NASDAQ$AMZN

Amazon.com Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Amazon's first quarter results reflected the impact of the pandemic and the war in Ukraine, with AWS demonstrating strong growth and the Consumer business focusing on productivity improvements.

Amazon's first quarter 2022 results showed a net sales increase of 7% to $116.4 billion, but a net loss of $3.8 billion, or $7.56 per diluted share, primarily due to a pre-tax valuation loss of $7.6 billion from its investment in Rivian Automotive, Inc. Operating income decreased to $3.7 billion.

  • Net sales increased 7% to $116.4 billion, or 9% excluding the unfavorable impact from foreign exchange rates.
  • Operating income decreased to $3.7 billion, compared to $8.9 billion in the first quarter of 2021.
  • Net loss was $3.8 billion, or $7.56 per diluted share, compared with net income of $8.1 billion, or $15.79 per diluted share, in first quarter 2021, including a $7.6 billion pre-tax valuation loss from the investment in Rivian Automotive, Inc.
  • AWS grew 37% year-over-year, demonstrating its integral role in helping companies move workloads to the cloud.

Headline financials

Total Revenue

$116B

Previous: $109B+7.3%
EPS (adj)

$0.37

Previous: $0.79-53.2%
Operating margin

3.2%

Previous: 8.2%-61.0%
Free Cash Flow

-$3.84B

Previous: $8.11B-147.4%
Net Income

-$3.84B

Previous: $8.11B-147.4%
Operating Income

$3.67B

Previous: $8.87B-58.6%
Gross Profit

$49.9B

Previous: $46.1B+8.3%
Cash & Equivalents

$36.4B

Previous: $33.8B+7.6%
Total Assets

$411B

Previous: $323B+27.1%

Revenue & EPS history

Amazon · Revenue · Quarterly

$116B

Q1 2022+7.3%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Amazon · $116B total across 3 segments · Q1 2022

  • North America
    $69.2B+7.6%
  • International
    $28.8B-6.2%
  • AWS
    $18.4B+36.6%

Forward guidance

Amazon provided the following forward-looking guidance for the second quarter of 2022:

Tailwinds

  • Net sales are expected to be between $116.0 billion and $121.0 billion, representing growth between 3% and 7% compared with the second quarter of 2021.
  • Prime Day is assumed to occur in the third quarter of 2022, potentially boosting sales in that period.
  • The company continues to invest in new business opportunities, indicating potential for future growth.
  • Guidance anticipates an unfavorable impact of approximately 200 basis points from foreign exchange rates, suggesting underlying business strength.
  • No additional business acquisitions, restructurings, or legal settlements are assumed, providing a stable outlook.

Headwinds

  • Operating income (loss) is expected to be between $(1.0) billion and $3.0 billion, compared with $7.7 billion in the second quarter of 2021, indicating a potential decline in profitability.
  • The guidance is subject to substantial uncertainty, including the impacts of the COVID-19 pandemic, fluctuations in foreign exchange rates, and changes in global economic conditions.
  • Inflation, labor market constraints, and global supply chain constraints may materially affect results.
  • The amount Amazon.com invests in new business opportunities and the timing of those investments could impact future financial performance.
  • Competition and potential fluctuations in operating results pose risks to achieving the guided outcomes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.7%

Avg return

Earnings day

-0.0%

Avg return

5 days after

+0.5%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+18.4%

Q1 2012

Best reaction

-10.6%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+4.0%+2.9%
Q4 2025-5.6%-8.4%-4.3%
Q3 2025+1.9%+12.3%+4.6%
Q2 2025-6.2%-5.0%-2.2%
Q1 2025-0.2%-0.8%+7.8%
Q4 2024-4.1%-4.1%-16.6%
Q3 2024+2.7%+3.5%+7.9%
Q2 2024-10.2%-13.4%-4.5%
Q1 2024-1.1%+2.9%-0.9%
Q4 2023+10.7%+9.0%+14.8%
Q3 2023+5.2%+9.6%+20.9%
Q2 2023+8.9%+9.1%+7.7%
Q1 2023+0.4%-1.3%+14.4%
Q4 2022-1.7%-2.9%-9.7%
Q3 2022-10.6%-16.3%-19.2%
Q2 2022+11.6%+10.9%+8.1%
Q1 2022-10.1%-10.1%-16.7%
Q4 2021+4.7%+7.2%-3.3%
Q3 2021-0.6%-2.4%+3.3%
Q2 2021-8.3%-7.3%-7.7%
Q1 2021+0.3%-4.2%-6.8%
Q4 2020-0.9%+0.3%-10.9%
Q3 2020-4.0%-3.6%+1.0%
Q2 2020+4.3%+3.5%+12.1%
Q1 2020-3.7%-2.3%+2.9%
Q4 2019+8.1%+10.3%+1.4%
Q3 2019-0.0%+0.0%-0.9%
Q2 2019-2.9%-5.1%-12.6%
Q1 2019+2.6%+1.3%-4.1%
Q4 2018-2.6%-0.7%+0.1%
Q3 2018-1.3%-8.0%-9.7%
Q2 2018-2.5%-4.6%+2.2%
Q1 2018+7.7%+8.4%+10.3%
Q4 2017-1.4%-0.6%+3.4%
Q3 2017+13.2%+13.6%+21.9%
Q2 2017-3.1%-5.4%-10.2%
Q1 2017+1.7%+4.1%+9.5%
Q4 2016-2.7%-2.4%+2.1%
Q3 2016-5.6%-4.5%-5.1%
Q2 2016+3.0%+3.2%+4.4%
Q1 2016+8.7%
Q4 2015+0.6%
Q3 2015+7.8%
Q2 2015+8.4%
Q1 2015+14.2%
Q4 2014+16.6%
Q3 2014-8.3%
Q2 2014-9.5%
Q1 2014-6.4%
Q4 2013-6.7%
Q3 2013+11.2%
Q2 2013+4.3%
Q1 2013-5.2%
Q4 2012-1.2%
Q3 2012+4.3%
Q2 2012+9.4%
Q1 2012+18.4%
Q4 2011-6.5%
Q3 2011-9.0%
Q2 2011+4.6%
Q1 2011+6.9%
Q4 2010-8.0%
Q3 2010+2.4%
Q2 2010-1.3%
Q1 2010-1.9%
Q2 2009-10.2%

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