Thursday, April 23, 2015

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.


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