EX-99.1 2 amzn-20240630xex991.htm EX-99.1 Document

Exhibit 99.1
 amazonlogorgba09.jpg
AMAZON.COM ANNOUNCES SECOND QUARTER RESULTS

SEATTLE—(BUSINESS WIRE) August 1, 2024—Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its second quarter ended June 30, 2024.
•Net sales increased 10% to $148.0 billion in the second quarter, compared with $134.4 billion in second quarter 2023. Excluding the $1.0 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 11% compared with second quarter 2023.
•North America segment sales increased 9% year-over-year to $90.0 billion.
•International segment sales increased 7% year-over-year to $31.7 billion, or increased 10% excluding changes in foreign exchange rates.
•AWS segment sales increased 19% year-over-year to $26.3 billion.
•Operating income increased to $14.7 billion in the second quarter, compared with $7.7 billion in second quarter 2023.
•North America segment operating income was $5.1 billion, compared with operating income of $3.2 billion in second quarter 2023.
•International segment operating income was $0.3 billion, compared with an operating loss of $0.9 billion in second quarter 2023.
•AWS segment operating income was $9.3 billion, compared with operating income of $5.4 billion in second quarter 2023.
•Net income increased to $13.5 billion in the second quarter, or $1.26 per diluted share, compared with $6.7 billion, or $0.65 per diluted share, in second quarter 2023.
•Second quarter 2024 net income includes a pre-tax valuation gain of $0.4 billion included in non-operating income (expense) from the common stock investment in Rivian Automotive, Inc., compared to a pre-tax valuation gain of $0.2 billion from the investment in second quarter 2023.
•Operating cash flow increased 75% to $108.0 billion for the trailing twelve months, compared with $61.8 billion for the trailing twelve months ended June 30, 2023.
•Free cash flow increased to $53.0 billion for the trailing twelve months, compared with $7.9 billion for the trailing twelve months ended June 30, 2023.
•Free cash flow less principal repayments of finance leases and financing obligations increased to $49.6 billion for the trailing twelve months, compared with $1.9 billion for the trailing twelve months ended June 30, 2023.
•Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $51.4 billion for the trailing twelve months, compared with $6.7 billion for the trailing twelve months ended June 30, 2023.
“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” said Andy Jassy, Amazon President & CEO. “As companies continue to modernize their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers’ top choice as we have much broader functionality, superior security and operational performance, a larger partner ecosystem, and AI capabilities like SageMaker for model builders, Bedrock for those leveraging frontier models, Trainium for those where the cost of compute for training and inference matters, and Q for those wanting the most capable GenAI assistant for not just coding, but also software development and business integration.”



Some other highlights since the company’s last earnings announcement include that Amazon:
•Held its 10th Prime Day, the biggest Prime Day shopping event yet.
•Delivered to Prime members at its fastest speeds ever in the first half of the year.
•Expanded selection, including brands like Aéropostale, Bumble and bumble, and Kiehl’s.
•Announced that U.S. Prime members can enjoy a Grubhub+ membership worth $120 a year.
•Launched multiple AI-powered features for consumers, including shopping assistant Rufus for all U.S. mobile customers, playlist generator Maestro for Amazon Music, and a new search experience for Fire TV.
•Launched Amazon’s Stores business in South Africa with same and next-day delivery.
•Expanded Amazon Pharmacy’s RxPass program, which now offers Prime members on Medicare unlimited consumption of 60 broadly-used prescription medications for just $5 a month.
•Released 19 films and series from Amazon MGM Studios, including:
•Fallout, the second most watched Original title worldwide ever on Prime Video during its launch.
•Season 4 of The Boys, reaching No. 1 on Prime Video in over 165 countries in its first two weeks.
•The Idea of You, attracting ~50 million viewers in its first two weeks on Prime Video.
•Earned 62 Primetime Emmy Award nominations, including 17 for Fallout and 16 for Mr. and Mrs. Smith.
•Secured expansive streaming rights for the NBA for 11 seasons, starting in 2025-26.
•Became the exclusive home of Monday Night National Hockey League games in Canada.
•Launched Anthropic Claude 3.5 Sonnet, Meta Llama 3.1, and Mistral Large 2 models in Amazon Bedrock.
•Shared that companies like AXA, DoorDash, Nasdaq, Rocket Insurance, SAP, Thomson Reuters, Workday, WPP, and Zendesk announced new applications built on Bedrock.
•Delivered new AWS Graviton4-based compute instances, providing up to 30% better price-performance than the industry-leading AWS Graviton3 instances.
•Signed new AWS agreements with Commonwealth Bank of Australia, Databricks, Discover Financial Services, Eli Lilly and Company, Experian, GE HealthCare, NetApp, Scopely, ServiceNow, Shutterfly, and many others—as well as AI startups Perplexity, H Company, and Observea.
•Announced an AUD $2 billion strategic partnership with the Australian Government to provide a “Top Secret” AWS Cloud to enhance the nation’s defense and intelligence capabilities.
•Added Austin and Miami to where self-driving robotaxi Zoox is deploying its test fleet on public roads.
•Ranked No. 2 on LinkedIn’s Top Companies list and No. 1 in the technology sector.
•Announced that all electricity consumed by Amazon’s operations, including its data centers, was matched with 100% renewable energy in 2023.
•Replaced 95% of plastic air pillows in Amazon’s delivery packaging in North America with paper filler.
•Announced an additional $1.4 billion commitment to Amazon’s Housing Equity Fund for affordable homes.
For additional highlights from the quarter, visit aboutamazon.com/q2-2024-earnings.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s expectations as of August 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.


