Amazon Web Services Q4 2021 Results

Adam Selipsky, CEO of Amazon Web Services

Source: CNBC

Amazon said Thursday that growth at its cloud division, Amazon Web Services, accelerated in the fourth quarter, beating analysts’ forecasts.

The performance of the 15-year-old market-leading remote computing, storage and database service provider highlights a continued move away from traditional data center infrastructure in enterprises, schools and government.

The AWS business generated $17.78 billion in revenue during the quarter, according to a release. That equates to a 39.5% year-over-year increase, and that’s more than the consensus of $17.37 billion among analysts polled by StreetAccount. AWS revenue grew nearly 39% in the third quarter.

The unit ended the quarter with operating profit of $5.29 billion, up nearly 49% and well above the StreetAccount consensus of $4.84 billion.

“As far as growth rate goes, I think it’s a combination of things. We’ve added resources in sales and marketing over the last two years, and it’s starting to pay off,” said Brian Olsavsky, CFO of Amazon, on revenue growth. during a conference call with analysts.

While nearly 13% of Amazon’s total revenue came from AWS, some 153% of the company’s overall operating revenue is attributable to the cloud, in part due to operating losses in the international segment of Amazon. Amazon.

It’s possible that more than half of AWS’s revenue comes from EC2, one of the earliest offerings and one that provides foundational virtual machines in the form of instances used by third-party developers. On Thursday, Amazon revealed a new metric for the adoption of EC2 instances running on semiconductors it developed in-house, as opposed to instances based on AMD or Intel silicon. The company said 48 of the top 50 EC2 customers by usage rely on AWS’ Arm-based Graviton2 chips, which first became available in December 2019.

During the quarter, AWS showcased a slew of new services at its Reinvent conference in Las Vegas, including a tool customers can use to manage private 5G networks. It also launched a data center region in Indonesia. But a series of AWS outages in December caused problems for Coinbase, Disney+, Slack and other online services.

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