Amazon Q4 Earnings: Revenue Beat, EPS Beat, 'Record-Breaking' Holiday Shopping Season And More

Amazon.com Inc AMZN reported fourth-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q4 Earnings: Amazon’s fourth-quarter revenue increased 14% year-over-year to $170 billion, which beat the consensus estimate of $166.21 billion, according to Benzinga Pro. The company reported quarterly earnings of $1 per share, which beat analyst estimates of 80 cents per share.

With these results, Amazon now tops analyst estimates on both the top and bottom line in five straight quarters, dating back to the fourth quarter of 2022, according to Benzinga Pro.

AWS sales totaled $24.2 billion in the fourth quarter, up 13% year-over-year. North American sales increased 13% year-over-year to $105.5 billion and international sales jumped 17% year-over-year to $40.2 billion.

Operating cash flow increased 82% to $84.9 billion for the trailing 12 months compared to $46.8 billion in the 12 months ended December 2022. 

Free cash flow improved to an inflow of $36.8 billion in the trailing 12 months versus outflows of $11.6 billion in the prior year.

“This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon. While we made meaningful revenue, operating income, and free cash flow progress, what we’re most pleased with is the continued invention and customer experience improvements across our businesses,” said Andy Jassy, CEO of Amazon.

It’s worth noting that Amazon shares traded higher ahead of the close after the company announced a new generative AI conversational shopping experience called Rufus. The new feature is rolling out to select customers on Thursday and will become available for more U.S. customers in the coming weeks.

Outlook: Amazon expects first-quarter revenue to be between $138 billion and $143.5 billion versus estimates of $142.13 billion. Operating income is expected to be between $8 billion and $12 billion in the first quarter.

“As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about,” Jassy added.

Management will hold a conference call to discuss the company’s quarterly results at 5:30 p.m. ET.

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AMZN Price Action: Amazon shares were up nearly 5% year-to-date heading into the print. The stock was up 4.28% after hours at $166.12 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Amazon.