Amazon.com, Inc. (NASDAQ: AMZN) today announced financial
results for its fourth quarter ended December 31, 2023.
Fourth Quarter 2023
- Net sales increased 14% to $170.0 billion in the fourth
quarter, compared with $149.2 billion in fourth quarter 2022.
Excluding the $1.3 billion favorable impact from year-over-year
changes in foreign exchange rates throughout the quarter, net sales
increased 13% compared with fourth quarter 2022.
- North America segment sales increased 13% year-over-year to
$105.5 billion.
- International segment sales increased 17% year-over-year to
$40.2 billion, or increased 13% excluding changes in foreign
exchange rates.
- AWS segment sales increased 13% year-over-year to $24.2
billion.
- Operating income increased to $13.2 billion in the
fourth quarter, compared with $2.7 billion in fourth quarter 2022.
- North America segment operating income was $6.5 billion,
compared with an operating loss of $0.2 billion in fourth quarter
2022.
- International segment operating loss was $0.4 billion, compared
with an operating loss of $2.2 billion in fourth quarter 2022.
- AWS segment operating income was $7.2 billion, compared with
operating income of $5.2 billion in fourth quarter 2022.
- Net income increased to $10.6 billion in the fourth
quarter, or $1.00 per diluted share, compared with $0.3 billion, or
$0.03 per diluted share, in fourth quarter 2022.
- Fourth quarter 2023 net income includes a pre-tax valuation
loss of $0.1 billion included in non-operating income (expense)
from the common stock investment in Rivian Automotive, Inc.,
compared to a pre-tax valuation loss of $2.3 billion from the
investment in fourth quarter 2022.
Full Year 2023
- Net sales increased 12% to $574.8 billion in 2023,
compared with $514.0 billion in 2022. Excluding the $0.1 billion
unfavorable impact from year-over-year changes in foreign exchange
rates throughout the year, net sales increased 12% compared with
2022.
- North America segment sales increased 12% year-over-year to
$352.8 billion.
- International segment sales increased 11% year-over-year to
$131.2 billion.
- AWS segment sales increased 13% year-over-year to $90.8
billion.
- Operating income increased to $36.9 billion in 2023,
compared with $12.2 billion in 2022.
- North America segment operating income was $14.9 billion,
compared with an operating loss of $2.8 billion in 2022.
- International segment operating loss was $2.7 billion, compared
with an operating loss of $7.7 billion in 2022.
- AWS segment operating income was $24.6 billion, compared with
operating income of $22.8 billion in 2022.
- Net income was $30.4 billion in 2023, or $2.90 per
diluted share, compared with a net loss of $2.7 billion, or $0.27
per diluted share, in 2022.
- 2023 net income includes a pre-tax valuation gain of $0.8
billion included in non-operating income (expense) from the common
stock investment in Rivian Automotive, Inc., compared to a pre-tax
valuation loss of $12.7 billion from the investment in 2022.
- Operating cash flow increased 82% to $84.9 billion for
the trailing twelve months, compared with $46.8 billion for the
trailing twelve months ended December 31, 2022.
- Free cash flow improved to an inflow of $36.8 billion
for the trailing twelve months, compared with an outflow of $11.6
billion for the trailing twelve months ended December 31,
2022.
- Free cash flow less principal repayments of finance leases
and financing obligations improved to an inflow of $32.2
billion for the trailing twelve months, compared with an outflow of
$19.8 billion for the trailing twelve months ended December 31,
2022.
- Free cash flow less equipment finance leases and principal
repayments of all other finance leases and financing
obligations improved to an inflow of $35.5 billion for the
trailing twelve months, compared with an outflow of $12.8 billion
for the trailing twelve months ended December 31, 2022.
“This Q4 was a record-breaking Holiday shopping season and
closed out a robust 2023 for Amazon,” said Andy Jassy, Amazon CEO.
“While we made meaningful revenue, operating income, and free cash
flow progress, what we’re most pleased with is the continued
invention and customer experience improvements across our
businesses. The regionalization of our U.S. fulfillment network led
to our fastest-ever delivery speeds for Prime members while also
lowering our cost to serve; AWS’s continued long-term focus on
customers and feature delivery, coupled with new genAI capabilities
like Bedrock, Q, and Trainium have resonated with customers and are
starting to be reflected in our overall results; our Advertising
services continue to improve and drive positive results; our newer
businesses are progressing nicely, and along with our more
established businesses, collectively making customers’ lives easier
and better every day. As we enter 2024, our teams are delivering at
a rapid clip, and we have a lot in front of us to be excited
about.”
Highlights
Obsessing over the customer experience
Amazon obsesses over how to make customers’ lives better and
easier every day with new and improved products and services. This
is true for consumers, sellers, brands, developers, enterprises,
and creators. For example, Amazon:
- Held a record-breaking Black Friday and Cyber Monday holiday
shopping event. Customers worldwide purchased more than 1 billion
items on Amazon and saved nearly 70% more during the 11 days of
deals compared to the same period in 2022. In the U.S., customers
ordered more than 500 million items from independent sellers, most
of which are small and medium-sized businesses, and millions of
customers signed up for a Prime membership. Through the entire
holiday season, customers purchased more items on Amazon than
during any previous holiday season.
- Continued to delight customers with fast and convenient
delivery. In 2023, Amazon delivered to Prime members at the fastest
speeds ever globally, with more than 7 billion units arriving the
same or next day, including more than 4 billion in the U.S. and
more than 2 billion in Europe. Amazon now offers Same-Day Delivery
in more than 110 U.S. metro areas and operates more than 55
dedicated Same-Day sites across the U.S. The company increased the
number of items delivered through these sites the same day or
overnight by more than 65% year-over-year in the fourth quarter and
celebrated the delivery of its billionth package from a Same-Day
site in December 2023.
- Entered a strategic partnership with Hyundai to bring
innovative new experiences to customers. In 2024, Amazon will
launch online vehicle sales in the U.S., starting with Hyundai. In
addition, Hyundai selected AWS as its preferred cloud provider to
accelerate its digital transformation, and starting in 2025,
customers who purchase Hyundai’s next-generation vehicles will have
access in their vehicles to the same hands-free Alexa experience
that they have at home.
- Announced that Prime members in the U.S. can now add health
care from One Medical to their Prime membership for $9 per month
(or $99 annually) and include up to five additional family members
for $6 per month each, making it easier for Prime members to get
high-quality primary care in the U.S. This represents savings of up
to $100 off the standard One Medical membership fee for individuals
and up to $133 for families.
