Amazon’s revenue increased by 10% to $148bn year on year in Q2 2024.
- The rise in revenue is fuelled primarily by North American sales.
- Operating income in North America surged with a 59% increase.
- Amazon Web Services reported a significant 19% growth in sales.
- Expected growth in the next quarter demonstrates continued strength.
Amazon’s revenue surged by 10% in the second quarter of 2024, reaching a substantial $148 billion (£116.2 billion). This increase was largely driven by robust sales in its North American segment. The company’s strong performance in this region was a key factor in its overall revenue growth, showcasing the market’s significance to Amazon’s financial success.
Operating income also experienced a notable rise, climbing 9% year on year to $14.7 billion (£11.54 billion). The North American segment played a crucial role here as well, with sales increasing by 9% to $90 billion (£70.66 billion), and operating income soaring by 59% to $5.1 billion (£4.0 billion). These results underline the strategic importance of the North American market to Amazon’s ongoing financial health.
Amazon Web Services (AWS), a cornerstone of Amazon’s cloud computing offerings, further propelled the company’s growth. In the same quarter, AWS net sales grew by 19% year on year, amounting to $26.3 billion (£20.64 billion). The operating income for AWS rose 7% to $9.3 billion (£7.30 billion), reinforcing AWS’s pivotal role in Amazon’s business model.
Andy Jassy, Amazon’s president and CEO, remarked on the ongoing success by stating, “We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth.” He highlighted the advantages of AWS, such as superior security, extensive functionality, and advanced AI capabilities, as key reasons for its leading position in the cloud market.
Looking forward, Amazon projected third-quarter net sales to range between $154 billion (£9.02 billion) and $158.5 billion (£124.4 billion), representing an anticipated year-on-year growth of 8% to 11%. The company also estimated operating income to be between $11.5 billion (£9.02 billion) and $15 billion (£11.77 billion), despite an expected adverse effect from foreign exchange rates of approximately 90 basis points.
The results underscore Amazon’s strategic growth, particularly in North America and AWS, emphasising its significant market position.
