An Unstoppable Year of Growth for Amazon

In an impressive display of resilience and innovation, Amazon reported a staggering revenue increase of 11% in 2024, soaring from $575 billion to an eye-popping $638 billion. This growth is attributed to robust performances across various segments: North America saw an increase from $353 billion to $387 billion, while international revenues climbed from $131 billion to $143 billion. Notably, Amazon Web Services (AWS) showcased an incredible 19% growth year-over-year, bringing in $108 billion compared to $91 billion last year.

Major Improvements in Profitability

The company's operating income skyrocketed by 86%, jumping from $36.9 billion to $68.6 billion, resulting in a healthy operating margin of 10.8%. Additionally, the free cash flow rebounded slightly, rising from $35.5 billion in 2023 to $36.2 billion in 2024.

Enhancing Customer Lives with Innovation

Beyond numbers, Amazon committed to enriching customer experiences across all platforms. In its retail segment, Amazon expanded product selection and continued slashing prices – proving its title as the lowest-priced online retailer in the U.S. for the eighth consecutive year. Prime members enjoyed lightning-fast shipping, built upon Amazon’s record-setting logistics.

AWS introduced groundbreaking infrastructure and AI services, including Trainium2 chips and new foundational models via Amazon Nova, further solidifying its leadership in the AI space. Prime Video dazzled audiences with compelling original content—from exciting series like 'The Boys' to cinematic adventures like 'Red One'—while the Kindle family expanded with innovative devices, driving the highest sales in over a decade.

The 'Why' Behind Amazon’s Success

In his annual letter, CEO Andy Jassy emphasized the company’s philosophy of relentless curiosity, known as 'Why Culture.' This core value encourages employees to question norms and challenge the status quo, ensuring Amazon remains at the forefront of innovation. Jassy reflected on how this principle has led to profound inventions—and ultimately, better experiences for customers.

Creating a Culture of Questioning and Innovation

At Amazon, the culture revolves around two key decision-making types: two-way doors, which allow easy reversibility, and one-way doors, which require careful consideration. By fostering an environment where 'Why?' is a constant inquiry, Amazon empowers its teams to dismantle barriers and explore new avenues for growth.

Looking Ahead: The Future of Amazon