Amazon posted a second-quarter loss of -$2 billion, or -20 cents a share. The loss was attributed partly to its investment in electric truck manufacturer Rivian. It is also the first time that the e-commerce giant has posted back-to-back quarterly losses since the second and third quarters of 2014. In the year-ago quarter, Amazon reported earnings of 76 cents a share.
The company’s revenue in the quarter came in at $121.2 billion, vs. $113.08 billion a year ago. Revenues topped analysts’ expectations of $119 billion (according to FactSet).
Amazon incurred second-quarter operating loss of -$2.4 billion in its e-commerce business, on net sales of $101.5 billion. In the year-ago quarter, the segment reported an operating profit of $3.51 billion on net sales of $98.27 billion. Analysts expected an operating loss of -$3.58 billion on sales of $100.18 billion (according to FactSet).
The Amazon Web Services cloud computing segment had an operating income of $5.72 billion on revenue of $19.74 billion in the quarter , up from operating profit of $4.19 billion on revenue of $14.81 billion a year ago. Analysts on average predicted operating income of $6.04 billion on net sales of $19.56 billion for the business.
“AWS continues to grow at a fast pace and we believe we are still in the early stages of enterprise and public-sector adoption of the cloud,” Chief Financial Officer Brian Olsavsky mentioned in a conference call (as reported in MarketWatch).
As of the end of the second quarter, Amazon reported a workforce of 1.523 million workers, lower than 1.622 million at the end of the first quarter. That is the largest quarterly decrease in Amazon’s workforce in company data going back to the beginning of 2018. “We have also moved quickly to adjust our staffing levels and improve the efficiency of our expanded operations network,” Olsavsky said. “We have slowed our 2022 and 2023 operations expansion plans to better align with expected customer demand. While there is still work to be done, we made good progress in Q2.”