Amazon in 2024: Strong Growth and AWS’s Key Role in the Group’s Profitability

Administrateur
Feb 23
3 min read

Amazon delivered strong financial performance in 2024, reinforcing its leadership across its various business segments. The company posted significant revenue growth and improved profitability, largely driven by its cloud computing division, Amazon Web Services (AWS). This segment has become a core pillar of the group and a major source of profit. This article analyzes Amazon’s 2024 financial results, with a particular focus on AWS’s ongoing role as a strategic growth driver.

Financial Performance in 2024: A Year of Strong Growth

Amazon reported annual revenue of $638.0 billion, an increase of 11% compared to $574.8 billion in 2023. This growth was fueled by strong demand in North America and improved performance in its international segment. Net income nearly doubled, reaching $59.2 billion, with diluted earnings per share at $5.53.

Performance by Segment

North America: Sales rose 10% to $387.5 billion, with operating income increasing to $25.0 billion, compared to $14.9 billion in 2023.
International: Revenue grew 9%, reaching $142.9 billion. The segment turned profitable, reporting an operating income of $3.8 billion, compared to a $2.7 billion loss in 2023.
Amazon Web Services (AWS): Revenue surged 19%, reaching $107.6 billion, with operating income climbing to $39.8 billion, up from $24.6 billion in the previous year.

AWS: A Strategic Growth Engine for Amazon

Exceptional Growth and Profitability

Over the past few years, AWS has solidified its position as a major player in cloud computing, a rapidly expanding sector. In 2024, AWS revenue grew 19% to $107.6 billion, and its operating income reached $39.8 billion, accounting for nearly 67% of Amazon’s total operating profit.

Key Factors Driving AWS Performance

Several elements explain AWS’s sustained growth:

Rising Demand for Cloud ComputingThe accelerated digital transformation of businesses and the widespread adoption of artificial intelligence (AI) and SaaS solutions have boosted demand for cloud services. AWS benefits from this trend with its diversified service portfolio, including storage, computing, data analytics, and machine learning.
Innovation Strategy and AI InvestmentsAmazon has heavily invested in AI and machine learning, introducing solutions like Amazon Bedrock, which simplifies AI model integration for businesses. AWS’s AI offerings expanded in 2024, enhancing its competitive edge against Microsoft Azure and Google Cloud.
Infrastructure Expansion and Data Center InvestmentsAWS continued expanding its data center network, with new investments in North America, Europe, and Asia. This expansion improves service latency and attracts more enterprise and government clients.
Revenue Diversification and Monetization StrategiesAWS successfully increased monetization through high-value solutions such as hybrid cloud offerings and cybersecurity services. Its flexible pricing model appeals to both startups and multinational corporations.

AWS vs. Competitors

AWS remains the dominant player in the cloud market, but competition is intensifying. Microsoft Azure has gained traction with enterprise and public sector contracts, while Google Cloud is expanding rapidly with its expertise in AI and data analytics. However, AWS maintains its strategic advantage through:

A market share of approximately 31% in 2024, compared to 25% for Azure and 11% for Google Cloud.
A strong customer base, including major companies like Netflix, Airbnb, and Pfizer.
A comprehensive cloud ecosystem, making adoption and integration smoother for businesses.

Outlook and Challenges for 2025

Growth Forecasts

Despite strong results in 2024, Amazon anticipates slower growth in early 2025, with projected revenue between $151 billion and $155.5 billion, representing a 5% to 9% increase year-over-year.

Key Challenges for AWS

Maintaining market leadership amid rising competition from Azure and Google Cloud.
Further investing in AI and sovereign cloud solutions, a rapidly growing sector.
Optimizing costs to improve margins, given the high infrastructure investment requirements.

Conclusion

2024 marked a year of significant growth for Amazon, largely driven by the continued expansion of AWS, which has become the group’s primary profit driver. Cloud computing remains a strategic sector for the company, but increased competition requires constant adaptation. In 2025, Amazon will need to continue investing in AI and cloud infrastructure to strengthen its dominant position against Microsoft and Google.