		$	1,303		$	1,111		$	1,216		$	932		$	1,224		(6	)%
General and administrative	$	413		$	598		$	509		$	520		$	447		$	618		3	%
Total stock-based compensation expense	$	4,748		$	7,127		$	5,829		$	6,319		$	4,961		$	6,722		(6	)%
Other
WW shipping costs	$	19,937		$	20,418		$	21,799		$	27,326		$	21,834		$	21,965		8	%
WW shipping costs -- Y/Y growth		2	%		6	%		9	%		11	%		10	%		8	%	N/A
WW paid units -- Y/Y growth (7)		8	%		9	%		9	%		12	%		12	%		11	%	N/A
WW seller unit mix -- % of WW paid units (7)		59	%		60	%		60	%		61	%		61	%		61	%	N/A
Employees (full-time and part-time; excludes contractors & temporary personnel)		1,465,000			1,461,000			1,500,000			1,525,000			1,521,000			1,532,000		5	%
Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth (decline)		(10	)%		(4	)%		(3	)%		(1	)%		4	%		5	%	N/A

(1)		Includes product sales and digital media content where we record revenue gross. We leverage our retail infrastructure to offer a wide selection of consumable and durable goods that includes media products available in both a physical and digital format, such as books, videos, games, music, and software. These product sales include digital products sold on a transactional basis. Digital media content subscriptions that provide unlimited viewing or usage rights are included in “Subscription services.”
(2)		Includes product sales where our customers physically select items in a store. Sales to customers who order goods online for delivery or pickup at our physical stores are included in “Online stores.”
(3)		Includes commissions and any related fulfillment and shipping fees, and other third-party seller services.
(4)		Includes sales of advertising services to sellers, vendors, publishers, authors, and others, through programs such as sponsored ads, display, and video advertising.
(5)		Includes annual and monthly fees associated with Amazon Prime memberships, as well as digital video, audiobook, digital music, e-book, and other non-AWS subscription services.
(6)		Includes sales related to various other offerings, such as health care services, certain licensing and distribution of video content, and shipping services, and our co-branded credit card agreements.
(7)		Excludes the impact of Whole Foods Market.

Amazon.com, Inc.
Certain Definitions

Customer Accounts

• References to customers mean customer accounts established when a customer places an order through one of our stores. Customer accounts exclude certain customers, including customers associated with certain of our acquisitions, Amazon Payments customers, AWS customers, and the customers of select companies with whom we have a technology alliance or marketing and promotional relationship. Customers are considered active when they have placed an order during the preceding twelve-month period.

Seller Accounts

• References to sellers means seller accounts, which are established when a seller receives an order from a customer account. Sellers are considered active when they have received an order from a customer during the preceding twelve-month period.

AWS Customers

• References to AWS customers mean unique AWS customer accounts, which are unique customer account IDs that are eligible to use AWS services. This includes AWS accounts in the AWS free tier. Multiple users accessing AWS services via one account ID are counted as a single account. Customers are considered active when they have had AWS usage activity during the preceding one-month period.

Units

• References to units mean physical and digital units sold (net of returns and cancellations) by us and sellers in our stores as well as Amazon-owned items sold in other stores. Units sold are paid units and do not include units associated with AWS, certain acquisitions, certain subscriptions, rental businesses, or advertising businesses, or Amazon gift cards.

 

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FAQ

What was Amazon's (AMZN) revenue in Q2 2024?

Amazon's net sales in Q2 2024 were $148.0 billion, a 10% increase from Q2 2023.

How much did Amazon's (AMZN) AWS segment grow in Q2 2024?

Amazon's AWS segment sales increased 19% year-over-year to $26.3 billion in Q2 2024.

What was Amazon's (AMZN) earnings per share in Q2 2024?

Amazon reported earnings of $1.26 per diluted share in Q2 2024, up from $0.65 in Q2 2023.

How did Amazon's (AMZN) free cash flow perform in the trailing twelve months ending Q2 2024?

Amazon's free cash flow increased to $53.0 billion for the trailing twelve months, compared to $7.9 billion in the previous year.

What major streaming rights did Amazon (AMZN) secure in Q2 2024?

Amazon secured expansive streaming rights for the NBA for 11 seasons, starting in 2025-26.