Amazon.com, Inc. (NASDAQ: AMZN) today announced financial
results for its fourth quarter ended December 31, 2022.
Fourth Quarter 2022
- 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 segment sales increased 20% year-over-year to $21.4
billion.
- Operating income decreased to $2.7 billion in the fourth
quarter, compared with $3.5 billion in fourth quarter 2021. Fourth
quarter 2022 operating income includes approximately $2.7 billion
of charges for changes in estimates related to self-insurance
liabilities, impairments of property and equipment and operating
leases, and estimated severance costs. These charges primarily
impacted the North America segment.
- 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. All share and
per share information for comparable prior year periods throughout
this release have been retroactively adjusted to reflect the
20-for-1 stock split effected on May 27, 2022.
- Fourth quarter 2022 net income includes a pre-tax valuation
loss of $2.3 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 fourth quarter 2021.
Full Year 2022
- 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.
- 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.
- Operating cash flow increased 1% to $46.8 billion for
the trailing twelve months, compared with $46.3 billion for the
trailing twelve months ended December 31, 2021.
- Free cash flow decreased to an outflow of $11.6 billion
for the trailing twelve months, compared with an outflow of $9.1
billion for the trailing twelve months ended December 31,
2021.
- Free cash flow less principal repayments of finance leases
and financing obligations increased to an outflow of $19.8
billion for the trailing twelve months, compared with an outflow of
$20.4 billion for the trailing twelve months ended December 31,
2021.
- Free cash flow less equipment finance leases and principal
repayments of all other finance leases and financing
obligations increased to an outflow of $12.8 billion for the
trailing twelve months, compared with an outflow of $14.3 billion
for the trailing twelve months ended December 31, 2021.
“Our relentless focus on providing the broadest selection,
exceptional value, and fast delivery drove customer demand in our
Stores business during the fourth quarter that exceeded our
expectations—and we’re appreciative of all our customers who turned
to Amazon this past holiday season,” said Andy Jassy, Amazon CEO.
“We’re also encouraged by the continued progress we’re making in
reducing our cost to serve in the operations part of our Stores
business. In the short term, we face an uncertain economy, but we
remain quite optimistic about the long-term opportunities for
Amazon. The vast majority of total market segment share in both
Global Retail and IT still reside in physical stores and
on-premises datacenters; and as this equation steadily flips, we
believe our leading customer experiences in these areas along with
the results of our continued hard work and invention to improve
every day, will lead to significant growth in the coming years.
When you also factor in our investments and innovation in several
other broad customer experiences (e.g. streaming entertainment,
customer-first healthcare, broadband satellite connectivity for
more communities globally), there’s additional reason to feel
optimistic about what the future holds.”
Highlights
Obsessing over the customer experience
Amazon obsesses over how to make customers’ lives better and
easier every day. This is true for consumers, sellers, brands,
developers, enterprises, and creators. For example, in the past
quarter, Amazon:
- Had a record-breaking holiday season with customers purchasing
nearly half a billion items from small businesses in the U.S.
During Amazon’s biggest Thanksgiving-through-Cyber-Monday holiday
shopping weekend ever, customers around the world purchased
hundreds of millions of products, and small businesses in the U.S.
generated more than $1 billion in sales over the five-day
period.
- Made Same-Day Delivery even faster in major metropolitan areas
in the U.S., such as Los Angeles, San Francisco, Phoenix,
Sacramento, and Portland, Oregon, where customers can now receive
hundreds of thousands of items within hours. Amazon’s new Same-Day
Delivery site in Sacramento is set to be the world’s first
logistics facility certified as Zero Carbon by the International
Living Future Institute. In the EU, Same-Day Delivery is now
available in Belgium.
- Attracted more than 100 million viewers worldwide to the first
season of The Lord of the Rings: The Rings of Power, making it the
most watched Amazon Original series in every region of the world,
with more than 24 billion minutes streamed, and driving more Prime
sign-ups worldwide during its launch window than any previous Prime
Video content. Amazon Studios also announced the all-female slate
of directors—Charlotte Brändstr�m, Sanaa Hamri, and Louise
Hooper—for Season Two of The Lord of the Rings: The Rings of Power,
which is currently in production in the UK.
- Finished the Thursday Night Football (TNF) season with the
youngest median age of any NFL broadcast package since 2013 and
viewership up 11% from last season among hard-to-reach 18- to
34-year-olds, according to Nielsen Media Research. TNF featured the
most streamed NFL games ever, with an average audience of 11.3
million viewers, according to combined data from Amazon’s
first-party measurement metrics and Nielsen Media Research. Prime
Video also made history as the first streamer to place on Variety’s
Top 100 Primetime Telecasts of 2022, with four of its TNF telecasts
making the list.
- Premiered several Original series and films, including Western
drama The English, with Emily Blunt; family-friendly competition
show Dr. Seuss Baking Challenge; My Policeman, starring Harry
Styles; and documentary Good Night Oppy. Prime Video also released
new seasons of existing series, including the fourth volume of
Rihanna’s annual fashion experience Savage X Fenty and the third
season of Tom Clancy’s Jack Ryan, starring John Krasinski.
Wednesday, an MGM-produced series on Netflix, debuted at No. 1 on
Nielsen’s weekly streaming charts and earned Golden Globe
nominations for Best Musical or Comedy Series and Best Actress in a
Musical or Comedy Series (Jenna Ortega).
