Amazon.com, Inc. (Nasdaq: AMZN) reported on Thursday its financial results for Q4 and full-year 2021. The company recorded US$469.82 billion in net sales, an increase from 2020’s net sales of US$386.06 billion.
Breaking down the topline annual sales, North America division contributed US$279.83 billion, International sales contributed US$127.79 billion, and Amazon Web Services added US$62.20 billion.
The firm also saw its operating expenses increase to US$444.94 billion from US$363.17 billion in 2020. This led to a decline in operating margin to 5.3% from 5.9% from a year ago.
The annual net income came in at US$33.36 billion, up from last year’s US$21.33 billion.
For Q4, the company notched US$137.41 billion in net sales, up from Q3 2021’s US$110.81 billion and Q4 2020’s US$125.56 billion. Operating expenses for the quarter came in at US$133.95 billion leading to a quarterly operating margin of 2.5%, down from 4.4% last quarter and 5.5% from the year-ago period. The international segment also contributed to this decline with US$1.63 billion in operating loss for the quarter.
The net income for the quarter was US$14.32 billion, which includes a US$11.8 billion pre-tax valuation gain related to the company’s investment in Rivian Automotive after the latter’s IPO in November. This compares to Q3 2021’s net income of US$3.16 billion and Q4 2020’s net income of US$7.22 billion. The quarterly income translates to US$27.75 earnings per diluted share.
The firm’s 12-month trailing operating cash flow for the quarter declined to US$46.33 billion from last quarter’s US$54.67 billion and last year’s US$66.06 billion. Free cash flow for the trailing 12 months ended in Q4 2021 at an outflow of US$9.07 billion, down from an inflow of US$2.55 billion and US$$31.02 billion in Q3 2021 and Q4 2020, respectively.
The company also ended the year with US$36.22 billion in cash and cash equivalents, putting the balance of current assets at US$161.58 billion. Meanwhile, current liabilities came in at US$142.27 billion.
For Q1 2022, the firm guides its net sales to be at US$112.0 – US$117.0 billion, a 3%-8% increase over its Q1 2021 numbers. It also lowered its guidance for operating income for the quarter to US$3.0 – US$6.0 billion compared to Q1 2021’s operating income of US$8.9 billion. This considers approximately $1.0 billion lower depreciation expense due to increases in the estimated useful lives of its servers and networking equipment.
Earlier this month, analysts released its consensus $4,095.17 12-month price target on the company.
Amazon.com last traded at US$2,776.91 on the Nasdaq, down 7.81% on the day.
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