Amazon (AMZN) Q4 2023 earnings summary

Executive summary

• Q4 net sales reached $170.0B, up 14% YoY and 13% FX-adjusted; operating income rose to $13.2B, up 383%, and net income was $10.6B, or $1.00 per diluted share.

• FY net sales rose 12% to $574.8B; operating income was $36.9B and net income was $30.4B, reversing the prior-year $2.7B loss.

Financial highlights

• TTM operating cash flow increased 82% to $84.9B; free cash flow improved to a $36.8B inflow from an $11.6B outflow.

Outlook and guidance

• Q1 2024 net sales guidance is $138.0B–$143.5B, up 8%–13% YoY, including an expected ~40 bps favorable FX impact; operating income guidance is $8.0B–$12.0B.

• Q1 operating income guidance includes ~$0.9B lower depreciation expense from revised server useful lives; assumptions exclude additional acquisitions, restructurings, and legal settlements.

• Long-term priorities include optimizing free cash flow and efficiently managing share dilution.