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Mar 31, 2023
Amazon Q1 2023 Earnings Report
Amazon's first quarter results were announced, demonstrating growth in net sales and operating income.
Key Takeaways
Amazon's first quarter 2023 results show a 9% increase in net sales to $127.4 billion, and operating income increased to $4.8 billion, compared to $3.7 billion in the first quarter 2022. Net income was $3.2 billion, or $0.31 per diluted share, compared with net loss of $3.8 billion, or $0.38 per diluted share, in first quarter 2022.
Net sales increased by 9% to $127.4 billion compared to Q1 2022.
Operating income increased to $4.8 billion, including $0.5 billion in severance costs.
North America segment operating income was $0.9 billion, a significant improvement from the operating loss in Q1 2022.
AWS segment sales increased 16% year-over-year to $21.4 billion, but operating income decreased to $5.1 billion.
Amazon
Amazon
Amazon Revenue by Segment
Amazon Revenue by Geographic Location
Revenue by Segment
North America Revenue
CapyFin.comInternational Revenue
CapyFin.comAWS Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
For the second quarter of 2023, Amazon expects net sales to be between $127.0 billion and $133.0 billion, representing a growth of 5% to 10% compared to the second quarter of 2022. Operating income is expected to be between $2.0 billion and $5.5 billion, compared with $3.3 billion in the second quarter of 2022.
Positive Outlook
- Net sales are expected to grow between 5% and 10% compared with second quarter 2022.
- Operating income is expected to increase compared to second quarter 2022.
- The guidance anticipates an unfavorable impact of approximately 30 basis points from foreign exchange rates, suggesting underlying strength.
- The company's investments in machine learning are expected to continue driving growth in the Advertising business.
- Amazon's focus on building long-term customer relationships in AWS is expected to drive future growth.
Challenges Ahead
- Net sales growth could be negatively impacted by fluctuations in foreign exchange rates.
- Global economic and geopolitical conditions and customer demand and spending (including the impact of recessionary fears) could affect results.
- Inflation and interest rates may impact customer spending and demand.
- Regional labor market constraints could affect operations.
- The rate of growth of the Internet, online commerce, and cloud services could impact financial results.