Amazon reported a second-quarter net loss of $2 billion as the company faced an unfavourable effect from changes in foreign exchange rates throughout the April-June period.
It was the company’s second consecutive quarterly loss in seven years.
But the Seattle e-commerce company, which earned a net profit of $7.8bn in the prior year period, managed to narrow down its June quarter net loss by almost $1.8bn on a quarterly basis.
Revenue during the second quarter increased 7 per cent on an annual basis to $121.2bn, exceeding analysts' average estimate of more than $119bn.
This was the seventh consecutive quarter with more than $100bn in sales.
But excluding the $3.6bn unfavourable effects of year-over-year changes in foreign exchange rates in the quarter, net sales increased 10 per cent compared with second quarter of the last year, the company said.
The US dollar has increased about 10 per cent this year and the dollar index, which measures the greenback against six major currencies, hit a 20-year high this month.
“Despite continued inflationary pressures in fuel, energy and transportation costs, we are making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfilment network,” Amazon’s chief executive Andy Jassy said.
“We are also seeing revenue accelerate as we continue to make Prime even better for members, both investing in faster shipping speeds and adding unique benefits."
Amazon said its second-quarter operating income decreased to $3.3bn, compared with $7.7bn in the same period last year.
The company's stock was up by more than 12.2 per cent to $137.20 a share in after-hours trading on Thursday.
In its third-quarter sales guidance, Amazon expects revenue to hover between $125bn and $130bn, jumping 13 per cent to 17 per cent compared with the same period a year earlier.
Operating income is expected to reach up to $3.5bn in the three months to September 30, the company said.
Amazon Web Services, the company’s subsidiary that provides on-demand cloud computing platforms to other businesses, had good momentum in sales.
Its revenue reached $19.7bn in the second quarter, rising annually by more than 33 per cent.