- Expanded Amazon Fresh grocery delivery and free pickup to
customers without a Prime membership in the U.S. The company also
redesigned multiple Amazon Fresh stores in the UK and U.S. and
opened several new Whole Foods Market stores in the U.S. It also
expanded third-party grocery delivery with additional Weis Markets
supermarkets in the U.S. and ARCS Supermarket in Japan.
- Added three Buy with Prime shopping benefits for Prime members,
including the ability for customers to view, track, and manage
orders from participating retailers in their Amazon account; access
24/7 to live-chat support managed by Amazon; and access to an
expanded number of return locations, as well as box and label-free
returns.
- Had approximately 1 billion customer visits to Amazon.in during
Amazon India’s month-long Great Indian Festival sales event. During
the event, more than 4 million customers made a purchase on
Amazon.in for the first time.
- Announced that Prime Air drone deliveries will expand to Italy,
the UK, and an additional location in the U.S. in late 2024. Amazon
will also integrate drone deliveries into the company’s Same-Day
sites, which will provide customers with faster delivery on a
greater selection of items. Prime Air uses drones to safely deliver
packages weighing up to five pounds in one hour or less.
- Expanded tools and resources for Amazon sellers in China,
including announcing an Innovation Center dedicated to sellers,
introducing Supply Chain by Amazon for sellers in China, and
establishing five regional global selling centers, all with the
goal to expand opportunities for sellers to help them grow their
businesses.
- Increased total viewership for the second season of Thursday
Night Football (TNF) on Prime Video by 24% year over year, and had
double-digit growth (14%) for the second consecutive season in the
hard-to-reach 18–34-year-old demographic, according to Nielsen. The
November 30 Seahawks-Cowboys game attracted 15.3 million viewers,
becoming Prime Video’s most watched TNF game ever, according to
Nielsen.
- Released 16 films and series from Amazon MGM Studios, including
the second season of Reacher, which was the No. 1 title on
Nielsen’s Top 10 Originals Streaming chart for the week it debuted
and had the highest number of minutes viewed for any Prime Video
title during a single week in 2023 according to Nielsen; second
season of Invincible, the most-viewed animated series ever on Prime
Video globally; holiday comedy Candy Cane Lane, one of the top 10
most-watched worldwide film debuts ever on Prime Video; thriller
Saltburn, which had the highest week-over-week audience growth of
any film on Prime Video in 2023; dramedy American Fiction; and
sports drama The Boys in the Boat. This awards season, Amazon MGM
Studios earned 16 Golden Globe nominations, 68 Emmy nominations and
nine wins, and 21 Critics Choice Award nominations for content such
as American Fiction, Saltburn, Daisy Jones & The Six, The
Marvelous Mrs. Maisel, and The Boys. For the upcoming Oscars, the
studio earned five nominations for American Fiction, including for
Best Picture.
- Grew Prime Video’s international slate of content with more
than 60 local Amazon Originals, including Mr. Dressup: The Magic of
Make-Believe (Canada), which was winner of the 2023 People’s Choice
Award for Documentary at the Toronto International Film Festival;
Sayen: La Ruta Seca (Chile), the action-packed sequel to the most
watched Latin American Original movie ever on Prime Video;
Operación Triunfo (Spain), Prime Video’s first weekly live
entertainment show; and 007: Road To A Million (UK), the world’s
first James Bond television format, which was No. 1 on Prime Video
in 27 countries worldwide on its launch weekend.
- Expanded Prime Video’s global sports programming with the debut
of the Amazon Original sports documentaries Kelce, chronicling
Philadelphia Eagles captain Jason Kelce’s 2022 season, and Bye Bye
Barry, the story of Barry Sanders’ decision to retire at the height
of his NFL career. In live sports, Prime Video added new broadcast
rights for NASCAR, the National Women’s Soccer League, and Premier
Boxing Champions in the U.S.; ICC Cricket in Australia; and
Wimbledon tennis in Austria and Germany.
- Announced AWS European Sovereign Cloud, an independent cloud
for Europe, to give public sector customers and those in highly
regulated industries more choice to meet stringent compliance
mandates in the EU and achieve the operational independence they
require without compromising on the broadest and deepest cloud
services.
- Expanded AWS’s infrastructure footprint by launching the AWS
Canada West (Calgary) Region, the second infrastructure Region in
Canada. AWS is the first major cloud services provider to have an
infrastructure Region in Western Canada. As of the end of 2023, AWS
had 105 Availability Zones within 33 geographic Regions globally,
with announced plans for 12 more Availability Zones and four more
Regions.
- Announced new commitments, partnerships, and expansions to
support AWS customers.
- Amgen expanded its work with AWS to create generative
artificial intelligence (generative AI)–based solutions, using
Amazon SageMaker to help discover, develop, and accelerate the
manufacturing of medicines for patients suffering from serious
illnesses. Amgen will also use AWS’s global infrastructure and
advanced services to power a new digital data and analytics
platform.
- Salesforce, which runs the vast majority of its cloud computing
workloads on AWS, significantly expanded its global partnership
with AWS. For the first time, Salesforce products are now available
in the AWS Marketplace, giving customers streamlined purchasing
options. This expansive partnership makes it easier for customers
to bring AWS data into Salesforce products and deepens data and AI
integrations between AWS’s and Salesforce’s products. Salesforce
will support Amazon Bedrock as part of Salesforce’s open model
ecosystem strategy and will expand its use of AWS, including
compute, storage, data, and AI technologies.
- Hospitality company Accor S.A. expanded its relationship with
AWS to launch a generative AI Travel Assistant using Amazon Bedrock
and Amazon SageMaker. The Travel Assistant aims to reinvent the
guest experience by enhancing travel planning and booking, while
reducing call volumes at Accor’s contact center.
- Financial services provider Mitsubishi UFJ Financial Group
(MUFG) signed a multiyear global agreement with AWS as its
preferred cloud provider to innovate personalized financial
services and use Amazon Bedrock to experiment with more than 100
potential generative AI use cases. By moving from on-premises data
centers to AWS, MUFG reduced the cost of operating its standard IT
infrastructure by 20%. Using Amazon QuickSight, MUFG lowered
operational costs by approximately 70% compared to legacy
technology.
- Merck will work with AWS and Accenture to move a substantial
portion of Merck’s IT infrastructure to AWS as its preferred cloud
services provider. Merck is using services, including
high-performance computing on AWS and AWS HealthOmics to speed drug
discovery and accelerate therapeutic discovery and Amazon SageMaker
for generative AI and machine learning (ML) to improve product
manufacturing and availability.
