Amazon.com, Inc. (NASDAQ: AMZN) today announced financial
results for its second quarter ended June 30, 2022.
- Operating cash flow decreased 40% to $35.6 billion for
the trailing twelve months, compared with $59.3 billion for the
trailing twelve months ended June 30, 2021.
- Free cash flow decreased to an outflow of $23.5 billion
for the trailing twelve months, compared with an inflow of $12.1
billion for the trailing twelve months ended June 30, 2021.
- Free cash flow less principal repayments of finance leases
and financing obligations decreased to an outflow of $33.5
billion for the trailing twelve months, compared with an inflow of
$0.6 billion for the trailing twelve months ended June 30,
2021.
- Free cash flow less equipment finance leases and principal
repayments of all other finance leases and financing
obligations decreased to an outflow of $26.1 billion for the
trailing twelve months, compared with an inflow of $4.2 billion for
the trailing twelve months ended June 30, 2021.
- Common shares outstanding plus shares underlying stock-based
awards totaled 10.6 billion on June 30, 2022, compared with
10.4 billion one year ago. All share and per share information
throughout this release has been retroactively adjusted to reflect
the 20-for-1 stock split effected on May 27, 2022.
- Net sales increased 7% to $121.2 billion in the second
quarter, compared with $113.1 billion in second quarter 2021.
Excluding the $3.6 billion unfavorable impact from year-over-year
changes in foreign exchange rates throughout the quarter, net sales
increased 10% compared with second quarter 2021.
- Operating income decreased to $3.3 billion in the second
quarter, compared with $7.7 billion in second quarter 2021.
- Net loss was $2.0 billion in the second quarter, or
$0.20 per diluted share, compared with net income of $7.8 billion,
or $0.76 per diluted share, in second quarter 2021. Second quarter
2022 net loss includes a pre-tax valuation loss of $3.9 billion
included in non-operating expense from our common stock investment
in Rivian Automotive, Inc.
“Despite continued inflationary pressures in fuel, energy, and
transportation costs, we’re making progress on the more
controllable costs we referenced last quarter, particularly
improving the productivity of our fulfillment network,” said Andy
Jassy, Amazon CEO. “We’re also seeing revenue accelerate as we
continue to make Prime even better for members, both investing in
faster shipping speeds, and adding unique benefits such as free
delivery from Grubhub for a year, exclusive access to NFL Thursday
Night Football games starting September 15, and releasing the
highly anticipated series The Lord of the Rings: The Rings of Power
on September 2.”
Highlights
Shopping Innovation
- Prime members worldwide shopped more and saved more this Prime
Day than any other Prime Day event, purchasing more than 300
million items and saving more than $1.7 billion. On July 12 and
July 13, Prime members worldwide purchased more than 100,000 items
per minute, and some of the best-selling categories were Amazon
Devices, Consumer Electronics, and Home. Amazon Devices had a
record-breaking Prime Day, selling more devices than any other
Prime Day event.
- Prime continued to provide even more value to members around
the world. In the U.S., Amazon introduced new offers for Prime
members, including a free one-year Grubhub+ membership, a new
year-round 20% discount on select everyday essentials at Amazon
Fresh stores, and exclusive deals on home entertainment items and
merchandise to help prepare for NFL Thursday Night Football.
Additionally, Prime Student members get six months free of a
LinkedIn Premium subscription.
- Amazon introduced new ways for customers to support and
discover small businesses selling in Amazon’s store, including the
Small Business Badge, which helps customers find and shop products
from small business brands and artisans, and This Is Small
Business, a new podcast dedicated to sharing stories from small
business owners about pivotal moments in starting, building, and
scaling their businesses. This year was also the biggest Prime Day
event for Amazon’s selling partners, most of which are small and
medium-sized businesses, whose sales growth in Amazon’s store
outpaced Amazon’s first-party sales. Customers spent over $3
billion on more than 100 million small business items included in
the Support Small Businesses to Win Big sweepstakes, which offered
customers the chance to win prizes when shopping from small
businesses leading up to Prime Day.
- Amazon continues to invent new fashion shopping experiences for
customers, launching Virtual Try-On for Shoes, where shoppers can
virtually try on thousands of sneaker styles, and Luxury Stores at
Amazon in France, Germany, Italy, Spain, and the UK, where
customers can shop established and emerging luxury fashion brands
online. Amazon Style, Amazon’s first-ever physical store for
apparel, opened in Glendale, California, to help customers discover
new looks through a personalized shopping experience. Amazon Style
uses machine learning algorithms to produce tailored
recommendations for customers as they shop. In the fitting room,
customers can use touchscreens to browse more options and request
additional styles and sizes. Amazon also expanded its selection of
size-inclusive fashion to include a collection from designer
Jonathan Cohen and a new co-brand between Amazon and Making The Cut
Season Two winner Andrea Pitter called TEREA.
- Amazon announced that later this year, Amazon customers in
Lockeford, California, and College Station, Texas, will be among
the first to receive Prime Air drone deliveries in the U.S.
Customers will have the option to receive free and fast drone
delivery on thousands of everyday items—the largest selection of
items ever to be available for drone delivery.
- Amazon continues to collaborate with leading retailers and
stadiums to equip third-party locations with Just Walk Out
technology for checkout-free shopping and Amazon One for palm
recognition and payment service. Recent store openings include the
Walk-Off Market food and beverage store at T-Mobile Park in Seattle
and the Hudson Nonstop store in Nashville International Airport.
Additionally, three stores will open at Texas A&M’s Kyle Field
later this year. The combination of technologies gives shoppers the
option to enter a store by inserting their credit card at the entry
gate or hovering their palm over an Amazon One device. Once inside,
shoppers can take what they want and leave without stopping to
check out.
- Amazon continued to expand its grocery store footprint by
opening 12 Amazon Fresh stores across the U.S. and the UK, and
introduced new innovations to improve the shopping experience for
customers, including the next generation Amazon Dash Cart. Amazon
Dash Cart is a smart shopping cart that uses computer vision
algorithms and sensor fusion to help identify items placed in a
cart, so customers can skip the checkout line when they are done
shopping. With the new Dash Cart, which is also expanding to its
first Whole Foods Market store, shoppers can fit more items into
their cart, bring the cart to their car, and easily search for
specific items on the cart’s screen.
- Amazon announced Store Analytics, a new service that provides
brands with aggregated and anonymized insights about the
performance of their products, promotions, and ad campaigns in
applicable stores. Store Analytics is available at Amazon Go and
Amazon Fresh stores in the U.S. that are enabled with Just Walk Out
technology and Amazon Dash Carts.