Third Quarter 2024 Guidance
•Net sales are expected to be between $154.0 billion and $158.5 billion, or to grow between 8% and 11% compared with third quarter 2023. This guidance anticipates an unfavorable impact of approximately 90 basis points from foreign exchange rates.
•Operating income is expected to be between $11.5 billion and $15.0 billion, compared with $11.2 billion in third quarter 2023.
•This guidance assumes, among other things, that no additional business acquisitions, restructurings, or legal settlements are concluded.
Conference Call Information
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.
Forward-Looking Statements
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 taxation, and fraud. In addition, global economic and geopolitical conditions and additional or unforeseen circumstances, developments, or events may give rise to or amplify many of these risks. More information about factors that potentially could affect Amazon.com’s financial results is included in Amazon.com’s filings with the Securities and Exchange Commission (“SEC”), including its most recent Annual Report on Form 10-K and subsequent filings.
Additional Information
Our investor relations website is amazon.com/ir and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, corporate governance information (including our Code of Business Conduct and Ethics), and select press releases, which may contain material information about us, and you may subscribe to be notified of new information posted to this site.
About Amazon
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Amazon strives to be Earth’s Most Customer-Centric Company, Earth’s Best Employer, and Earth’s Safest Place to Work. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and The Climate Pledge are some of the things pioneered by Amazon. For more information, visit amazon.com/about and follow @AmazonNews.



AMAZON.COM, INC.
Consolidated Statements of Cash Flows
(in millions)
(unaudited) 
  
