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Dec 31, 2022

Amazon Q4 2022 Earnings Report

Amazon's Q4 2022 results saw a net sales increase of 9% to $149.2 billion, but operating income decreased to $2.7 billion and net income decreased to $0.3 billion.

Key Takeaways

Amazon's Q4 2022 net sales increased by 9% to $149.2 billion, while operating income decreased to $2.7 billion, and net income decreased significantly to $0.3 billion, impacted by valuation losses in Rivian Automotive, Inc.

Net sales increased 9% to $149.2 billion, or 12% excluding foreign exchange impacts.

North America segment sales increased 13% to $93.4 billion.

AWS segment sales increased 20% to $21.4 billion.

Operating income decreased to $2.7 billion, including $2.7 billion of charges.

Total Revenue
$149B
Previous year: $137B
+8.6%
EPS
$0.25
Previous year: $0.29
-13.8%
Operating Margin
1.8%
Previous year: 2.5%
-28.0%

Amazon

Amazon

Amazon Revenue by Segment

Forward Guidance

Amazon anticipates net sales between $121.0 billion and $126.0 billion, representing growth between 4% and 8% compared to Q1 2022. Operating income is expected to be between $0 and $4.0 billion.

Positive Outlook

  • Net sales are expected to grow between 4% and 8% compared with first quarter 2022.
  • Guidance anticipates an unfavorable impact of approximately 210 basis points from foreign exchange rates.
  • Operating income is expected to be between $0 and $4.0 billion, compared with $3.7 billion in first quarter 2022.
  • Guidance assumes no additional business acquisitions.
  • Guidance assumes no additional restructurings.

Challenges Ahead

  • Our results are inherently unpredictable and may be materially affected by many factors.
  • Uncertainty regarding the impacts of the COVID-19 pandemic.
  • Fluctuations in foreign exchange rates.
  • Changes in global economic and geopolitical conditions and customer demand and spending (including the impact of recessionary fears).
  • Inflation, interest rates, regional labor market and global supply chain constraints, world events, the rate of growth of the Internet, online commerce, and cloud services.