- Amazon continues to improve its shopping experience for U.S.
customers who use SNAP EBT, the federal program that helps families
purchase groceries. The company expanded the program so that
beneficiaries in 48 states and Washington, D.C.—covering more than
99% of SNAP households—can now use their SNAP benefits to shop for
groceries at Amazon.com, Amazon Fresh, and Whole Foods Market.
- Amazon released its second Brand Protection Report, which
details how the company safeguards customers, brands, and selling
partners from counterfeit products. Amazon identified, seized, and
appropriately disposed of more than 3 million counterfeit products,
preventing them from harming customers or being resold elsewhere in
the retail supply chain. In 2021, the company employed more than
12,000 people and invested more than $900 million to protect its
store from counterfeit, fraud, and other forms of abuse so
customers can continue to shop with confidence.
- Amazon filed legal action against the administrators of more
than 10,000 Facebook groups that attempt to orchestrate fake
reviews on Amazon in exchange for money or free products. These
groups are set up to recruit individuals willing to post
incentivized and misleading reviews on Amazon’s stores in the U.S.,
the UK, Germany, France, Italy, Spain, and Japan. Amazon will use
information discovered from this legal action to identify bad
actors and remove fake reviews commissioned by these fraudsters
that haven’t already been detected by Amazon’s advanced technology,
expert investigators, and continuous monitoring.
- Amazon Ads launched Amazon Marketing Stream (Beta), a product
that automatically delivers hourly Sponsored Products campaign
metrics to advertisers or agencies through the Amazon Ads API. The
Stream provides near real-time performance insights to enable more
effective campaign optimization, more agility in responding to
campaign changes, and increased operational efficiency to help
drive business growth for advertisers.
- The second re:MARS conference took place in Las Vegas, and
Amazon welcomed nearly 7,000 attendees, in person and virtually, to
hear from top academics and experts in machine learning,
automation, robotics, and space. This year’s event featured
innovations from across Amazon, along with demos of Amazon’s Just
Walk Out Experiential Mock Store, Boston Dynamics’ Spot® agile
robot on AWS, Alexa Smart Home featuring the Astro household robot,
and the Lunar Outpost lunar surface rover built on AWS.
Entertainment
- Former NFL quarterback Ryan Fitzpatrick and All-Pro cornerback
Richard Sherman will join Pro Football Hall of Famer Tony Gonzalez
as analysts for Prime Video’s NFL Thursday Night Football pregame,
halftime, and postgame coverage. Veteran sports anchor Charissa
Thompson will host the shows. Legendary sportscaster Al Michaels
and Emmy-winning analyst Kirk Herbstreit will call the live action
games.
- Prime Video received 30 Emmy nominations, and MGM received
seven nominations. Prime Video’s nominations included The Marvelous
Mrs. Maisel, Lucy and Desi, Lizzo’s Watch Out for the Big Grrrls,
The Academy of Country Music Awards, The Boys Presents: Diabolical,
Goliath, Savage X Fenty Show, and A Very British Scandal. MGM’s
nominations included Vikings: Valhalla, The Voice, Shark Tank, and
Survivor.
- The Boys continued to grow its audience with the debut of
Season Three. Over its premiere weekend, the Emmy-nominated
superhero drama increased its worldwide audience by 234% from
Season One and 17% from Season Two.
- The Lord of the Rings: The Rings of Power continued to build
anticipation in the lead-up to premiere. The release of new images,
a teaser trailer, and a 60-second sneak peek for Prime members on
Prime Day all preceded the debut of a highly anticipated
three-minute trailer at San Diego Comic-Con. The long trailer was
unveiled to a crowd of 6,500 fans during a panel with the show’s
cast—moderated by Stephen Colbert—in the convention’s largest venue
before being released globally. The Lord of the Rings: The Rings of
Power launches exclusively on Prime Video in 240 countries and
territories and 33 different languages on September 2.
- Prime Video debuted five new Original series: The Terminal
List, starring Chris Pratt; The Summer I Turned Pretty; Chloe; The
One That Got Away; and Forever Summer: Hamptons. In addition, adult
animated series Undone and Fairfax each returned for second
seasons. Prime Video premiered three new Original movies: Sundance
Film Festival award-winner Emergency; Don’t Make Me Go, starring
John Cho and Mia Isaac; and Anything’s Possible, directed by Billy
Porter.
- Prime Video’s robust international slate grew with the debut of
more than 25 local Originals and live sporting events. New global
programming includes Yosi, the Regretful Spy (Argentina), The Kids
in the Hall (Canada), Modern Love Mumbai (India), Bang Bang Baby
(Italy), and Lovestruck High (UK). Sports programming includes
Roland-Garros French Open tennis in France, the Australian Swimming
Championships, and live boxing in Japan.
- The ad-supported, free streaming content service Amazon Freevee
received its first major award win for Judy Justice, starring Judge
Judy Sheindlin, which earned a Daytime Emmy. Freevee also premiered
three new Original series—Bosch: Legacy, one of the 10
most-streamed shows across all services in May, according to
streaming hub Reelgood; crime drama Troppo; and home-renovation
series Hollywood Houselift with Jeff Lewis—and one Original film,
Love Accidentally.
- Prime Video Channels expanded its portfolio to offer more
premium Spanish-language content with the addition of Vix+,
TelevisaUnivisions’ streaming service. Prime Video Channels offer
customers additional paid subscriptions to third-party premium
networks and other streaming entertainment channels, such as
discovery+, Paramount+, AMC+, Globo, BET+, NBA League Pass, MLB.TV,
STARZ, and SHOWTIME.
- Amazon Music brought epic live performances to customers
streaming on the Amazon Music Twitch channel and on Prime Video,
including performances from global superstars Maluma and Carrie
Underwood, as well as Pharrell Williams’ Something In The Water
festival, which featured Tyler The Creator, Jon Batiste, Pusha T,
and Pharrell Williams.
- Amazon’s podcast streaming service, Wondery, partnered with
Dolby Atmos, an audio technology provider, to become the first such
service in the U.S. to deliver immersive audio. Dolby Atmos-enabled
titles will be available to stream exclusively on the Wondery+
subscription service in 30 countries. Wondery also brought more
original content to its global audience, including local-language
translations of the investigative series Harsh Reality: The Story
of Miriam Rivera; Business Wars in Spain and Italy; and original
dating show Queen of Hearts worldwide.
- Audible signed a deal with President Barack Obama and Michelle
Obama’s production company, Higher Ground, to create a slate of
Audible shows. This new partnership reflects the companies’ shared
mission to tell meaningful and entertaining stories that elevate
diverse voices and experiences.
