Amazon Reports Q3 2024 Financial Results
Intellectia.AI2024-11-01
Amazon Reports Q3 2024 Financial Results
Amazon.com, Inc. (NASDAQ: AMZN) announced its financial results for the third quarter ending September 30, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Sales | $158.9B | $143.1B | +11% |
| Net Income | $15.3B | $9.9B | +54.5% |
| Earnings Per Share (EPS) | $1.43 | $0.94 | +52.1% |
| Operating Income | $17.4B | $11.2B | +55.4% |
In the third quarter of 2024, Amazon reported impressive financial performance with a significant 11% increase in net sales compared to the same period last year. The year-over-year rise in net income and earnings per share, both exceeding 50%, underscores Amazon’s robust operational efficiency and its effective management of costs amidst a growing revenue base.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | YoY Change |
|---|---|---|
| North America | $95.5B | +9% |
| International | $35.9B | +12% |
| AWS | $27.5B | +19% |
Amazon's diversified revenue streams continue to perform strongly. North America led with a 9% increase, fueled by strong consumer engagement. The International segment saw a 12% rise, while AWS continues to be a key growth driver, posting a 19% increase, reflecting robust demand for cloud services worldwide.
Operational Highlights
- Prime Big Deal Days event exceeded records : Their major shopping event saw unprecedented sales and Prime member participation.
- First-ever fuel savings offer for Prime Members : Rolled out a U.S.-based fuel discount for Prime members.
- Expansion in new brands and services : Included leading brands like AllSaints and technology advancements such as generative AI-powered shopping capabilities.
Comments from Company Officers
CEO Andy Jassy highlighted the promising holiday season trajectory with successful product launches like the new Kindle lineup and engagements such as the NFL Black Friday game. The company is also focused on deploying over 100 new cloud infrastructure and AI capabilities at AWS re:Invent, illustrating Amazon's strategic emphasis on tech innovation.
Forward Guidance
For the fourth quarter of 2024, Amazon expects net sales to range between $181.5 billion and $188.5 billion, reflecting a 7% to 11% growth from the previous year. Operating income is anticipated between $16.0 billion and $20.0 billion.
Stock Price Movement
Following the earnings release, Amazon's stock experienced a decline, with a post-event change of -3.36%.
In summary, Amazon's third-quarter performance reflects strong growth across its segments, with AWS being a notable leader. The company continues to invest in strategic innovations, setting a favorable outlook for the upcoming holiday season and beyond.
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