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Unlike Microsoft, Meta, and Google-parent Alphabet, e-commerce powerhouse Amazon managed to exceed Wall Street expectations in what was a tough quarter for the tech industry. The Seattle-headquartered company reported a year-over-year rise of 7% in its quarterly revenue, but clocked a net loss of $2 billion in the second quarter of the year.

Amazon, in Q2 2022, recorded $121.2 billion in revenue, an increase from the $113.1 billion it clocked in the corresponding quarter in 2021. Its operating expenses for the quarter increased to nearly $118 billion, while its operating income for the same increased by nearly $4 billion to reach $3.3 billion.

The net loss of $2 billion is a steep contrast from the $7.7 billion Amazon reported as net income in Q2 2021, while its diluted earnings per share (EPS) in Q2 2022 fell steeply as well. Nonetheless, Amazon managed to beat Wall Street’s estimates for the quarter – analysts had estimated Amazon’s revenue to reach $119.3 billion.

For the six months ended June 30, 2022, Amazon reported a year-over-year growth of over $16 billion in revenue, which climbed to $237.7 billion. Its operating expenses for the same period increased to $230.7 billion.

Other financials include a fall of 40% in its operating cash flow to $35.6 billion for the trailing 12 months, while its free cash flow decreased to an outflow of $23.5 billion for the same period.

Amazon’s performance, while a little derailed by the net loss, seems to have impressed the market at a time when tech stocks are plummeting and companies are struggling. Its shares rose by nearly 11% in late trading and is currently at $135.53.

It should be noted that Amazon’s performance in Q2 2022 is a rather decent one, despite factors such as inflation. The net loss should not be held against Amazon, given that all of it came from its stake in Rivian. Its investment in the EV company handed the e-commerce company a $3.9 billion loss for the quarter, bringing the total loss on the investment this year to $11.5 billion.

Going forward, the company expects to generate revenue between $125-130 billion in the third quarter, which will be a growth of 13-17% and reach analyst expectations of $126.4 billion. It also intends to recruit more engineers for Amazon Web Services and other segments, which is a contrast from the mass layoffs that have characterized the second quarter of the year.

“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.”

Coming to the performance of Amazon’s segments, we find that its core e-commerce business took a hit as lockdowns were lifted and physical shopping once again took prominence. This led to a fall in demand for online shopping, which meant that Amazon’s online stores segment dropped by 4.3% to reach $50.89 billion.

Its advertising arm, however, performed rather well as ad revenue climbed in the period to reach $8.76 billion, exceeding analyst expectations of $8.65 billion. Its cloud segment business had a strong quarter as well, as Amazon Web Services generated $19.74 billion in revenue, a Y-o-Y increase of 33% and exceeding the estimated $19.56 billion.