Devices and Services
- Automakers continue to launch Alexa integrations in new vehicle
models, including the 2023 Acura Integra, 2023 GM Equinox, and 2022
Lucid Air. With Alexa Built-in, customers can ask Alexa to
navigate, play music and audiobooks, share the news, check the
weather, control smart home devices, pay for gas, and find parking.
Customers can also remotely control their vehicle from home by
asking Alexa to lock or unlock the car doors, check gas levels or
charging range, and start or stop the engine. These automakers join
other companies with existing integrations such as Audi, BMW,
Chrysler, Ford, GM, Jaguar-Land Rover, Jeep, Mahindra, Rivian, and
Volkswagen.
- Amazon added new features to Alexa Together, a service that
helps aging family members feel more comfortable and confident
living independently. Up to 10 caregivers can remotely support
their aging loved one’s Alexa devices from afar with the Circle of
Support feature, and the Remote Assist feature allows caregivers to
remotely set up Alexa Routines, such as locking the door and
turning off the lights at a certain time of night.
- Amazon launched new features to make Alexa smarter, more
proactive, and more personal. Customers can now opt in to receive
proactive notifications from Alexa about their favorite sports
team, weather updates in their area, and when it’s time to refill
their prescriptions. Additionally, Call Captioning, which shows
captions on Echo Show devices during Alexa video calls, now
supports Spanish, French, and Portuguese.
- Amazon now has over 1 million registered developers, brands,
and device makers building with Alexa. The company continues to
invent new ways for these builders to increase revenue and customer
engagement, including the Alexa Routines Kit, which enables
developers to configure and offer Alexa Routines to customers when
they interact with a skill. For example, developers can integrate
their skills into a customer’s morning routine, along with other
Alexa experiences like smart home controls and music.
- Amazon introduced the next generation of Fire 7 and Fire 7
Kids, bringing more speed, performance, and value to the company’s
most popular and affordable tablet.
- Amazon introduced new smart TVs with Fire TV built-in from
Hisense and Xiaomi. With Fire TV built-in, customers get a
content-driven viewing experience, a simple and intuitive user
interface, Alexa, and hands-free TV control.
- Blink launched the first Blink Video Doorbell in France,
Germany, Italy, the Netherlands, Spain, and the UK.
Amazon Web Services
- AWS continues to be the most broadly adopted set of cloud
infrastructure services and announced new commitments and
migrations from customers across many industries and geographies.
- Travel and hospitality: Delta Air Lines selected AWS as
preferred cloud provider to accelerate its digital business
transformation and reimagine the travel experience. Using AWS,
Delta will deliver new digital travel services, streamline its
operations, enhance customer service from the booking process to
the flight experience, and provide cloud training to employees
globally.
- Media and entertainment: Riot Games and AWS have teamed
up to bring AWS’s data analytics integration to esports broadcasts
for the first time, through Riot’s League of Legends, VALORANT, and
League of Legends: Wild Rift esports leagues. AWS will also power
Riot’s new cloud-first remote broadcast centers, which will support
Riot’s current and future ambitions to reimagine entertainment
experiences for billions of fans worldwide.
- Telecommunications: The UK’s largest telecommunications
company, BT, selected AWS as preferred cloud provider to
transform legacy infrastructure and internal applications to a new
cloud-first architecture. This will simplify BT’s current
information technology (IT) footprint, enabling it to more rapidly
serve customers and reducing costs in IT maintenance.
- Financial services: Investment banking firm Jefferies
will migrate all its IT systems to AWS, including internal and
customer-facing applications, IT resources, and companywide data,
as it looks to modernize its technology infrastructure, accelerate
new digital services, realize operational efficiencies, and
increase security and reliability.
- Health care and life sciences: Health and wellness organization
Geisinger selected AWS as its strategic cloud provider.
Geisinger will migrate its entire digital portfolio of more than
400 applications and numerous workflows to AWS, which will enable
lifesaving technologies and save Geisinger several million dollars
annually.
- Manufacturing: Sweden-based SKF, the leading
manufacturer of bearings, collaborated with AWS to launch a fully
automated, condition-monitoring solution for industrial machine
reliability and predictive maintenance. This helps manufacturers
monitor equipment, detect anomalies, and avoid unexpected machine
failures in their facilities.
- Energy: Italian multinational energy company Eni worked
with AWS to integrate its proprietary data platform XWARE with the
built-for-the-cloud Open Subsurface Data Universe on AWS to
increase interoperability between applications, enabling
accelerated data exchange, enhanced security, and deeper insights.
Using AWS’s machine learning, business intelligence, and storage
capabilities, Australia’s Electric Mine Consortium built the
world’s first mining data platform for the creation of a cleaner,
more electrified future in mining. The platform will drive
decarbonization among mining companies, accelerate the
electrification of mine sites at scale, and capture real-time
information on mine decarbonization globally.
- AWS added to its more than 200 products and services to help
customers lower costs, increase agility, and innovate faster.
- AWS continues to innovate in generalized central processing
units (CPUs) and announced the general availability of Amazon
Elastic Compute Cloud (Amazon EC2) C7g instances, the next
generation of compute-optimized instances powered by AWS-designed
Graviton3 processors. Graviton3 processors provide up to 25% better
performance for compute-intensive applications than C6g instances
powered by AWS Graviton2 processors, which deliver up to 40% better
price performance over comparable current generation x86-based
instances. Graviton3 processors also use up to 60% less energy for
the same performance than comparable EC2 instances.
- AWS continues to transform how customers perform analytics by
offering serverless options for Amazon Redshift, Amazon Managed
Streaming for Apache Kafka (Amazon MSK), and Amazon EMR. Serverless
options take the guesswork out of configuring infrastructure at any
scale, so enterprises can expand the use of analytics in their
organizations without needing to configure, scale, or manage the
underlying infrastructure.
- AWS announced the general availability of AWS Mainframe
Modernization, as it further expands support for every type of
workload. AWS Mainframe Modernization makes it faster and easier
for customers to modernize mainframe-based workloads by moving them
to the cloud, with no upfront costs or underlying infrastructure to
manage.
- AWS announced the general availability of AWS Cloud WAN, a
managed wide area network service that makes it faster and easier
to build, manage, and monitor a unified network that spans multiple
locations and seamlessly connects cloud and on-premises
environments. AWS Cloud WAN connects data centers, branch offices,
and cloud resources into a single, centrally managed network that
reduces operational cost and complexity while improving network
health, performance, and security, so enterprises can remove the
need to individually configure and manage multiple networks using
different technologies.
- AWS strengthened its partner network of more than 100,000
systems integrators and independent software vendors from around
the world that adapt their technology to run on or integrate with
AWS.