- Ecommerce retailer The Very Group expanded its collaboration
with AWS, which included the launch of a Gen AI Innovation Lab. The
lab will trial new generative AI retail solutions built on Amazon
Bedrock to deliver interactive and personalized digital shopping
experiences.
- Automaker SAIC MOTOR selected AWS as its strategic cloud
provider for its i-SMART connected vehicle platform. SAIC MOTOR is
using AWS’s global infrastructure services to enhance the driving
experience and build an elastic and agile connected vehicle
architecture that can scale globally. SAIC MOTOR will use Amazon
Bedrock to personalize the in-vehicle experience and to
automatically diagnose vehicle issues.
- Multinational telecom Axiata Group Berhad selected AWS as its
primary cloud provider to accelerate its digital transformation
across its operating companies by using AWS’s generative AI and ML
capabilities, including Amazon Bedrock and Amazon SageMaker. By the
end of 2024, Axiata will migrate more than 650 services spanning
customer service, enterprise resource planning, and human
resources, along with 80 ML applications.
- Energy company HD Hyundai Oilbank will transform its refining
and petrochemical business into a platform for eco-friendly energy
by going all-in on AWS, forecasting to reduce IT cost by 20%. The
company will launch an electric vehicle charging business on AWS,
optimize the refinery process using ML and generative AI with
Amazon Bedrock, deliver data-driven insights such as energy-demand
forecasting, and improve operations like inventory management.
- LG AI Research, the research hub of LG Group, launched an AI
image-to-text captioning solution on AWS at 66% lower cost and with
83% faster data processing than on-premises infrastructure. The new
captioning solution uses a multimodal foundation model (FM) built
using Amazon Elastic Compute Cloud (Amazon EC2) and Amazon
SageMaker that creates more accurate content than previous
solutions.
- Travel lifestyle brand Cathay selected AWS as its cloud
provider and migrated more than 50% of its legacy and critical
enterprise workloads to AWS, reducing IT infrastructure costs by
40%. The new Cathay Machine Learning Innovation Hub will help
automate operations, train employees on ML, and enhance air travel
experiences. Cathay’s cargo business is using Amazon SageMaker,
Amazon OpenSearch Service, and Amazon Redshift to build a revenue
management model to increase profitability and customer
loyalty.
- BYD, a manufacturer of new energy vehicles, selected AWS as its
preferred cloud provider to support the automaker’s global
business, innovate new services to enhance the driving experience,
and lower vehicle development costs.
Inventing on behalf of customers
Amazon is driven by a passion for invention across all of its
business areas. The company builds new products and services that
customers ask for, and also invents new ones that customers didn’t
know they wanted but make their lives or businesses better in some
meaningful way. For example, Amazon:
- Launched several new AI-powered innovations to help customers
shop for fashion with more confidence in Amazon’s store, including
personalized size recommendations using AI and ML to help customers
find what size fits them best, Fit Review Highlights with
personalized feedback from customers who wear the same size, and
improved size charts that make it easier for customers to find
relevant information in a more visually engaging way. Amazon also
developed a Fit Insights Tool to help brands and selling partners
better understand customer fit issues and incorporate feedback into
future designs and manufacturing.
- Announced Rufus, a new generative AI-powered conversational
shopping experience. Rufus is an expert shopping assistant trained
on Amazon’s product catalog and information from across the web to
answer customer questions on shopping needs, products, and
comparisons, make recommendations based on this context, and
facilitate product discovery. Customers can simply start typing or
speaking their questions into the search bar in the Amazon Shopping
app, or choose from a set of pre-populated questions, and Amazon
will provide answers via a chat dialog box to help customers make
more informed purchase decisions. Rufus launched in beta to a small
subset of customers and will progressively roll out to the rest of
Amazon’s U.S. customers in the coming weeks.
- Introduced new advertising tools to help brands connect with
customers and grow their businesses, including:
- A generative AI solution to help brands produce lifestyle
imagery that can improve the performance of their ads while also
making them more engaging.
- A sponsored TV offering to enable brands that sell in Amazon’s
U.S. store to run streaming TV ad campaigns with no minimum spend
on Amazon Freevee, Twitch, and third-party streaming services
through Fire TV apps.
- More than 15 new advertising capabilities, including enhanced
audience insights and advanced campaign planning, activation, and
optimization controls that help advertisers more efficiently reach
relevant audiences and drive meaningful business outcomes.
- Amazon Publisher Cloud, a tool built on AWS Clean Rooms’ secure
data collaboration environment, that enables publishers to analyze
first-party data together with Amazon Ads insights and offer custom
media buys for advertisers that improve campaign performance.
- Achieved a 100% success rate for Project Kuiper’s Protoflight
mission. The mission validated key technologies that underpin the
satellite broadband network, allowing Project Kuiper to scale
satellite production ahead of full-scale deployment beginning this
year. Project Kuiper also announced a private connectivity service
with AWS, which will allow customers to send data from remote
locations directly to the cloud without relying on public internet,
as well as a collaboration with Japan’s leading mobile network
provider, Nippon Telegraph and Telephone Corporation, and Asia’s
largest satellite operator, SKY Perfect JSAT Corporation.
- Held the 12th AWS re:Invent conference, which welcomed over
50,000 in-person attendees and more than 300,000 virtually, where
AWS announced new technologies and capabilities that help customers
of all sizes take advantage of generative AI, improve productivity,
and enhance their security posture. These include:
- Amazon Q, the coding companion from AWS. Q is an expert on
AWS—it writes code, debugs code, tests code, and does translations,
such as moving from an old version of Java to a new one. It can
also query AWS customers’ various data repositories (e.g.
intranets, wikis, and from over 40 different popular connectors to
data stored using Salesforce, Amazon S3, ServiceNow, Slack,
Atlassian, or Zendesk) to answer questions, summarize data, carry
on a conversation, and take action. Like all AWS services, Q was
designed with security and privacy in mind from the start, making
it easier for organizations to use generative AI safely. Q is the
most capable work assistant available and keeps getting
better.
- Expanded model choice and added new capabilities for Amazon
Bedrock, AWS’s fully-managed service for leveraging existing large
language models (LLMs) and customizing them with their own data—all
without sacrificing the leading security, reliability, and
operational performance that is synonymous with AWS. AWS is
continuing to rapidly iterate on Bedrock, recently delivering
capabilities including Guardrails to safeguard what questions
applications will answer, Knowledge Bases to expand models’
knowledge base with Retrieval Augmented Generation, Agents to
complete multi-step tasks, and Fine-Tuning to keep teaching and
refining models, all to help customers’ applications be higher
quality and offer better customer experiences. With Bedrock, AWS
offers a choice of high-performing FMs from leading AI companies
and added the latest new models from Anthropic, Cohere, Meta,
Stability AI, and its own Amazon Titan family of FMs, expanding
customers’ choice of industry-leading models to support a variety
of use cases. Customers want a service that makes this
experimenting and iterating simple, and this is what Bedrock does,
which is why customers are so excited about it.