- Brought HBO back to Prime Video Channels in the U.S., after
reaching an agreement with Warner Bros. Discovery. For $15.99 per
month, customers who subscribe to HBO Max have access to
approximately 15,000 hours of curated premium content.
- Announced new commitments and migrations from AWS customers.
- Nasdaq completed the migration of its MRX core trading system
to the cloud, delivering a 10% performance improvement for market
participants and marking a major milestone in Nasdaq’s journey to
deliver the first cloud-based U.S. options exchange.
- NFL and AWS announced the NFL Contact Detection Challenge,
which invites experts to use machine learning (ML) and computer
vision to predict and prevent injuries.
- Yahoo Ad Tech selected AWS as its preferred cloud provider to
develop tailored and immersive solutions for brands to better
connect with their audiences.
- Stability AI selected AWS as its preferred cloud provider to
build and train artificial intelligence (AI) models for the best
performance at the lowest cost.
- Descartes Labs is going all-in on AWS to give customers timely,
actionable insights to tackle challenges like enhancing food
security and mitigating climate change.
- Brookfield Asset Management selected AWS as a preferred cloud
provider to advance renewable energy use globally.
- Duke Energy is working with AWS on smart grid solutions to
improve reliability and resiliency in preparation for rapid
electric vehicle adoption.
- Wallbox migrated to AWS, enabling customers to return excess
energy to the grid and reducing the company’s IT costs by 70%.
- American Family Insurance named AWS as its preferred cloud
provider to unlock personalized service and security for its 13.1
million policyholders.
- Launched AWS Regions in Spain and Switzerland as well as a
second Region in India to continue expanding AWS’s infrastructure
footprint, delivering the most secure, extensive, and reliable
cloud technology to millions of customers around the world. As of
the end of 2022, AWS has 96 Availability Zones within 30 geographic
Regions globally, with announced plans to launch 15 more
Availability Zones and five more AWS Regions.
- Expanded the AWS Partner Network to help customers accelerate
innovation in their organizations and speed their journey to the
cloud. Professional services company Accenture launched a platform
that helps customers drive business outcomes up to 50% faster on
AWS. Atos, a provider of managed infrastructure services, will
collaborate with AWS to enable customers with large-scale
infrastructure outsourcing contracts to accelerate digital
transformation and workload migrations to the cloud. Global
business and technology consulting company Slalom will develop
vertical solutions and accelerators on AWS for joint
customers.
Inventing on behalf of customers
Amazon is driven by a passion for invention across all of its
business areas. The company builds new products and services that
customers ask for, and also invents new ones that customers didn’t
know they wanted but make their lives or businesses better in some
meaningful way. For example, this past quarter, Amazon:
- Expanded Buy with Prime to all eligible U.S. merchants, letting
more merchants offer Prime customers fast, free delivery, a
seamless checkout experience, and easy returns on their websites.
Data shows that shopper conversion increases an average of 25% when
merchants use Buy with Prime. Amazon also introduced a capability
for Buy with Prime merchants to display customer reviews from
Amazon.com within their own online stores and announced an
integration with BigCommerce, an ecommerce platform, that will help
merchants easily enable Buy with Prime on their storefronts with no
coding required.
- Introduced Sparrow into the company’s first fulfillment center.
Sparrow is a robotic system that can detect, select, and handle
individual products in Amazon’s inventory—a major technological
advancement that allows employees to shift their time and energy to
other tasks. Sparrow also improves health and safety by reducing
the repetitive tasks done by employees.
- Delivered the 10 millionth package using electric delivery
vehicles from Rivian, custom-designed from the ground up with input
from delivery services providers and their drivers. With thousands
of miles driven, drivers have said the vehicle design and features
make their jobs easier and more comfortable, the driving experience
is improved, and they feel safe while driving. Amazon plans to have
100,000 electric delivery vehicles from Rivian on the road by 2030,
saving millions of metric tons of carbon per year.
- Launched Amazon Clinic, a message-based virtual health service
that delivers convenient, personalized, affordable care for more
than 20 common conditions. Amazon Clinic lets customers choose from
a network of leading telehealth providers based on their
preferences. Amazon also recently launched RxPass, a new Prime
membership benefit from Amazon Pharmacy that offers access to
unlimited eligible prescription medications for only $5 per month
including free shipping. Amazon’s mission in healthcare is to make
it dramatically easier for anyone to find, choose, and afford what
they need to get and stay healthy.
- Announced AWS Graviton3E chips, which deliver the best price
performance for high performance computing workloads on AWS; new
AWS Nitro Cards, which deliver the highest network bandwidth, the
highest packet rate performance, and the best price performance for
network-intensive workloads; and Inf2 instances, powered by AWS
Inferentia2 chips, which deliver the lowest latency at the lowest
cost for ML inference on Amazon EC2.
- Announced Amazon Security Lake, a service that automatically
centralizes an organization’s security data from cloud and
on-premises sources into a purpose-built data lake in a customer’s
AWS account so customers can act on security data faster.
- Announced Amazon DataZone, a new data management service that
unlocks customer data across organizational boundaries, including
the cloud, on-premises infrastructure, and third-party SaaS
applications. With AWS DataZone, customers can catalog, discover,
and share data with governance and access controls.
- Announced AWS Supply Chain, an application that helps
businesses increase supply chain visibility to make faster,
more-informed decisions that mitigate risks, lower costs, and
improve customer experiences.
