Amazon achieved record turnover of $ 574,785 million in 2023 after 12% growth. economy

Amazon is getting bigger rapidly. The company, which has been accused by antitrust authorities of abusing its dominant position, has continued to gain market share, according to results published this Thursday. After a very strong Christmas quarter, Amazon closed 2023 with a turnover of $574,785 million, up 12% on the previous year, according to accounts published by the company. This was also a profitable growth. CEO Andy Jassy, ​​succeeding founder Jeff Bezos, has always focused on cost control, efficiency and commitment to the most profitable businesses, after years in which the key thing for the group was growth at any cost.

Both the Seattle-based group’s revenue and profit figures exceeded market expectations and sent shares rising sharply on the stock exchange outside normal trading hours.

North America segment sales increased 12% year-over-year to $352.8 billion, and international business increased 11% to $131.2 billion. It also adds revenue from the global cloud computing and data processing division (Amazon Web Services, AWS), which grew 13% to $90.8 billion. AWS has slightly picked up the pace of growth, which had slowed in recent quarters, but still hasn’t regained the rate the market has become accustomed to.

Operating profit tripled to $36.9 billion in 2023 compared to $12.2 billion in 2022, primarily due to the fact that the e-commerce segment in North America swung from an operating loss of $2.8 billion to a profit of $14.9 billion Went. Additionally, the international segment’s operating loss narrowed to $2.7 billion from $7.7 billion. The most profitable division remained AWS with operating profit of $24.6 billion, compared to $22.8 billion in 2022.

By type of business, the group focuses its income on direct e-commerce sales (about 232,000 million), but its physical stores also have a turnover of about 20,000 million. To this is added about 140,000 million for selling services to third parties, about 40,000 million for subscriptions, and 90,000 million from AWS. Additionally, in an effort to diversify revenue, Amazon has increased its advertising efforts on its shopping website and last month began running ads on its Prime Video streaming service. Advertising sales increased 27% to $14.7 billion in the fourth quarter. His total earnings for the entire year were $46,906 million.

With all this, the net profit in 2023 was $30,425 million, while the loss in 2022 was $2.7 billion. These gains include $800 million from an increase in the value of the investment in Rivian Automotive, which had a burden of $12.7 billion in the previous fiscal year. Dollar.

Profit for 2023 is down slightly from $33,364 million in 2021, but that result was overshadowed by Rivian’s revaluation on the stock market. In terms of operations, the current one is a record.

For its part, operating cash flow increased 82% to $84.9 billion and free cash flow over the last 12 months improved to an inflow of $36.8 billion, versus an outflow of $11.6 billion in 2022.

“This fourth quarter was a record during the holiday shopping season and a solid finish to 2023 for Amazon,” Amazon CEO Andy Jassy said in a statement. “While we have made significant progress in revenue, operating results and free cash flow, what pleases us most is the continued innovation and improvement in customer experience across our businesses,” he said.

According to Jassy, ​​the regionalization of the delivery network in the United States has allowed Amazon to achieve the fastest delivery speeds in its history for members of Prime, its subscription service, while reducing service costs.

Looking to the first quarter of 2024, Amazon expects revenue between $138 billion to $143.5 billion and pre-tax profit between $8 billion to $12 billion, in line with analyst forecasts.

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