Amazon Q4 2023 Earnings Report
Key Takeaways
Amazon's Q4 2023 results showcased a 14% increase in net sales to $170.0 billion, with operating income rising to $13.2 billion. North America and AWS were key growth drivers, while net income reached $10.6 billion, or $1.00 per diluted share.
Net sales increased by 14% to $170.0 billion compared to Q4 2022.
Operating income surged to $13.2 billion, a substantial increase from $2.7 billion in the prior year.
North America segment saw a significant turnaround, reporting operating income of $6.5 billion compared to a loss in Q4 2022.
AWS segment continued its growth trajectory with operating income reaching $7.2 billion.
Amazon
Amazon
Amazon Revenue by Segment
Forward Guidance
Amazon anticipates net sales between $138.0 billion and $143.5 billion, representing 8% to 13% growth compared to Q1 2023. Operating income is projected to be between $8.0 billion and $12.0 billion, which includes approximately $0.9 billion lower depreciation expense due to an increase in the estimated useful life of servers beginning on January 1, 2024.
Positive Outlook
- Net sales are expected to grow between 8% and 13% compared with first quarter 2023.
- Anticipates a favorable impact of approximately 40 basis points from foreign exchange rates.
- Operating income is expected to be between $8.0 billion and $12.0 billion.
- Includes approximately $0.9 billion lower depreciation expense.
- Increase in the estimated useful life of servers beginning on January 1, 2024.
Challenges Ahead
- Results are inherently unpredictable and may be materially affected by many factors.
- Fluctuations in foreign exchange rates.
- Changes in global economic and geopolitical conditions and customer demand and spending (including the impact of recessionary fears).
- Inflation, interest rates, regional labor market constraints, world events.
- Assumes no additional business acquisitions, restructurings, or legal settlements are concluded.
Revenue & Expenses
Visualization of income flow from segment revenue to net income