- IBM expanded its relationship with AWS and will offer its
software catalog as-a-Service (SaaS) on AWS, providing customers
quick and easy access to IBM’s automation, data and AI, security,
and sustainability software.
- AWS was named MongoDB’s 2022 Cloud (Co-Sell) Partner of the
Year for jointly winning new deals and helping customers modernize
around the world.
- AWS was named Splunk’s 2022 Global Cloud Partner of the Year
and announced a new Customer Immersion Experience Center in
Splunk’s London office to demonstrate the benefit that data and
digital transformation can have on innovation and cost
reduction.
- AWS announced that it remotely operated an AWS Snowcone, an
ultra-portable data transfer and edge computing device, on the
International Space Station to process data on orbit for the first
time as part of a private Axiom Space mission. The portable data
storage and transfer device processed photos from onboard research
experiments and optimized the limited bandwidth available between
the space station and Earth. The operation showed that it is
possible to extend AWS’s cloud computing hardware to space and will
allow AWS to better support future customer space missions.
- AWS and Amazon Ads launched Amazon Marketing Cloud (AMC)
Insights on AWS. The new solution helps advertisers and agencies
easily use AWS services when running Amazon Ads campaigns to
analyze and generate reporting from the Amazon Marketing Cloud API,
reducing their development time from weeks to hours. With a few
clicks, AMC users can monitor ongoing ad campaign performance
across reach, frequency, geography, audience, and device type to
better understand how to maximize ad spend.
Investing in Employees and Our Workplace
- In the first six months of 2022, more than 25,000 employees
worldwide joined Amazon’s Career Choice program—taking advantage of
benefits such as fully funded college tuition, new industry
certifications, courses to improve English language proficiency,
and high school completion programs. Since 2012, more than 80,000
employees have participated in Career Choice, one of nine
upskilling programs offered by Amazon as part of its $1.2 billion
commitment to upskill more than 300,000 Amazon employees by
2025.
- More than 90 companies, including Cummins, John Deere, The
Boeing Company, and United Airlines, have joined Amazon and the
National Safety Council (NSC) in a first-of-its kind pledge to
reduce musculoskeletal disorders (MSDs), the most common workplace
injury, by 25% by 2025. The pledge is part of the five-year
partnership between Amazon and the NSC to reduce MSDs and improve
workplace safety for millions of workers worldwide.
- Amazon is testing new robotic technologies to create a safer
workplace for employees and improve the customer experience.
- Proteus, Amazon’s first fully autonomous mobile robot, uses
advanced safety, perception, and navigation technology developed by
Amazon to move objects through the company’s operation facilities.
Proteus navigates around employees—meaning it does not need to be
confined to restricted areas.
- Cardinal is a robotic workcell that uses advanced artificial
intelligence (AI) and computer vision to handle lifting and turning
of large or heavy packages and complicated packing in a confined
space.
- Amazon Robotics Identification is an AI-powered scanning
capability that was developed based on employee feedback. It uses
innovative computer vision and machine learning technology to
enable easier scanning of packages in facilities.
- Containerized Storage System is a robotic system that delivers
products to employees in a more ergonomically friendly manner,
reducing the need for employees to reach up, bend down, or climb
ladders when retrieving items.
- Amazon was named No. 1 on LinkedIn’s Top Companies in Retail, a
new list that ranks the industry’s 25 best U.S. companies to grow a
career in, based on LinkedIn’s data. LinkedIn highlighted Amazon’s
benefits, such as up to 20 weeks of fully paid leave for new and
expectant parents, weekly pay, and various apprenticeship and
certification opportunities.
- For the fifth year in a row, Amazon was included on the
Disability Equality Index’s Best Places to Work for Disability
Inclusion.
- Throughout the month of June, Amazon celebrated “Pride Out
Loud” by amplifying the stories and lives of LGBTQIA+ employees,
customers, and communities across the business. From operations to
entertainment, the company supported more than 95 employee events
around the world, sponsored local Pride celebrations in cities
across the U.S., and donated to organizations that impact the lives
of LGBTQIA+ youth.
- In celebration of Juneteenth, Amazon launched a comprehensive
inclusive learning campaign for Amazon employees worldwide,
featuring diversity, equity, and inclusion resources, programs and
events, and interactive learning experiences, including a sit-down
with Dr. Russell Wigginton, the president of the National Civil
Rights Museum.
- Amazon launched its latest employee learning and development
program, Day 1 Manager Onboarding, to accelerate new
people-managers’ growth and development. The personalized learning
program helps managers strengthen their understanding of Amazon’s
culture, support employee career growth, and build high-performing
teams through coursework on topics such as how to use leadership
principles when making decisions and in common management
scenarios.
Supporting Communities, Selling Partners, and the Economy
- Amazon continues to support individuals and organizations
impacted by the war in Ukraine. AWS is helping Ukraine build up
cybersecurity defenses and has already migrated 10 petabytes (10
million gigabytes) of essential data to the cloud from 27 Ukrainian
ministries, 18 Ukrainian universities, the country’s largest remote
learning K–12 school, and dozens of private-sector companies like
PrivatBank, which serves 40% of the Ukrainian population and worked
with AWS to securely migrate all its operations to the cloud in
less than 45 days. President Volodymyr Zelenskyy awarded AWS the
Ukraine Peace Prize for preserving the country’s digital
infrastructure by migrating state registries and critical databases
to AWS. Since the start of the war, Amazon has donated more than 2
million products to over 45 organizations supporting refugees,
including 200,000 hygiene kits packed by Amazon employees around
the world.
- In partnership with Welcome.US and resettlement agencies across
the U.S., Amazon created the Welcome Essentials initiative using
Amazon’s logistics expertise and product selection to offer refugee
families free delivery of essential products, like furniture and
household items, to help more than 1,000 families resettling in
more than 40 cities in the U.S. this year. On top of this logistics
support, Amazon has committed $2 million in donations of essential
products to supporting partners.
- Amazon doubled the capacity of its Humanitarian Relief Hub in
Atlanta to 1 million critical relief supplies that are ready to
ship to communities in the Gulf Coast, the Caribbean, and Central
America that have been affected by natural disasters. The facility
has 20,000 cubic feet of storage space dedicated to relief items,
and Amazon works with humanitarian partners around the world to
deploy essential supplies when a disaster strikes, using Amazon’s
global logistics network. Since 2017, Amazon has provided more than
18 million items to support relief partners worldwide during 81
natural disasters.
- With $96 million in cash donations to more than 180
organizations, Amazon was recognized by the Puget Sound Business
Journal as the top corporate philanthropist in its home state of
Washington. These contributions were part of Amazon’s total global
donations of more than $360 million last year.
