Amazon.com, Inc. stock research
FY2024 Q1
Amazon.com (AMZN) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit were lower than the prior quarter but higher than the same quarter a year earlier, while cost of revenue followed a similar pattern. Gross margin improved compared with both periods, as cost of revenue decreased relative to revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit were lower than the prior quarter but higher than the same quarter a year earlier, while cost of revenue followed a similar pattern. Gross margin improved compared with both periods, as cost of revenue decreased relative to revenue.
- The strongest observable margin driver was the reduced proportion of cost of revenue to revenue, which directly supported the expansion of gross margin.
- Compared with the immediately preceding quarter, revenue and gross profit were lower while gross margin was higher. Versus the same quarter one year earlier, all three metrics were higher except cost of revenue, which was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.3%
Gross profit
$70.7B
Revenue
$143.3B
Cost of revenue
$72.6B
Quarter-over-quarter change
+3.8 pts
Year-over-year change
+2.5 pts
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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $143.3B | $70.7B | $72.6B | 49.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+3.8 pts
Year-over-year change
Mar 31, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduced proportion of cost of revenue to revenue, which directly supported the expansion of gross margin.
Compared with the immediately preceding quarter, revenue and gross profit were lower while gross margin was higher. Versus the same quarter one year earlier, all three metrics were higher except cost of revenue, which was also higher.
Monitor the trajectory of cost of revenue relative to revenue in future quarters to assess whether the margin improvement can be sustained.