Amazon's (AMZN) financial performance in Q4 2024 demonstrated significant growth across key metrics. Net sales increased by 11% year-over-year, reaching $637.96 billion, driven by strong performance in all segments: North America, International, and AWS. AWS, in particular, saw a 19% growth in sales, reflecting increased customer usage and long-term contracts. North America and International segments grew by 10% and 9%, respectively, supported by higher unit sales, advertising, and subscription services.

Operating income surged to $68.59 billion in 2024, a remarkable 86% increase from $36.85 billion in 2023. This growth was fueled by improved profitability across all segments. North America operating income rose to $24.97 billion, International turned profitable with $3.79 billion, and AWS operating income increased to $39.83 billion, benefiting from reduced payroll expenses and lower depreciation costs due to changes in server useful lives.

Net income more than doubled to $59.25 billion in 2024, compared to $30.43 billion in 2023. This improvement was driven by higher operating income and a slight increase in interest income, which rose to $4.68 billion. The diluted earnings per share also increased significantly to $5.53, up from $2.90 in 2023.

Amazon's free cash flow improved to $38.22 billion in 2024, up from $36.81 billion in 2023, despite a substantial increase in capital expenditures, which rose to $77.66 billion. These investments were primarily directed toward technology infrastructure to support AWS growth and fulfillment network expansion. Free cash flow less principal repayments of finance leases and financing obligations also increased to $35.51 billion.

Operating cash flow reached $115.88 billion in 2024, a 36% increase from $84.95 billion in 2023. This growth was attributed to higher net income and favorable changes in working capital. However, cash used in investing activities nearly doubled to $(94.34) billion, reflecting increased capital expenditures and investments in marketable securities. Financing activities used $(11.81) billion, primarily for debt repayments.

Amazon's total assets grew to $624.89 billion as of December 31, 2024, up from $527.85 billion in 2023. This increase was driven by higher property and equipment investments, which rose to $252.67 billion, and an increase in cash, cash equivalents, and marketable securities to $101.20 billion. Total liabilities also increased to $338.92 billion, while stockholders' equity rose significantly to $285.97 billion, reflecting retained earnings growth.

Segment performance highlights include AWS's continued dominance, contributing $107.56 billion in net sales, representing 17% of total sales. North America remained the largest segment with $387.50 billion in sales, while International contributed $142.91 billion. AWS's operating margin improved due to cost efficiencies and reduced depreciation expenses, while North America and International segments benefited from higher unit sales and advertising revenue.

Amazon's operating expenses increased by 6% to $569.37 billion in 2024, with cost of sales accounting for 51.1% of net sales. Fulfillment costs grew by 9% to $98.51 billion, reflecting higher shipping and labor expenses. Technology and infrastructure costs rose by 3% to $88.54 billion, driven by investments in AWS and other technological advancements.

Geographically, the United States remained Amazon's largest market, contributing $438.02 billion in net sales, followed by Germany ($40.86 billion), the United Kingdom ($37.86 billion), and Japan ($27.40 billion). Sales in the rest of the world grew to $93.83 billion, reflecting Amazon's global expansion and increased adoption of its services.

Amazon's advertising services grew significantly, reaching $56.21 billion in 2024, up from $46.91 billion in 2023. This growth highlights the increasing importance of advertising as a revenue stream, driven by higher demand from sellers and vendors for sponsored ads and video advertising.