- Announced AWS SimSpace Weaver, a fully managed simulation
service that helps customers build, operate, and run large-scale
spatial simulations. With AWS SimSpace Weaver, customers can deploy
spatial simulations to model dynamic systems with many data points,
like traffic patterns across an entire city, crowd flows in a
venue, or factory floor layouts, and use the simulations to
visualize physical spaces, perform immersive training, and garner
insights on different scenarios to make informed decisions.
- Announced AWS Clean Rooms, which helps companies across
industries easily and securely analyze and collaborate on combined
datasets without sharing or revealing underlying data. AWS Clean
Rooms provide a broad set of built-in data access controls to
protect sensitive data, while allowing customers to create secure
data clean rooms to generate unique insights about advertising
campaigns, investment decisions, clinical research, and more.
- Launched Inspire, a feed in the U.S. Amazon shopping app with
content from customers, influencers, and brands to help customers
discover products personalized for their selected interests.
- Partnered with Snapchat to launch an augmented reality shopping
experience that allows millions of Snapchatters to digitally try-on
thousands of Amazon eyewear styles via Snapchat and seamlessly
purchase those items in the Amazon store. This experience is
enabled by Amazon’s 3D Asset technology, which easily integrates
with third-party apps like Snapchat, to provide 3D assets for
augmented reality-based shopping and dynamically supply up-to-date
product details, pricing, and availability.
Empowering employees and delivery service partners
In addition to its focus on customers, Amazon strives to make
every day better for its employees and delivery service providers.
For example, in the fourth quarter, the company:
- Surpassed 100,000 participants in Career Choice, an education
benefit that empowers employees to learn new skills for career
success through a range of options, including prepaid college
tuition, foundational skills training, and industry certifications.
In 2022 in the U.S., the company celebrated 3,000 graduates of its
new English language proficiency program.
- Continued to make its workplace more accessible and inclusive
for employees who are deaf and hard of hearing. For example, Amazon
rolled out new video stations over the past year at more than 200
sites across eight countries in North America and Europe to help
employees learn the basics of sign language for their region and
improve communication with colleagues who are deaf and hard of
hearing.
- Expanded the Amazon Mentoring Program to support new people
managers with opportunities to receive mentoring from experienced
Amazon people managers and develop the foundational skills to be an
effective people leader. Since its launch, the program grew from
18,800 employees in 2016 to over 159,000 employees in 2022.
- Launched a new Alexa feature where customers can say “Alexa,
thank my driver” to an Alexa-enabled device, the Alexa app, or the
Amazon mobile shopping app, and the driver who delivered their most
recent package would be notified. Nearly 8 million “thank yous”
have been received.
Supporting communities and protecting the environment
Amazon believes that success and scale bring broad
responsibility to help the planet, future generations, and local
communities in which the company has a significant presence. Amazon
employees have passion for investing in these areas, and a sampling
of the efforts from this past quarter are that Amazon:
- Advanced its goal to decarbonize its transportation network
globally. For example, Amazon partnered with TVS Motor Company to
deploy a fleet of electric two-wheelers and three-wheelers for last
mile deliveries in India. The agreement is part of Amazon’s plan to
bring 10,000 electric delivery vehicles to India by 2025.
- Released a report detailing Amazon’s progress and methods to
reduce packaging, including through the use of innovative
technologies, processes, and materials. Since 2015, these efforts
have helped reduce the weight of packaging per shipment by 38% and
eliminated the use of more than 1.5 million tons of packaging
materials. Amazon continues to take steps to reduce single-use
plastics in outbound packaging, recently announcing that it reduced
average plastic packaging weight per shipment by over 7% in 2021
across its global operations network.
- Unveiled its largest on-site solar energy installation in
Europe at a fulfillment center in Seville, Spain that is fitted
with more than 13,300 solar panels and is expected to produce more
than 6 million kilowatt hours per year—enough energy to power the
equivalent of more than 1,500 Spanish homes annually.
- Set a goal for AWS to be water positive by 2030, returning more
water to communities than it uses in its direct operations, and
announced that it achieved an industry-leading 2021 global water
use efficiency metric of 0.25 liters of water per
kilowatt-hour.
- Signed a memorandum of understanding confirming AWS’s continued
cooperation in 2023 with the Ukraine government. Since the start of
the war, AWS has played a crucial role in helping the Ukraine
government maintain continuity and provide critical services to its
citizens. To date, Amazon has committed more than $75 million in
support to help the people of Ukraine address immediate and
long-term needs.
- Released its latest Community Impact Report, which detailed
program milestones, including 85 million pounds of food donated
through a partnership with Feeding America; 20 million relief items
donated to date; $1.6 billion invested to create or preserve more
than 11,000 affordable homes through Amazon’s Housing Equity Fund;
computer science education provided to 600,000 students across
5,000 schools through Amazon Future Engineer; and $96 million
donated to more than 190 nonprofits in the Puget Sound, Washington
region in 2021, making it the Seattle area’s top corporate
philanthropist that year.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of February 2, 2023, and are subject to substantial
uncertainty. Our results are inherently unpredictable and may be
materially affected by many factors, such as uncertainty regarding
the impacts of the COVID-19 pandemic, fluctuations in foreign
exchange rates, changes in global economic and geopolitical
conditions and customer demand and spending (including the impact
of recessionary fears), inflation, interest rates, regional labor
market and global supply chain constraints, world events, the rate
of growth of the Internet, online commerce, and cloud services, and
the various factors detailed below.
