(San Francisco) Amazon’s first-quarter revenue rose 7% to $116.4 billion, in line with company and market expectations, but widespread cost increases forced the company to announce weaker-than-expected current-quarter revenue guidance admit.
Updated yesterday at 5:21pm.
The online sales giant’s action fell about 8% during electronic trading after the close on Thursday.
For the April-June period, Amazon expects sales to be between $116 billion and $121 billion, a range well below the $125.3 billion consensus analysts at FactSet are expecting.
“It’s been a tough quarter for Amazon,” commented Andrew Lipsman of eMarketer. “All major activities are going in the wrong direction,” he admitted.
In particular, he pointed to slower trade growth that will last. “I wouldn’t be surprised if Amazon hosted a second Prime Day [opération de soldes annuelle] in October this year to generate additional revenue,” he added.
“The pandemic and war in Ukraine have created unusual problems for growth,” said Andy Jassy, the group’s chief, in the press release accompanying the results.
He mentioned the underlying economic conditions — inflation and supply difficulties — that are weighing on the sprawling company’s operations.
Operating profit, a key indicator of profitability, was halved to $3.7 billion for the January-March period.
But on the other hand, Amazon no longer needs to build new warehouses or recruit with all its might, the head assured: “Our teams are fully focused on improving productivity and reducing costs in our logistics network. We know how to do it, we’ve done it before. »
Delivery speeds had returned to levels close to pre-pandemic levels in early 2020, he also said.
As retail sales suffer from inflation and shortages, AWS, its cloud computing service, generated $18.4 billion in first-year revenue (+36%) and operating income of $6.5 billion in the first quarter. Dollar.
According to research firm Canalys, AWS leads the industry with 33% of global cloud spend at the end of 2021, ahead of Microsoft’s Azure (22%) and Google Cloud (9%).
Overall, Amazon lost $3.8 billion in the first quarter (compared to a net income of $8 billion a year ago) on a loss on its investment in electric-car maker Rivian.
It’s the first time Amazon has posted a quarterly net loss since 2015.