AMAZON COM INC Quarterly Report for Q2 Ended Jun 30, 2022

Summary

Amazon.com, Inc. reported a net loss of $2.03 billion for the second quarter of 2022, a significant shift from the $7.78 billion net income in the prior year's second quarter. This loss was largely attributed to a substantial decrease in the valuation of its equity investment in Rivian Automotive, Inc., which resulted in a pre-tax valuation loss of $3.9 billion. Despite the net loss, the company's net sales saw a 7% increase year-over-year, reaching $121.23 billion in Q2 2022, driven by growth in North America and a robust performance in AWS. However, international sales experienced a decline of 12%, impacted by foreign currency fluctuations. Operating expenses also increased across several categories, including fulfillment and technology and content, contributing to a significant decrease in operating income. Looking ahead, Amazon provided guidance for the third quarter of 2022, expecting net sales to grow between 13% and 17% year-over-year, but projected operating income to be between $0 and $3.5 billion, indicating continued cost pressures and a challenging operating environment.

Key Highlights

• 1Net loss of $2.03 billion in Q2 2022, compared to a net income of $7.78 billion in Q2 2021, primarily due to investment valuation changes.
• 2Total net sales increased by 7% to $121.23 billion in Q2 2022, compared to $113.08 billion in Q2 2021.
• 3AWS segment continues strong growth, with net sales up 33% to $19.74 billion in Q2 2022.
• 4North America net sales increased by 10% to $74.43 billion in Q2 2022.
• 5International net sales decreased by 12% to $27.07 billion in Q2 2022, affected by foreign exchange rates and lower unit sales.
• 6Operating income significantly decreased to $3.32 billion in Q2 2022, down from $7.70 billion in Q2 2021.
• 7The company repurchased $3.3 billion of common stock in Q2 2022.

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