Morning news on May 1, Beijing time, Amazon today released its first quarter financial report for fiscal year 2024: net sales were US$143.313 billion, a year-on-year increase of 13%, excluding the impact of exchange rate changes, the same year-on-year increase of 13%; net sales were US$143.313 billion, a year-on-year increase of 13%. Profit was US$10.431 billion, a significant increase of 229% year-on-year; diluted earnings per share was US$0.98, a significant increase compared with US$0.31 diluted earnings per share in the same period last year.
Amazon Q1Revenue and diluted earnings per share both beat Wall Street analysts' expectations, but the company's outlook for second-quarter revenue fell short of expectations.After the earnings report was released, Amazon's stock price rose nearly 3% after hours.
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Main achievement:
In the quarter ended March 31, Amazon's net profit was US$10.431 billion, with diluted earnings per share of US$0.98, which was much better than the same period last year. In the first quarter of fiscal year 2023, Amazon's net profit was US$3.172 billion, and diluted earnings per share were US$0.31.
Amazon's first quarter net sales were US$143.313 billion, an increase of 13% compared with US$127.358 billion in the same period last year. Excluding the $200 million negative impact of currency changes, Amazon's first-quarter net sales also increased 13% compared with the same period last year.
Amazon's operating profit in the first quarter was US$15.307 billion, a significant increase from US$4.774 billion in the same period last year.
In February this year, when Amazon released its fourth quarter and full-year financial reports for fiscal year 2023, it predicted that net sales in the first quarter of fiscal year 2024 would reach between US$138 billion and US$143.5 billion, a year-on-year increase of 8% to 13%. , which includes a positive impact of about 40 basis points expected to be brought about by exchange rate changes, with an average value of $140.75 billion. Amazon also predicted at the time that operating profit in the first quarter of fiscal 2024 would reach between US$8 billion and US$12 billion. This means that Amazon’s first-quarter revenue and operating profit exceeded the company’s previous expectations.
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Meanwhile, Amazon's first-quarter revenue and diluted earnings per share exceeded Wall Street analysts' expectations. According to data provided by Yahoo Finance Channel, 44 analysts had previously expected Amazon's first-quarter net sales to reach US$142.5 billion on average, and 39 analysts had previously expected Amazon's first-quarter earnings per share to reach US$0.83 on average.
Amazon's total operating expenses in the first quarter were US$128.006 billion, an increase from US$122.584 billion in the same period last year. Among them, the cost of sales was US$72.633 billion, an increase compared with US$67.791 billion in the same period last year; fulfillment expenses were US$22.317 billion, an increase compared with US$20.905 billion in the same period last year; marketing expenses were US$9.662 billion. , a decrease compared with US$10.172 billion in the same period last year; technology and content expenses were US$20.424 billion, basically the same as US$20.450 billion in the same period last year; general and administrative expenses were US$2.742 billion, down from US$20.450 billion in the same period last year. A decrease compared with US$3.043 billion; other operating expenses were US$228 million, which was basically the same as other operating expenses of US$223 million in the same period last year.
Performance of each department:
Amazon's first quarter product net sales were US$60.915 billion, an increase compared with US$56.981 billion in the same period last year; service net sales were US$82.398 billion, an increase compared with US$70.377 billion in the same period last year.
By region:
– Net sales of Amazon's North American division (U.S., Canada) in the first quarter were US$86.341 billion, an increase of 12% compared with US$76.881 billion in the same period last year; operating profit was US$4.983 billion, compared with operating profit of US$898 million in the same period last year. A significant increase of 455% compared to the US dollar.
– Net sales of Amazon's international division (UK, Germany, France, Japan and China) in the first quarter were US$31.935 billion, an increase of 10% compared with US$29.123 billion in the same period last year, excluding the impact of exchange rate changes, a year-on-year increase 11%; operating profit was US$903 million, turning a profit compared to an operating loss of US$1.247 billion in the same period last year.
