Amazon's Record-Breaking Quarter: Revenue Soars as Amazon Delivers on Convenience and Low Prices
Amazon has once again delivered a record-breaking quarter, with the company's revenue reaching $187.8 billion in Q4 2024, up 10% year-over-year.
According to Andy Jassy, CEO of Amazon, the company's focus on expanding selection, lowering prices, and improving convenience drove strong unit growth that even outpaced its revenue growth. The continued addition of new brands to its stores, including Clinique, Estee Lauder, Oura Rings, and Armani Beauty, has also contributed to this growth.
Amazon's emphasis on low prices was evident during the Prime Big Deal Days in October and Black Friday and Cyber Monday around Thanksgiving, where consumers saved more than $15 billion with Amazon's everyday low prices. Additionally, a Profitero study found that Amazon had the lowest online prices for the eighth year in a row, averaging 14% lower prices on average than other leading retailers in the U.S.
The company's speed of delivery also continues to accelerate, with 2024 being another record-setting year for Prime members. Amazon expanded the number of same-day delivery sites by more than 60% in 2024, now serving more than 140 metro areas.
Operating income was $21.2 billion, up 61% year-over-year, and trailing 12-month free cash flow adjusted for equipment finance leases was $36.2 billion, up $700 million year-over-year. Andy Jassy expressed his satisfaction with the company's results in 2024 and hinted at more improvements to come in 2025.
The company's third-party seller business also saw significant growth, with selling partners making up 61% of items sold by Amazon in 2024, the highest annual mix ever. The launch of Amazon Haul for U.S. customers in Q4 offers an engaging shopping experience that brings ultra-low-priced products into one convenient destination.
Amazon's continued focus on customer experience and low prices has paid off in a big way, with consumers continuing to rely on Amazon as their go-to destination for sharp pricing. The company's commitment to delivering on its promise of convenience and affordability is likely to remain a key differentiator in the market going forward.
