Amazon Slides Down 9% After Lackluster Q1 2022 Financials, First Net Loss In 7 Years
Amazon.com, Inc. (Nasdaq: AMZN) reported on Thursday post-closing its financial results for Q1 2022. The company recorded US$116.44 billion in net sales, a decrease from Q4 2021’s US$137.41 billion but an increase from Q1 2021’s US$108.52 billion.
After the firm released its financials post-closing, shares dropped by 9% in pre-market trading.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” said CEO Andy Jassy. “Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network. We know how to do this and have done it before.”
However, Jassy added that “this may take some time” as the firm faces inflationary and supply chain pressures.
Breaking down the topline annual sales, North America division contributed US$69.24 billion, international sales contributed US$28.76 billion, and Amazon Web Services added US$18.44 billion.
The firm recorded a total of US$112.78 billion in operating expenses, yielding an operating margin of 3.2%. This compares to operating expenses of US$133.95 billion and operating margin of 2.5% in the previous quarter, and US$99.65 billion and 8.2% in the previous year, respectively.
The tech firm notched a net loss for the quarter of US$3.84 billion–its first quarterly net loss since 2015. This is also a huge decline from last quarter’s US$14.32 billion net income and last year’s US$8.11 billion net income. The bottomline figure translates to US$7.56 loss per diluted share.
The firm’s 12-month trailing operating cash flow for the quarter declined to US$39.32 billion after recording an outflow of US$2.79 billion for the quarter. This compares to the 12-month trailing operating cash flow of US$46.33 billion from last quarter and US$67.21 billion from last year.
Free cash flow for the trailing 12 months ended in Q4 2021 at an outflow of US$18.63 billion, down from US$9.07 billion in the previous quarter and an inflow of US$26.41 billion in the previous year.
The company also ended the quarter with US$36.39 billion in cash and cash equivalents, putting the balance of current assets at US$133.88 billion. Meanwhile, current liabilities came in at US$139.51 billion.
For Q2 2022, the firm guides its net sales to be at US$116.0 – US$121.0 billion, a 3%-7% increase over its Q2 2021 numbers. It also expects the succeeding quarter to record an operating loss of US$1.0 billion on the lower end and an operating income of US$3.0 billion on the higher end.
Earlier this month, the tech giant announced its planned venture into the low earth orbit satellite internet industry after it signed deals with three major space firms, including Amazon founder Jeff Bezos’ Blue Origin.
Amazon.com last traded at US$2,542.52 on the Nasdaq
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