- New capabilities in Amazon SageMaker to accelerate building,
training, and deploying LLMs and other FMs. Amazon SageMaker
HyperPod reduces time to train FMs by up to 40% by providing
purpose-built infrastructure for distributed training at scale.
Amazon SageMaker Inference reduces FM deployment costs by 50% on
average and latency by 20% on average by optimizing the use of
accelerators.
- The next generation of AWS chips optimized for the cloud, which
deliver advancements in price performance with each successive
generation. AWS Graviton4 chips provide up to 30% better compute
performance, 50% more cores, and 75% more memory bandwidth than
current generation AWS Graviton3 processors for a broad range of
customer workloads running in Amazon EC2.
- AWS Trainium2 chips, which are designed to deliver up to four
times faster ML training for generative AI applications and three
times more memory capacity compared to first generation AWS
Trainium chips.
- An expanded collaboration between AWS and NVIDIA to deliver the
most advanced infrastructure, software, and services to power
customers’ generative AI innovations. AWS will be the first cloud
provider to bring NVIDIA GH200 Grace Hopper Superchips with
multi-node NVLink technology to the cloud. NVIDIA and AWS are also
collaborating on Project Ceiba to design the world’s fastest
GPU-powered AI supercomputer, hosted by AWS for NVIDIA’s own
research and development team.
- The general availability of Amazon EC2 Capacity Blocks for ML,
a first-of-its-kind consumption model that enables customers to
reserve the amount of GPU capacity they need for short durations to
run their ML workloads, eliminating the need to hold onto GPUs when
not in use.
- The general availability of Amazon S3 Express One Zone, a
high-performance, single-zone Amazon S3 storage class and the
lowest latency cloud object storage available, delivering
single-digit millisecond data access for customers’ most
latency-sensitive applications, such as ML training and inference,
and media content creation.
- Four integrations that enable customers to make data access and
analysis faster, without building and managing complex extract,
transform, and load (ETL) data pipelines. Amazon Aurora PostgreSQL,
Amazon DynamoDB, and Amazon Relational Database Service (Amazon
RDS) for MySQL zero-ETL integrations with Amazon Redshift enable
customers to analyze data from multiple sources without building
and maintaining custom data pipelines. Amazon DynamoDB zero-ETL
integration with Amazon OpenSearch Service enables full-text and
vector search on operational data in near real time.
- Amazon Aurora Limitless Database, Amazon ElastiCache
Serverless, and AI-driven scaling and optimizations for Amazon
Redshift Serverless, which make it faster and easier for customers
to scale their data infrastructure to support their most demanding
use cases. These innovations build on AWS’s serverless technologies
to help customers manage data at any scale and simplify their
operations, so they can focus on innovating for their end users
without spending time and effort provisioning, managing, and
scaling their data infrastructure.
- Generative AI capabilities in Amazon Connect, AWS’s cloud
contact center that enables organizations to boost productivity,
save costs, and improve customer service experiences, such as
Amazon Q in Connect to assist agents with real-time responses and
recommended actions to help improve customer satisfaction, and
Amazon Connect Contact Lens to add AI-generated summaries from
customer conversations.
Empowering employees and delivery service partners
In addition to its focus on customers, Amazon strives to make
every day better for its employees and delivery service partners.
For example, the company:
- Launched Sequoia, a new robotics system that allows Amazon to
identify and store inventory up to 75% faster and, when integrated
with other technologies, will reduce order process time by up to
25%. Sequoia supports employee safety by collecting inventory into
totes and bringing the totes to newly designed ergonomic
workstations. From there, employees can lift the totes using their
power zone—mid-thigh to mid-chest—reducing how often they have to
reach or squat down to pick customer orders.
- Introduced Automated Vehicle Inspection (AVI), an AI-powered
technology that performs a full-vehicle inspection in seconds. The
system runs on AWS and can spot anomalies in Amazon delivery
vans—from tire deformities and undercarriage wear to bent or warped
body pieces—before they become on-road problems. AVI is available
in Canada, Germany, the UK, and the U.S.
- Announced a £170 million investment in UK hourly
employees—increasing the minimum starting pay by £1 per hour and
bringing the minimum starting hourly wage for frontline operations
employees in the UK to between £12.30 and £13.00 by April 2024. The
increase means Amazon’s minimum starting pay in the UK will have
increased 20% over two years, and 50% since 2018.
- Gave Amazon customers a way to show appreciation for delivery
drivers during the holiday season with the “Alexa, Thank My Driver”
promotion. Over a two-day period, customers thanked their drivers 2
million times, with drivers receiving $5 per thank you at no cost
to the customer.
Supporting communities and protecting the environment
Amazon believes that success and scale bring broad
responsibility to help the planet, future generations, and
communities. Amazon employees have passion for investing in these
areas, and a sampling of the efforts from this past quarter are
that Amazon:
- Released the company’s U.S. Community Impact Report, which
shows Amazon has delivered more than 33 million meals directly to
underserved families from 2020 to 2023; donated over 88 million
pounds of food from 2020 to 2023; provided STEM education,
literacy, and career exploration courses to 6,000 schools and
560,000 students during the 2022-2023 academic year; and provided
free training in cloud computing and technology to more than 13
million adults in the last year.
- Provided more than 75,000 relief items to communities impacted
by Hurricane Otis near Acapulco, Mexico, using Amazon’s global
logistics capabilities. AWS also supported nonprofit Help.NGO to
build an emergency connectivity network in Mexico to allow first
responders to map the impacted area, and offered cloud computing
resources to process mapping data collected on-site to assess storm
damage.
- Announced new renewable energy projects, including Amazon’s
first brownfield solar project, which will repurpose a previously
polluted Maryland coal mine site into a solar farm; 11 renewable
energy projects across Texas; Amazon’s first renewable energy
project in South Korea; and a 198-megawatt wind farm in India. In
2023, Amazon added 100 new solar and wind projects.
- Announced Amazon’s first U.S. fulfillment center to eliminate
plastic delivery packaging and replace it with paper packaging that
is curbside recyclable, part of a multi-year plan to convert U.S.
fulfillment centers to paper packaging. In addition, Amazon
announced that delivery packaging is now fully recyclable in
Europe.
