Retailing and cloud computing giant Amazon announced that it lost $3.8 billion on revenues of $116.4 billion in the quarter ending March 31. The latter figure is a gain of 7 percent year-over-year.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon CEO Andy Jassy said. “With AWS growing 37 percent year-over-year in the first quarter, AWS has been integral in helping companies weather the pandemic and move more of their workloads into the cloud.”
Jassy appeared to blame the loss on Amazon’s need to double the size of its fulfillment network in just two years and ongoing inflationary and supply chain pressures, but there was little in the way of specifics. As is always the case with Amazon, most of the announcement concerned milestones from the quarter, like its Buy with Prime initiative and the opening of 8 new Amazon Fresh grocery stores. Amazon also closed its acquisition of MGM in the quarter.
For the current quarter, Amazon expects to an operating loss/profit of between -$1 billion and $3 billion on revenues of $116 billion to $121 billion. I assume more pertinent information will be made available during its post-earnings conference call.