Amazon released its Q1 earnings today, and there were a lot of ups and downs, and one frequently used word was “decreased,” specifically in reference to their income and cash flow.
Overall, the company announced a net loss of $3.8 billion for this quarter, which looks really bad when compared to 2021 Q1’s net income of $8.1 billion. Operating income decreased to $3.7 billion from $8.9 billion in Q1 2021, and net sales also increased 7%, from $108.5 billion in the first quarter of 2021 to $116.4 billion. Operating cash flow fell 41%, and free cash flow decreased from $26.4 billion to $18.6 billion.
CEO Andy Jassy said:
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges. Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network. We know how to do this and have done it before. This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020.”
Product highlights from the press release include:
- The announcement of a new service called “Buy with Prime” which will allow Prime members to shop at participating online stores outside of Amazon.com using their membership benefits
- This year’s Prime Day is set for July 2022
- Amazon Aware, a store featuring “consciously created” (their words, not mine) products, officially launched in a brazen attempt to give the corporation a soul
- Amazon Go, the cashier-less grocery store you literally just walk out of, is officially a-go, launching another, larger version of the store in a suburb north of Seattle
- MGM has officially joined the Amazon family, and
- Launch services for Project Kupier were obtained with agreements from Blue Origin, Arianespace, and United Launch Alliance.
Amazon is estimating net sales to be in the range of $116 billion to $121 billion in Q2.