$Amazon (AMZN.US)$ on Thursday reported worse-than-expected profits, but its revenue beat expectations boosted by sales in North America businesses and the cloud-computing unit AWS.

Amazon said it made $300 million in profits, or 3 cents per share, falling below the $2.03 billion analysts surveyed by FactSet had been expecting. The company's fourth quarter profits represent a significant drop from the $14.3 billion it posted during the same period in 2021.

At the same time, Amazon said its overall revenue rose 9% to $149.2 billion, higher than the $145.7 analysts were expecting.

Earnings Highlight

Fourth Quarter 2022

Net sales increased 9% to $149.2 billion in the fourth quarter, compared with $137.4 billion in fourth quarter 2021. Excluding the $5.0 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 12% compared with fourth quarter 2021.

Operating income decreased to $2.7 billion in the fourth quarter, compared with $3.5 billion in fourth quarter 2021. Fourth quarter 2022 operating income includes approximately $2.7 billion of charges for changes in estimates related to self-insurance liabilities, impairments of property and equipment and operating leases, and estimated severance costs. These charges primarily impacted the North America segment.

Net income decreased to $0.3 billion in the fourth quarter, or $0.03 per diluted share, compared with $14.3 billion, or $1.39 per diluted share, in fourth quarter 2021. All share and per share information for comparable prior year periods throughout this release have been retroactively adjusted to reflect the 20-for-1 stock split effected on May 27, 2022.

Full Year 2022

Net sales increased 9% to $514.0 billion in 2022, compared with $469.8 billion in 2021. Excluding the $15.5 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 13% compared with 2021.

Operating income decreased to $12.2 billion in 2022, compared with $24.9 billion in 2021.

Net loss was $2.7 billion in 2022, or $0.27 per diluted share, compared with net income of $33.4 billion, or $3.24 per diluted share, in 2021.

Free cash flow decreased to an outflow of $11.6 billion for the trailing twelve months, compared with an outflow of $9.1 billion for the trailing twelve months ended December 31, 2021.

Financial Summary

Price Action

Shares in Amazon.com Inc. fell 2.4% in after-hours trading.