First Quarter 2023 Guidance
- Net sales are expected to be between $121.0 billion and $126.0
billion, or to grow between 4% and 8% compared with first quarter
2022. This guidance anticipates an unfavorable impact of
approximately 210 basis points from foreign exchange rates.
- Operating income is expected to be between $0 and $4.0 billion,
compared with $3.7 billion in first quarter 2022.
- This guidance assumes, among other things, that no additional
business acquisitions, restructurings, or legal settlements are
concluded.
A conference call will be webcast live today at 2:30 p.m.
PT/5:30 p.m. ET, and will be available for at least three months at
amazon.com/ir. This call will contain forward-looking statements
and other material information regarding the Company’s financial
and operating results.
These forward-looking statements are inherently difficult to
predict. Actual results and outcomes could differ materially for a
variety of reasons, including, in addition to the factors discussed
above, the amount that Amazon.com invests in new business
opportunities and the timing of those investments, the mix of
products and services sold to customers, the mix of net sales
derived from products as compared with services, the extent to
which we owe income or other taxes, competition, management of
growth, potential fluctuations in operating results, international
growth and expansion, the outcomes of claims, litigation,
government investigations, and other proceedings, fulfillment,
sortation, delivery, and data center optimization, risks of
inventory management, variability in demand, the degree to which
the Company enters into, maintains, and develops commercial
agreements, proposed and completed acquisitions and strategic
transactions, payments risks, and risks of fulfillment throughput
and productivity. Other risks and uncertainties include, among
others, risks related to new products, services, and technologies,
system interruptions, government regulation and taxation, and
fraud. In addition, global economic and geopolitical conditions and
additional or unforeseen circumstances, developments, or events may
give rise to or amplify many of these risks. More information about
factors that potentially could affect Amazon.com’s financial
results is included in Amazon.com’s filings with the Securities and
Exchange Commission (“SEC”), including its most recent Annual
Report on Form 10-K and subsequent filings.
Our investor relations website is amazon.com/ir and we encourage
investors to use it as a way of easily finding information about
us. We promptly make available on this website, free of charge, the
reports that we file or furnish with the SEC, corporate governance
information (including our Code of Business Conduct and Ethics),
and select press releases, which may contain material information
about us, and you may subscribe to be notified of new information
posted to this site.
About Amazon
Amazon is guided by four principles: customer obsession rather
than competitor focus, passion for invention, commitment to
operational excellence, and long-term thinking. Amazon strives to
be Earth’s Most Customer-Centric Company, Earth’s Best Employer,
and Earth’s Safest Place to Work. Customer reviews, 1-Click
shopping, personalized recommendations, Prime, Fulfillment by
Amazon, AWS, Kindle Direct Publishing, Kindle, Career Choice, Fire
tablets, Fire TV, Amazon Echo, Alexa, Just Walk Out technology,
Amazon Studios, and The Climate Pledge are some of the things
pioneered by Amazon. For more information, visit amazon.com/about
and follow @AmazonNews.
AMAZON.COM, INC.
Consolidated Statements of
Cash Flows
(in millions)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2021
2022
2021
2022
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
30,177
$
35,178
$
42,377
$
36,477
OPERATING ACTIVITIES:
Net income (loss)
14,323
278
33,364
(2,722
)
Adjustments to reconcile net income (loss)
to net cash from operating activities:
Depreciation and amortization of property
and equipment and capitalized content costs, operating lease
assets, and other
9,867
12,685
34,433
41,921
Stock-based compensation
3,680
5,606
12,757
19,621
Other expense (income), net
(11,932
)
3,445
(14,306
)
16,966
Deferred income taxes
(3,623
)
(3,367
)
(310
)
(8,148
)
Changes in operating assets and
liabilities:
Inventories
(1,915
)
3,180
(9,487
)
(2,592
)
Accounts receivable, net and other
(6,556
)
(8,788
)
(18,163
)
(21,897
)
Accounts payable
7,989
9,852
3,602
2,945
Accrued expenses and other
9,333
5,777
2,123
(1,558
)
Unearned revenue
920
505
2,314
2,216
Net cash provided by (used in) operating
activities
22,086
29,173
46,327
46,752
INVESTING ACTIVITIES:
Purchases of property and equipment
(18,935
)
(16,592
)
(61,053
)
(63,645
)
Proceeds from property and equipment sales
and incentives
2,465
1,152
5,657
5,324
Acquisitions, net of cash acquired, and
other
(381
)
(831
)
(1,985
)
(8,316
)
Sales and maturities of marketable
securities
12,537
5,683
59,384
31,601
Purchases of marketable securities
(8,266
)
(233
)
(60,157
)
(2,565
)
Net cash provided by (used in) investing
activities
(12,580
)
(10,821
)
(58,154
)
(37,601
)
FINANCING ACTIVITIES:
Common stock repurchased
—
—
—
(6,000
)
Proceeds from short-term debt, and
other
2,667
10,607
7,956
41,553
Repayments of short-term debt, and
other
(2,659
)
(15,797
)
(7,753
)
(37,554
)
Proceeds from long-term debt
200
8,235
19,003
21,166
Repayments of long-term debt
(1,001
)
(1,257
)
(1,590
)
(1,258
)
Principal repayments of finance leases
(2,260
)
(1,640
)
(11,163
)
(7,941
)
Principal repayments of financing
obligations
(47
)
(62
)
(162
)
(248
)
Net cash provided by (used in) financing
activities
(3,100
)
86
6,291
9,718
Foreign currency effect on cash, cash
equivalents, and restricted cash
(106
)
637
(364
)
(1,093
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
6,300
19,075
(5,900
)
17,776
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, END OF PERIOD
$
36,477
$
54,253
$
36,477
$
54,253
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt
$
367
$
629
$
1,098
$
1,561
Cash paid for operating leases
1,693
2,365
6,722
8,633
Cash paid for interest on finance
leases
114
84
521
374
Cash paid for interest on financing
obligations
37
55
153
207
Cash paid for income taxes, net of
refunds
334
1,695
3,688
6,035
Assets acquired under operating leases
5,808
4,769
25,369
18,800
Property and equipment acquired under
finance leases, net of remeasurements and modifications
1,608
317
7,061
675
Property and equipment recognized during
the construction period of build-to-suit lease arrangements
1,969
310
5,846
3,187
Property and equipment derecognized after
the construction period of build-to-suit lease arrangements, with
the associated leases recognized as operating
55
1,851
230
5,158
AMAZON.COM, INC.
