AWS is Profitable, and a $5 Billion Annual Business, with a $6 Billion Run Rate
The most interesting number in the Amazon first quarter earnings report was confirmation that Amazon Web Services indeed generates $5 billion a year in revenue and earned $1.6 billion in the quarter. This is the first time Amazon has reported quarterly revenue for AWS.
The other interesting numbers are AWS growth rates--50 percent or so--and the fact that AWS is profitable, with about a current $6 billion run rate annually. AWS earned $265 million in the quarter.
In the first quarter of 2015, operating cash flow increased 47 percent to $7.84 billion for the trailing twelve months, compared with $5.35 billion for the trailing twelve months ended March 31, 2014.
Free cash flow increased to $3.16 billion for the trailing twelve months, compared with $1.49 billion for the trailing twelve months ended March 31, 2014.
Net sales increased 15 percent to $22.72 billion in the first quarter, compared with $19.74 billion in first quarter 2014.
Excluding the $1.3 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 22% compared to first quarter 2014.
Operating income increased 74 percent to $255 million in the first quarter, compared with operating income of $146 million in first quarter 2014.
Net loss was $57 million in the first quarter, or $0.12 per diluted share, compared with net income of $108 million, or $0.23 per diluted share, in first quarter 2014.