Amazon earnings grew 12 % in 2023

The e-commerce giant revealed a staggering net profit of $30.425 billion in fiscal year 2023

E-commerce giant Amazon posted a staggering net profit of $30.425 billion in fiscal year 2023, marking a notable rebound after a challenging year in which investments in Rivian resulted in losses of $2.7 billion.

Under the leadership of Andy Jassy, the company recorded cumulative net sales of $574,785 million, an increase of 12 % over 2022. This growth was highlighted in its main segments, especially in the smart cloud, Amazon Web Services (AWS).

Jassy, in a statement, stressed that the record Christmas sales season was the culmination of a robust exercise. The results reflect the strong performance of AWS and the new capabilities of generative Artificial Intelligence (AI).

After a 2022 hit by economic uncertainty due to interest rate hikes, the war in Ukraine and supply chain problems, the company focused on revitalizing its logistics business and innovating in AI.

Amazon also implemented drastic cost cuts, including layoffs of some 27,000 workers, mostly in the first half of the year.

In 2023, the bulk of Amazon’s revenue came mainly from the North American business, reaching $352.8 billion, an increase of 12 %. It was followed by the international business with $131.2 billion, an increase of 11 %, and AWS with $90.8 billion, an increase of 13 %.

In the fourth quarter, crucial for Wall Street analysts, Amazon generated a profit of $10,624 million, more than 30 times higher than the modest $278 million of the same period in 2022. In addition, net sales reached 169,961 million, an increase of 14 %.

K. Tovar

Source: El Economista

(Reference image source: Christian Wiediger, Unsplash)

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