- Amazon was awarded the Defender of Innocence Award by the
Mid-Atlantic Innocence Project. This award recognized Amazon’s
legal department for its pro bono work to prevent and correct the
conviction of innocent people in Maryland, Virginia, and
Washington, D.C. Over the past few years, 120 Amazon lawyers in
more than 14 countries have spent hundreds of hours screening,
evaluating, and litigating cases for the organization—more time,
people, and resources than any other company or law firm.
- Amazon announced additional investments in affordable housing
projects in its hometown communities through the Amazon Housing
Equity Fund’s $2 billion commitment. The Fund invested more than
$30 million to create and preserve 705 affordable homes in
Nashville, Tennessee, and in Seattle. The projects are in
neighborhoods facing increasing rents and displacement pressures,
and five out of the six investments are with local minority-led
organizations. Since the launch of the Fund in 2021, Amazon has
created or preserved over 8,000 affordable homes, increasing the
affordable housing inventory in Bellevue, Washington, and
Arlington, Virginia, by at least 20% in one year.
- In India, Amazon raised its pledge to now enable $20 billion in
cumulative exports by 2025. Since launching in 2015, Amazon’s
Global Selling program has grown to more than 100,000 exporters
that are showcasing millions of Made in India products to customers
worldwide through Amazon’s store. Indian exporters are on track to
surpass $5 billion in cumulative exports. In Italy, Amazon
announced a new pledge to help the more than 18,000 small and
medium-sized businesses selling on Amazon reach €1.2 billion in
annual export sales by 2025. This pledge will support the
objectives of the Italian government’s National Recovery and
Resilience Plan while ensuring a wider availability of original
Italian products to customers worldwide.
- In India, Amazon launched Smart Commerce, a new initiative to
further digitize local retail stores by enabling them to create
customized online storefronts and provide an enhanced in-store
shopping experience. Stores of any size will now take advantage of
Amazon’s shopping innovations, logistics, and digital payments to
provide a reliable and trustworthy experience for customers in
store, directly through their dedicated online storefronts or on
Amazon.in. There are more than 150,000 local stores already selling
on Amazon.in, and Amazon is committed to digitizing 10 million
small businesses, including local stores, by 2025.
- AWS announced that it selected 34 startups to receive funding
and guidance across three accelerators in Sustainable Cities,
Space, and Clean Energy. Each startup is eligible to receive
technical guidance, business development and strategy support,
collaboration opportunities with AWS customers and members of the
AWS Partner Network, and up to $100,000 in AWS promotional
credits.
Protecting the Planet
- In the U.S., Amazon started making customer deliveries with its
custom Rivian electric delivery vehicles (EDVs). This rollout is
the start of what Amazon plans to be thousands of EDVs in more than
100 cities by the end of 2022—and 100,000 EDVs across the U.S. by
2030. In India, Amazon signed an agreement with Tata Motors to
include the new Tata Ace electric vehicle as part of Amazon’s
delivery fleet. The new EDV was co-developed with Amazon and will
contribute to the company’s goal of having 10,000 EDVs on the road
in India by 2025. In the UK, Amazon announced the launch of its
first micromobility hub for more sustainable deliveries in central
London. E-cargo bikes and walkers from the new hub, along with
Amazon’s electric fleet already on London’s roads, will make over 5
million deliveries a year across more than 10% of London’s Ultra
Low Emission Zone.
- Amazon’s Climate Pledge Fund made new investments in Electric
Hydrogen and Sunfire, two developers of electrolyzer technologies.
Electrolyzer technology makes green hydrogen using water and
renewable electricity. The Fund has announced investments in 18
companies to date as part of its mission to invest in visionary
companies whose products and solutions will facilitate the
transition to a low-carbon economy.
- The Climate Pledge announced a collaboration with the National
Geographic Society to fund 15 National Geographic Explorers as they
document the global climate crisis as part of the Society’s Global
Storytellers Fund. The collaboration will advance early career and
established storytellers—including photographers, writers, and
filmmakers—with the funding, training, and exposure necessary to
help inspire global audiences and drive urgent action against the
climate crisis.
Financial Guidance
The following forward-looking statements reflect Amazon.com’s
expectations as of July 28, 2022, 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 conditions and customer
demand and spending, inflation, 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. This guidance reflects our estimates as of
July 28, 2022 regarding the impacts of the COVID-19 pandemic on our
operations as well as the effect of other factors discussed
above.
Third Quarter 2022 Guidance
- Net sales are expected to be between $125.0 billion and $130.0
billion, or to grow between 13% and 17% compared with third quarter
2021. This guidance anticipates an unfavorable impact of
approximately 390 basis points from foreign exchange rates.
- Operating income is expected to be between $0 and $3.5 billion,
compared with $4.9 billion in third quarter 2021.
- 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 conditions and additional or
unforeseen effects from the COVID-19 pandemic 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 June
30,
Six Months Ended June
30,
Twelve Months Ended
June 30,
2021
2022
2021
2022
2021
2022
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, BEGINNING OF PERIOD
$
34,155
$
36,599
$
42,377
$
36,477
$
37,842
$
40,667
OPERATING ACTIVITIES:
Net income (loss)
7,778
(2,028
)
15,885
(5,872
)
29,438
11,607
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
8,038
9,594
15,546
18,572
29,687
37,322
Stock-based compensation
3,591
5,209
5,897
8,459
10,747
15,319
Other operating expense (income), net
18
122
48
337
(372
)
426
Other expense (income), net
(1,258
)
6,104
(2,714
)
14,793
(5,092
)
3,201
Deferred income taxes
701
(1,955
)
2,404
(3,956
)
1,063
(6,670
)
Changes in operating assets and
liabilities:
Inventories
(209
)
(3,890
)
(513
)
