Summary of Amazon's performance in 2022 Q1

Amazon's performance in q1 2022

Amazon experienced 7% growth in its net sales in the first quarter of 2022 compared to the same period in the last year. Sales increased across North America and AWS segments but declined across the International segment.

The company experienced a growth of 8% in its sales from the North America segment. However, its sales in the International segment decreased 6% in 2022 Q1 compared to the same period in the last year.

AWS segment experienced 37% growth in its net sales in the first quarter of 2022 compared to the same period last year. Over the past two years, the AWS segment has experienced 34% annual growth, said Amazon CEO Andy Jassy.

The number of Amazon employees during the first quarter of 2022 was 1,622,000, compared with 1,271,000 in the first quarter of 2021.

Amazon Net Sales (Annual)

Amazon Net Income (Annual)

 2022 Q12021 Q1
Consolidated net sales$116,444$108,518
Consolidated Net Income$(3,844)$8,107
Amazon North America net sales$69,244$64,366
North America Operating Income$3,450$1,568
Amazon International net sales$28,759$30,649
International operating income$(1,281)$1,252
AWS Net Sales$18,441$13,503
AWS Operating Income$6,518$4,163
Cost of sales$66,499$62,403
 R&D expenses$14,842$12,488
sales and marketing expenses$8,320$6,207
Fulfilment expenses$20,271$16,530
shipping costs$19,560$17,162

Highlights of Amazon's financial results in 2022 Q1:

- Operating cashflow for the past twelve months was down 41% to $39.3 billion compared to $67.2 billion for the trailing twelve months ended March 31, 2021.

- Free cashflow of Amazon decreased to an outflow of $18.6 billion for the past twelve months compared with an inflow of $26.4 billion for the trailing twelve months ended March 31, 2021.

- Amazon consolidated net sales increased 7% to $116.4 billion in the first quarter of 2022. During the first quarter of 2021, Amazon's consolidated net sales were $108.5 billion. There was an unfavorable impact of foreign exchange rate of $1.8 billion throughout the quarter. Excluding the unfavorable impact of the currency exchange rate, the consolidated net sales of Amazon during the first quarter of 2022 increased 9%.

-  Amazon's net loss for the first quarter of 2022 was $3,844 million compared to a positive net income of $8,107 million in the first quarter of 2021. Its consolidated net income for twelve months trailing the first quarter of 2022 was $21,413 million compared with $26,903 million for twelve months trailing the first quarter of 2021.

- Amazon's net sales of products were $57,491 million for this quarter compared with $56,455 in the first quarter of 2021.

- Amazon's net sales of services were $51,027 million for the first quarter of 2022 compared with $59,989 for the first quarter of 2021. 

- Amazon's net sales in North America increased to $69,244 million in Q1 2022 compared with $64,366 million in Q1 2021. Operating expenses of the company for the North America segment increased to $70,812 million in Q1 2022, compared with $60,916 million in Q1 2021. The company incurred an operating loss of $1,568 million in the first quarter of 2022 compared with $3,450 million in the first quarter of 2021. North America accounted for 59% of the company's net sales in the first quarters of 2021 and 2022. It experienced 8% growth in net sales in the first quarter of 2022 compared to the same quarter in the last year.

- Net sales of the company in the international segment decreased to $28,759 million in the first quarter of 2022 compared with $30,649 million in the same period of the previous year. Operating expenses in the first quarter of 2022 increased to $30 billion compared with $29.4 billion in the first quarter of 2021. The company incurred an operating loss of $1.3 billion in the first quarter of 2022 compared with a positive operating income of $1.25 billion in the same period last year. The international segment of Amazon's operations experienced a 6% decline in its net sales in the first quarter of 2022 compared with the same quarter of the last year. This segment accounted for 25% of the company's net sales in the first quarter of 2022 compared with 28% in the first quarter of 2021. 

- AWS was the only operating segment to generate positive operating income in the first quarter of 2022. It was also the only segment to experience double digit revenue growth in this quarter compared to 2021 q1.  AWS revenue increased 37% to $18.4 billion in the first quarter of 2022 compared with $13.5 billion in the first quarter of 2021. Operating expenses of this segment increased to $11,923 million in the first quarter of 2022 compared with $9,340 million in the first quarter of 2021. AWS segment generated $6.52 billion in operating income in the first quarter of 2022 compared with $4.2 billion in the first quarter of 2021.

- Revenue from subscription services remained $8,410 million in the first quarter of 2022, compared with $7,580 million in the first quarter of 2021; yoy increase of 13%.

- Revenue from online stores decreased 1% in the first quarter of 2022 compared to the first quarter of the prior year. The company generated $51,129 million in the first quarter of 2022, compared with $52,901 million in the first quarter of 2021.

- Revenue from physical stores increased 16% in the first quarter of 2022 compared with the first quarter of 2021. Amazon generated $4,591 million in net sales from physical stores in the first quarter of 2022 compared with $3,920 million in the first quarter of 2021.

- Revenue from third party seller services increased 9% in the first quarter of 2022 compared with the same period in the previous year. Amazon generated $25,335 million in net sales from third party seller services compared with $23,709 million in the first quarter of 2021.

- Revenue from advertising services increased 25% in the first quarter of 2022 compared with the first quarter of 2021. Amazon generated $7,877 million in the first quarter of 2022 from advertising services compared with $6,381 million in the first quarter of 2021.

Amazon Research and Development Expenses (Annual)

Amazon expenses in the first quarter of 2022:

- Amazons' total cost of sales increased to $66.5 billion in the first quarter of 2022 compared with $62.4 billion in the first quarter of 2021.

- The ecommerce and cloud technology brand spent $20.3 billion on fulfilment in the first quarter of 2022 compared with $16.5 billion in the first quarter of 2021. Amazon's shipping costs increased 14% in the first quarter of 2022 compared with the first quarter of 2021. Its shipping costs remained $19,560 million in the first quarter of 2022 compared with $17,162 million in the first quarter of 2021. 

- Amazon's research and development expenses (listed as technology and content expenses in form 10K and 10Q) have been increasing sharply over the past several years. The company is the leading R&D spender in the entire industry. Its research and development expenses in the first quarter of 2022 increased to $14.84 billion compared with $12.5 billion in 2021. 

- Amazon's sales and marketing expenses increased to $8.32 billion in the first quarter of 2022 compared with $6.2 billion in the first quarter of 2021.

- Amazon's general and administrative expenses increased to $2.6 billion in the first quarter of 2022 compared with $2 billion in the same period of the previous year.