Summary
Amazon.com, Inc. (AMZN) reported its financial results for the third quarter and nine months ended September 30, 2022. The company experienced a net loss of $3.0 billion for the first nine months of the year, a significant shift from a net income of $19.0 billion in the same period of the previous year. This was largely driven by a substantial increase in "Other income (expense), net," which reported a loss of $13.4 billion for the nine months ended September 30, 2022, primarily due to valuation losses on the company's equity investment in Rivian Automotive, Inc. The third quarter itself showed a net income of $2.9 billion. Despite the net loss for the year-to-date period, total net sales grew by 10% for the nine months ended September 30, 2022, reaching $364.8 billion. Growth was driven by robust performance in AWS and solid gains in North America, though International sales saw a decline. Operating income for the nine months was $9.5 billion, down from $21.4 billion in the prior year, reflecting increased operating expenses across fulfillment and technology and content segments, particularly in North America and International. From a cash flow perspective, operating activities generated $17.6 billion for the nine months ended September 30, 2022, compared to $24.2 billion in the prior year. The company continued to invest heavily in its operations, with capital expenditures of $42.9 billion for the same period. Amazon ended the period with a strong liquidity position, with cash, cash equivalents, and marketable securities totaling $58.7 billion.
Financial Highlights
52 data points| Revenue | $127.10B |
| Cost of Revenue | $70.27B |
| Gross Profit | $56.83B |
| Operating Expenses | $124.58B |
| Operating Income | $2.52B |
| Interest Expense | $617.00M |
| Net Income | $2.87B |
| EPS (Basic) | $0.28 |
| EPS (Diluted) | $0.28 |
| Shares Outstanding (Basic) | 10.19B |
| Shares Outstanding (Diluted) | 10.33B |
Key Highlights
- 1Net loss of $3.0 billion for the first nine months of 2022, a significant decline from a $19.0 billion net income in the prior year period, largely due to Rivian investment valuation losses.
- 2Third quarter 2022 net income was $2.9 billion, showing a sequential improvement from prior periods.
- 3Total net sales increased by 10% for the first nine months of 2022 to $364.8 billion, indicating continued top-line growth.
- 4AWS segment remains a strong performer, with sales up 32% year-to-date, and operating income increasing to $17.6 billion for the nine months.
- 5North America and International segments experienced operating losses for the nine months ended September 30, 2022, ($2.6 billion and $5.5 billion respectively), primarily due to increased fulfillment and transportation costs.
- 6Free cash flow turned negative at $(19.7) billion for the trailing twelve months ended September 30, 2022, down from positive $2.6 billion in the prior year period, reflecting increased investments and working capital changes.
- 7Stock-based compensation expense significantly increased, rising to $14.0 billion for the first nine months of 2022 from $9.1 billion in the prior year period.