(6,504
)
(4,082
)
(15,478
)
Accounts receivable, net and other
(4,462
)
(6,799
)
(6,717
)
(8,315
)
(13,294
)
(19,761
)
Accounts payable
47
3,699
(8,219
)
(5,681
)
8,689
6,140
Accrued expenses and other
(1,685
)
(1,412
)
(5,745
)
(7,315
)
1,071
553
Unearned revenue
156
321
1,056
1,657
1,467
2,915
Net cash provided by (used in) operating
activities
12,715
8,965
16,928
6,175
59,322
35,574
INVESTING ACTIVITIES:
Purchases of property and equipment
(14,288
)
(15,724
)
(26,370
)
(30,675
)
(52,256
)
(65,358
)
Proceeds from property and equipment sales
and incentives
1,300
1,626
2,195
2,835
5,080
6,297
Acquisitions, net of cash acquired, and
other
(320
)
(259
)
(950
)
(6,600
)
(3,066
)
(7,635
)
Sales and maturities of marketable
securities
13,213
2,608
31,039
25,361
61,512
53,706
Purchases of marketable securities
(21,985
)
(329
)
(36,660
)
(2,093
)
(74,929
)
(25,590
)
Net cash provided by (used in) investing
activities
(22,080
)
(12,078
)
(30,746
)
(11,172
)
(63,659
)
(38,580
)
FINANCING ACTIVITIES:
Common stock repurchased
—
(3,334
)
—
(6,000
)
—
(6,000
)
Proceeds from short-term debt, and
other
1,176
4,865
3,102
18,608
6,848
23,462
Repayments of short-term debt, and
other
(1,176
)
(7,610
)
(3,177
)
(13,841
)
(6,817
)
(18,417
)
Proceeds from long-term debt
18,516
12,824
18,627
12,824
19,158
13,200
Repayments of long-term debt
(41
)
(1
)
(80
)
(1
)
(1,392
)
(1,511
)
Principal repayments of finance leases
(2,804
)
(2,059
)
(6,210
)
(4,836
)
(11,435
)
(9,789
)
Principal repayments of financing
obligations
(28
)
(59
)
(95
)
(138
)
(116
)
(205
)
Net cash provided by (used in) financing
activities
15,643
4,626
12,167
6,616
6,246
740
Foreign currency effect on cash, cash
equivalents, and restricted cash
234
(412
)
(59
)
(396
)
916
(701
)
Net increase (decrease) in cash, cash
equivalents, and restricted cash
6,512
1,101
(1,710
)
1,223
2,825
(2,967
)
CASH, CASH EQUIVALENTS, AND RESTRICTED
CASH, END OF PERIOD
$
40,667
$
37,700
$
40,667
$
37,700
$
40,667
$
37,700
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest on debt
$
179
$
349
$
455
$
628
$
942
$
1,271
Cash paid for operating leases
1,577
2,088
3,217
4,455
5,577
7,960
Cash paid for interest on finance
leases
129
95
286
202
569
437
Cash paid for interest on financing
obligations
35
55
68
113
127
198
Cash paid for income taxes, net of
refunds
1,803
3,145
2,604
3,598
3,526
4,682
Assets acquired under operating leases
5,578
5,101
9,114
7,276
19,576
23,531
Property and equipment acquired under
finance leases, net of remeasurements and modifications
1,642
61
3,709
227
9,976
3,579
Property and equipment recognized during
the construction period of build-to-suit lease arrangements
1,193
986
2,080
2,351
3,486
6,117
Property and equipment derecognized after
the construction period of build-to-suit lease arrangements, with
the associated leases recognized as operating
99
1,079
99
1,112
99
1,243
AMAZON.COM, INC.
Consolidated Statements of
Operations
(in millions, except per share
data)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2022
2021
2022
Net product sales
$
58,004
$
56,575
$
115,495
$
113,030
Net service sales
55,076
64,659
106,103
124,648
Total net sales
113,080
121,234
221,598
237,678
Operating expenses:
Cost of sales
64,176
66,424
126,579
132,923
Fulfillment
17,638
20,342
34,168
40,613
Technology and content
13,871
18,072
26,359
32,914
Sales and marketing
7,524
10,086
13,731
18,406
General and administrative
2,158
2,903
4,145
5,497
Other operating expense (income), net
11
90
49
339
Total operating expenses
105,378
117,917
205,031
230,692
Operating income
7,702
3,317
16,567
6,986
Interest income
106
159
211
267
Interest expense
(435
)
(584
)
(834
)
(1,056
)
Other income (expense), net
1,261
(5,545
)
2,958
(14,115
)
Total non-operating income (expense)
932
(5,970
)
2,335
(14,904
)
Income (loss) before income taxes
8,634
(2,653
)
18,902
(7,918
)
Benefit (provision) for income taxes
(868
)
637
(3,024
)
2,059
Equity-method investment activity, net of
tax
12
(12
)
7
(13
)
Net income (loss)
$
7,778
$
(2,028
)
$
15,885
$
(5,872
)
Basic earnings per share
$
0.77
$
(0.20
)
$
1.57
$
(0.58
)
Diluted earnings per share
$
0.76
$
(0.20
)
$
1.55
$
(0.58
)
Weighted-average shares used in
computation of earnings per share:
Basic
10,103
10,175
10,089
10,173
Diluted
10,286
10,175
10,276
10,173
AMAZON.COM, INC.
Consolidated Statements of
Comprehensive Income (Loss)
(in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2022
2021
2022
Net income (loss)
$
7,778
$
(2,028
)
$
15,885
$
(5,872
)
Other comprehensive income (loss):
Foreign currency translation adjustments,
net of tax of $(17), $76, $(4), and $60
159
(2,186
)
(215
)
(2,519
)
Net change in unrealized gains (losses) on
available-for-sale debt securities:
Unrealized gains (losses), net of tax of
$(2), $0, $28, and $1
(6
)
(238
)
(104
)
(900
)
Reclassification adjustment for losses
(gains) included in “Other income (expense), net,” net of tax of
$4, $0, $8, and $0
(12
)
7
(26
)
13
Net unrealized gains (losses) on
available-for-sale debt securities
(18
)
(231
)
(130
)
(887
)
Total other comprehensive income
(loss)
141
(2,417
)
(345
)
(3,406
)
Comprehensive income (loss)
$
7,919
$
(4,445
)
$
15,540
$
(9,278
)
AMAZON.COM, INC.
Segment Information
(in millions)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2022
2021
2022
North America
Net sales
$
67,550
$
74,430
$
131,916
$
143,674
Operating expenses
64,403
75,057
125,319
145,869
Operating income (loss)
$
3,147
$
(627
)
$
6,597
$
(2,195
)
International
Net sales
$
30,721
$
27,065
$
61,370
$
55,824
Operating expenses
30,359
28,836
59,756
58,876
Operating income (loss)
$
362
$
(1,771
)
$
1,614
$
(3,052
)
AWS
Net sales
$
14,809
$
19,739
$
28,312
$
38,180
Operating expenses
10,616
14,024
19,956
25,947
Operating income
$
4,193
$
5,715
$
8,356
$
12,233
Consolidated
Net sales
$
113,080
$
121,234
$
221,598
$
237,678
Operating expenses
105,378
117,917
205,031
230,692
Operating income
7,702
3,317
16,567
6,986
Total non-operating income (expense)
932
(5,970
)
2,335
(14,904
)
Benefit (provision) for income taxes
(868
)
637
(3,024
)
2,059
Equity-method investment activity, net of
tax
12
(12
)
7
(13
)
Net income (loss)
$
7,778
$
(2,028
)
$
15,885
$
(5,872
)
Segment Highlights:
Y/Y net sales growth (decline):
North America
22
%
10
%
30
%
9
%
International
36
(12
)
47
(9
)
AWS
37
33
35
35
Consolidated
27
7
35
7
Net sales mix:
North America
60
%
62
%
59
%
60
%
International
27
22
28
24
AWS
13
16
13
16
Consolidated
100
%
100
%
100
%
100
%
AMAZON.COM, INC.
