Amazon.com has announced financial results for its second quarter ended June 30, 2024.The business continues to grow at double-digit rate, up 10% globally in Q2 to $148.0bn. In the International segment (includes UK) growth has softened a little to 7% to $31.7bn (10% without exchange rate fluctuations). Amazon will be pleased with two quarters of positive operating income in the International Segment in 2024, following a loss-making 2023. The International segment operating income was $0.3 billion in Q2, compared with an operating loss of $0.9 billion in second quarter 2023.Amazon Web Services - the web software business - continues to be the main sales growth driver for Amazon globally - up 19% - and provides the largest Operating Income, with $9.3bn from sales of $26.3bn.Sales
- 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
- 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.
International Segment Only (Includes UK and excludes Amazon USA and Amazon Web Services)
Other financials
- 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.
- 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.
Third Quarter 2024 GuidanceNet 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.“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.”
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