In the second quarter of 2024, tech giant Amazon’s net sales reached $148 billion, marking a 10% increase from $134.4 billion in the same period of 2023. When excluding the $1 billion unfavorable impact from changes in foreign exchange rates, net sales saw an 11% rise compared to the second quarter of the previous year.
The North American segment experienced a 9% year-over-year increase in sales, totaling $90 billion. The International segment reported sales of $31.7 billion, a 7% increase from the previous year. Excluding the effects of foreign exchange rates, international sales grew by 10%. Amazon Web Services (AWS) saw a notable 19% increase in sales, reaching $26.3 billion.
“As companies continue to modernize their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS continues to be customers’ top choice,” said Andy Jassy, president and CEO of Amazon.
Operating income for the quarter rose significantly to $14.7 billion, compared to $7.7 billion in the second quarter of 2023. The North American segment’s operating income grew to $5.1 billion, up from $3.2 billion in the previous year. The international segment reported an operating income of $0.3 billion, recovering from an operating loss of $0.9 billion in the same quarter of 2023. AWS segment’s operating income surged to $9.3 billion, compared with $5.4 billion in the previous year.
Amazon’s net income for the quarter increased to $13.5 billion, or $1.26 per diluted share, compared to $6.7 billion, or $0.65 per diluted share, in the second quarter of 2023. This quarter’s net income includes a pre-tax valuation gain of $0.4 billion from the company’s investment in Rivian Automotive, Inc., compared to a pre-tax valuation gain of $0.2 billion from the same investment in the previous year.
Operating cash flow for the trailing 12 months increased by 75%, reaching $108 billion, compared to $61.8 billion for the trailing 12 months ending June 30, 2023. Free cash flow for the same period increased to $53 billion, up from $7.9 billion. Free cash flow less principal repayments of finance leases and financing obligations rose to $49.6 billion, compared to $1.9 billion for the previous twelve months. Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations increased to $51.4 billion, from $6.7 billion in the prior year.