Mike Blake/Reuters
- Amazon‘s first two earnings reports of 2024 came in stronger than analysts expected.
- But its August report mostly missed estimates.
- Shoppers are being more reserved with their spending, while Amazon Web Services keeps growing.
Amazon, the massive tech company that provides e-commerce, cloud, streaming and digital advertising services, releases its earnings quarterly.
Andy Jassy, the Amazon CEO, joins the calls to report results and answer questions.
Here’s a breakdown of Amazon’s recent earnings.
Amazon Q2 earnings 2024
Amazon reported second-quarter earnings in August that largely missed analysts’ expectations. Net sales for the quarter came in lower than expected, as did the company’s third-quarter forecast for sales and operating income.
Amazon shoppers were looking for good deals and being more “cautious,” CFO Brian Olsavsky said on the company’s earnings call. That weighed on Amazon, especially during the company’s Prime Day sales event in July.
Over the summer, a variety of retailers reported that people were reducing their budgets for fast food, home decor, and other nice-to-have items.
Strong demand pushed Amazon Web Services’ sales and operating income higher during the quarter, though Olsavsky said that its profit margins would “fluctuate over time” as the company invests in AI-driven technology.
Amazon’s stock price slid after the report. As of mid-September, though, the company’s shares are still up more than 28% so far in 2024.
Amazon Q1 earnings
Amazon beat analysts’ estimates for net sales and earnings per share when it reported first-quarter results in April.
AWS customers signed up “for longer deals” and made “bigger commitments” during the quarter, CEO Andy Jassy said on a call after Amazon reported its results. AWS net revenue was $25 billion during the quarter, beating expectations.
On the e-commerce side of the business, customers bought “a lot more consumables and everyday essentials,” Olsavsky said on a call with reporters. Many of those items, such as sunscreen and pantry staples, are less profitable for Amazon than discretionary items, he said.
AMZN earnings Q4
Amazon’s fourth-quarter earnings per share and net sales results both beat analysts’ expectations when the company reported them in February.
The company’s operating income for the quarter also beat as it laid off hundreds of employees in its Prime Video, Amazon MGM Studios, and Buy with Prime teams. It was the latest round of job cuts for Amazon, which had laid off 18,000 people roughly a year earlier.
Demand for AI pushed results at AWS higher. And CEO Jassy said a “record-breaking holiday shopping season” was a boon for Amazon’s retail business.
Amazon earnings history
Amazon’s 2023 net sales totaled $574.8 billion, a 12% increase from 2022.
Net income for the year was $30.4 billion, or $2.90 per diluted share. For 2022, Amazon reported a net loss of $2.7 billion, or 27 cents per share.
Amazon does not pay a dividend.
