NASDAQ$AMZN

Amazon.com Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Amazon's first quarter results were announced, demonstrating growth in net sales and operating income.

Amazon's first quarter 2023 results show a 9% increase in net sales to $127.4 billion, and operating income increased to $4.8 billion, compared to $3.7 billion in the first quarter 2022. Net income was $3.2 billion, or $0.31 per diluted share, compared with net loss of $3.8 billion, or $0.38 per diluted share, in first quarter 2022.

  • Net sales increased by 9% to $127.4 billion compared to Q1 2022.
  • Operating income increased to $4.8 billion, including $0.5 billion in severance costs.
  • North America segment operating income was $0.9 billion, a significant improvement from the operating loss in Q1 2022.
  • AWS segment sales increased 16% year-over-year to $21.4 billion, but operating income decreased to $5.1 billion.

Headline financials

Total Revenue

$127B

Previous: $116B+9.4%
EPS (adj)

$0.35

Previous: $0.37-5.4%
Operating margin

3.7%

Previous: 3.2%+15.6%
Free Cash Flow

$3.17B

Previous: -$3.84B+182.5%
Net Income

$3.17B

Previous: -$3.84B+182.5%
Operating Income

$4.77B

Previous: $3.67B+30.1%
Gross Profit

$59.6B

Previous: $49.9B+19.3%
Cash & Equivalents

$49.3B

Previous: $36.4B+35.6%
Total Assets

$464B

Previous: $411B+13.1%

Revenue & EPS history

Amazon · Revenue · Quarterly

$127B

Q1 2023+9.4%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Amazon · $127B total across 3 segments · Q1 2023

  • North America
    $76.9B+11.0%
  • International
    $29.1B+1.3%
  • AWS
    $21.4B+15.8%

Forward guidance

For the second quarter of 2023, Amazon expects net sales to be between $127.0 billion and $133.0 billion, representing a growth of 5% to 10% compared to the second quarter of 2022. Operating income is expected to be between $2.0 billion and $5.5 billion, compared with $3.3 billion in the second quarter of 2022.

Tailwinds

  • Net sales are expected to grow between 5% and 10% compared with second quarter 2022.
  • Operating income is expected to increase compared to second quarter 2022.
  • The guidance anticipates an unfavorable impact of approximately 30 basis points from foreign exchange rates, suggesting underlying strength.
  • The company's investments in machine learning are expected to continue driving growth in the Advertising business.
  • Amazon's focus on building long-term customer relationships in AWS is expected to drive future growth.

Headwinds

  • Net sales growth could be negatively impacted by fluctuations in foreign exchange rates.
  • Global economic and geopolitical conditions and customer demand and spending (including the impact of recessionary fears) could affect results.
  • Inflation and interest rates may impact customer spending and demand.
  • Regional labor market constraints could affect operations.
  • The rate of growth of the Internet, online commerce, and cloud services could impact financial results.

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 2023

Historical avgQ1 2023

+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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