Consolidated Statements of
Operations
(in millions, except per share
data)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2021
2022
2021
2022
Net product sales
$
71,416
$
70,531
$
241,787
$
242,901
Net service sales
65,996
78,673
228,035
271,082
Total net sales
137,412
149,204
469,822
513,983
Operating expenses:
Cost of sales
82,835
85,640
272,344
288,831
Fulfillment
22,445
23,103
75,111
84,299
Technology and content
15,313
20,814
56,052
73,213
Sales and marketing
10,810
12,818
32,551
42,238
General and administrative
2,525
3,333
8,823
11,891
Other operating expense (income), net
24
759
62
1,263
Total operating expenses
133,952
146,467
444,943
501,735
Operating income
3,460
2,737
24,879
12,248
Interest income
118
445
448
989
Interest expense
(482
)
(694
)
(1,809
)
(2,367
)
Other income (expense), net
11,838
(3,450
)
14,633
(16,806
)
Total non-operating income (expense)
11,474
(3,699
)
13,272
(18,184
)
Income (loss) before income taxes
14,934
(962
)
38,151
(5,936
)
Benefit (provision) for income taxes
(612
)
1,227
(4,791
)
3,217
Equity-method investment activity, net of
tax
1
13
4
(3
)
Net income (loss)
$
14,323
$
278
$
33,364
$
(2,722
)
Basic earnings per share
$
1.41
$
0.03
$
3.30
$
(0.27
)
Diluted earnings per share
$
1.39
$
0.03
$
3.24
$
(0.27
)
Weighted-average shares used in
computation of earnings per share:
Basic
10,157
10,220
10,117
10,189
Diluted
10,324
10,308
10,296
10,189
AMAZON.COM, INC.
Consolidated Statements of
Comprehensive Income (Loss)
(in millions)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2021
2022
2021
2022
Net income (loss)
$
14,323
$
278
$
33,364
$
(2,722
)
Other comprehensive income (loss):
Foreign currency translation adjustments,
net of tax of $12, $(36), $47, and $100
(67
)
2,075
(819
)
(2,586
)
Net change in unrealized gains (losses) on
available-for-sale debt securities:
Unrealized gains (losses), net of tax of
$41, $162, $72, and $159
(234
)
272
(343
)
(823
)
Reclassification adjustment for losses
(gains) included in “Other income (expense), net,” net of tax of
$0, $0, $13, and $0
—
281
(34
)
298
Net unrealized gains (losses) on
available-for-sale debt securities
(234
)
553
(377
)
(525
)
Total other comprehensive income
(loss)
(301
)
2,628
(1,196
)
(3,111
)
Comprehensive income (loss)
$
14,022
$
2,906
$
32,168
$
(5,833
)
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2021
2022
2021
2022
North America
Net sales
$
82,360
$
93,363
$
279,833
$
315,880
Operating expenses
82,566
93,603
272,562
318,727
Operating income (loss)
$
(206
)
$
(240
)
$
7,271
$
(2,847
)
International
Net sales
$
37,272
$
34,463
$
127,787
$
118,007
Operating expenses
38,899
36,691
128,711
125,753
Operating loss
$
(1,627
)
$
(2,228
)
$
(924
)
$
(7,746
)
AWS
Net sales
$
17,780
$
21,378
$
62,202
$
80,096
Operating expenses
12,487
16,173
43,670
57,255
Operating income
$
5,293
$
5,205
$
18,532
$
22,841
Consolidated
Net sales
$
137,412
$
149,204
$
469,822
$
513,983
Operating expenses
133,952
146,467
444,943
501,735
Operating income
3,460
2,737
24,879
12,248
Total non-operating income (expense)
11,474
(3,699
)
13,272
(18,184
)
Benefit (provision) for income taxes
(612
)
1,227
(4,791
)
3,217
Equity-method investment activity, net of
tax
1
13
4
(3
)
Net income (loss)
$
14,323
$
278
$
33,364
$
(2,722
)
Segment Highlights:
Y/Y net sales growth (decline):
North America
9
%
13
%
18
%
13
%
International
(1
)
(8
)
22
(8
)
AWS
40
20
37
29
Consolidated
9
9
22
9
Net sales mix:
North America
60
%
63
%
60
%
61
%
International
27
23
27
23
AWS
13
14
13
16
Consolidated
100
%
100
%
100
%
100
%
AMAZON.COM, INC.
