'Amazon Web Services Is a $5 Billion Business'

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By Agence France-Presse | Updated: 24 April 2015 10:57 IST
Amazon said Thursday that strong gains in its market-leading cloud computing services helped drive a 15 percent rise in total sales in the first quarter.

But the bottom line was red for the leading US online retailer, with a loss of $57 million, compared to a net gain of $108 million a year ago, due to continued growth in operating overhead.

Total sales jumped to $22.72 billion in the January-March period, compared to $19.74 billion a year ago.

US sales gains offset a fall in the company's international division, hit in part by the strong dollar and weaker foreign currencies.

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Sales of electronics and other merchandise in North America were still the company's mainstay, up 31 percent in the year to $10.25 billion. Internationally, the gain was four percent.

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Sales in the company's Amazon Web Services division cloud computing services surged from $1.05 billion in the year-ago quarter to $1.57 billion.

It was the first time Amazon broke out earnings from the division, which has by some estimates a 30 percent share of the rapidly growing industry.

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"Amazon Web Services is a $5-billion business and still growing fast in fact it's accelerating," said company founder and chief executive Jeff Bezos.

"Born a decade ago, AWS is a good example of how we approach ideas and risk-taking."

 

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