On February 3, Amazon released its financial results for the fourth quarter of 2021. Meanwhile, Amazon announced it would boost Prime membership in the U.S. to cover the continued expansion of Prime benefits and higher costs for wages and transportation.
● Operating cash flow fell 30% to $46.3 billion in 2021, compared to $66.1 billion in 2020.
● Free cash flow outflows decreased to $9.1 billion in 2021, compared to $31 billion in 2020.
● Free cash flow less principal repayments on finance leases and financing obligations decreased to an outflow of $20.4 billion in 2021, compared to an inflow of $20.3 billion in 2020.
● Free cash flow less principal repayments for equipment finance leases and all other finance leases and financing obligations decreased to an outflow of $14.3 billion in 2021, compared to an inflow of $21.4 billion in 2020.
● As of December 31, 2021, outstanding common stock plus underlying stock awards totaled 523 million shares, compared with 518 million shares in the same period last year.
Fourth quarter 2021 results:
● Net sales in the fourth quarter increased 9% to $137.4 billion compared to $125.6 billion in the fourth quarter of 2020. Excluding the $1.3 billion negative impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 10% year-over-year.
● Fourth-quarter operating income fell to $3.5 billion from $6.9 billion in the fourth quarter of 2020.
● Fourth-quarter net income increased to $14.3 billion, or $27.75 per diluted share, and fourth-quarter 2020 net income was $7.2 billion, or $14.09 per diluted share.
2021 full year results:
Net sales rose 22% to $469.8 billion from $386.1 billion in 2020. Excluding the positive impact of $3.8 billion from year-over-year changes in foreign exchange rates for the full year, net sales increased 21% compared to 2020.
Operating income increased to $24.9 billion, and 2020 operating income was $22.9 billion.
Net income rose to $33.4 billion, or $64.81 per diluted share, and 2020 net income was $21.3 billion, or $41.83 per diluted share.