Amazon.com, Inc. Q2 FY2024 Earnings Call
· Earnings call transcript and AI-powered summary
Overview
- Revenue reached $148 billion, up 11% year-over-year (YOY), excluding FX impact. FX was a $1 billion headwind.
- Operating income was $14.7 billion, up 91% YOY and above guidance by $700 million.
- Trailing 12‑month free cash flow reached $51.4 billion, up 664% YOY.
- Strong growth across AWS, advertising, and international segments; continued improvements in logistics and delivery speed.
AWS (Amazon Web Services)
- Revenue: $26.3 billion, up 18.8% YOY. Growth accelerated from 17.2% in Q1.
- AWS revenue run rate now exceeds $105 billion.
- AWS operating income: $9.3 billion, up $4 billion YOY. Margin benefits included a 200 bps tailwind from extended server useful life.
- Key growth drivers:
- Companies completing cost-optimization and resuming new initiatives.
- Continued migrations from on-premises to cloud.
- Strong demand for generative AI services.
- Amazon emphasized multi-model AI strategy with strong adoption of Bedrock, SageMaker, and custom Trainium/Inferentia chips.
- Backlog reached $156.6 billion, up 19% YOY.
Advertising
- Advertising added over $2 billion YOY, surpassing $50 billion in trailing 12‑month revenue.
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