Companies

Amazon reports net loss in 2022

Feb 21, 2023 United States

Despite a better-than-expected fourth quarter last year, the Seattle-based company posted a full year net loss of 2.7 billion USD, as compared to a net income of 33.4 billion USD in 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”, commented Andy Jassy, CEO of Amazon. “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”, he added.

Fourth Quarter Results

In the last quarter of fiscal 2022, Amazon's net sales grew by 9%, reaching 149.2 billion US dollars, on a comparable basis to net sales of 137.4 billion US dollars reported in the same period of the prior year.

The online retailer's fourth-quarter operating income declined to 2.7 billion US dollars, as compared to an operating income of 3.5 billion US dollars in the same quarter of fiscal 2021.

In the three months to the 31^st of December, the company's net income amounted to 0.3 billion US dollars, or 0.03 US dollars per diluted share, on a comparable basis to net income of 14.3 billion US dollars, or 1.39 US dollars, recorded in the same period of the previous year.

Full Year 2022 Results

Amazon's net sales in 2022 totalled 514.0 billion US dollars, as compared to the prior year's net sales of 469.8 billion US dollars.

Over the last fiscal year, the company's operating income decreased to 12.2 billion US dollars, on a comparable basis to the operating income of 24.9 billion US dollars recorded in 2021.

The e-tailer reported a net loss of 2.7 billion US dollars in 2022, or 0.27 US dollars per diluted share, as compared to a net income of 33.4 billion US dollars, or 3.24 US dollars per diluted share, reached in the previous year.

First Quarter 2023 Guidance

For the first quarter of 2023, Amazon is expecting net sales to grow between 4% to 8% over the same period of 2021, reaching between 121.0 billion US dollars to 126.0 billion US dollars. The first quarter operating income is anticipated at up to 4.0 billion US dollars, as compared to the operating income of 3.7 billion US dollars reported in the first quarter of 2022.

Image Credits: abcnews.go.com

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