Amazon Q1 2022 Earnings Report
Key Takeaways
Amazon's first quarter 2022 results showed a net sales increase of 7% to $116.4 billion, but a net loss of $3.8 billion, or $7.56 per diluted share, primarily due to a pre-tax valuation loss of $7.6 billion from its investment in Rivian Automotive, Inc. Operating income decreased to $3.7 billion.
Net sales increased 7% to $116.4 billion, or 9% excluding the unfavorable impact from foreign exchange rates.
Operating income decreased to $3.7 billion, compared to $8.9 billion in the first quarter of 2021.
Net loss was $3.8 billion, or $7.56 per diluted share, compared with net income of $8.1 billion, or $15.79 per diluted share, in first quarter 2021, including a $7.6 billion pre-tax valuation loss from the investment in Rivian Automotive, Inc.
AWS grew 37% year-over-year, demonstrating its integral role in helping companies move workloads to the cloud.
Amazon
Amazon
Amazon Revenue by Segment
Forward Guidance
Amazon provided the following forward-looking guidance for the second quarter of 2022:
Positive Outlook
- Net sales are expected to be between $116.0 billion and $121.0 billion, representing growth between 3% and 7% compared with the second quarter of 2021.
- Prime Day is assumed to occur in the third quarter of 2022, potentially boosting sales in that period.
- The company continues to invest in new business opportunities, indicating potential for future growth.
- Guidance anticipates an unfavorable impact of approximately 200 basis points from foreign exchange rates, suggesting underlying business strength.
- No additional business acquisitions, restructurings, or legal settlements are assumed, providing a stable outlook.
Challenges Ahead
- Operating income (loss) is expected to be between $(1.0) billion and $3.0 billion, compared with $7.7 billion in the second quarter of 2021, indicating a potential decline in profitability.
- The guidance is subject to substantial uncertainty, including the impacts of the COVID-19 pandemic, fluctuations in foreign exchange rates, and changes in global economic conditions.
- Inflation, labor market constraints, and global supply chain constraints may materially affect results.
- The amount Amazon.com invests in new business opportunities and the timing of those investments could impact future financial performance.
- Competition and potential fluctuations in operating results pose risks to achieving the guided outcomes.