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Amazon has fallen to a net loss of $2.0bn (£1.6bn) in its second quarter, down from a profit of $7.8bn (£6.4bn) in the second quarter of 2021.
This loss reportedly includes a pre-tax valuation loss of $3.9bn (£3.2bn) included in non-operating expenses from Amazon’s investment in Rivian Automotive, an electric vehicle start-up.
The loss comes despite the fact the retail giant’s sales increased 7% to $121.2bn (£99.5bn) in the period, compared with $113.1bn (£92.8bn) in 2021. Excluding the $3.6bn (£2.9bn) “unfavourable” impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales still reportedly increased 10% compared with the second quarter of 2021.
Nonetheless, its operating cash flow decreased 40% to $35.6bn (£29.2bn) for the trailing twelve months, compared with $59.3bn (£48.7bn) for the trailing twelve months ended 30 June 2021.
It is also reported that the company’s free cash flow decreased to an outflow of $23.5bn (£19.3bn) for the same period, when compared to the inflow of $12.1bn (£9.9bn) for the period ending 30 June 2021.
The company’s common shares outstanding plus shares underlying stock-based awards totaled 10.6 billion in Q2, compared with 10.4 billion one year ago. All share and per share are said to have been retroactively adjusted to reflect the 20-for-1 stock split effected on 27 May 2022.
Andy Jassy, CEO of Amazon, said: “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 fulfilment network.
“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 15 September, and releasing the highly anticipated series The Lord of the Rings: The Rings of Power on 2 September.”
