Amazon.com, Inc. stock research
FY2023 Q1
Amazon.com (AMZN) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross margin improved compared to both the prior quarter and the year-ago period, as cost of revenue declined relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross margin improved compared to both the prior quarter and the year-ago period, as cost of revenue declined relative to revenue.
- The improvement in gross margin was driven by a larger reduction in cost of revenue compared to the decline in revenue from the prior quarter, and by a slower increase in cost of revenue relative to revenue growth from the prior year.
- Compared to the prior quarter, revenue and gross profit were lower while gross margin improved. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
46.8%
Gross profit
$59.6B
Revenue
$127.4B
Cost of revenue
$67.8B
Quarter-over-quarter change
n/a
Year-over-year change
n/a
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $127.4B | $59.6B | $67.8B | 46.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by a larger reduction in cost of revenue compared to the decline in revenue from the prior quarter, and by a slower increase in cost of revenue relative to revenue growth from the prior year.
Compared to the prior quarter, revenue and gross profit were lower while gross margin improved. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher, while cost of revenue was slightly higher.
Monitor the trajectory of operating cash flows, which turned positive in the current quarter from negative a year ago, as noted in the filing.