Amazon said Thursday that revenue from its cloud computing business grew 37% year-on-year in the second quarter, accelerating growth from 32% in the previous quarter.
The latest results further solidify Amazon Web Services’ dominance in the marketplace for tools that businesses, schools, and governments use to run applications and websites using computing infrastructure located in remote remote data centers. AWS had 41% of the market in 2020, more than double that of the second-largest competitor, Microsoft, according to estimates by technology industry research company Gartner.
AWS revenue totaled $ 14.81 billion in the quarter, more than the consensus of $ 14.20 billion among analysts surveyed by Refinitiv. The acceleration in growth comes when Amazon’s results are compared to the second quarter of 2020, which included the impact of the coronavirus pandemic. Back then, growth rates varied between industries as a result of the arrival of Covid.
“We observed that last year, companies made a great effort to limit their spending and operate more efficiently, as we are all immersed in some kind of unknown demand curve, and some industries were more affected than others,” he added . Brian Olsavsky, Amazon’s chief financial officer, said in a conference call with analysts.
AWS was left with $ 4.19 billion in operating income, above the StreetAccount consensus of $ 4.17 billion, putting the operating margin at 28.3%, down from 30.8% in the first quarter.
Of Amazon’s $ 113.08 billion in total revenue, 13% is attributable to the cloud unit and 54% of the company’s operating income came from AWS.
In the quarter, AWS announced a relationship with Dish Network to build a cloud-based 5G infrastructure and said it would open data centers in Israel and the United Arab Emirates.
Shares of Amazon fell as much as 5% in after-hours trading after the company reported disappointing total revenue during the second quarter.
CLOCK: Amazon shares are on the brink of a comeback, says Jim Cramer
