Amazon's annual report for 2023 revealed a 12% increase in total revenue, growing from $514 billion to $575 billion year-over-year (YoY). The North America segment saw a 12% rise from $316 billion to $353 billion, International revenue climbed 11% from $118 billion to $131 billion, and AWS revenue jumped 13% from $80 billion to $91 billion. Operating income improved dramatically by 201% YoY, from $12.2 billion to $36.9 billion. Free Cash Flow also saw a significant uptick, adjusting from -$12.8 billion in 2022 to $35.5 billion. Customer experience enhancements across Amazon's businesses were highlighted as a key achievement, with the Stores business responding positively to a focus on selection, price, and convenience. Amazon's delivery speeds broke records in 2023, with over 7 billion items delivered the same or next day. The U.S. saw a 70% increase...Show More

Amazon's annual report for 2023 revealed a 12% increase in total revenue, growing from $514 billion to $575 billion year-over-year (YoY). The North America segment saw a 12% rise from $316 billion to $353 billion, International revenue climbed 11% from $118 billion to $131 billion, and AWS revenue jumped 13% from $80 billion to $91 billion. Operating income improved dramatically by 201% YoY, from $12.2 billion to $36.9 billion. Free Cash Flow also saw a significant uptick, adjusting from -$12.8 billion in 2022 to $35.5 billion. Customer experience enhancements across Amazon's businesses were highlighted as a key achievement, with the Stores business responding positively to a focus on selection, price, and convenience. Amazon's delivery speeds broke records in 2023, with over 7 billion items delivered the same or next day. The U.S. saw a 70% increase in items delivered the same day or overnight. The company's regionalization efforts contributed to a reduction in transportation distances and costs. Looking ahead to 2024, Amazon plans to further lower its cost to serve by challenging every aspect of its fulfillment network. Internationally, Amazon is optimistic about the trajectory in established countries and sees progress in emerging geographies, with Mexico turning profitable in Q4 2023. Amazon's Advertising business grew 24% YoY, driven by sponsored ads and the expansion of streaming TV advertising. AWS began 2023 with significant cost optimization, helping customers use the cloud more efficiently. By year-end, AWS saw a resurgence in new deals and migrations. The company also expanded its infrastructure footprint and invested in Generative AI, launching new services and capabilities. Amazon's newer business investments, including Prime Video and Project Kuiper, are showing promise for long-term profitability and growth.