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Two interesting points:

1) Close to 70% of Amazon operating income once again can be attributed to AWS.

Consolidated operating income: $3,084 m AWS operating income: $2,121 m

2) AWS revenue was $8.3B for the quarter, 37% more than the same quarter last year.



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> Meanwhile, over in Seattle, AWS today reported revenue of $12.74 billion in the last quarter alone and operating income of $3.56 billion. For 2020, AWS’s operating income was $13.5 billion.

AWS revenue last quarter was $3.56B (publicly stated). Total revenue, $43.7B.

AWS contributed $1.82B of the $23.18B in total revenue for the quarter.

My understanding is that Amazon doesn't break out the AWS revenue separately so it is quite hard to gauge.

$596 million in net income the last four quarters to be exact. So yeah, they are making money.

Further, AWS is a money printing machine. It's generating over $700 million in operating income per quarter, and that's growing very fast. It'll be at $5+ billion per year in operating income within perhaps just two or three more years. There aren't very many technology businesses anywhere producing that kind of operating income.


AWS Record Quarter at $9.95 Billion revenue, up 34% year on year. Operating income from AWS also up 19% to ~$2.6B

AWS revenue in Q3 2019 was $9B, so it would be about 4% of AWS's business in terms of revenue.

For AWS - 41.7% year over year sales growth (to $4.58b), 44% increase in operating expenses, 36% increase in operating income (to $1.17b).

- EPS $0.31 vs $0.22

- Revenue $127.4 billion vs $124.55 billion

- AWS Net sales: $21.35 billion vs estimated $21.03 billion


Even though AWS IaaS growth slowed, and seems slower than Azure IaaS and GCP IaaS (depending exactly what MSFT and GOOG include in their numbers), AWS provided $3.08B in operating income, out of Amazon's total of $3.99B. Wow.

That seemed high to me. Looking at the financial statement for Q1 2017, AWS is 3,661 million USD in net sales out of 35,714 million in net sales overall. I don't know if Q1 is unusual but this is around 10% for AWS.

That is crazy. AWS revenue is nothing compared to their total revenue, right?

I remember reading that "operating income" of AWS is greater than the retail arm

On 3) have you looked at the profitability of AWS? It's ridiculously profitable. I just checked their latest 10K, and I see for 2015 their total AWS numbers were $1.9B operating income on $7.9B revenue with 70% year over year revenue growth.

For those wondering as well, at 10b quarterly revenue, 10m monthly is ~.3% of all AWS revenue.

That's $604 million per quarter.

Annualized that's $2.4 billion.

In profit.

On a $10 billion business.

That's growing at a 59% annual rate.

With no competitor anywhere close.

And AWS is just 10% of Amazon's business.

Your claim that Amazon makes "very little" on AWS makes no sense.


That's way more significant than I would have expected. Still, 8% of their revenue contributes 36% of their profits. Makes you wonder why they don't run AWS at the same cutthroat prices as their other businesses.

For comparison, AWS does about $40B/year in revenue.

AWS did $4.58 billion this latest quarter. They're tracking to a $20+ billion annualized run-rate.
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