Three Months Ended
June 30,		Six Months Ended
June 30,		Twelve Months Ended
June 30,
 202320242023202420232024
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD$49,734 $73,332 $54,253 $73,890 $37,700 $50,067 
OPERATING ACTIVITIES:
Net income6,750 13,485 9,922 23,916 13,072 44,419 
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization of property and equipment and capitalized content costs, operating lease assets, and other11,589 12,038 22,712 23,722 45,724 49,673 
Stock-based compensation7,127 6,722 11,875 11,683 23,037 23,831 
Non-operating expense (income), net47 (95)581 2,639 2,754 1,310 
Deferred income taxes(2,744)(785)(3,216)(1,723)(7,408)(4,383)
Changes in operating assets and liabilities:
Inventories(2,373)(3,085)(2,002)(1,309)1,910 2,142 
Accounts receivable, net and other(2,041)(2,209)2,683 1,475 (2,686)(9,556)
Other assets(3,126)(3,055)(6,329)(5,756)(14,542)(11,692)
Accounts payable3,029 6,005 (8,235)(5,277)391 8,431 
Accrued expenses and other(1,938)(4,147)(7,701)(7,075)(1,944)(1,802)
Unearned revenue156 407 974 1,975 1,533 5,579 
Net cash provided by (used in) operating activities16,476 25,281 21,264 44,270 61,841 107,952 
INVESTING ACTIVITIES:
Purchases of property and equipment(11,455)(17,620)(25,662)(32,545)(58,632)(59,612)
Proceeds from property and equipment sales and incentives1,043 1,227 2,180 2,217 4,669 4,633 
Acquisitions, net of cash acquired, non-marketable investments, and other(316)(571)(3,829)(3,925)(5,545)(5,935)
Sales and maturities of marketable securities1,551 3,265 2,666 4,657 8,906 7,618 
Purchases of marketable securities(496)(8,439)(834)(10,404)(1,306)(11,058)
Net cash provided by (used in) investing activities(9,673)(22,138)(25,479)(40,000)(51,908)(64,354)
FINANCING ACTIVITIES:
Proceeds from short-term debt, and other4,399 525 17,179 863 40,124 1,813 
Repayments of short-term debt, and other(7,641)(229)(11,244)(633)(34,957)(15,066)
Proceeds from long-term debt— — — — 8,342 — 
Repayments of long-term debt(2,000)(4,169)(3,386)(4,499)(4,643)(4,789)
Principal repayments of finance leases(1,220)(538)(2,600)(1,308)(5,705)(3,092)
Principal repayments of financing obligations(77)(79)(134)(169)(244)(306)
Net cash provided by (used in) financing activities(6,539)(4,490)(185)(5,746)2,917 (21,440)
Foreign currency effect on cash, cash equivalents, and restricted cash69 (312)214 (741)(483)(552)
Net increase (decrease) in cash, cash equivalents, and restricted cash333 (1,659)(4,186)(2,217)12,367 21,606 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD$50,067 $71,673 $50,067 $71,673 $50,067 $71,673 
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt, net of capitalized interest$954 $680 $1,356 $949 $2,289 $2,201 
Cash paid for operating leases2,528 2,844 4,995 6,176 9,173 11,634 
Cash paid for interest on finance leases77 72 158 146 330 296 
Cash paid for interest on financing obligations41 50 100 114 194 210 
Cash paid for income taxes, net of refunds3,735 5,700 4,354 6,158 6,791 12,983 
Assets acquired under operating leases4,104 3,911 7,730 7,664 19,254 13,986 
Property and equipment acquired under finance leases, net of remeasurements and modifications240 181 248 223 696 617 
Property and equipment recognized during the construction period of build-to-suit lease arrangements84 31 215 68 1,051 210 
Property and equipment derecognized after the construction period of build-to-suit lease arrangements, with the associated leases recognized as operating— — 720 — 4,766 654 


AMAZON.COM, INC.
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
  
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202420232024
Net product sales$59,032 $61,569 $116,013 $122,484 
Net service sales75,351 86,408 145,728 168,806 
Total net sales134,383 147,977 261,741 291,290 
Operating expenses:
Cost of sales69,373 73,785 137,164 146,418 
Fulfillment21,305 23,566 42,210 45,883 
Technology and infrastructure21,931 22,304 42,381 42,728 
Sales and marketing10,745 10,512 20,917 20,174 
General and administrative3,202 3,041 6,245 5,783 
Other operating expense (income), net146 97 369 325 
Total operating expenses126,702 133,305 249,286 261,311 
Operating income7,681 14,672 12,455 29,979 
Interest income661 1,180 1,272 2,173 
Interest expense(840)(589)(1,663)(1,233)
Other income (expense), net61 (18)(382)(2,691)
Total non-operating income (expense)(118)573 (773)(1,751)
Income before income taxes7,563 15,245 11,682 28,228 
Provision for income taxes(804)(1,767)(1,752)(4,234)
Equity-method investment activity, net of tax(9)7 (8)(78)
Net income$6,750 $13,485 $9,922 $23,916 
Basic earnings per share$0.66 $1.29 $0.97 $2.30 
Diluted earnings per share$0.65 $1.26 $0.95 $2.24 
Weighted-average shares used in computation of earnings per share:
Basic10,285 10,447 10,268 10,420 
Diluted10,449 10,708 10,398 10,689 


AMAZON.COM, INC.
Consolidated Statements of Comprehensive Income
(in millions)
(unaudited)
  
Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202420232024
Net income$6,750 $13,485 $9,922 $23,916 
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax of $(22), $58, $(32), and $88264 (637)650 (1,733)
Available-for-sale debt securities:
Change in net unrealized gains (losses), net of tax of $(5), $(69), $(34), and $(227)17 241 112 777 
Less: reclassification adjustment for losses included in “Other income (expense), net,” net of tax of $(5), $(1), $(15), and $(1)12 3 45 4 
Net change29 244 157 781 
Other, net of tax of $0, $(1), $0, and $(2)— (2)— (1)
Total other comprehensive income (loss)293 (395)807 (953)
Comprehensive income$7,043 $13,090 $10,729 $22,963 


AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited) 
  
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202420232024
North America
Net sales$82,546 $90,033 $159,427 $176,374 
Operating expenses79,335 84,968 155,318 166,326 
Operating income$3,211 $5,065 $4,109 $10,048 
International
Net sales$29,697 $31,663 $58,820 $63,598 
Operating expenses30,592 31,390 60,962 62,422 
Operating income (loss)$(895)$273 $(2,142)$1,176 
AWS
Net sales$22,140 $26,281 $43,494 $51,318 
Operating expenses16,775 16,947 33,006 32,563 
Operating income$5,365 $9,334 $10,488 $18,755 
Consolidated
Net sales$134,383 $147,977 $261,741 $291,290 
Operating expenses126,702 133,305 249,286 261,311 
Operating income7,681 14,672 12,455 29,979 
Total non-operating income (expense)(118)573 (773)(1,751)
Provision for income taxes(804)(1,767)(1,752)(4,234)
Equity-method investment activity, net of tax(9)7 (8)(78)
Net income$6,750 $13,485 $9,922 $23,916 
Segment Highlights:
Y/Y net sales growth:
North America11 %9 %11 %11 %
International10 7 5 8 
AWS12 19 14 18 
Consolidated11 10 10 11 
Net sales mix:
North America61 %61 %61 %60 %
International22 21 22 22 
AWS17 18 17 18 
Consolidated100 %100 %100 %100 %


AMAZON.COM, INC.
Consolidated Balance Sheets
(in millions, except per share data)
 (unaudited)
December 31, 2023June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents$73,387 $71,178 
Marketable securities13,393 17,914 
Inventories33,318 34,109 
Accounts receivable, net and other52,253 50,106 
Total current assets172,351 173,307 
Property and equipment, net204,177 220,717 
Operating leases72,513 74,575 
Goodwill22,789 22,879 
Other assets56,024 63,340 
Total assets$527,854 $554,818 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$84,981 $81,817 
Accrued expenses and other64,709 60,351 
Unearned revenue15,227 16,004 
Total current liabilities164,917 158,172 
Long-term lease liabilities77,297 78,084 
Long-term debt58,314 54,889 
Other long-term liabilities25,451 27,226 
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; 10,898 and 11,005 shares issued; 10,383 and 10,490 shares outstanding)
109 110 
Treasury stock, at cost(7,837)(7,837)
Additional paid-in capital99,025 110,633 
Accumulated other comprehensive income (loss)(3,040)(3,993)
Retained earnings113,618 137,534 
Total stockholders’ equity201,875 236,447 
Total liabilities and stockholders’ equity$527,854 $554,818 



AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except per share data)
(unaudited)
Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Y/Y %
Change
Cash Flows and Shares
Operating cash flow -- trailing twelve months (TTM)$54,330 $61,841 $71,654 $84,946 $99,147 $107,952 75 %
Operating cash flow -- TTM Y/Y growth38 %74 %81 %82 %82 %75 %N/A
Purchases of property and equipment, net of proceeds from sales and incentives -- TTM$57,649 $53,963 $50,220 $48,133 $48,998 $54,979 2 %
Principal repayments of finance leases -- TTM$6,544 $5,705 $5,245 $4,384 $3,774 $3,092 (46)%
Principal repayments of financing obligations -- TTM$226 $244 $260 $271 $304 $306 25 %
Equipment acquired under finance leases -- TTM (1)$285 $269 $239 $310 $306 $425 58 %
Principal repayments of all other finance leases -- TTM (2)$625 $631 $694 $683 $761 $794 26 %
Free cash flow -- TTM (3)$(3,319)$7,878 $21,434 $36,813 $50,149 $52,973 572 %
Free cash flow less principal repayments of finance leases and financing obligations -- TTM (4)$(10,089)$1,929 $15,929 $32,158 $46,071 $49,575 N/A
Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations -- TTM (5)$(4,455)$6,734 $20,241 $35,549 $48,778 $51,448 664 %
Common shares and stock-based awards outstanding10,625 10,794 10,792 10,788 10,788 10,871 1 %
Common shares outstanding10,258 10,313 10,330 10,383 10,403 10,490 2 %
Stock-based awards outstanding367 481 462 406 385 381 (21)%
Stock-based awards outstanding -- % of common shares outstanding3.6 %4.7 %4.5 %3.9 %3.7 %3.6 %N/A
Results of Operations
Worldwide (WW) net sales$127,358 $134,383 $143,083 $169,961 $143,313 $147,977 10 %
WW net sales -- Y/Y growth, excluding F/X11 %11 %11 %13 %13 %11 %N/A
WW net sales -- TTM$524,897 $538,046 $554,028 $574,785 $590,740 $604,334 12 %
WW net sales -- TTM Y/Y growth, excluding F/X13 %13 %12 %12 %12 %12 %N/A
Operating income$4,774 $7,681 $11,188 $13,209 $15,307 $14,672 91 %
F/X impact -- favorable$139 $104 $132 $85 $72 $29 N/A
Operating income -- Y/Y growth, excluding F/X26 %128 %338 %379 %219 %91 %N/A
Operating margin -- % of WW net sales3.7 %5.7 %7.8 %7.8 %10.7 %9.9 %N/A
Operating income -- TTM$13,353 $17,717 $26,380 $36,852 $47,385 $54,376 207 %
Operating income -- TTM Y/Y growth (decline), excluding F/X(37)%10 %99 %197 %252 %205 %N/A
Operating margin -- TTM % of WW net sales2.5 %3.3 %4.8 %6.4 %8.0 %9.0 %N/A
Net income$3,172 $6,750 $9,879 $10,624 $10,431 $13,485 100 %
Net income per diluted share$0.31 $0.65 $0.94 $1.00 $0.98 $1.26 95 %
Net income -- TTM$4,294 $13,072 $20,079 $30,425 $37,684 $44,419 240 %
Net income per diluted share -- TTM$0.42 $1.26 $1.93 $2.90 $3.56 $4.18 229 %
______________________________
(1)For the twelve months ended June 30, 2023 and 2024, this amount relates to equipment included in “Property and equipment acquired under finance leases, net of remeasurements and modifications” of $696 million and $617 million.
(2)For the twelve months ended June 30, 2023 and 2024, this amount relates to property included in “Principal repayments of finance leases” of $5,705 million and $3,092 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)
Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Y/Y %
Change
Segments
North America Segment:
  Net sales$76,881 $82,546 $87,887 $105,514 $86,341 $90,033 9 %
  Net sales -- Y/Y growth, excluding F/X11 %11 %11 %13 %12 %9 %N/A
  Net sales -- TTM$323,517 $331,633 $340,677 $352,828 $362,288 $369,775 12 %
  Operating income$898 $3,211 $4,307 $6,461 $4,983 $5,065 58 %
  F/X impact -- favorable (unfavorable)$41 $(7)$(27)$(13)$8 $8 N/A
  Operating income -- Y/Y growth, excluding F/XN/AN/AN/AN/A454 %58 %N/A
  Operating margin -- % of North America net sales1.2 %3.9 %4.9 %6.1 %5.8 %5.6 %N/A
  Operating income (loss) -- TTM$(381)$3,457 $8,176 $14,877 $18,962 $20,816 502 %
  Operating margin -- TTM % of North America net sales(0.1)%1.0 %2.4 %4.2 %5.2 %5.6 %N/A
International Segment:
  Net sales$29,123 $29,697 $32,137 $40,243 $31,935 $31,663 7 %
  Net sales -- Y/Y growth, excluding F/X9 %10 %11 %13 %11 %10 %N/A
  Net sales -- TTM$118,371 $121,003 $125,420 $131,200 $134,012 $135,978 12 %
  Operating income (loss)$(1,247)$(895)$(95)$(419)$903 $273 N/A
  F/X impact -- favorable (unfavorable)$(174)$32 $228 $160 $(3)$(94)N/A
  Operating income (loss) -- Y/Y growth (decline), excluding F/X(16)%(48)%(87)%(74)%N/AN/AN/A
  Operating margin -- % of International net sales(4.3)%(3.0)%(0.3)%(1.0)%2.8 %0.9 %N/A
  Operating income (loss) -- TTM$(7,712)$(6,836)$(4,465)$(2,656)$(506)$662 N/A
  Operating margin -- TTM % of International net sales(6.5)%(5.6)%(3.6)%(2.0)%(0.4)%0.5 %N/A
AWS Segment:
  Net sales$21,354 $22,140 $23,059 $24,204 $25,037 $26,281 19 %
  Net sales -- Y/Y growth, excluding F/X16 %12 %12 %13 %17 %19 %N/A
  Net sales -- TTM$83,009 $85,410 $87,931 $90,757 $94,440 $98,581 15 %
  Operating income$5,123 $5,365 $6,976 $7,167 $9,421 $9,334 74 %
  F/X impact -- favorable (unfavorable)$272 $79 $(69)$(62)$67 $115 N/A
  Operating income -- Y/Y growth (decline), excluding F/X(26)%(8)%30 %39 %83 %72 %N/A
  Operating margin -- % of AWS net sales24.0 %24.2 %30.3 %29.6 %37.6 %35.5 %N/A
  Operating income -- TTM$21,446 $21,096 $22,669 $24,631 $28,929 $32,898 56 %
  Operating margin -- TTM % of AWS net sales25.8 %24.7 %25.8 %27.1 %30.6 %33.4 %N/A