Consolidated Balance
Sheets
(in millions, except per share
data)
(unaudited)
December 31, 2021
June 30, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
36,220
$
37,478
Marketable securities
59,829
23,232
Inventories
32,640
38,153
Accounts receivable, net and other
32,891
34,804
Total current assets
161,580
133,667
Property and equipment, net
160,281
173,706
Operating leases
56,082
58,430
Goodwill
15,371
20,195
Other assets
27,235
33,730
Total assets
$
420,549
$
419,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
78,664
$
71,219
Accrued expenses and other
51,775
56,254
Unearned revenue
11,827
12,818
Total current liabilities
142,266
140,291
Long-term lease liabilities
67,651
66,524
Long-term debt
48,744
58,053
Other long-term liabilities
23,643
23,458
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 10,699 shares issued; 10,175 and
10,183 shares outstanding)
106
107
Treasury stock, at cost
(1,837
)
(7,837
)
Additional paid-in capital
55,437
63,871
Accumulated other comprehensive income
(loss)
(1,376
)
(4,782
)
Retained earnings
85,915
80,043
Total stockholders’ equity
138,245
131,402
Total liabilities and stockholders’
equity
$
420,549
$
419,728
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except per share
data)
(unaudited)
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Y/Y % Change
Cash Flows and Shares
Operating cash flow -- trailing twelve
months (TTM)
$
67,213
$
59,322
$
54,671
$
46,327
$
39,324
$
35,574
(40
) %
Operating cash flow -- TTM Y/Y growth
(decline)
69
%
16
%
(1
) %
(30
) %
(41
) %
(40
) %
N/A
Purchases of property and equipment, net
of proceeds from sales and incentives -- TTM
$
40,803
$
47,176
$
52,119
$
55,396
$
57,951
$
59,061
25
%
Principal repayments of finance leases --
TTM
$
11,448
$
11,435
$
11,271
$
11,163
$
10,534
$
9,789
(14
) %
Principal repayments of financing
obligations -- TTM
$
103
$
116
$
124
$
162
$
174
$
205
77
%
Equipment acquired under finance leases --
TTM (1)
$
8,936
$
7,295
$
5,738
$
4,422
$
2,764
$
1,621
(78
) %
Principal repayments of all other finance
leases -- TTM (2)
$
525
$
550
$
582
$
687
$
714
$
751
36
%
Free cash flow -- TTM (3)
$
26,410
$
12,146
$
2,552
$
(9,069
)
$
(18,627
)
$
(23,487
)
(293
) %
Free cash flow less principal repayments
of finance leases and financing obligations
-- TTM (4)
$
14,859
$
595
$
(8,843
)
$
(20,394
)
$
(29,335
)
$
(33,481
)
N/A
Free cash flow less equipment finance
leases and principal repayments of all other finance leases and
financing obligations -- TTM (5)
$
16,846
$
4,185
$
(3,892
)
$
(14,340
)
$
(22,279
)
$
(26,064
)
(723
) %
Common shares and stock-based awards
outstanding
10,373
10,439
10,451
10,455
10,454
10,551
1
%
Common shares outstanding
10,082
10,124
10,139
10,175
10,171
10,183
1
%
Stock-based awards outstanding
291
315
311
280
283
368
17
%
Stock-based awards outstanding -- % of
common shares outstanding
2.9
%
3.1
%
3.1
%
2.8
%
2.8
%
3.6
%
N/A
Results of Operations
Worldwide (WW) net sales
$
108,518
$
113,080
$
110,812
$
137,412
$
116,444
$
121,234
7
%
WW net sales -- Y/Y growth, excluding
F/X
41
%
24
%
15
%
10
%
9
%
10
%
N/A
WW net sales -- TTM
$
419,130
$
443,298
$
457,965
$
469,822
$
477,748
$
485,902
10
%
WW net sales -- TTM Y/Y growth, excluding
F/X
40
%
36
%
30
%
21
%
14
%
11
%
N/A
Operating income
$
8,865
$
7,702
$
4,852
$
3,460
$
3,669
$
3,317
(57
) %
F/X impact -- favorable (unfavorable)
$
107
$
7
$
(20
)
$
57
$
126
$
165
N/A
Operating income -- Y/Y growth (decline),
excluding F/X
120
%
32
%
(21
) %
(50
) %
(60
) %
(59
) %
N/A
Operating margin -- % of WW net sales
8.2
%
6.8
%
4.4
%
2.5
%
3.2
%
2.7
%
N/A
Operating income -- TTM
$
27,775
$
29,634
$
28,292
$
24,879
$
19,683
$
15,298
(48
) %
Operating income -- TTM Y/Y growth
(decline), excluding F/X
93
%
73
%
41
%
8
%
(30
) %
(49
) %
N/A
Operating margin -- TTM % of WW net
sales
6.6
%
6.7
%
6.2
%
5.3
%
4.1
%
3.1
%
N/A
Net income (loss)
$
8,107
$
7,778
$
3,156
$
14,323
$
(3,844
)
$
(2,028
)
(126
) %
Net income (loss) per diluted share
$
0.79
$
0.76
$
0.31
$
1.39
$
(0.38
)
$
(0.20
)
(126
) %
Net income -- TTM
$
26,903
$
29,438
$
26,263
$
33,364
$
21,413
$
11,607
(61
) %
Net income per diluted share -- TTM
$
2.63
$
2.87
$
2.56
$
3.24
$
2.08
$
1.13
(61
) %
______________________________
(1)
For the twelve months ended June 30,
2021 and 2022, this amount relates to equipment included in
“Property and equipment acquired under finance leases, net of
remeasurements and modifications” of $9,976 million and $3,579
million.
