Amazon has reported an 11% growth in revenue in its latest quarterly results as profits continue to soar for the ecommerce and cloud giant, which is teetering towards a $2 trillion valuation.
The strong growth is largely down to the company’s cloud computing succes, with AWS reporting a 19% year-over-year growth in revenue.
At $27.5 billion, Amazon Web Services’ third-quarter revenue equates to nearly a fifth (17.3%) of the company’s entire revenue.
AWS pushes Amazon revenue
Operating income for AWS reached a new milestone of $10.45 billion, accounting for more than three-fifths of the overall company’s profit, with an operating margin of 38.1%, the highest in a decade.
In the same period, Google Cloud revenues increased 35%, marking much healthier growth than that of Amazon’s, however Google’s cloud division revenue is only $11.4 billion – less than half of AWS’.
Since Amazon’s previous earnings call, AWS has launched a series of new genAI products, including its Rufus shopping assistant in Canada, France, Germany, India, Italy, Spain and the UK; AI Shopping Guides; Project Amelia for sellers; and video generation and live image capabilities for advertisers.
It also added Anthropic’s upgraded Claude 3.5 Sonnet, Meta’s Llama 3.2, Mistral Large 2, and multiple Stability AI models to Bedrock and signed agreements with global companies like Capital One, T-Mobile and Toyota.
“We’ve seen significant reacceleration of AWS growth for the last four quarters,” Amazon CEO Andy Jassy summarized on the company’s earnings call.
While cloud shows no signs of slowing down, Amazon is also anticipating growth across its ecommerce business in the next three months. The busy festive period, driven by a handful of major consumer sales, will be met by the temporary hiring of seasonal staff globally.
Jassy added that “there’s so much more coming” including “over 100 new cloud infrastructure and AI capabilities,” which will be shared at the upcoming re:Invent conference in December 2024.
Via Geekwire
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