- Announced that AWS more than doubled the amount of lower-carbon
concrete and steel used to build its data centers in 2023 compared
to 2022. AWS collaborates with local suppliers to increase the
availability of these materials across the construction industry.
Emissions released during building materials’ life cycle accounts
for around 11% of global carbon emissions.
- Published the AWS Economic Impact Study, which highlights that
AWS invested more than $108 billion in U.S. cloud infrastructure
from 2011 through 2022, contributed nearly $38 billion in estimated
gross domestic product to the U.S. economy, and supported an
estimated annual average of nearly 30,000 jobs in local communities
where AWS operates.
- Launched AI Ready to provide free AI skills training to 2
million people globally by 2025. The program includes eight free
AWS-designed AI courses and a new generative AI scholarship program
to help more than 50,000 high school and university students from
underserved and underrepresented communities gain AI skills.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of February 1, 2024, and are subject to substantial
uncertainty. Our results are inherently unpredictable and may be
materially affected by many factors, such as 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, the rate of growth of the
internet, online commerce, cloud services, and new and emerging
technologies, and the various factors detailed below.
First Quarter 2024 Guidance
- Net sales are expected to be between $138.0 billion and $143.5
billion, or to grow between 8% and 13% compared with first quarter
2023. This guidance 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, compared with $4.8 billion in first quarter 2023.
This guidance includes approximately $0.9 billion lower
depreciation expense due to an increase in the estimated useful
life of our servers beginning on January 1, 2024.
- This guidance assumes, among other things, that no additional
business acquisitions, restructurings, or legal settlements are
concluded.
A conference call will be webcast live today at 2:30 p.m.
PT/5:30 p.m. ET, and will be available for at least three months at
amazon.com/ir. This call will contain forward-looking statements
and other material information regarding the Company’s financial
and operating results.
These forward-looking statements are inherently difficult to
predict. Actual results and outcomes could differ materially for a
variety of reasons, including, in addition to the factors discussed
above, the amount that Amazon.com invests in new business
opportunities and the timing of those investments, the mix of
products and services sold to customers, the mix of net sales
derived from products as compared with services, the extent to
which we owe income or other taxes, competition, management of
growth, potential fluctuations in operating results, international
growth and expansion, the outcomes of claims, litigation,
government investigations, and other proceedings, fulfillment,
sortation, delivery, and data center optimization, risks of
inventory management, variability in demand, the degree to which
the Company enters into, maintains, and develops commercial
agreements, proposed and completed acquisitions and strategic
transactions, payments risks, and risks of fulfillment throughput
and productivity. Other risks and uncertainties include, among
others, risks related to new products, services, and technologies,
security breaches, system interruptions, government regulation and
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conditions and additional or unforeseen circumstances,
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AMAZON.COM, INC.
Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2023
2022
2023
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
35,178
$
50,081
$
36,477
$
54,253
OPERATING ACTIVITIES:
Net income (loss)
278
10,624
(2,722
)
30,425
Adjustments to reconcile net income (loss)
to net cash from operating activities:
Depreciation and amortization of property
and equipment and capitalized content costs, operating lease
assets, and other
12,685
13,820
41,921
48,663
Stock-based compensation
5,606
6,319
19,621
24,023
Non-operating expense (income), net
3,445
(339
)
16,966
(748
)
Deferred income taxes
(3,367
)
(1,464
)
(8,148
)
(5,876
)
Changes in operating assets and
liabilities:
Inventories
3,180
2,643
(2,592
)
1,449
Accounts receivable, net and other
(4,741
)
(7,447
)
(8,622
)
(8,348
)
Other assets
(4,047
)
(2,802
)
(13,275
)
(12,265
)
Accounts payable
9,852
10,888
2,945
5,473
Accrued expenses and other
5,777
6,594
(1,558
)
(2,428
)
Unearned revenue
505
3,629
2,216
4,578
Net cash provided by (used in) operating
activities
29,173
42,465
46,752
84,946
INVESTING ACTIVITIES:
Purchases of property and equipment
(16,592
)
(14,588
)
(63,645
)
(52,729
)
Proceeds from property and equipment sales
and incentives
1,152
1,235
5,324
4,596
Acquisitions, net of cash acquired,
non-marketable investments, and other
(831
)
(381
)
(8,316
)
(5,839
)
Sales and maturities of marketable
securities
5,683
1,568
31,601
5,627
Purchases of marketable securities
(233
)
(435
)
(2,565
)
(1,488
)
Net cash provided by (used in) investing
activities
(10,821
)
(12,601
)
(37,601
)
(49,833
)
FINANCING ACTIVITIES:
Common stock repurchased
—
—
(6,000
)
—
Proceeds from short-term debt, and
other
10,607
734
41,553
18,129
Repayments of short-term debt, and
other
(15,797
)
(6,338
)
(37,554
)
(25,677
)
Proceeds from long-term debt
8,235
—
21,166
—
Repayments of long-term debt
(1,257
)
(290
)
(1,258
)
(3,676
)
Principal repayments of finance leases
(1,640
)
(779
)
(7,941
)
(4,384
)
Principal repayments of financing
obligations
(62
)
(73
)
(248
)
(271
)
Net cash provided by (used in) financing
activities
86
(6,746
)
9,718
(15,879
)
Foreign currency effect on cash, cash
equivalents, and restricted cash
637
691
(1,093
)
403
Net increase (decrease) in cash, cash
equivalents, and restricted cash
19,075
23,809
17,776
19,637
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, END OF PERIOD
$
54,253
$
73,890
$
54,253
$
73,890
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of
capitalized interest
$
629
$
787
$
1,561
$
2,608
Cash paid for operating leases
2,365
2,766
8,633
10,453
Cash paid for interest on finance
leases
84
74
374
308
Cash paid for interest on financing
obligations
55
46
207
196
Cash paid for income taxes, net of
refunds
1,695
4,197
6,035
11,179
Assets acquired under operating leases
4,769
2,977
18,800
14,052
Property and equipment acquired under
finance leases, net of remeasurements and modifications
317
211
675
642
Property and equipment recognized during
the construction period of build-to-suit lease arrangements
310
49
3,187
357
Property and equipment derecognized after
the construction period of build-to-suit lease arrangements, with
the associated leases recognized as operating
1,851
162
5,158
1,374
AMAZON.COM, INC.