Consolidated Balance
Sheets
(in millions, except per share
data)
(unaudited)
December 31, 2021
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
36,220
$
53,888
Marketable securities
59,829
16,138
Inventories
32,640
34,405
Accounts receivable, net and other
32,891
42,360
Total current assets
161,580
146,791
Property and equipment, net
160,281
186,715
Operating leases
56,082
66,123
Goodwill
15,371
20,288
Other assets
27,235
42,758
Total assets
$
420,549
$
462,675
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
78,664
$
79,600
Accrued expenses and other
51,775
62,566
Unearned revenue
11,827
13,227
Total current liabilities
142,266
155,393
Long-term lease liabilities
67,651
72,968
Long-term debt
48,744
67,150
Other long-term liabilities
23,643
21,121
Commitments and contingencies
Stockholders’ equity:
Preferred stock ($0.01 par value; 500
shares authorized; no shares issued or outstanding)
—
—
Common stock ($0.01 par value; 100,000
shares authorized; 10,644 and 10,757 shares issued; 10,175 and
10,242 shares outstanding)
106
108
Treasury stock, at cost
(1,837
)
(7,837
)
Additional paid-in capital
55,437
75,066
Accumulated other comprehensive income
(loss)
(1,376
)
(4,487
)
Retained earnings
85,915
83,193
Total stockholders’ equity
138,245
146,043
Total liabilities and stockholders’
equity
$
420,549
$
462,675
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except per share
data)
(unaudited)
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Y/Y % Change
Cash Flows and Shares
Operating cash flow -- trailing twelve
months (TTM)
$
54,671
$
46,327
$
39,324
$
35,574
$
39,665
$
46,752
1
%
Operating cash flow -- TTM Y/Y growth
(decline)
(1
)%
(30
)%
(41
)%
(40
)%
(27
)%
1
%
N/A
Purchases of property and equipment, net
of proceeds from sales and incentives -- TTM
$
52,119
$
55,396
$
57,951
$
59,061
$
59,351
$
58,321
5
%
Principal repayments of finance leases --
TTM
$
11,271
$
11,163
$
10,534
$
9,789
$
8,561
$
7,941
(29
)%
Principal repayments of financing
obligations -- TTM
$
124
$
162
$
174
$
205
$
233
$
248
53
%
Equipment acquired under finance leases --
TTM (1)
$
5,738
$
4,422
$
2,764
$
1,621
$
868
$
299
(93
)%
Principal repayments of all other finance
leases -- TTM (2)
$
582
$
687
$
714
$
751
$
706
$
670
(3
)%
Free cash flow -- TTM (3)
$
2,552
$
(9,069
)
$
(18,627
)
$
(23,487
)
$
(19,686
)
$
(11,569
)
28
%
Free cash flow less principal repayments
of finance leases and financing obligations -- TTM (4)
$
(8,843
)
$
(20,394
)
$
(29,335
)
$
(33,481
)
$
(28,480
)
$
(19,758
)
(3
)%
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations -- TTM (5)
$
(3,892
)
$
(14,340
)
$
(22,279
)
$
(26,064
)
$
(21,493
)
$
(12,786
)
(11
)%
Common shares and stock-based awards
outstanding
10,451
10,455
10,454
10,551
10,597
10,627
2
%
Common shares outstanding
10,139
10,175
10,171
10,183
10,198
10,242
1
%
Stock-based awards outstanding
311
280
283
368
399
384
37
%
Stock-based awards outstanding -- % of
common shares outstanding
3.1
%
2.8
%
2.8
%
3.6
%
3.9
%
3.8
%
N/A
Results of Operations
Worldwide (WW) net sales
$
110,812
$
137,412
$
116,444
$
121,234
$
127,101
$
149,204
9
%
WW net sales -- Y/Y growth, excluding
F/X
15
%
10
%
9
%
10
%
19
%
12
%
N/A
WW net sales -- TTM
$
457,965
$
469,822
$
477,748
$
485,902
$
502,191
$
513,983
9
%
WW net sales -- TTM Y/Y growth, excluding
F/X
30
%
21
%
14
%
11
%
12
%
13
%
N/A
Operating income
$
4,852
$
3,460
$
3,669
$
3,317
$
2,525
$
2,737
(21
)%
F/X impact -- favorable (unfavorable)
$
(20
)
$
57
$
126
$
165
$
357
$
213
N/A
Operating income -- Y/Y decline, excluding
F/X
(21
)%
(50
)%
(60
)%
(59
)%
(55
)%
(27
)%
N/A
Operating margin -- % of WW net sales
4.4
%
2.5
%
3.2
%
2.7
%
2.0
%
1.8
%
N/A
Operating income -- TTM
$
28,292
$
24,879
$
19,683
$
15,298
$
12,971
$
12,248
(51
)%
Operating income -- TTM Y/Y growth
(decline), excluding F/X
41
%
8
%
(30
)%
(49
)%
(57
)%
(54
)%
N/A
Operating margin -- TTM % of WW net
sales
6.2
%
5.3
%
4.1
%
3.1
%
2.6
%
2.4
%
N/A
Net income (loss)
$
3,156
$
14,323
$
(3,844
)
$
(2,028
)
$
2,872
$
278
(98
)%
Net income (loss) per diluted share
$
0.31
$
1.39
$
(0.38
)
$
(0.20
)
$
0.28
$
0.03
(98
)%
Net income (loss) -- TTM
$
26,263
$
33,364
$
21,413
$
11,607
$
11,323
$
(2,722
)
(108
)%
Net income (loss) per diluted share --
TTM
$
2.56
$
3.24
$
2.08
$
1.13
$
1.10
$
(0.27
)
(108
)%
______________________________
(1)
For the twelve months ended December 31,
2021 and 2022, this amount relates to equipment included in
“Property and equipment acquired under finance leases, net of
remeasurements and modifications” of $7,061 million and $675
million.
