Amazon.com Inc. announced strong financial results for the second quarter of 2024, showcasing a notable growth trajectory. The company’s net sales increased by 10 percent year-over-year to $148.0 billion, up from $134.4 billion in the same quarter of 2023. When adjusted for the $1.0 billion unfavorable impact of foreign exchange rates, net sales saw an 11 percent rise.
Breaking down the performance by segments, Amazon’s North America segment experienced a 9 percent increase in sales, reaching $90.0 billion. The International segment also performed well, with sales growing by 7 percent to $31.7 billion, or 10% excluding foreign exchange rate changes. The standout performer was Amazon Web Services (AWS), which saw a 19 percent year-over-year increase in sales, amounting to $26.3 billion.
Operating income for the quarter more than doubled, climbing to $14.7 billion from $7.7 billion in Q2 2023. This growth was driven by significant improvements across all segments. North America’s operating income increased to $5.1 billion, while the International segment swung from an operating loss of $0.9 billion to an income of $0.3 billion. AWS remained a major profit center, with operating income rising to $9.3 billion from $5.4 billion the previous year.
Amazon’s net income also grew substantially, reaching $13.5 billion compared to $6.7 billion in Q2 2023. This includes a $0.4 billion pre-tax valuation gain from the company’s investment in Rivian Automotive Inc.
The company also reported impressive cash flow figures. Operating cash flow increased by 75 percent to $108.0 billion for the trailing twelve months, while free cash flow surged to $53.0 billion, a significant improvement from $7.9 billion in the previous period.
CEO Andy Jassy highlighted the continued reacceleration in AWS growth as a key driver of the company’s performance, noting the broader functionality, superior security, and advanced AI capabilities of AWS that attract customers.
Looking ahead, Amazon provided a positive financial outlook for Q3 2024, with expected net sales between $154.0 billion and $158.5 billion, reflecting growth between 8 percent and 11 percent compared to Q3 2023.