(2)
For the twelve months ended June 30,
2021 and 2022, this amount relates to property included in
“Principal repayments of finance leases” of $11,435 million and
$9,789 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)
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Y/Y % Change
Segments
North America Segment:
Net sales
$
64,366
$
67,550
$
65,557
$
82,360
$
69,244
$
74,430
10
%
Net sales -- Y/Y growth, excluding F/X
39
%
21
%
10
%
9
%
8
%
10
%
N/A
Net sales -- TTM
$
254,521
$
266,635
$
272,819
$
279,833
$
284,711
$
291,591
9
%
Operating income (loss)
$
3,450
$
3,147
$
880
$
(206
)
$
(1,568
)
$
(627
)
(120
) %
F/X impact -- favorable
$
8
$
34
$
14
$
32
$
42
$
61
N/A
Operating income (loss) -- Y/Y growth
(decline), excluding F/X
162
%
45
%
(62
) %
(108
) %
(147
) %
(122
) %
N/A
Operating margin -- % of North America net
sales
5.4
%
4.7
%
1.3
%
(0.2
) %
(2.3
) %
(0.8
) %
N/A
Operating income (loss) -- TTM
$
10,789
$
11,795
$
10,423
$
7,271
$
2,253
$
(1,521
)
(113
) %
Operating margin -- TTM % of North America
net sales
4.2
%
4.4
%
3.8
%
2.6
%
0.8
%
(0.5
) %
N/A
International Segment:
Net sales
$
30,649
$
30,721
$
29,145
$
37,272
$
28,759
$
27,065
(12
) %
Net sales -- Y/Y growth (decline),
excluding F/X
50
%
26
%
15
%
3
%
0
%
(1
) %
N/A
Net sales -- TTM
$
115,955
$
124,008
$
127,982
$
127,787
$
125,897
$
122,241
(1
) %
Operating income (loss)
$
1,252
$
362
$
(911
)
$
(1,627
)
$
(1,281
)
$
(1,771
)
(590
) %
F/X impact -- favorable (unfavorable)
$
270
$
199
$
24
$
(58
)
$
(79
)
$
(231
)
N/A
Operating income (loss) -- Y/Y growth
(decline), excluding F/X
347
%
(53
) %
(330
) %
(533
) %
(196
) %
(526
) %
N/A
Operating margin -- % of International net
sales
4.1
%
1.2
%
(3.1
) %
(4.4
) %
(4.5
) %
(6.5
) %
N/A
Operating income (loss) -- TTM
$
2,367
$
2,384
$
1,066
$
(924
)
$
(3,457
)
$
(5,590
)
(335
) %
Operating margin -- TTM % of International
net sales
2.0
%
1.9
%
0.8
%
(0.7
) %
(2.7
) %
(4.6
) %
N/A
AWS Segment:
Net sales
$
13,503
$
14,809
$
16,110
$
17,780
$
18,441
$
19,739
33
%
Net sales -- Y/Y growth, excluding F/X
32
%
37
%
39
%
40
%
37
%
33
%
N/A
Net sales -- TTM
$
48,654
$
52,655
$
57,164
$
62,202
$
67,140
$
72,070
37
%
Operating income
$
4,163
$
4,193
$
4,883
$
5,293
$
6,518
$
5,715
36
%
F/X impact -- favorable (unfavorable)
$
(171
)
$
(226
)
$
(58
)
$
83
$
163
$
335
N/A
Operating income -- Y/Y growth, excluding
F/X
41
%
32
%
40
%
46
%
53
%
28
%
N/A
Operating margin -- % of AWS net sales
30.8
%
28.3
%
30.3
%
29.8
%
35.3
%
29.0
%
N/A
Operating income -- TTM
$
14,619
$
15,455
$
16,803
$
18,532
$
20,887
$
22,409
45
%
Operating margin -- TTM % of AWS net
sales
30.0
%
29.4
%
29.4
%
29.8
%
31.1
%
31.1
%
N/A
AMAZON.COM, INC.
Supplemental Financial
Information and Business Metrics
(in millions, except employee
data)
(unaudited)
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Y/Y % Change
Net Sales
Online stores (1)
$
52,901
$
53,157
$
49,942
$
66,075
$
51,129
$
50,855
(4
) %
Online stores -- Y/Y growth (decline),
excluding F/X
41
%
13
%
3
%
1
%
(1
) %
0
%
N/A
Physical stores (2)
$
3,920
$
4,198
$
4,269
$
4,688
$
4,591
$
4,721
12
%
Physical stores -- Y/Y growth (decline),
excluding F/X
(16
) %
10
%
12
%
16
%
16
%
13
%
N/A
Third-party seller services (3)
$
23,709
$
25,085
$
24,252
$
30,320
$
25,335
$
27,376
9
%
Third-party seller services -- Y/Y growth,
excluding F/X
60
%
34
%
18
%
12
%
9
%
13
%
N/A
Subscription services (4)
$
7,580
$
7,917
$
8,148
$
8,123
$
8,410
$
8,716
10
%
Subscription services -- Y/Y growth,
excluding F/X
34
%
28
%
23
%
16
%
13
%
14
%
N/A
Advertising services (5)
$
6,381
$
7,451
$
7,612
$
9,716
$
7,877
$
8,757
18
%
Advertising services -- Y/Y growth,
excluding F/X
76
%
88
%
52
%
33
%
25
%
21
%
N/A
AWS
$
13,503
$
14,809
$
16,110
$
17,780
$
18,441
$
19,739
33
%
AWS -- Y/Y growth, excluding F/X
32
%
37
%
39
%
40
%
37
%
33
%
N/A
Other (6)
$
524
$
463
$
479
$
710
$
661
$
1,070
131
%
Other -- Y/Y growth, excluding F/X
49
%
34
%
15
%
19
%
28
%
135
%
N/A
Stock-based Compensation
Expense
Cost of sales
$
90
$
145
$
126
$
179
$
146
$
213
46
%
Fulfillment
$
342
$
566
$
473
$
565
$
498
$
763
35
%
Technology and content
$
1,228
$
1,887
$
1,627
$
1,903
$
1,645
$
2,814
49
%
Sales and marketing
$
456
$
691
$
657
$
726
$
665
$
990
43
%
General and administrative
$
190
$
302
$
297
$
307
$
296
$
429
42
%
Total stock-based compensation expense
$
2,306
$
3,591
$
3,180
$
3,680
$
3,250
$
5,209
45
%
Other
WW shipping costs
$
17,162
$
17,747
$
18,108
$
23,656
$
19,560
$
19,304
9
%
WW shipping costs -- Y/Y growth
57
%
30
%
20
%
10
%
14
%
9
%
N/A
WW paid units -- Y/Y growth (7)
44
%
15
%
8
%
3
%
0
%
1
%
N/A
WW seller unit mix -- % of WW paid units
(7)
55
%
56
%
56
%
56
%
55
%
57
%
N/A
Employees (full-time and part-time;
excludes contractors & temporary personnel)
1,271,000
1,335,000
1,468,000
1,608,000
1,622,000
1,523,000
14
%
Employees (full-time and part-time;
excludes contractors & temporary personnel) -- Y/Y growth
51
%
52
%
30
%
24
%
28
%
14
%
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/20220727006066/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
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