AMAZON.COM, INC.
Supplemental Financial Information and Business Metrics
(in millions, except employee data)
(unaudited)
Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Y/Y %
Change
Net Sales
Online stores (1)$51,096 $52,966 $57,267 $70,543 $54,670 $55,392 5 %
Online stores -- Y/Y growth, excluding F/X3 %5 %6 %8 %7 %6 %N/A
Physical stores (2)$4,895 $5,024 $4,959 $5,152 $5,202 $5,206 4 %
Physical stores -- Y/Y growth, excluding F/X7 %7 %6 %4 %6 %4 %N/A
Third-party seller services (3)$29,820 $32,332 $34,342 $43,559 $34,596 $36,201 12 %
Third-party seller services -- Y/Y growth, excluding F/X20 %18 %18 %19 %16 %13 %N/A
Advertising services (4)$9,509 $10,683 $12,060 $14,654 $11,824 $12,771 20 %
Advertising services -- Y/Y growth, excluding F/X23 %22 %25 %26 %24 %20 %N/A
Subscription services (5)$9,657 $9,894 $10,170 $10,488 $10,722 $10,866 10 %
Subscription services -- Y/Y growth, excluding F/X17 %14 %13 %13 %11 %11 %N/A
AWS$21,354 $22,140 $23,059 $24,204 $25,037 $26,281 19 %
AWS -- Y/Y growth, excluding F/X16 %12 %12 %13 %17 %19 %N/A
Other (6)$1,027 $1,344 $1,226 $1,361 $1,262 $1,260 (6)%
Other -- Y/Y growth (decline), excluding F/X57 %26 %(3)%8 %23 %(6)%N/A
Stock-based Compensation Expense
Cost of sales$165 $251 $193 $227 $174 $266 6 %
Fulfillment$603 $932 $732 $823 $636 $944 1 %
Technology and infrastructure$2,574 $4,043 $3,284 $3,533 $2,772 $3,670 (9)%
Sales and marketing$993 $1,303 $1,111 $1,216 $932 $1,224 (6)%
General and administrative$413 $598 $509 $520 $447 $618 3 %
Total stock-based compensation expense$4,748 $7,127 $5,829 $6,319 $4,961 $6,722 (6)%
Other
WW shipping costs$19,937 $20,418 $21,799 $27,326 $21,834 $21,965 8 %
WW shipping costs -- Y/Y growth2 %6 %9 %11 %10 %8 %N/A
WW paid units -- Y/Y growth (7)8 %9 %9 %12 %12 %11 %N/A
WW seller unit mix -- % of WW paid units (7)59 %60 %60 %61 %61 %61 %N/A
Employees (full-time and part-time; excludes contractors & temporary personnel)1,465,000 1,461,000 1,500,000 1,525,000 1,521,000 1,532,000 5 %
Employees (full-time and part-time; excludes contractors & temporary personnel) -- Y/Y growth (decline)(10)%(4)%(3)%(1)%4 %5 %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 health care services, certain licensing and distribution of video content, 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.

Contacts:
Amazon Investor Relations Amazon Public Relations
amazon-ir@amazon.com amazon-pr@amazon.com
amazon.com/ir amazon.com/pr