What you need to know
- Amazon released its Q2 2022 financial earnings report.
- The company exceeded overall revenue expectations with $121.23 billion.
- A net income loss of $2 billion was attributed to Amazon's Rivian investment.
- AWS continues to grow, albeit at a gradually slower pace.
Amazon posted its second-quarter financial earnings report on Thursday. Unlike several other large tech companies, the company exceeded analyst revenue expectations, bringing in $121.23 billion.
Despite the 7% revenue growth, the company reported a net income loss of roughly $2 billion, which it attributes partly to a $3.9 billion valuation loss in its investment in Rivian.
As many companies announce hiring slowdowns and headcount reductions for the second half of the year, Amazon has already been in the process of reducing its pandemic-level numbers, particularly following the recent Omicron outbreak earlier this 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 Amazon CEO Andy Jassy in a statement, referencing store closures and the increased subscription cost of its Prime membership.
"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."
Amazon Web Service also grew by 33% year-over-year, with the business bringing in $19.73 billion. This follows similar growth seen from both Alphabet and Microsoft, Amazon's biggest cloud competitors. However, it still represents slightly slower growth than the 37% reported during the same quarter last year.
The company says it expects Q3 revenue to fall somewhere between $125.0 billion and $130.0 billion. This accounts for its annual Prime Day sales event, which occurred in July as opposed to the previous year when it was held during the second quarter of the year. Earlier this month, the company boasted record Prime Day sales.