Consolidated Statements of
Operations
(in millions, except per share
data)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2023
2022
2023
Net product sales
$
70,531
$
76,703
$
242,901
$
255,887
Net service sales
78,673
93,258
271,082
318,898
Total net sales
149,204
169,961
513,983
574,785
Operating expenses:
Cost of sales
85,640
92,553
288,831
304,739
Fulfillment
23,103
26,095
84,299
90,619
Technology and infrastructure
20,814
22,038
73,213
85,622
Sales and marketing
12,818
12,902
42,238
44,370
General and administrative
3,333
3,010
11,891
11,816
Other operating expense (income), net
759
154
1,263
767
Total operating expenses
146,467
156,752
501,735
537,933
Operating income
2,737
13,209
12,248
36,852
Interest income
445
901
989
2,949
Interest expense
(694
)
(713
)
(2,367
)
(3,182
)
Other income (expense), net
(3,450
)
289
(16,806
)
938
Total non-operating income (expense)
(3,699
)
477
(18,184
)
705
Income (loss) before income taxes
(962
)
13,686
(5,936
)
37,557
Benefit (provision) for income taxes
1,227
(3,062
)
3,217
(7,120
)
Equity-method investment activity, net of
tax
13
—
(3
)
(12
)
Net income (loss)
$
278
$
10,624
$
(2,722
)
$
30,425
Basic earnings per share
$
0.03
$
1.03
$
(0.27
)
$
2.95
Diluted earnings per share
$
0.03
$
1.00
$
(0.27
)
$
2.90
Weighted-average shares used in
computation of earnings per
Basic
10,220
10,356
10,189
10,304
Diluted
10,308
10,610
10,189
10,492
AMAZON.COM, INC.
Consolidated Statements of
Comprehensive Income (Loss)
(in millions)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2023
2022
2023
Net income (loss)
$
278
$
10,624
$
(2,722
)
$
30,425
Other comprehensive income (loss):
Foreign currency translation adjustments,
net of tax of $(36), $(59), $100, and $(55)
2,075
1,765
(2,586
)
1,027
Available-for-sale debt securities:
Change in net unrealized gains (losses),
net of tax of $162, $(58), $159, and $(110)
272
192
(823
)
366
Less: reclassification adjustment for
losses (gains) included in “Other income (expense), net,” net of
tax of $0, $0, $0, and $(15)
281
2
298
50
Net change
553
194
(525
)
416
Other, net of tax of $0, $(1), $0, and
$(1)
—
4
—
4
Total other comprehensive income
(loss)
2,628
1,963
(3,111
)
1,447
Comprehensive income (loss)
$
2,906
$
12,587
$
(5,833
)
$
31,872
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2022
2023
2022
2023
North America
Net sales
$
93,363
$
105,514
$
315,880
$
352,828
Operating expenses
93,603
99,053
318,727
337,951
Operating income (loss)
$
(240
)
$
6,461
$
(2,847
)
$
14,877
International
Net sales
$
34,463
$
40,243
$
118,007
$
131,200
Operating expenses
36,691
40,662
125,753
133,856
Operating loss
$
(2,228
)
$
(419
)
$
(7,746
)
$
(2,656
)
AWS
Net sales
$
21,378
$
24,204
$
80,096
$
90,757
Operating expenses
16,173
17,037
57,255
66,126
Operating income
$
5,205
$
7,167
$
22,841
$
24,631
Consolidated
Net sales
$
149,204
$
169,961
$
513,983
$
574,785
Operating expenses
146,467
156,752
501,735
537,933
Operating income
2,737
13,209
12,248
36,852
Total non-operating income (expense)
(3,699
)
477
(18,184
)
705
Benefit (provision) for income taxes
1,227
(3,062
)
3,217
(7,120
)
Equity-method investment activity, net of
tax
13
—
(3
)
(12
)
Net income (loss)
$
278
$
10,624
$
(2,722
)
$
30,425
Segment Highlights:
Y/Y net sales growth (decline):
North America
13
%
13
%
13
%
12
%
International
(8
)
17
(8
)
11
AWS
20
13
29
13
Consolidated
9
14
9
12
Net sales mix:
North America
63
%
62
%
61
%
61
%
International
23
24
23
23
AWS
14
14
16
16
Consolidated
100
%
100
%
100
%
100
%
AMAZON.COM, INC.
Consolidated Balance
Sheets
(in millions, except per share
data)
(unaudited)
December 31, 2022
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
53,888
$
73,387
Marketable securities
16,138
13,393
Inventories
34,405
33,318
Accounts receivable, net and other
42,360
52,253
Total current assets
146,791
172,351
Property and equipment, net
186,715
204,177
Operating leases
66,123
72,513
Goodwill
20,288
22,789
Other assets
42,758
56,024
Total assets
$
462,675
$
527,854
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
79,600
$
84,981
Accrued expenses and other
62,566
64,709
Unearned revenue
13,227
15,227
Total current liabilities
155,393
164,917
Long-term lease liabilities
72,968
77,297
Long-term debt
67,150
58,314
Other long-term liabilities
21,121
25,451
Commitments and contingencies
Stockholders’ equity:
Preferred stock ($0.01 par value; 500
shares authorized; no shares issued or outstanding)
—
—
Common stock ($0.01 par value; 100,000
shares authorized; 10,757 and 10,898 shares issued; 10,242 and
10,383 shares outstanding)
108
109
Treasury stock, at cost
(7,837
)
(7,837
)
Additional paid-in capital
75,066
99,025
Accumulated other comprehensive income
(loss)
(4,487
)
(3,040
)
Retained earnings
83,193
113,618
Total stockholders’ equity
146,043
201,875
Total liabilities and stockholders’
equity
$
462,675
$
527,854
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except per share
data)
(unaudited)
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Y/Y %
Change
Cash Flows and Shares
Operating cash flow -- trailing twelve
months (TTM)
$
39,665
$
46,752
$
54,330
$
61,841
$
71,654
$
84,946
82%
Operating cash flow -- TTM Y/Y growth
(decline)
(27
)%
1
%
38
%
74
%
81
%
82
%
N/A
Purchases of property and equipment, net
of proceeds from sales and incentives -- TTM
$
59,351
$
58,321
$
57,649
$
53,963
$
50,220
$
48,133
(17)%
Principal repayments of finance leases --
TTM
$
8,561
$
7,941
$
6,544
$
5,705
$
5,245
$
4,384
(45)%
Principal repayments of financing
obligations -- TTM
$
233
$
248
$
226
$
244
$
260
$
271
9%
Equipment acquired under finance leases --
