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

Revenue and gross profit were higher than both the prior quarter and the same quarter a year ago. Cost of revenue also increased, and gross margin weakened from the prior quarter but improved compared to the year-ago quarter.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

The change in cost of revenue relative to revenue was the most observable factor. Cost of revenue grew faster than revenue sequentially, while year-over-year it grew slower.
Compared to the prior quarter, gross margin was lower. Compared to the same quarter a year ago, gross margin was higher.

Gross margin snapshot

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

Gross margin

49.0%

Gross profit

$77.9B

Revenue

$158.9B

Cost of revenue

$81.0B

Quarter-over-quarter change

-1.1 pts

Year-over-year change

+1.5 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
Dec 31, 2023	$170.0B	$77.4B	$92.6B	45.5%
Mar 31, 2024	$143.3B	$70.7B	$72.6B	49.3%
Jun 30, 2024	$148.0B	$74.2B	$73.8B	50.1%
Sep 30, 2024	$158.9B	$77.9B	$81.0B	49.0%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-1.1 pts

Year-over-year change

Sep 30, 2023

+1.5 pts

What the margin says

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

The change in cost of revenue relative to revenue was the most observable factor. Cost of revenue grew faster than revenue sequentially, while year-over-year it grew slower.

Compared to the prior quarter, gross margin was lower. Compared to the same quarter a year ago, gross margin was higher.

Monitor the growth rate of cost of revenue relative to revenue.