AM

Amazon.com, Inc. stock research

Jun 30, 2024

FY2024 Q2

Amazon.com (AMZN) Gross Margin — Quarter Ended Jun 30, 2024

Revenue exceeded cost of revenue, generating a gross profit that represented a gross margin higher than both the immediately preceding quarter and the same quarter one year earlier. The improvement in gross margin was driven by gross profit increasing at a faster rate than revenue when compared with both prior periods.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue exceeded cost of revenue, generating a gross profit that represented a gross margin higher than both the immediately preceding quarter and the same quarter one year earlier. The improvement in gross margin was driven by gross profit increasing at a faster rate than revenue when compared with both prior periods.

  • Gross margin strengthened relative to both the prior quarter and the year-ago quarter, with gross profit growing more rapidly than revenue in each comparison.
  • Compared to the immediately preceding quarter, both revenue and gross profit were higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

50.1%

Gross profit

$74.2B

Revenue

$148.0B

Cost of revenue

$73.8B

Quarter-over-quarter change

+0.8 pts

Year-over-year change

+1.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$143.1B$68.1B$75.0B47.6%
Dec 31, 2023$170.0B$77.4B$92.6B45.5%
Mar 31, 2024$143.3B$70.7B$72.6B49.3%
Jun 30, 2024$148.0B$74.2B$73.8B50.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+0.8 pts

Year-over-year change

Jun 30, 2023

+1.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin strengthened relative to both the prior quarter and the year-ago quarter, with gross profit growing more rapidly than revenue in each comparison.

Compared to the immediately preceding quarter, both revenue and gross profit were higher, while cost of revenue was also higher. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher.

Monitor whether gross profit growth continues to outpace revenue growth in upcoming periods.