Amazon.com reported fourth-quarter earnings on Thursday. While the retail giant may not have met Wall Street estimates for its results, its cloud business continues its boom.
Amazon Web Services Inc. (AWS), saw a 69% increase in revenue year-over-year to $2.4 billion for the quarter ended Dec. 31. This follows the 78% increase year-over-year reported in Q3, when AWS generated $2.1 billion in revenue.
AWS’s profitability continues to grow, with operating income of $687million in Q4, an 186% increase year-over-year and 31% more than Q3’s $521 million.
AWS operating margin for Q4 was 28.5%, up from 25% in Q3.
Although AWS is Amazon.com’s least profitable business, the North America and International retail segments together account for 95% of the company’s total revenue. However, it continues to be the company’s fastest-growing. Amazon.com highlighted several AWS services and features as contributors to its growth in its earnings announcement. These include its new Internet of Things platform and launch of its enterprise email service.
According to AWS, AWS added over 720 new features to its platform in 2015, a 40% increase from 2014.
Although Thursday’s earnings were positive in AWS, they were not as positive for Amazon.com. The company reported a 22% increase in Q4 revenue year-over-year of $35.7 billion but fell short of analyst expectations of $36 trillion. Analyst expectations were $1.55. Earnings per share were $1.
Q4’s operating income was $1.1 billion, an 88% increase year-over-year. Net income was $482million.
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