Amazon.com, Inc. stock research
FY2024 Q4
Amazon.com (AMZN) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin, however, was lower than the prior quarter but higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin, however, was lower than the prior quarter but higher than the year-ago quarter.
- The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. The sequential decline in gross margin reflects cost of revenue increasing at a faster pace than revenue, while the year-over-year improvement indicates a favorable comparison from a year ago.
- Sequentially, gross margin weakened compared to the immediately preceding quarter. Year-over-year, gross margin improved compared 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
47.3%
Gross profit
$88.9B
Revenue
$187.8B
Cost of revenue
$98.9B
Quarter-over-quarter change
-1.7 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $187.8B | $88.9B | $98.9B | 47.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.7 pts
Year-over-year change
Dec 31, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. The sequential decline in gross margin reflects cost of revenue increasing at a faster pace than revenue, while the year-over-year improvement indicates a favorable comparison from a year ago.
Sequentially, gross margin weakened compared to the immediately preceding quarter. Year-over-year, gross margin improved compared to the same quarter one year earlier.
Per the filing, operating cash flows are influenced by payments for products and services; therefore, the trend in cost of revenue relative to revenue is a key metric to monitor.