AWS soaring sales help boost Amazon's bottom line

Amazon's cloud services provide bulk of $1.6 billion net profit in first quarter of 2018

Amazon Web Services made up for 73% of the Seattle-based company's overall profit in the first quarter of 2018.

In Amazon's latest earnings for its 2018 first-quarter earnings, the company reported sales of $51 billion, up by nearly 43% year over year, and a net income of $1.6 billion.

In the first quarter of 2018 the company collected more than 550m a day in revenue from online retail and TV production.

Advertisement - Article continues below

But its cloud services outpaced Amazon's overall growth with $5.4 billion in net sales, up 49% from the $3.7 billion reported for the same time last year. Those numbers translated into a healthy operating income of $1.4 billion for AWS. 

AWS is still a relatively small part of Amazon's overall business, but it is highly profitable for the company, contributing the lion's share to the firm's profits for the quarter. This is likely to the ever-marching increase in companies moving to the cloud and adopting cloud-based services that tap into AWS' vast infrastructure. 

AWS remains the market leader in terms of revenue generating more than $20 billion annually. They have expanded their cloud services with infrastructure in France, China and London and they continue to develop AI technologies, most notably with Alexa. 

Advertisement
Advertisement - Article continues below

The results sent Amazon shares up to a new record high of 7% ($1,625) in the after-hours of trading, adding billions to the considerable fortune of its founder and CEO, Jeff Bezos. In the report, Bezos cited the seven-year head start AWS over its rivals.

Advertisement - Article continues below

"AWS had the unusual advantage of a seven-year head start before facing like-minded competition, and the team has never slowed down," he said. "As a result, the AWS services are by far the most evolved and most functionality-rich. AWS lets developers do more and be nimbler, and it continues to get even better every day." 

Picture: Shutterstock

Featured Resources

Staying ahead of the game in the world of data

Create successful marketing campaigns by understanding your customers better

Download now

Remote working 2020: Advantages and challenges

Discover how to overcome remote working challenges

Download now

Keep your data available with snapshot technology

Synology’s solution to your data protection problem

Download now

After the lockdown - reinventing the way your business works

Your guide to ensuring business continuity, no matter the crisis

Download now
Advertisement

Most Popular

How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

3 Aug 2020
How to use Chromecast without Wi-Fi
Mobile

How to use Chromecast without Wi-Fi

4 Aug 2020
How do I fix the Windows 10 Start Menu if it's frozen?
operating systems

How do I fix the Windows 10 Start Menu if it's frozen?

3 Aug 2020