Q4 2024 Amazon.com Inc Earnings Call Transcript
Key Points
- Amazon.com Inc (AMZN) reported a 10% year-over-year increase in revenue, reaching $187.8 billion, despite foreign exchange headwinds.
- Operating income rose by 61% year-over-year to $21.2 billion, marking the largest operating income quarter ever for the company.
- Amazon's advertising revenue grew 18% year-over-year, reaching $17.3 billion, indicating strong growth in this segment.
- AWS achieved a 19% year-over-year growth, with an annualized revenue run rate of $115 billion, showcasing its continued expansion.
- The company has successfully reduced its global cost to serve on a per unit basis for the second consecutive year, while increasing delivery speed and improving safety.
- Foreign exchange rates posed a $900 million headwind in the quarter, impacting revenue growth.
- AWS growth is currently moderated by supply chain constraints, including chip shortages and power limitations.
- The company anticipates a decrease in full-year 2025 operating income by approximately $400 million due to changes in the useful life of certain assets.
- Amazon is facing increased competition in the AI space, with the need to invest heavily in AI infrastructure impacting short-term margins.
- The company is experiencing fluctuations in AWS operating margins, which have varied significantly over the past two years.
Thank you for standing by. Good day, everyone, and welcome to the Amazon.com fourth-quarter 2024 financial results teleconference. (Operator Instructions) Today's call is being recorded. And for opening remarks, I will be turning the call over to the Vice President of Investor Relations, Dave Fildes. Thank you, sir. Please go ahead.
Hello, and welcome to our Q4 2024 financial results conference call. Joining us today to answer your questions is Andy Jassy, our CEO; and Brian Olsavsky, our CFO.
As you listen to today's conference call, we encourage you to have our press release in front of you, which includes our financial results as well as metrics and commentary on the quarter. Please note, unless otherwise stated, all comparisons in this call will be against our results for the comparable period of 2023.
Our comments and responses to your questions reflect management's views as of today, February 6, 2025, only and will include forward-looking statements. Actual results may
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