TTM (1)
$
868
$
299
$
285
$
269
$
239
$
310
4%
Principal repayments of all other finance
leases -- TTM (2)
$
706
$
670
$
625
$
631
$
694
$
683
2%
Free cash flow -- TTM (3)
$
(19,686
)
$
(11,569
)
$
(3,319
)
$
7,878
$
21,434
$
36,813
N/A
Free cash flow less principal repayments
of finance leases and financing obligations -- TTM (4)
$
(28,480
)
$
(19,758
)
$
(10,089
)
$
1,929
$
15,929
$
32,158
N/A
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations -- TTM (5)
$
(21,493
)
$
(12,786
)
$
(4,455
)
$
6,734
$
20,241
$
35,549
N/A
Common shares and stock-based awards
outstanding
10,597
10,627
10,625
10,794
10,792
10,788
2%
Common shares outstanding
10,198
10,242
10,258
10,313
10,330
10,383
1%
Stock-based awards outstanding
399
384
367
481
462
406
6%
Stock-based awards outstanding -- % of
common shares outstanding
3.9
%
3.8
%
3.6
%
4.7
%
4.5
%
3.9
%
N/A
Results of Operations
Worldwide (WW) net sales
$
127,101
$
149,204
$
127,358
$
134,383
$
143,083
$
169,961
14%
WW net sales -- Y/Y growth, excluding
F/X
19
%
12
%
11
%
11
%
11
%
13
%
N/A
WW net sales -- TTM
$
502,191
$
513,983
$
524,897
$
538,046
$
554,028
$
574,785
12%
WW net sales -- TTM Y/Y growth, excluding
F/X
12
%
13
%
13
%
13
%
12
%
12
%
N/A
Operating income
$
2,525
$
2,737
$
4,774
$
7,681
$
11,188
$
13,209
383%
F/X impact -- favorable
$
357
$
213
$
139
$
104
$
132
$
85
N/A
Operating income -- Y/Y growth (decline),
excluding F/X
(55
)%
(27
)%
26
%
128
%
338
%
379
%
N/A
Operating margin -- % of WW net sales
2.0
%
1.8
%
3.7
%
5.7
%
7.8
%
7.8
%
N/A
Operating income -- TTM
$
12,971
$
12,248
$
13,353
$
17,717
$
26,380
$
36,852
201%
Operating income -- TTM Y/Y growth
(decline), excluding F/X
(57
)%
(54
)%
(37
)%
10
%
99
%
197
%
N/A
Operating margin -- TTM % of WW net
sales
2.6
%
2.4
%
2.5
%
3.3
%
4.8
%
6.4
%
N/A
Net income
$
2,872
$
278
$
3,172
$
6,750
$
9,879
$
10,624
N/A
Net income per diluted share
$
0.28
$
0.03
$
0.31
$
0.65
$
0.94
$
1.00
N/A
Net income (loss) -- TTM
$
11,323
$
(2,722
)
$
4,294
$
13,072
$
20,079
$
30,425
N/A
Net income (loss) per diluted share --
TTM
$
1.10
$
(0.27
)
$
0.42
$
1.26
$
1.93
$
2.90
N/A
______________________________
(1)
For the twelve months ended December 31,
2022 and 2023, this amount relates to equipment included in
“Property and equipment acquired under finance leases, net of
remeasurements and modifications” of $675 million and $642
million.
(2)
For the twelve months ended December 31,
2022 and 2023, this amount relates to property included in
“Principal repayments of finance leases” of $7,941 million and
$4,384 million.
(3)
Free cash flow is cash flow from
operations reduced by “Purchases of property and equipment, net of
proceeds from sales and incentives.”
(4)
Free cash flow less principal repayments
of finance leases and financing obligations is free cash flow
reduced by “Principal repayments of finance leases” and “Principal
repayments of financing obligations.”
(5)
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations is free cash flow reduced by equipment
acquired under finance leases, which is included in “Property and
equipment acquired under finance leases, net of remeasurements and
modifications,” principal repayments of all other finance lease
liabilities, which is included in “Principal repayments of finance
leases,” and “Principal repayments of financing obligations.”
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions)
(unaudited)
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Y/Y %
Change
Segments
North America Segment:
Net sales
$
78,843
$
93,363
$
76,881
$
82,546
$
87,887
$
105,514
13%
Net sales -- Y/Y growth, excluding F/X
20
%
14
%
11
%
11
%
11
%
13
%
N/A
Net sales -- TTM
$
304,877
$
315,880
$
323,517
$
331,633
$
340,677
$
352,828
12%
Operating income (loss)
$
(412
)
$
(240
)
$
898
$
3,211
$
4,307
$
6,461
N/A
F/X impact -- favorable (unfavorable)
$
95
$
76
$
41
$
(7
)
$
(27
)
$
(13
)
N/A
Operating income (loss) -- Y/Y growth
(decline), excluding F/X
(158
)%
53
%
N/A
N/A
N/A
N/A
N/A
Operating margin -- % of North America net
sales
(0.5
)%
(0.3
)%
1.2
%
3.9
%
4.9
%
6.1
%
N/A
Operating income (loss) -- TTM
$
(2,813
)
$
(2,847
)
$
(381
)
$
3,457
$
8,176
$
14,877
N/A
Operating margin -- TTM % of North America
net sales
(0.9
)%
(0.9
)%
(0.1
)%
1.0
%
2.4
%
4.2
%
N/A
International Segment:
Net sales
$
27,720
$
34,463
$
29,123
$
29,697
$
32,137
$
40,243
17%
Net sales -- Y/Y growth, excluding F/X
12
%
5
%
9
%
10
%
11
%
13
%
N/A
Net sales -- TTM
$
120,816
$
118,007
$
118,371
$
121,003
$
125,420
$
131,200
11%
Operating loss
$
(2,466
)
$
(2,228
)
$
(1,247
)
$
(895
)
$
(95
)
$
(419
)
(81)%
F/X impact -- favorable (unfavorable)
$
(216
)
$
(331
)
$
(174
)
$
32
$
228
$
160
N/A
Operating loss -- Y/Y growth (decline),
excluding F/X
147
%
17
%
(16
)%
(48
)%
(87
)%
(74
)%
N/A
Operating margin -- % of International net
sales
(8.9
)%
(6.5
)%
(4.3
)%
(3.0
)%
(0.3
)%
(1.0
)%
N/A
Operating loss -- TTM
$
(7,145
)
$
(7,746
)
$
(7,712
)
$
(6,836
)
$
(4,465
)
$
(2,656
)
(66)%
Operating margin -- TTM % of International
net sales
(5.9
)%
(6.6
)%
(6.5
)%
(5.6
)%
(3.6
)%
(2.0
)%
N/A
AWS Segment:
Net sales
$
20,538
$
21,378
$
21,354
$
22,140
$
23,059
$
24,204
13%
Net sales -- Y/Y growth, excluding F/X
28
%
20
%
16
%
12
%
12
%
13
%
N/A
Net sales -- TTM
$
76,498
$
80,096
$
83,009
$
85,410
$
87,931
$
90,757
13%
Operating income
$
5,403
$
5,205
$
5,123
$
5,365
$
6,976
$
7,167
38%
F/X impact -- favorable (unfavorable)
$
478
$
468
$
272
$
79
$
(69
)
$
(62
)
N/A
Operating income -- Y/Y growth (decline),
excluding F/X
1
%
(10
)%
(26
)%
(8
)%
30
%
39
%
N/A
Operating margin -- % of AWS net sales
26.3
%
24.3
%
24.0
%
