Amazon Inc. has announced its earnings for the Q1 of this year, according to the reports released by the company; Amazon Web Services or AWS has generated $1.57 billion sales, earned net revenues of $5.16 million and this revenue saw a growth of 49 percent in the last quarter which made Amazon web services earn $680 million.
Jeff Bezo, Amazon Chief Executive said that Amazon Web Services or AWS arm is a $5 billion business that is still growing fast.
On Friday, soon after the report was announced by the company Amazon shares quickly went up 14 percent, $445.10, Analysts who had nothing much to do, acknowledged the radiance of the solution.
Amazon posted a loss of 12 percent per share which is equivalent to $0.12 per share, for the first quarter which is matching the consensus estimate, according to analysts polled by Thomson Reuters.
Revenue for $22.72 billion for the period topped the $22.39 billion analysts were expecting.
The loss of revenue per share has matched consensus. The operating income for the first quarter came in at $225 million, which is far ahead of the Wall Street’s $10 million expectation and better than the company’s guidance of an operating loss of $450 million to an operating profit of $50 million.
The statement from Benzo primarily focused on how AWS rose from low beginning to become a profitable arm that has some high profile customers.
He wrote, “Startups were the early adopters, on-demand, pay-as-you-go cloud storage and compute resources dramatically increased the speed of starting a new business. Companies like Pinterest, Dropbox, and Airbnb all used AWS services and remain customers today.”
The business model for AWS was to innovate quickly and then pass cost savings onto customer in order to remain the dominant player.
AWS add-ons include Amazon Machine Learning, this service automatically analyses client data to help them reduce their customer churn and this feature will help developers to run internet of things apps.