On the 3rd of August at 4:01 PM ET, Amazon printed their Q2 2023 Earnings.
Here is the breakdown.
Net sales increased 11% to $134.4 billion in the second quarter compared to the same period in 2022, excluding the impact of foreign exchange rates.
Sales performance in different segments:
North America segment sales increased 11% year-over-year to $82.5 billion.
International segment sales increased 10% year-over-year to $29.7 billion.
AWS (Amazon Web Services) segment sales increased 12% year-over-year to $22.1 billion.
Operating income increased significantly to $7.7 billion in the second quarter compared to $3.3 billion in the same period in 2022.
Operating income in segments:
North America segment operating income was $3.2 billion, a significant improvement compared to the operating loss of $0.6 billion in the second quarter of 2022.
International segment operating loss decreased to $0.9 billion from the operating loss of $1.8 billion in the second quarter of 2022.
AWS segment operating income was $5.4 billion, slightly lower than $5.7 billion in the second quarter of 2022.
Net income for the second quarter was $6.7 billion, or $0.65 per diluted share. This is a notable turnaround from the net loss of $2.0 billion, or $0.20 per diluted share, in the second quarter of 2022.
The net income in the second quarter of 2023 includes a pre-tax valuation gain of $0.2 billion from an investment in Rivian Automotive, compared to a pre-tax valuation loss of $3.9 billion from the investment in the same period of 2022.
Operating cash flow increased by 74% to $61.8 billion for the trailing twelve months, compared to $35.6 billion for the same period ending June 30, 2022.
Free cash flow improved significantly:
Free cash flow was an inflow of $7.9 billion for the trailing twelve months, compared to an outflow of $23.5 billion for the same period ending June 30, 2022.
Free cash flow less principal repayments of finance leases and financing obligations was an inflow of $1.9 billion for the trailing twelve months, compared to an outflow of $33.5 billion for the same period ending June 30, 2022.
Free cash flow less equipment finance leases and principal repayments of all other finance leases and financing obligations was an inflow of $6.7 billion for the trailing twelve months, compared to an outflow of $26.1 billion for the same period ending June 30, 2022.
Overall, this Amazon earnings report shows positive growth in net sales, operating income, and net income. The North America and AWS segments performed well, leading to an overall improvement in the company's financial position. The increase in operating cash flow and positive free cash flow demonstrate improved financial health compared to the previous year.
