Amazon’s revenue surged by 10% year on year in Q2 2024, driven by strong North American sales.
- Operating income rose significantly, alongside a notable increase in net income.
- Amazon Web Services (AWS) saw substantial growth in net sales, contributing to overall revenue gains.
- CEO Andy Jassy highlighted AWS’s expanding capabilities and customer preference due to its functionality and security.
- Looking forward, Amazon anticipates continued growth despite expected foreign exchange challenges.
Amazon has reported a notable increase in revenue for the second quarter ending on 30 June 2024, with figures climbing by 10% to $148.0 billion (£116.2 billion) compared to the same period last year. This growth has been substantially powered by the performance in North America, where sales soared by 9% to a total of $90.0 billion (£70.66 billion).
The company’s operating income also experienced a climb, registering a 9% rise to $14.7 billion (£11.54 billion), while net income similarly increased by 10% to $13.5 billion (£10.59 billion). The surge in North American sales significantly underpinned these financial improvements, with operating income in the region jumping by an impressive 59% to $5.1 billion (£4.0 billion).
Amazon Web Services (AWS) played a crucial role in boosting the company’s revenue, with net sales in this segment increasing by 19% year on year to $26.3 billion (£20.64 billion). AWS also saw a 7% rise in operating income, reaching $9.3 billion (£7.30 billion), as it continued to cater to businesses transitioning to cloud-based solutions. Andy Jassy, Amazon’s president and CEO, remarked on the progress in AWS growth, citing the platform’s broad functionality and advanced security measures.
In his commentary, Jassy underscored the strategic embrace of new generative AI tools by AWS, which supports customers with advanced AI capabilities such as SageMaker, Bedrock, Trainium, and Q. The CEO noted that AWS remains a top choice for companies modernising their infrastructure due to its comprehensive suite of offerings and extensive partner ecosystem.
Looking ahead, Amazon projected that net sales for the third quarter would span between $154.0 billion (£120.9 billion) and $158.5 billion (£124.4 billion), aligning with an 8% to 11% growth year on year. The company acknowledged that these projections considered an unfavourable impact from foreign exchange rates, approximated at 90 basis points. Furthermore, Amazon expects operating income to range from $11.5 billion (£9.02 billion) to $15.0 billion (£11.77 billion), compared to $11.2 billion (£8.79 billion) in the previous year.
Amazon’s strategic focus and robust sales performance, particularly in North America and AWS, underscore its continued financial strength amidst evolving market dynamics.
