On August 1, 2024, Amazon.com Inc (AMZN, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Amazon, the leading online retailer and marketplace for third-party sellers, reported significant growth across its various business segments, surpassing analyst estimates.
Performance Overview
Amazon.com Inc (AMZN, Financial) reported net sales of $148.0 billion for Q2 2024, a 10% increase from $134.4 billion in Q2 2023. Excluding the $1.0 billion unfavorable impact from foreign exchange rates, net sales increased by 11%. The company's earnings per share (EPS) stood at $1.26, significantly higher than the analyst estimate of $1.03.
Segment Performance
Amazon's North America segment sales grew by 9% year-over-year to $90.0 billion, while the International segment sales increased by 7% to $31.7 billion, or 10% excluding foreign exchange rate changes. Amazon Web Services (AWS) continued its robust performance with a 19% year-over-year increase in sales, reaching $26.3 billion.
Financial Achievements
Operating income for the quarter rose to $14.7 billion, compared to $7.7 billion in Q2 2023. The North America segment reported an operating income of $5.1 billion, up from $3.2 billion, while the International segment turned around from an operating loss of $0.9 billion to an operating income of $0.3 billion. AWS's operating income surged to $9.3 billion from $5.4 billion in the previous year.
Income Statement Highlights
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Net Sales | $134.4 billion | $148.0 billion |
| Operating Income | $7.7 billion | $14.7 billion |
| Net Income | $6.7 billion | $13.5 billion |
| Earnings Per Share (EPS) | $0.65 | $1.26 |
Cash Flow and Balance Sheet
Amazon's operating cash flow increased by 75% to $108.0 billion for the trailing twelve months, compared to $61.8 billion for the same period last year. Free cash flow also saw a significant rise, reaching $53.0 billion, up from $7.9 billion. The company's balance sheet remains strong with total assets of $554.8 billion and total stockholders' equity of $236.4 billion as of June 30, 2024.
Commentary and Future Outlook
“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.”
Amazon's strong performance in Q2 2024 underscores its resilience and ability to adapt to market dynamics. The company's diversified revenue streams, including its retail operations, AWS, and advertising services, continue to drive growth. However, challenges such as foreign exchange rate fluctuations and global economic conditions remain potential headwinds.
For more detailed insights and additional highlights from Amazon's Q2 2024 earnings report, visit 8-K filing.
Explore the complete 8-K earnings release (here) from Amazon.com Inc for further details.
