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 | beautiful pictures
Amazon said on Thursday that its cloud unit grew revenue about 16% in the first quarter, a slightly faster pace than analysts had anticipated.
Revenue from Amazon Web Services totals $21.35 billion, nearly 17% of Amazon’s total revenue, according to report company income statement. Analysts surveyed by StreetAccount had expected AWS revenue of $21.22 billion. inside Fourth quarterAWS revenue increased 20%.
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Brian Olsavsky, Amazon’s chief financial officer, said: “The AWS sales and support teams continue to spend a lot of time helping customers optimize their AWS spending so they can weather this volatile economy.” .
Amazon faces competition from Alibaba, Alphabet, MicrosoftAnd prophesy but has a comfortable leadership position in the global cloud infrastructure market. Microsoft executives said earlier this week that during the quarter, their cloud customers took steps to improve the efficiency of their cloud spending.
On Tuesday, Alphabet said its Google cloud segment make money for the first time recognized, resulting in an operating profit of $191.
Amazon said AWS operating income came in at $5.12 billion, slightly below the StreetAccount consensus of $5.18 billion. AWS has been making a profit for the parent company since 2014. Amazon as a whole has $4.77 billion in operating profit.
AWS operating margin, at 24%, is the lowest since 2017. On Wednesday, Adam Selipsky, Amazon’s AWS CEO, issued a memorandum says the company has begun notifying employees who will be fired from the department.
“Both our enterprise and team sizes have grown significantly in recent years, driven by customer demand for the cloud and the unique value that AWS provides,” Selipsky wrote.
“This growth has been rapid because we have moved as quickly as possible to build what our customers need. Given this rapid growth rate, as is the overall macroeconomic and business environment. , it’s important for us to focus on identifying and putting our resources behind our top priorities — those that matter most to our customers and that drive our business.”
During the quarter, AWS said it would open a data center region in Malaysia.
AWS’s revenue growth rate in April was 500 basis points lower than in the first quarter, Olsavsky said on the conference call.
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