Amazon's ad revenue rises 27%, generating $14.7 billion in Q4FY23

Amazon experienced a 27% year-over-year increase in ad revenue, reaching $14.7 billion in Q4FY23. Recently, the company initiated displaying ads on Prime Video content, aiming to generate significant additional revenue. Brian Olsavsky, Amazon's CFO, noted the substantial advertiser enthusiasm but emphasized the company's intention to maintain low ad loads.

Its net sales increased 14% to $170.0 billion in the fourth quarter of 2023, compared with $149.2 billion in the same quarter the previous fiscal. Its international segment sales increased 17% year-over-year to $40.2 billion, or increased 13% excluding changes in foreign exchange rates.

Amazon Web Services (AWS) segment sales increased 13% Y-oY to $24.2 billion in Q4FY23.

Revenue jumped 14% to $170 billion in the fourth quarter of 2023. The period encompasses outcomes from the holiday shopping season and Amazon's October Prime Day event, both of which the company stated surpassed its expectations.

The company’s net income increased to $10.6 billion in the fourth quarter of 2023, compared with $0.3 billion in the fourth quarter of 2022.

Talking on the yearly scale, excluding the $0.1 billion unfavorable impact from year-over-year changes in foreign exchange rates, Amazon’s net sales for 2023 increased 12% compared with 2022.

Andy Jassy, CEO, Amazon, said in a statement. “While we made meaningful revenue, operating income, and free cash flow progress, what we’re most pleased with is the continued invention and customer experience improvements across our businesses. AWS’s continued long-term focus on customers and feature delivery, coupled 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 nicely, and along with our more established businesses, collectively making customers’ lives easier and better every day. As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about.”

In its statement, Amazon revealed its expectations for the first quarter of 2024. Net sales are expected to grow between 8% and 13% while operating income is expected to be between $8.0 billion and $12.0 billion.

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