Amazon is an increasingly bigger giant. The company accused of abusing its dominant position by antitrust authorities continues to gain market share, according to the results published this Thursday. After a very strong Christmas quarter, Amazon closed 2023 with a turnover of $574,785 million, 12% more than the previous year.
North America segment sales increased 12% year-over-year to $352.8 billion and the international business grew 11% to $131.2 billion. Added to this are the revenues of the global cloud computing and data processing (AWS) division, which increased 13%, to $90.8 billion.
It was also profitable growth. Operating profits tripled to $36.9 billion in 2023, compared to $12.2 billion in 2022, thanks mainly to the fact that the e-commerce segment in North America went from operating losses of $2.8 billion to profits of $14.9 billion. Additionally, the international segment's operating losses were reduced from $7.7 billion to $2.7 billion. The most profitable division continued to be AWS, with an operating profit of $24.6 billion, compared to $22.8 billion in 2022.
With all this, net profits were $30,425 million in 2023, compared to losses of $2.7 billion in 2022. These benefits include a pre-tax valuation gain of $800 million due to the variation in the value of the investment in common shares of Rivian Automotive, which the previous year represented a drag of 12.7 billion dollars.
The 2023 profit is somewhat below the $33,364 million in 2021, but that result was highly marked by the revaluation of Rivian on the stock market. The current one is a record in operational terms.
For its part, operating cash flow increased 82% to $84.9 billion and free cash flow improved to an inflow of $36.8 billion in the last twelve months, compared to an outflow of $11.6 billion in 2022.
“This fourth quarter was a record in the holiday shopping season and closed out a solid 2023 for Amazon,” said Andy Jassy, CEO of Amazon, in a statement. “While we have made significant progress in revenue, operating results and free cash flow, what pleases us most is the continued invention and improvements in the customer experience across our businesses,” he added.
According to Jassy, the regionalization of the distribution network in the United States has allowed Amazon to achieve the fastest delivery speeds in its history for Prime members, while reducing our service costs.
“AWS' continued long-term focus on customers and feature delivery, along with new genAI capabilities like Bedrock, Q, and Trainium, have resonated with customers and are starting to be reflected in our overall results; our advertising services continue to improve and drive positive results; Our newer businesses are progressing very well and, together with our more established businesses, collectively make customers' lives easier and better every day. As we head into 2024, our teams are performing at a breakneck pace, and we have a lot ahead to be excited about,” Jassy added.
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