Amazon.com, Inc. stock research
FY2023 Q4
Amazon.com (AMZN) Gross Margin — Quarter Ended Dec 31, 2023
Revenue rose relative to both the prior quarter and the same quarter last year, while gross profit also increased. Gross margin weakened from the preceding quarter but improved from the year-ago period, reflecting a shift in the relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue rose relative to both the prior quarter and the same quarter last year, while gross profit also increased. Gross margin weakened from the preceding quarter but improved from the year-ago period, reflecting a shift in the relationship between revenue and cost of revenue.
- Gross margin improved versus last year due to cost of revenue growing at a slower pace than revenue; however, compared to the prior quarter, cost of revenue rose faster, compressing margin.
- Compared to the prior quarter, revenue increased and cost of revenue grew faster, causing gross margin to weaken from the prior level. Versus the same quarter last year, revenue and gross profit both increased, with gross margin strengthening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.5%
Gross profit
$77.4B
Revenue
$170.0B
Cost of revenue
$92.6B
Quarter-over-quarter change
-2.0 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% |
| Sep 30, 2023 | $143.1B | $68.1B | $75.0B | 47.6% |
| Dec 31, 2023 | $170.0B | $77.4B | $92.6B | 45.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-2.0 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.
Gross margin improved versus last year due to cost of revenue growing at a slower pace than revenue; however, compared to the prior quarter, cost of revenue rose faster, compressing margin.
Compared to the prior quarter, revenue increased and cost of revenue grew faster, causing gross margin to weaken from the prior level. Versus the same quarter last year, revenue and gross profit both increased, with gross margin strengthening.
Monitor whether cost of revenue continues to outpace revenue growth in future periods.