Financial Results and CEO Transition. On the afternoon of February 2nd, 2021, Amazon announced its fourth-quarter financial report and full-year results as of December 31, 2020. In addition, it also announced the news that its founder Jeff Bezos will step down as CEO. Jeff Bezos will leave his post later this year, turning the helm over to the company’s top cloud executive Andy Jassy.
Table of Contents
2020 fourth-quarter financial results
Amazon announced net sales for the fourth quarter of $125.6 billion, an increase of 44% over the same period last year. Net profit for the quarter reached $7.2 billion, more than double the US$3.3 billion revenue in the same period last year. The quarterly results include Prime Day sales from October 13th to 14th.
By region and business category
In the fourth quarter, Amazon’s net sales from North America were $75.346 billion, an increase of 40% from $53.670 billion in the same period last year. It accounted for 60% of total net sales, compared to the same period last year. The proportion is 61%.
In the fourth quarter, Amazon’s net sales from international regions were $37.467 billion, an increase of 57% from $23.813 billion in the same period last year; It accounted for 30% of total net sales, compared to the same period last year The proportion is 27%.
In the fourth quarter, Amazon’s net sales from Amazon Web Services (AWS) were $12.742 billion, an increase of 28% from $9.954 billion in the same period last year. It accounted for 10% of total net sales. The proportion in the same period last year was 12%.
By product and service
Amazon’s fourth-quarter net sales from online stores were $66.451 billion, an increase of 46% from $45.57 billion in the same period last year.
Amazon’s net sales from physical stores in the fourth quarter were $4.022 billion, a decrease of 8% compared with $4.363 billion in the same period last year.
In the fourth quarter, Amazon’s net sales from third-party seller services were $27.327 billion, an increase of 57% from $17.446 billion in the same period last year.
Amazon’s net sales from subscription services in the fourth quarter were $7.061 billion, an increase of 35% from $5.235 billion in the same period last year.
In the fourth quarter, Amazon’s net sales from Amazon Web Services were US$12.742 billion, an increase of 28% from US$9.954 billion in the same period last year.
Amazon’s fourth-quarter net sales from other businesses were $7.952 billion, an increase of 66% from $4.782 billion in the same period last year.
2020 annual financial results
In 2020, Amazon’s full-year net sales increased by 38% to $386.1 billion, compared with $280.5 billion in 2019. Excluding the $1.4 billion beneficial impacts of year-on-year changes in exchange rates throughout the year, net sales increased by 37% year-on-year.
In 2020, Amazon’s full-year operating income increased to $22.9 billion, while in 2019, Amazon’s full-year operating income was 14.5 billion US dollars.
In 2020, Amazon’s full-year net income increased to $21.3 billion, and diluted earnings per share were $41.83, while the full-year net income of 2019 was 11.6 billion U.S. dollars per diluted share of 23.01 U.S. dollars.
Performance forecast for the first quarter of 2021
Estimate that the net sales in the first quarter of 2021 will be between $100 billion and $106 billion, an increase of 33% to 40% from the first quarter of 2020.
The operating income in the first quarter of 2021 expects to be between $3 billion and $6.5 billion. Also, it is estimated that in the first quarter of 2021, the expenses related to the new crown virus epidemic will be approximately US$2 billion.
Jeff Bezos to step down as Amazon CEO
Amazon CEO Jeff Bezos will leave his post later this year, turning the helm over to the company’s top cloud executive Andy Jassy. Jassy joined Amazon in 1997 and has led Amazon’s Web Services cloud team since its inception.
Go to know more information about Financial Results and CEO Transition.
Check more business tips on Captain BI blog.