Amazon Revenues Hit $116.4 Billion in Q1

Posted on April 28, 2022 by Paul Thurrott in Amazon with 4 Comments

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.

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Comments (4)

4 responses to “Amazon Revenues Hit $116.4 Billion in Q1”

  1. Rcandelori

    I find it astonishing that they can't make a profit on over $116 billion of revenue. It's a junk business.

  2. mattbg

    It looks like Mr. Bezos knew just when to leave.

    I get that the direct-delivery retail business is a very challenging one to profit from, and the scale of what they've built to try and make it make sense is impressive, but what I don't get is why they keep piling money into that part of the business. I assume they think that economies of scale will somehow make this all make sense if only they can do X, Y, and Z.

    Andy Jassy came from the profitable AWS part of the business, so it'll be interesting to see how he will try to make sense of this.

  3. north of 49th

    I think regulators should break AWS away from the retail side of Amazon. If the Amazon retail side had to survive on its own, I think the changes that would have to happen to be profitable to investors would also make the world a better place for retail in general...

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