Amazon Web Services CEO Adam Selipsky speaks at the CERAWeek by S&P Global Conference in Houston on March 7, 2023.
F. Carter Smith | Bloomberg | Bloomberg | Getty Images
Amazon said Thursday that its cloud division grew revenue by about 16% in the first quarter. That’s a slightly faster pace than analysts had expected.
Revenue from Amazon Web Services totaled $21.35 billion, representing almost 17% of Amazon’s total revenue, according to the company. company income statementAnalysts surveyed by StreetAccount had expected AWS revenue to be $21.22 billion.in the 4th quarterAWS revenue increased by 20%.
“Our AWS sales and support teams continue to spend a lot of time helping customers optimize their AWS spend,” Brian Olsavsky, Amazon’s head of finance, said in a conference call with analysts. We can weather this uncertain economy.
Amazon faces competition from Alibaba alphabet, microsoftand Oracle However, it enjoys a comfortable lead in the global cloud infrastructure market. Microsoft executives said earlier this week that cloud customers took steps during the quarter to improve the efficiency of their cloud spending.
On Tuesday, Alphabet said of its Google Cloud segment: made money for the first time Record operating profit of $191.
According to Amazon, AWS had an operating profit of $5.12 billion, just short of the StreetAccount consensus of $5.18 billion. AWS has been profitable for his parent company since 2014. Overall Amazon has $4.77 billion in operating income.
AWS’s operating margin was 24%, the narrowest since 2017. On Wednesday, Adam Selipsky, his AWS CEO at Amazon, said: sent a note The company said it has started notifying employees who will be laid off from the department.
“The size of our business and the size of our team have grown significantly over the last few years driven by customer demand for the unique value that the cloud and AWS offer,” wrote Selipsky.
“This growth has been rapid because we moved as fast as we could to build what our customers needed. Behind our top priorities are the things that matter most to our customers and make the biggest difference to our business.”
During the quarter, AWS announced the opening of data center regions in malaysia.
Olsavsky said on the conference call that AWS revenue growth in April was 500 basis points lower than in the first quarter.
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