AMZN Q1 2024 Earnings

Call Details

• Call Title: Amazon.com, Inc. Q1 2024 Earnings Call
• Date: April 30, 2024 at 9:30 PM UTC
• Management Team:
  • Andy Jassy (Chief Executive Officer)
  • Brian Olsavsky (Chief Financial Officer)

Call Summary

Financial Performance

• Worldwide revenue was $143.3 billion, up 13% year-over-year excluding the impact of foreign exchange.
• Worldwide operating income was $15.3 billion, which represented the highest quarterly income ever and was up 221% year-over-year.
• Trailing 12-month free cash flow adjusted for equipment finance leases was $48.8 billion, which increased by $53.2 billion year-over-year.
• North America revenue was $86.3 billion, which increased 12% year-over-year.
• International revenue was $31.9 billion, which increased 11% year-over-year excluding the impact of foreign exchange.
• Third-party seller services revenue increased 16% year-over-year excluding the impact of foreign exchange, and third-party seller unit mix was 61%, up 200 basis points year-over-year.
• AWS revenue was $25.0 billion, which increased 17% year-over-year and put AWS above a $100 billion annualized revenue run rate.

Guidance

• Q2 net sales are expected between $144 billion and $149 billion, representing growth of 7% to 11% versus Q2 2023.
• Q2 operating income is expected to be between $10 billion and $14 billion.
• Q2 guidance anticipates an unfavorable foreign exchange impact of approximately 60 basis points.
• Q1 experienced a leap year benefit of approximately 120 basis points to year-over-year revenue growth and a Q1 FX headwind of $700 million or 50 basis points.
• Guidance includes a seasonal step-up in stock-based compensation expense driven by the timing of the annual compensation cycle.
• The company stated that guidance reflects order trends seen as of the call and that actual results could differ materially.
• The call highlighted Europe as a region with weaker consumer spending that management is monitoring as a guidance sensitivity.