BusinessEarnings ReportsApril 15, 2021

Bezos says Amazon created $301 billion in 2020 value

Jeff Bezos's final annual letter to shareholders as Amazon CEO reflects on the company's 2020 performance, highlighting financial metrics across various stakeholders including shareholders, employees, third-party sellers, and customers. It reported $21.3 billion in net income for 2020 and emphasized the value creation for its 200 million Prime members worldwide. The letter also outlined Amazon's commitments to becoming "Earth's Best Employer" and pursuing its Climate Pledge goals.

Key Takeaways

Amazon reported $21.3 billion in net income for 2020, while Bezos said the company created $301 billion of total value across four stakeholder groups.
Employees earned $91 billion in 2020, including $80 billion in compensation plus $11 billion in benefits and payroll taxes.
Third-party sellers made an estimated $25 billion in profit on Amazon in 2020, according to the Selling Partner Services team.
Amazon said more than 200 million Prime members generated about $126 billion of customer value in 2020, based on 75 hours of annual time savings per member.
AWS ended 2020 with a $50 billion annualized run rate and Bezos estimated $38 billion in customer value from AWS users.

Why It Matters

Amazon is framing 2020 as a year of broad value creation, not just shareholder returns: Bezos puts net income at $21.3 billion, but total value created at $301 billion when employees, third-party sellers, Prime members, and AWS customers are included. For the streaming and broader digital ecosystem, the relevant signal is Amazon’s continued scale across Prime and AWS, two businesses that sit at the center of media delivery, cloud infrastructure, and customer retention. The next data point to watch is whether Amazon’s 2021 shareholder materials show any change in Prime membership, AWS annualized run rate, or the stated $300 million safety investment.

Read full article at aboutamazon.com