Amazon has reported on its Q4 and 2022 performance. The business made a Net loss of $2.7 billion in 2022 compared with net income of $33.4 billion in 2021. Net sales increased by 9% in 2022 to $514bn. There was a significant drop in operating income to $12.2billion compared to $24.9 billion last year. The Amazon Web Sales software business delivered $22.8 billion of income out of $80.1 billion of sales. Their global product sales business struggled in comparison: the North America product sales segment recorded sales growth of 13% YoY to $315.9 billion but an operating loss of $2.8 billion. Their International business unit (including UK) recording a sales decrease of -8% YoY to $118 billion and an operating loss of $7.7 billion.Q4 net sales were up 9% YoY. The impact of exchange rates on the International business (incl UK) is significant: sales decreased 8% year-over-year to $34.5 billion, or increased 5% excluding changes in foreign exchange rates.
Q4 performance headlines
Sales
- Net sales increased 9% to $149.2 billion in the fourth quarter, compared with $137.4 billion in fourth quarter 2021.
- Excluding the $5.0 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 12% compared with fourth quarter 2021.
- North America segment sales increased 13% year-over-year to $93.4 billion, or increased 14% excluding changes in foreign exchange rates.
- International segment sales decreased 8% year-over-year to $34.5 billion, or increased 5% excluding changes in foreign exchange rates.
- AWS (Amazon's software business) segment sales increased 20% year-over-year to $21.4 billion.
Income
- Operating income decreased to $2.7 billion in the fourth quarter, compared with $3.5 billion in fourth quarter 2021.
- North America segment operating loss was $0.2 billion, compared with operating loss of $0.2 billion in fourth quarter 2021.
- International segment operating loss was $2.2 billion, compared with operating loss of $1.6 billion in fourth quarter 2021.
- AWS segment operating income was $5.2 billion, compared with operating income of $5.3 billion in fourth quarter 2021.
- Net income decreased to $0.3 billion in the fourth quarter, or $0.03 per diluted share, compared with $14.3 billion, or $1.39 per diluted share, in fourth quarter 2021.
Full Year 2022
Sales
- Net sales increased 9% to $514.0 billion in 2022, compared with $469.8 billion in 2021. #
- Excluding the $15.5 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 13% compared with 2021.
- North America segment sales increased 13% year-over-year to $315.9 billion.
- International segment sales decreased 8% year-over-year to $118.0 billion, or increased 4% excluding changes in foreign exchange rates.
- AWS segment sales increased 29% year-over-year to $80.1 billion.
Income
- Operating income decreased to $12.2 billion in 2022, compared with $24.9 billion in 2021.
- North America segment operating loss was $2.8 billion, compared with operating income of $7.3 billion in 2021.
- International segment operating loss was $7.7 billion, compared with operating loss of $0.9 billion in 2021.
- AWS segment operating income was $22.8 billion, compared with operating income of $18.5 billion in 2021.
- Net loss was $2.7 billion in 2022, or $0.27 per diluted share, compared with net income of $33.4 billion, or $3.24 per diluted share, in 2021.
- 2022 net loss includes a pre-tax valuation loss of $12.7 billion included in non-operating income (expense) from the common stock investment in Rivian Automotive, Inc., compared to a pre-tax valuation gain of $11.8 billion from the investment in 2021.
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