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Amazon Web Services Revenue Climbs 49%, Remains Vital to Amazon's Growth
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Amazon (AMZN - Free Report) just reported its second quarter financial results. But while many people assess the e-commerce giant’s top and bottom line growth and its online sales, let’s take a look at how the Amazon Web Services unit performed, since Amazon’s cloud computing business remains one of its most important growth areas.
Amazon is still a retail company at its core, with its $27.17 billion in online store sales accounting for over 50% of its $52.89 billion total Q2 revenues. The firm’s overall revenues climbed by 39% from the year-ago period, which fell short of our $53.45 billion Zacks Consensus Estimate.
Meanwhile, the Seattle-based company reported adjusted earnings of $5.07 per share, crushing our $2.49 per share estimate. But Amazon’s online sales only climbed by 14%, which means the company’s huge growth must have come from somewhere else. Third-party seller services did surge by 39% to $9.70 billion, making it the company’s second-largest revenue driver, right in front of AWS.
Amazon’s AWS business skyrocketed 49% from $4.10 billion to hit $6.12 billion in the second quarter. Investors should note that this topped our NFM estimateof $5.99 billion and marked the company’s biggest year-over-year gain over the last six quarters in this growing category.
Furthermore, AWS saw its revenues climb by 12% sequentially. Last quarter, Amazon’s AWS unit saw its revenues surge 48% from $3.66 billion to touch $5.44 billion. Amazon’s cloud computing unit is up 46% over the trailing 12 months at $21.24 billion.
Amazon also noted that it added several new AWS enterprise customers during the quarter, including Ryanair (RYAAY - Free Report) and Fortnite owner Epic Games. Adding more clients will become more important going forward as the company faces more competition from Microsoft (MSFT - Free Report) , Google (GOOGL - Free Report) , and IBM (IBM - Free Report) . “AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” CEO Jeff Bezos said in a statement last quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Amazon Web Services Revenue Climbs 49%, Remains Vital to Amazon's Growth
Amazon (AMZN - Free Report) just reported its second quarter financial results. But while many people assess the e-commerce giant’s top and bottom line growth and its online sales, let’s take a look at how the Amazon Web Services unit performed, since Amazon’s cloud computing business remains one of its most important growth areas.
Amazon is still a retail company at its core, with its $27.17 billion in online store sales accounting for over 50% of its $52.89 billion total Q2 revenues. The firm’s overall revenues climbed by 39% from the year-ago period, which fell short of our $53.45 billion Zacks Consensus Estimate.
Meanwhile, the Seattle-based company reported adjusted earnings of $5.07 per share, crushing our $2.49 per share estimate. But Amazon’s online sales only climbed by 14%, which means the company’s huge growth must have come from somewhere else. Third-party seller services did surge by 39% to $9.70 billion, making it the company’s second-largest revenue driver, right in front of AWS.
Amazon’s AWS business skyrocketed 49% from $4.10 billion to hit $6.12 billion in the second quarter. Investors should note that this topped our NFM estimateof $5.99 billion and marked the company’s biggest year-over-year gain over the last six quarters in this growing category.
Furthermore, AWS saw its revenues climb by 12% sequentially. Last quarter, Amazon’s AWS unit saw its revenues surge 48% from $3.66 billion to touch $5.44 billion. Amazon’s cloud computing unit is up 46% over the trailing 12 months at $21.24 billion.
Amazon also noted that it added several new AWS enterprise customers during the quarter, including Ryanair (RYAAY - Free Report) and Fortnite owner Epic Games. Adding more clients will become more important going forward as the company faces more competition from Microsoft (MSFT - Free Report) , Google (GOOGL - Free Report) , and IBM (IBM - Free Report) . “AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down,” CEO Jeff Bezos said in a statement last quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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