Home » Data » [Amazon results] In Q1 2024, Amazon triples margin thanks to solid fundamentals [Amazon results] In Q1 2024, Amazon triples margin thanks to solid fundamentals In Q1 2024, Amazon regained the momentum with total sales up by 12.5%. For the U.S. giant, when e-commerce and AWS go well, everything goes well. Relying on solid fundamentals of e-commerce and marketplace, it posted a remarkable jump in profitability. This was driven by AWS and advertising, which now account for 50% of cloud revenue. Through Sophie Baqué. Published on 13 May 2024 à 12h47 - Update on 26 August 2024 à 11h44 Resources On April 30, 2024, Amazon published Q1 2024 results. Sales, at US$143.3 billion, increased by 13% at constant rates from Q1 2023, exceeding Wall Street’s expectations. This is in line with annual reports of 2023, when revenue increased by 12.5 % at constant rates. Product sales (online and physical stores) continued to decline, accounting for 41.8% of the total versus 44% a year earlier. This trend was offset by the growing importance of services (notably advertising), which generated 57.2% of total sales. In Q1 2024, Amazon’s profitability improved. Operating margin tripled to US$15.3 billion (at 10.7% of sales), compared with US$4.8 billion a year earlier. Net income reached US$10.4 billion (at 7.3% of sales), three times more than a year earlier. Andy Jassy, C.E.O. since 2021, attributed these results to the same factors highlighted in recent months. These include faster deliveries, growth in advertising revenue and increased interest in the cloud (AWS) as well as AI. What’s more, “Amazon’s US customers are ‘very attentive’ to spending,” said C.F.O. Brian Olsavsky. “They look for bargains” North America (sales of US$86.3 billion, up by 12.3%) was Amazon’s prime profit center.… Sophie Baqué
