Amazon Q4 2019 Earnings Report
Key Takeaways
Amazon reported a strong Q4 2019, with net sales increasing by 21% to $87.4 billion. Operating income also saw a slight increase to $3.9 billion, and net income rose to $3.3 billion, or $6.47 per diluted share.
Net sales increased by 21% to $87.4 billion, compared to $72.4 billion in Q4 2018.
Operating income increased to $3.9 billion, up from $3.8 billion in Q4 2018.
Net income increased to $3.3 billion, or $6.47 per diluted share, compared to $3.0 billion, or $6.04 per diluted share, in Q4 2018.
Prime membership saw record growth, with over 150 million paid members worldwide.
Amazon
Amazon
Amazon Revenue by Segment
Amazon Revenue by Geographic Location
Forward Guidance
Amazon provided forward-looking statements for Q1 2020, anticipating net sales between $69.0 billion and $73.0 billion, representing a growth of 16% to 22% compared to Q1 2019. Operating income is expected to be between $3.0 billion and $4.2 billion, compared to $4.4 billion in Q1 2019. This guidance includes approximately $800 million lower depreciation expense due to an increase in the estimated useful life of our servers beginning on January 1, 2020.
Positive Outlook
- Net sales are expected to grow between 16% and 22% compared with first quarter 2019.
- Anticipates a favorable impact of approximately 5 basis points from foreign exchange rates.
- Guidance includes approximately $800 million lower depreciation expense.
- Increase in the estimated useful life of servers beginning on January 1, 2020.
- Continued investments in technology, infrastructure, and logistics.
Challenges Ahead
- Results are inherently unpredictable and may be materially affected by many factors.
- Fluctuations in foreign exchange rates.
- Changes in global economic conditions and customer spending.
- Competition and management of growth.
- Potential fluctuations in operating results.