Amazon’s fourth quarter net profit was $14.3 billion, up 98.6% year-on-year

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On February 5, after the closing of the stock market on Thursday, local time, retail giant Amazon released the fourth quarter financial report of 2021 as of December 31. According to the financial report, Amazon’s net sales in the fourth quarter was $137.4 billion, a year-on-year increase of 9%; The net profit was US $14.3 billion, a year-on-year increase of 98.6%; Earnings per share was $27.75, a year-on-year increase of 96.9%. Thanks to Amazon’s brilliant fourth quarter results, its after hours share price rose sharply by more than 18%.
In the fourth quarter of 2021, Amazon’s net sales increased by 9% to $137.4 billion, compared with $125.6 billion in the fourth quarter of 2020. Excluding the adverse impact of US $1.3 billion caused by year-on-year changes in exchange rates throughout the quarter, net sales increased by 10% over the fourth quarter of 2020. Operating profit fell to $3.5 billion in the fourth quarter, compared with $6.9 billion in the fourth quarter of 2020. The company’s fourth quarter net profit increased to $14.3 billion and earnings per share of $27.75, compared with $7.2 billion and earnings per share of $14.09 in the fourth quarter of 2020. Net profit for the fourth quarter of 2021 included $11.8 billion in pre tax valuation income, including non operating income from the investment of rivian automotive common stock, which completed its initial public offering (IPO) in November.
By region, Amazon’s North American division (the United States and Canada) had net sales of $82.36 billion in the fourth quarter, compared with $75.35 billion in the same period last year; The operating loss was US $206 million, and the operating profit in the same period of last year was US $2.95 billion. Amazon International (UK, Germany, France, Japan and China) had net sales of US $37.27 billion in the fourth quarter, compared with us $37.47 billion in the same period last year; The operating loss was US $1.63 billion, and the operating profit in the same period of last year was US $363 million. The net sales of Amazon AWS cloud services in the fourth quarter was US $17.78 billion, compared with us $12.74 billion in the same period last year; Operating profit was $5.29 billion, up from $3.56 billion in the same period last year. In the fourth quarter, Amazon’s sales from the North American Department accounted for 60% of the total sales, which was basically the same as that of the same period last year; Sales from international departments accounted for 27% of the total sales, down from 30% in the same period last year; Sales from AWS cloud services accounted for 13% of total sales, up from 10% in the same period last year.
For the whole year of 2021, Amazon’s net sales increased by 22% year-on-year to $469.8 billion, compared with $386.1 billion in 2020. Excluding the favorable impact of US $3.8 billion caused by exchange rate changes throughout the year, net sales increased by 21% compared with 2020. Operating profit increased to $24.9 billion, compared with $22.9 billion in 2020. Net profit increased by US $33.4 billion and earnings per share of US $64.81, compared with us $21.3 billion and earnings per share of US $41.83 in 2020.
In the 12 months ended December 31, 2020, Amazon’s operating cash flow decreased by 30% to $46.3 billion, compared with $66.1 billion in the 12 months ended December 31, 2020. Free cash flow decreased to an outflow of $9.1 billion, compared with an inflow of $31 billion in the 12 months to December 31, 2020. As of December 31, 2021, the total number of ordinary shares issued plus stock based Awards was 523 million, compared with 518 million a year ago.
Amazon currently has more than 1.6 million employees worldwide and continues to invest in providing industry-leading compensation and benefits. This includes an average starting salary of more than $18 per hour for front-line employees in the United States and comprehensive benefits for full-time employees. These benefits include health, vision and dental insurance, up to 20 weeks of paid parental leave and Amazon’s career choice plan, through which the company fully subsidizes employees’ college tuition, including courses, books and other expenses. Amazon has also expanded incentives for front-line employees to receive the new coronavirus vaccine. Each frontline employee will receive a maximum bonus of $120 ($40 per dose), and new employees who are fully vaccinated will receive a new employee bonus of $100.
Amazon CEO Andy Jaci (novel coronavirus pneumonia), Andy Jassy, said: “thank you very much for Amazon’s employees who have overcome another quarter of the challenges associated with the new crown pneumonia epidemic and delivered their products to customers during this holiday shopping season, considering the extraordinary growth we saw in 2020 (when customers stayed at home). , and the fact that we continue to grow on the basis of 2021, our retail team has effectively operated in peak mode for nearly two years. We have made great efforts. I am very grateful and proud of the efforts our team has made to serve our customers. As expected during the holiday season, we see rising costs driven by labor supply shortages and inflationary pressures, which will continue due to the Omicron virus until the first quarter. Despite these short-term challenges, we continue to be optimistic and excited about our business as we emerge from the epidemic. When you combine our staffing with the expansion of our business network to bring faster delivery speed to more customers, AWS is growing at an annual rate of 40% (now its revenue is $71 billion), coupled with the release of eye-catching new entertainment programs such as the Lord of the rings, as well as us in Alexa, ring, grocery, pharmacy, Amazon care Kuiper and zoox have developed a lot of new functions, and we have a lot to look forward to in the coming months and years. ”

Amazon continues to invest heavily in prime services. Over the past few years, Amazon has added more product choices, providing fast, free and unlimited prime distribution services, more exclusive offers and discounts, and more high-quality digital entertainment services, including TV, movies, music and books. With the continuous expansion of prime member benefits and the rise of wages and transportation costs, Amazon will increase the price of prime members in the United States, with the monthly fee rising from $12.99 to $14.99 and the annual fee rising from $119 to $139. This is the first time Amazon has raised the price of prime service since 2018. For new prime members, the price adjustment will take effect on February 18, 2022, while for existing prime members, the new price will take effect after March 25, 2022, the date of their next renewal.
During this year’s holiday shopping season, third-party sellers, most of them small and medium-sized enterprises, achieved record global sales in Amazon stores. More than 130000 third-party sellers worldwide have sales of more than $100000 on Amazon. During Black Friday and Christmas, third-party sellers in the United States sold an average of 11500 items per minute. In addition, Amazon India’s one month long great India Festival promotion is the largest shopping celebration ever held by Amazon sellers and brand partners, with nearly 30000 sellers selling more than $100000. The number of prime members enjoying project benefits reached an all-time high. In 2021, American members received more than 6 billion free couriers, and more than 200 million prime members worldwide watched programs and movies.
In the first quarter of 2022, Amazon expects its net sales to be between $112 billion and $117 billion, or an increase of 3% to 8% compared with the first quarter of 2021, but lower than the generally expected $120.94 billion. The company also expects the exchange rate to have an adverse impact of about 150 basis points. Operating profit is expected to be between $3 billion and $6 billion, compared with $8.9 billion in the first quarter of 2021. This expectation includes depreciation charges of approximately $1 billion as the estimated service life of Amazon servers and network devices increases from January 1, 2022.
Amazon shares fell $235.34, or 7.81%, to close at $2776.91 in regular NASDAQ trading on Thursday local time. However, in subsequent after hours trading, Amazon shares soared $517.26 to $3293 per share, up more than 18.63%. In the past 52 weeks, Amazon’s lowest share price was $2707.04 and its highest price was $3773.08. According to Thursday’s closing price, Amazon has a market value of $1.408 trillion. (golden deer)