E-commerce and tech giant Amazon reported better-than-expected earnings for its fourth quarter (Q4) ended December 31, 2024. In terms of numbers, net sales increased 10% to $187.8 billion (slightly exceeding Wall Street expectations of $187.30 billion), compared to $170.0 Bn in Q4 2023.
Meanwhile, operating income rose to $21.2 billion in the fourth quarter, up from around $13.2 billion in Q4 2023. Net income also increased to $20.0 billion, or $1.86 per diluted share, surpassing the expected $1.49 per share. Notably, for the same period last year, the company recorded a net income of $10.6 billion.
“The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners, and employees who helped make it so,” said Andy Jassy, President and CEO of Amazon.
Coming to the cloud division, in Q4 2024, the AWS segment saw significant year-over-year growth, with sales rising 19% to reach $28.8 billion. The operating income for the AWS segment also showed a strong improvement, increasing to $10.6 billion, compared to $7.2 billion in Q4 2023.
In the holiday quarter, Amazon saw advertising revenue climb 18%, reaching $17.3 billion. Prime Video benefited from its long-term deal with the NFL, with Black Friday becoming a new day for football, further boosting the platform’s presence.
Looking at the full year of 2024, Amazon reported a solid increase in net sales, which grew by 11% to $638.0 billion. Operating income for the full year surged to $68.6 billion, more than double the $36.9 billion recorded in 2023. In terms of profitability, net income for 2024 nearly doubled, reaching $59.2 billion, or $5.53 per diluted share. AWS continued its impressive performance for the year, with annual sales increasing 19% to $107.6 billion.
For the current first quarter (Q1 2025), the company expects sales to increase by 5% to 9% compared to the same quarter from the previous year. This means Amazon anticipates sales to be between $151 billion and $155.5 billion. Interestingly, Since the first quarter of this year doesn’t include the extra day from Leap Year, the company estimates this will result in a $1.5 billion reduction in sales or earnings.
Meanwhile, the company has noted that foreign exchange rates will negatively affect their earnings. They are projecting a loss of approximately $2.1 billion due to unfavourable changes in currency exchange rates. Amazon’s financial results come at a time when the company is expanding its presence in the financial services sector in India. This expansion includes the acquisition of Axio (a fintech company that specializes in consumer lending) for $150 million.
