No. of Recommendations: 8
Amazon delivered an excellent earnings report today, and the market reacted by sending the stock up 7.1% after hours.
* Revenue of $170B grew 14% YoY and beat estimates by $4B.
* EPS of $1.00/sh beat estimates by 25% (prior year EPS for the qtr was 3 cents/sh)
* Operating cash flow increased 82% to $84.9B TTM, compared with $46.8B for the TTM ended 12/31/2022.
* AWS revenue hit $24.2B and grew 13% YoY (an acceleration from the 12% sales growth last Q)
* AWS, by itself, is therefore at almost a $100 billion annual revenue run rate
* AWS operating income grew 38% YoY to $7.2B
* Advertising revenue grew 27% YoY to $14.6B
* In 2023, Amazon delivered to Prime members at the fastest speeds ever globally, with more than 7 billion units arriving the same or next day, including more than 4 billion in the U.S. and more than 2 billion in Europe.
* In 2024, Amazon will launch online vehicle sales in the U.S., starting with Hyundai.
* Achieved a 100% success rate for Project Kuiper’s Protoflight mission. The mission validated key technologies that underpin the satellite broadband network, allowing Project Kuiper to scale satellite production ahead of full-scale deployment beginning this year.
“This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon,” said Amazon CEO Andy Jassy in a prepared statement. “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."