(2)
For the twelve months ended December 31,
2021 and 2022, this amount relates to property included in
“Principal repayments of finance leases” of $11,163 million and
$7,941 million.
(3)
Free cash flow is cash flow from
operations reduced by “Purchases of property and equipment, net of
proceeds from sales and incentives.”
(4)
Free cash flow less principal repayments
of finance leases and financing obligations is free cash flow
reduced by “Principal repayments of finance leases” and “Principal
repayments of financing obligations.”
(5)
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations is free cash flow reduced by equipment
acquired under finance leases, which is included in “Property and
equipment acquired under finance leases, net of remeasurements and
modifications,” principal repayments of all other finance lease
liabilities, which is included in “Principal repayments of finance
leases,” and “Principal repayments of financing obligations.”
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions)
(unaudited)
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Y/Y % Change
Segments
North America Segment:
Net sales
$
65,557
$
82,360
$
69,244
$
74,430
$
78,843
$
93,363
13
%
Net sales -- Y/Y growth, excluding F/X
10
%
9
%
8
%
10
%
20
%
14
%
N/A
Net sales -- TTM
$
272,819
$
279,833
$
284,711
$
291,591
$
304,877
$
315,880
13
%
Operating income (loss)
$
880
$
(206
)
$
(1,568
)
$
(627
)
$
(412
)
$
(240
)
17
%
F/X impact -- favorable
$
14
$
32
$
42
$
61
$
95
$
76
N/A
Operating income (loss) -- Y/Y growth
(decline), excluding F/X
(62
)%
(108
)%
(147
)%
(122
)%
(158
)%
53
%
N/A
Operating margin -- % of North America net
sales
1.3
%
(0.2
)%
(2.3
)%
(0.8
)%
(0.5
)%
(0.3
)%
N/A
Operating income (loss) -- TTM
$
10,423
$
7,271
$
2,253
$
(1,521
)
$
(2,813
)
$
(2,847
)
(139
)%
Operating margin -- TTM % of North America
net sales
3.8
%
2.6
%
0.8
%
(0.5
)%
(0.9
)%
(0.9
)%
N/A
International Segment:
Net sales
$
29,145
$
37,272
$
28,759
$
27,065
$
27,720
$
34,463
(8
)%
Net sales -- Y/Y growth (decline),
excluding F/X
15
%
3
%
0
%
(1
)%
12
%
5
%
N/A
Net sales -- TTM
$
127,982
$
127,787
$
125,897
$
122,241
$
120,816
$
118,007
(8
)%
Operating loss
$
(911
)
$
(1,627
)
$
(1,281
)
$
(1,771
)
$
(2,466
)
$
(2,228
)
37
%
F/X impact -- favorable (unfavorable)
$
24
$
(58
)
$
(79
)
$
(231
)
$
(216
)
$
(331
)
N/A
Operating loss -- Y/Y growth (decline),
excluding F/X
(330
)%
(533
)%
(196
)%
(526
)%
147
%
17
%
N/A
Operating margin -- % of International net
sales
(3.1
)%
(4.4
)%
(4.5
)%
(6.5
)%
(8.9
)%
(6.5
)%
N/A
Operating income (loss) -- TTM
$
1,066
$
(924
)
$
(3,457
)
$
(5,590
)
$
(7,145
)
$
(7,746
)
738
%
Operating margin -- TTM % of International
net sales
0.8
%
(0.7
)%
(2.7
)%
(4.6
)%
(5.9
)%
(6.6
)%
N/A
AWS Segment:
Net sales
$
16,110
$
17,780
$
18,441
$
19,739
$
20,538
$
21,378
20
%
Net sales -- Y/Y growth, excluding F/X
39
%
40
%
37
%
33
%
28
%
20
%
N/A
Net sales -- TTM
$
57,164
$
62,202
$
67,140
$
72,070
$
76,498
$
80,096
29
%
Operating income
$
4,883
$
5,293
$
6,518
$
5,715
$
5,403
$
5,205
(2
)%
F/X impact -- favorable (unfavorable)
$
(58
)
$
83
$
163
$
335
$
478
$
468
N/A
Operating income -- Y/Y growth (decline),
excluding F/X
40
%
46
%
53
%
28
%
1
%
(10
)%
N/A
Operating margin -- % of AWS net sales
30.3
%
29.8
%
35.3
%
29.0
%
26.3
%
24.3
%
N/A
Operating income -- TTM
$
16,803
$
18,532
$
20,887
$
22,409
$
22,929
$
22,841
23
%
Operating margin -- TTM % of AWS net
sales
29.4
%
29.8
%
31.1
%
31.1
%
30.0
%
28.5
%
N/A
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except employee
data)
(unaudited)
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Y/Y % Change
Net Sales
Online stores (1)
$
49,942
$
66,075
$
51,129
$
50,855
$
53,489
$
64,531
(2
)%
Online stores -- Y/Y growth (decline),
excluding F/X
3
%
1
%
(1
)%
0
%
13
%
2
%
N/A
Physical stores (2)
$
4,269
$
4,688
$
4,591
$
4,721
$
4,694
$
4,957
6
%
Physical stores -- Y/Y growth, excluding
F/X
12
%
16
%
16
%
13
%
10
%
6
%
N/A
Third-party seller services (3)
$
24,252
$
30,320
$
25,335
$
27,376
$
28,666
$
36,339
20
%
Third-party seller services -- Y/Y growth,
excluding F/X
18
%
12
%
9
%
13
%
23
%
24
%
N/A
Subscription services (4)
$
8,148
$
8,123
$
8,410
$
8,716
$
8,903
$
9,189
13
%
Subscription services -- Y/Y growth,
excluding F/X
23
%
16
%
13
%
14
%
14
%
17
%
N/A
Advertising services (5)
$
7,612
$
9,716
$
7,877
$
8,757
$
9,548
$
11,557
19
%
Advertising services -- Y/Y growth,
excluding F/X
52
%
33
%
25
%
21
%
30
%
23
%
N/A
AWS
$
16,110
$
17,780
$
18,441
$
19,739
$
20,538
$
21,378
20
%
AWS -- Y/Y growth, excluding F/X
