Amazon has reported another strong quarter, with net sales rising by 10% year-over-year to reach nearly $188 billion in Q4 2024. The company's North America segment contributed $116 billion, while international sales grew to $43 billion. AWS, Amazon's cloud computing division, saw an impressive 19% surge, generating almost $29 billion in revenue. Operating income soared to $21 billion, compared to $13 billion in the same period last year, while net income doubled to $20 billion.
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For the full year, Amazon's net sales climbed to $638 billion, an 11% increase. AWS played a pivotal role, growing 19% to generate $108 billion, while North America and international markets saw steady gains. The company's overall operating income jumped to $69 billion, almost double the previous year, with net income reaching $59 billion. Cash flow also improved, with free cash flow rising to $38 billion.
CEO Andy Jassy credited the company's holiday season performance and rapid technological advancements for the strong results. 'The holiday shopping season was the most successful yet for Amazon, and we appreciate the support of our customers, selling partners, and employees who helped make it so,' he said. Highlighting Amazon's investment in AI and cloud computing, Jassy added, 'When we look back on this quarter several years from now, I suspect what we'll most remember is the remarkable innovation delivered across all of our businesses, none more so than in AWS where we introduced our new Trainium2 AI chip, our own foundation models in Amazon Nova, a plethora of new models and features in Amazon Bedrock… These benefits are often realised by customers (and the business) several months down the road, but these are substantial enablers in this emerging technology environment, and we're excited to see what customers build.'
Amazon's logistics and retail operations also saw notable milestones. The company achieved record-breaking delivery speeds for Prime members, shipping 65% more items for same-day or overnight delivery in the U.S. than in Q4 2023. Black Friday and Cyber Monday events set new records, including for independent sellers. Amazon was once again named the lowest-priced U.S. retailer, with online prices averaging 14% lower than major competitors.
The entertainment sector thrived, with Red One becoming Amazon MGM Studios' most-watched film debut on Prime Video, reaching 50 million viewers in four days. Thursday Night Football also had a banner season, averaging 13.2 million viewers, an 11% increase from the previous year. Meanwhile, Kindle devices saw their best Q4 sales in over a decade, surging 30% year-over-year.
AWS continued its rapid expansion, introducing its Amazon Nova foundation models and Trainium2 AI chips, which promise better cost-efficiency and performance. Amazon also launched its AWS Asia Pacific (Thailand) and AWS Mexico (Central) regions, securing major cloud agreements with companies such as Intuit, PayPal, and Japan Airlines.
Looking ahead to Q1 2025, Amazon expects revenue between $151 billion and $156 billion, with operating income projected between $14 billion and $18 billion. Despite potential economic headwinds, the company remains focused on innovation and efficiency as key drivers of sustained growth.
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