Amazon has reported a significant revenue boost in the second quarter of 2024.
- Revenue for the ecommerce leader rose by 10% to $148.0bn (£116.2bn).
- North American sales spearheaded this growth, increasing by 9% to $90.0bn (£70.66bn).
- Amazon Web Services (AWS) also saw a notable increase, with net sales climbing 19% to $26.3bn (£20.64bn).
- The company projects continued growth into the third quarter, despite foreign exchange challenges.
The recent financial results for Amazon highlight a strong performance driven largely by the North American market. Revenue increased by 10% year on year to $148.0 billion (£116.2 billion) in the second quarter ended June 30, 2024. Operating income also saw a rise, climbing 9% to $14.7 billion (£11.54 billion), with net income following suit with an increase of 10% to $13.5 billion (£10.59 billion).
North America played a pivotal role in this financial performance, accounting for a 9% increase in sales, which reached $90.0 billion (£70.66 billion). Additionally, the segment’s operating income surged by an impressive 59% to $5.1 billion (£4.0 billion). This robust performance underlines the region’s growing importance to Amazon’s overall business strategy.
Amazon Web Services, the company’s cloud computing arm, also experienced significant growth during this period. AWS net sales rose 19% year on year to $26.3 billion (£20.64 billion), while its operating income grew by 7% to $9.3 billion (£7.30 billion). According to Andy Jassy, Amazon’s president and CEO, this continued expansion reflects AWS’s leading position in helping businesses modernise their infrastructure and embrace new artificial intelligence opportunities. Jassy noted AWS’s broad functionality, superior security, and strong partner ecosystem as key differentiators in the market.
Looking ahead, Amazon has forecasted its third-quarter net sales to range between $154.0 billion (£9.02 billion) and $158.5 billion (£124.4 billion), representing a growth of 8% to 11% year on year. The company, however, has indicated that these projections account for an anticipated 90 basis points unfavourable impact from foreign exchange rates. Expectations for operating income are set between $11.5 billion (£9.02 billion) and $15.0 billion (£11.77 billion), compared to the previous year’s $11.2 billion (£8.79 billion).
Amazon’s continued success underscores its strategic focus on North American sales and innovative cloud services.