– Net sales of Amazon AWS cloud services in the first quarter were US$25.037 billion, an increase of 17% compared with US$21.354 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 17% year-on-year; operating profit was US$9.421 billion. , an increase of 84% compared with US$5.123 billion in the same period last year.
– Amazon's sales from the North American segment accounted for 60% of total sales in the first quarter, which was the same as the proportion of 60% in the same period last year; sales from the international segment accounted for 60% of total sales. Accounting for 22%, a decrease compared with 23% in the same period last year; sales from AWS cloud services accounted for 18% of total sales, compared with 17% in the same period last year Compared to an increase.
According to services and business types, Amazon’s first quarter performance of each department is as follows:
– Net sales from online stores were US$54.670 billion, an increase of 7% compared with US$51.096 billion in the same period last year. Excluding the impact of exchange rate changes, it was also a year-on-year increase of 7%;
– Net sales from physical stores were US$5.202 billion, an increase of 6% compared with US$4.895 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 6% year-on-year;
– Net sales from third-party seller services were US$34.596 billion, an increase of 16% compared with US$29.820 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 16% year-on-year;
– Net sales from subscription services were US$10.722 billion, an increase of 11% compared with US$9.657 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 11% year-on-year;
– Net sales from advertising services were US$11.824 billion, an increase of 24% compared with US$9.509 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 24% year-on-year;
– Net sales from AWS cloud services were US$25.037 billion, an increase of 17% compared with US$21.354 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 17% year-on-year;
– Net sales from other businesses were US$1.262 billion, an increase of 23% compared with US$1.027 billion in the same period last year. Excluding the impact of exchange rate changes, the same increase was 23% year-on-year.
Cash flow information:
In the 12 months ended March 31, 2024, Amazon's operating cash flow was US$99.1 billion, an increase of 82% compared with the same period last year; in the 12 months ended March 31, 2023, Amazon's operating cash flow was $54.3 billion.
In the 12 months ended March 31, 2024, Amazon's free cash flow was $50.1 billion, a significant improvement compared with the same period last year; in the 12 months ended March 31, 2023 Here, Amazon's free cash flow was an outflow of $3.3 billion.
After deducting lease principal repayments, Amazon's free cash flow in the past 12 months was $46.1 billion, a significant improvement compared with the same period last year; in the 12 months ended March 31, 2023 Here, Amazon's free cash flow after deducting the aforementioned items was an outflow of US$10.1 billion.
After deducting principal repayments of finance leases and assets acquired under capital leases, Amazon's free cash flow in the past 12 months was US$48.8 billion, a significant improvement compared with the same period last year; as of March 2023 In the 12 months ended March 31, Amazon's free cash flow after deducting the aforementioned items was an outflow of $4.5 billion.
Performance expectations:
Amazon expects the company's net sales to reach between US$144 billion and US$149 billion in the second quarter of fiscal 2024, a year-on-year increase of 7% to 11%, which includes approximately 60 basis points expected to be brought about by exchange rate changes. negative impact. In the first fiscal quarter of fiscal 2024, the leap year had a gain of approximately 120 basis points on Amazon's year-over-year net sales growth rate.
Amazon also expects the company's operating profit to be between $10 billion and $14 billion in the second quarter of fiscal 2024, compared with operating profit of $7.7 billion in the same period of fiscal 2023.
The above guidance assumes that Amazon will not enter into any other business acquisitions, restructurings or legal settlements in the second quarter of 2024.
The average of Amazon's expected range for second-quarter net sales was $146.5 billion, failing to meet analysts' expectations. According to data provided by Yahoo Finance Channel, 42 analysts on average expected Amazon's second-quarter net sales to reach $150.07 billion.
Stock price changes:
On the same day, Amazon's stock price fell by $5.96 in regular Nasdaq trading, closing at $175.00, a decrease of 3.29%. In subsequent after-hours trading as of 5:36 pm Eastern Time on Tuesday (5:36 am Beijing time on Wednesday), Amazon's stock price rose $5.10 to $180.10, an increase of 2.91%. Over the past 52 weeks as of Tuesday's close, Amazon's highest price was $189.77 and its lowest price was $101.15.