39
%
40
%
37
%
33
%
28
%
20
%
N/A
Other (6)
$
479
$
710
$
661
$
1,070
$
1,263
$
1,253
77
%
Other -- Y/Y growth, excluding F/X
15
%
19
%
28
%
135
%
168
%
80
%
N/A
Stock-based Compensation
Expense
Cost of sales
$
126
$
179
$
146
$
213
$
190
$
208
16
%
Fulfillment
$
473
$
565
$
498
$
763
$
727
$
757
34
%
Technology and content
$
1,627
$
1,903
$
1,645
$
2,814
$
3,036
$
3,126
64
%
Sales and marketing
$
657
$
726
$
665
$
990
$
1,128
$
1,092
51
%
General and administrative
$
297
$
307
$
296
$
429
$
475
$
423
38
%
Total stock-based compensation expense
$
3,180
$
3,680
$
3,250
$
5,209
$
5,556
$
5,606
52
%
Other
WW shipping costs
$
18,108
$
23,656
$
19,560
$
19,304
$
19,942
$
24,714
4
%
WW shipping costs -- Y/Y growth
20
%
10
%
14
%
9
%
10
%
4
%
N/A
WW paid units -- Y/Y growth (7)
8
%
3
%
0
%
1
%
11
%
8
%
N/A
WW seller unit mix -- % of WW paid units
(7)
56
%
56
%
55
%
57
%
58
%
59
%
N/A
Employees (full-time and part-time;
excludes contractors & temporary personnel)
1,468,000
1,608,000
1,622,000
1,523,000
1,544,000
1,541,000
(4
)%
Employees (full-time and part-time;
excludes contractors & temporary personnel) -- Y/Y growth
(decline)
30
%
24
%
28
%
14
%
5
%
(4
)%
N/A
________________________
(1)
Includes product sales and digital media
content where we record revenue gross. We leverage our retail
infrastructure to offer a wide selection of consumable and durable
goods that includes media products available in both a physical and
digital format, such as books, videos, games, music, and software.
These product sales include digital products sold on a
transactional basis. Digital product subscriptions that provide
unlimited viewing or usage rights are included in “Subscription
services.”
(2)
Includes product sales where our customers
physically select items in a store. Sales to customers who order
goods online for delivery or pickup at our physical stores are
included in “Online stores.”
(3)
Includes commissions and any related
fulfillment and shipping fees, and other third-party seller
services.
(4)
Includes annual and monthly fees
associated with Amazon Prime memberships, as well as digital video,
audiobook, digital music, e-book, and other non-AWS subscription
services.
(5)
Includes sales of advertising services to
sellers, vendors, publishers, authors, and others, through programs
such as sponsored ads, display, and video advertising.
(6)
Includes sales related to various other
offerings, such as certain licensing and distribution of video
content and shipping services, and our co-branded credit card
agreements.
(7)
Excludes the impact of Whole Foods
Market.
Amazon.com, Inc. Certain
Definitions
Customer Accounts
- References to customers mean customer accounts established when
a customer places an order through one of our stores. Customer
accounts exclude certain customers, including customers associated
with certain of our acquisitions, Amazon Payments customers, AWS
customers, and the customers of select companies with whom we have
a technology alliance or marketing and promotional relationship.
Customers are considered active when they have placed an order
during the preceding twelve-month period.
Seller Accounts
- References to sellers means seller accounts, which are
established when a seller receives an order from a customer
account. Sellers are considered active when they have received an
order from a customer during the preceding twelve-month
period.
AWS Customers
- References to AWS customers mean unique AWS customer accounts,
which are unique customer account IDs that are eligible to use AWS
services. This includes AWS accounts in the AWS free tier. Multiple
users accessing AWS services via one account ID are counted as a
single account. Customers are considered active when they have had
AWS usage activity during the preceding one-month period.
Units
- References to units mean physical and digital units sold (net
of returns and cancellations) by us and sellers in our stores as
well as Amazon-owned items sold in other stores. Units sold are
paid units and do not include units associated with AWS, certain
acquisitions, certain subscriptions, rental businesses, or
advertising businesses, or Amazon gift cards.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230201005991/en/
Amazon Investor Relations Dave Fildes, amazon-ir@amazon.com
amazon.com/ir
Amazon Public Relations Dan Perlet, amazon-pr@amazon.com
amazon.com/pr
Amazon.com (NASDAQ:AMZN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Amazon.com (NASDAQ:AMZN)
Historical Stock Chart
From Mar 2023 to Mar 2024