Amazon.com, Inc. stock research
FY2023 Q2
Amazon.com (AMZN) Gross Margin — Quarter Ended Jun 30, 2023
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter a year ago. Gross profit grew at a faster rate than revenue, resulting in an expanded gross margin; the filing notes improved operating cash flows in the current quarter and first half relative to the prior year, as well as a substantial cash and marketable securities balance.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter a year ago. Gross profit grew at a faster rate than revenue, resulting in an expanded gross margin; the filing notes improved operating cash flows in the current quarter and first half relative to the prior year, as well as a substantial cash and marketable securities balance.
- The strongest observable margin driver was the relative growth of gross profit outpacing revenue growth, which directly lifted the gross margin percentage. A concrete item to monitor is the trend in cost of revenue relative to revenue, as any change in that relationship could affect future margins.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher. The same pattern held when comparing to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
48.4%
Gross profit
$65.0B
Revenue
$134.4B
Cost of revenue
$69.4B
Quarter-over-quarter change
+1.6 pts
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% |
| Jun 30, 2023 | $134.4B | $65.0B | $69.4B | 48.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.6 pts
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 strongest observable margin driver was the relative growth of gross profit outpacing revenue growth, which directly lifted the gross margin percentage. A concrete item to monitor is the trend in cost of revenue relative to revenue, as any change in that relationship could affect future margins.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher. The same pattern held when comparing to the same quarter one year earlier.
Monitor whether cost of revenue growth remains slower than revenue growth to sustain margin expansion.