24.2
%
30.3
%
29.6
%
N/A
Operating income -- TTM
$
22,929
$
22,841
$
21,446
$
21,096
$
22,669
$
24,631
8%
Operating margin -- TTM % of AWS net
sales
30.0
%
28.5
%
25.8
%
24.7
%
25.8
%
27.1
%
N/A
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except employee
data)
(unaudited)
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Y/Y %
Change
Net Sales
Online stores (1)
$
53,489
$
64,531
$
51,096
$
52,966
$
57,267
$
70,543
9%
Online stores -- Y/Y growth, excluding
F/X
13
%
2
%
3
%
5
%
6
%
8
%
N/A
Physical stores (2)
$
4,694
$
4,957
$
4,895
$
5,024
$
4,959
$
5,152
4%
Physical stores -- Y/Y growth, excluding
F/X
10
%
6
%
7
%
7
%
6
%
4
%
N/A
Third-party seller services (3)
$
28,666
$
36,339
$
29,820
$
32,332
$
34,342
$
43,559
20%
Third-party seller services -- Y/Y growth,
excluding F/X
23
%
24
%
20
%
18
%
18
%
19
%
N/A
Advertising services (4)
$
9,548
$
11,557
$
9,509
$
10,683
$
12,060
$
14,654
27%
Advertising services -- Y/Y growth,
excluding F/X
30
%
23
%
23
%
22
%
25
%
26
%
N/A
Subscription services (5)
$
8,903
$
9,189
$
9,657
$
9,894
$
10,170
$
10,488
14%
Subscription services -- Y/Y growth,
excluding F/X
14
%
17
%
17
%
14
%
13
%
13
%
N/A
AWS
$
20,538
$
21,378
$
21,354
$
22,140
$
23,059
$
24,204
13%
AWS -- Y/Y growth, excluding F/X
28
%
20
%
16
%
12
%
12
%
13
%
N/A
Other (6)
$
1,263
$
1,253
$
1,027
$
1,344
$
1,226
$
1,361
9%
Other -- Y/Y growth (decline), excluding
F/X
168
%
80
%
57
%
26
%
(3
)%
8
%
N/A
Stock-based Compensation
Expense
Cost of sales
$
190
$
208
$
165
$
251
$
193
$
227
9%
Fulfillment
$
727
$
757
$
603
$
932
$
732
$
823
9%
Technology and infrastructure
$
3,036
$
3,126
$
2,574
$
4,043
$
3,284
$
3,533
13%
Sales and marketing
$
1,128
$
1,092
$
993
$
1,303
$
1,111
$
1,216
11%
General and administrative
$
475
$
423
$
413
$
598
$
509
$
520
23%
Total stock-based compensation expense
$
5,556
$
5,606
$
4,748
$
7,127
$
5,829
$
6,319
13%
Other
WW shipping costs
$
19,942
$
24,714
$
19,937
$
20,418
$
21,799
$
27,326
11%
WW shipping costs -- Y/Y growth
10
%
4
%
2
%
6
%
9
%
11
%
N/A
WW paid units -- Y/Y growth (7)
11
%
8
%
8
%
9
%
9
%
12
%
N/A
WW seller unit mix -- % of WW paid units
(7)
58
%
59
%
59
%
60
%
60
%
61
%
N/A
Employees (full-time and part-time;
excludes contractors & temporary personnel)
1,544,000
1,541,000
1,465,000
1,461,000
1,500,000
1,525,000
(1)%
Employees (full-time and part-time;
excludes contractors & temporary personnel) -- Y/Y growth
(decline)
5
%
(4
)%
(10
)%
(4
)%
(3
)%
(1
)%
N/A
________________________
(1)
Includes product sales and digital media
content where we record revenue gross. We leverage our retail
infrastructure to offer a wide selection of consumable and durable
goods that includes media products available in both a physical and
digital format, such as books, videos, games, music, and software.
These product sales include digital products sold on a
transactional basis. Digital media content subscriptions that
provide unlimited viewing or usage rights are included in
“Subscription services.”
(2)
Includes product sales where our customers
physically select items in a store. Sales to customers who order
goods online for delivery or pickup at our physical stores are
included in “Online stores.”
(3)
Includes commissions and any related
fulfillment and shipping fees, and other third-party seller
services.
(4)
Includes sales of advertising services to
sellers, vendors, publishers, authors, and others, through programs
such as sponsored ads, display, and video advertising.
(5)
Includes annual and monthly fees
associated with Amazon Prime memberships, as well as digital video,
audiobook, digital music, e-book, and other non-AWS subscription
services.
(6)
Includes sales related to various other
offerings, such as certain licensing and distribution of video
content, health care services, and shipping services, and our
co-branded credit card agreements.
(7)
Excludes the impact of Whole Foods
Market.
Amazon.com, Inc. Certain
Definitions
Customer Accounts
- References to customers mean customer accounts established when
a customer places an order through one of our stores. Customer
accounts exclude certain customers, including customers associated
with certain of our acquisitions, Amazon Payments customers, AWS
customers, and the customers of select companies with whom we have
a technology alliance or marketing and promotional relationship.
Customers are considered active when they have placed an order
during the preceding twelve-month period.
Seller Accounts
- References to sellers means seller accounts, which are
established when a seller receives an order from a customer
account. Sellers are considered active when they have received an
order from a customer during the preceding twelve-month
period.
AWS Customers
- References to AWS customers mean unique AWS customer accounts,
which are unique customer account IDs that are eligible to use AWS
services. This includes AWS accounts in the AWS free tier. Multiple
users accessing AWS services via one account ID are counted as a
single account. Customers are considered active when they have had
AWS usage activity during the preceding one-month period.
Units
- References to units mean physical and digital units sold (net
of returns and cancellations) by us and sellers in our stores as
well as Amazon-owned items sold in other stores. Units sold are
paid units and do not include units associated with AWS, certain
acquisitions, certain subscriptions, rental businesses, or
advertising businesses, or Amazon gift cards.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131856248/en/
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