Amazon Q4 revenue of $ 87.4 billion increased 21% year-on-year, net profit of $ 3.3 billion

Netease Technology News on January 31, according to foreign media reports, on Thursday, local time in the United States, Amazon announced the fourth quarter financial results as of December 31, 2019. According to the financial report, Amazon’s fourth quarter revenue was US $ 87.4 billion, an increase of 21% compared with the same period last year; operating profit increased to US $ 3.9 billion, net profit increased to US $ 3.3 billion, and diluted earnings per share were US $ 6.47, all exceeding the analysis Division expected. After the earnings report, Amazon’s stock price surged more than 10%.

The following are the highlights of Amazon’s fourth quarter and full year 2019 financial report:
  • Amazon’s fourth-quarter 2019 revenue was $ 87.4 billion, an increase of 21% compared to $ 72.4 billion in the same period last year, and the market is estimated to be $ 86 billion;
  • Amazon’s fourth-quarter operating profit increased to $ 3.9 billion in the fourth quarter of 2019, compared to $ 3.8 billion in the fourth quarter of 2018;
  • Amazon’s fourth-quarter 2019 net profit increased to $ 3.3 billion, an increase of 8% compared to $ 3 billion in the fourth quarter of 2018. Diluted earnings per share were $ 6.47, much higher than market expectations of $ 4.03;
  • In the past 12 months ended December 31, 2019, Amazon’s operating cash flow increased by 25% to $ 38.5 billion, compared to $ 30.7 billion previously. Free cash flow increased to $ 25.8 billion, up from $ 19.4 billion;
  • As of December 31, 2019, the total number of Amazon common stock outstanding shares plus the basic stock award was 512 million shares, compared with 507 million shares a year ago;
  • Amazon’s full-year revenue in 2019 reached $ 280.5 billion, an increase of 20% compared to $ 232.9 billion in 2018;
  • Amazon’s full year operating profit increased to $ 14.5 billion in 2019, compared to $ 12.4 billion in 2018. Net profit increased to US $ 11.6 billion, or earnings per diluted share of US $ 23.01, compared with 2018 net income of US $ 10.1 billion and diluted earnings per share of US $ 20.14;

Amazon’s fourth-quarter revenue rose 21%, indicating that the company’s investment in faster shipping is driving more purchases. Last quarter, Amazon claimed that customers made record purchases during the holiday season, and said that during that period, same-day deliveries had quadrupled.

Amazon also gives an optimistic outlook for the first quarter of 2020, saying that it currently expects revenue to be between $ 69 billion and $ 73 billion, an increase of 16% to 22% compared to the first quarter of 2019; operating profit is expected to be at 30 Between $ 4.2 billion and $ 4.2 billion, compared with $ 4.4 billion in the same period last year. Amazon Chief Financial Officer Brian Olsavsky said the performance outlook could be affected by significant uncertainties such as exchange rate fluctuations, changes in global economic conditions and customer spending, world events , Internet, online commerce, and cloud services.

As expected, Amazon’s global shipping costs increased significantly in the fourth quarter, up 43% year-on-year, to $ 12.9 billion. The company said in its October financial report that it would spend $ 1.5 billion during the holiday shopping season to expand same-day delivery services.

Despite Amazon’s increasing investment, the company’s net revenue rebounded during the quarter. Its net profit rose 8% year-on-year to $ 3.3 billion, beating analysts’ estimates of $ 2 billion. Amazon’s net profit fell 26% in the third quarter due to increased costs for same-day delivery services.

Amazon’s subscription service revenue has steadily increased over the past few quarters. Revenue from subscription services including Prime membership fees, as well as Music Unlimited and Prime Video channels, had revenues of $ 5.24 billion for the quarter, a year-on-year increase of 32%. In its earnings report, Amazon said that Music Unlimited subscribers have grown by more than 50% in 2019.

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Except for the retail business, Amazon’s cloud computing business AWS reported revenue of $ 9.95 billion, an increase of 34% over the same period last year. This exceeded analysts’ expectations of $ 9.81 billion, but still slowed slightly compared to the third quarter, when AWS revenue increased by 35%. AWS ‘operating profit was $ 2.6 billion, an increase of 19% year-on-year, higher than analysts’ consensus of $ 2.45 billion.

Amazon’s “other” category, which is largely comprised of its advertising business, generated $ 4.8 billion in revenue during the quarter, a 41% increase over the same period last year. Amazon’s brick-and-mortar sales are made up of Whole Foods, with revenue falling 1% year-on-year to $ 4.36 billion.

Jeff Bezos, founder and CEO of Amazon, said: “The Prime membership program continues to provide better services to customers year after year. Customers are also responding, such as those who joined Prime this quarter There are more people than ever, and we currently have more than 150 million paid Prime members around the world. We have increased Prime’s delivery speed, and compared to last year, the number of goods delivered through Prime’s free same-day delivery service increased by four this quarter. More than twice. Members can now enjoy free two-hour delivery services in the Amazon Fresh and Whole Foods market in more than 2,000 cities and towns in the U.S. Prime members have watched original movies and TV shows on Prime Video this quarter more than last year , Amazon original shows received a record 88 nominations and 26 victories in major awards. Thanks to teams across Amazon for their efforts to build, innovate and deliver for customers during this holiday shopping season. ”

On Thursday, local time in the United States, Amazon’s stock price closed at $ 1870.68 per share, up 0.68%. However, after the release of the financial report, stimulated by the performance exceeding market expectations, the stock rose more than 10% after the market

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