AWS earnings Q2 2021

Andy Jassy, ​​CEO of Amazon Web Services, speaks at the CERAWeek by IHS Markit 2019 conference in Houston, Texas on March 11, 2019.

Aaron M. Speaker | Bloomberg | Getty Images

Amazon said Thursday that revenue from its cloud computing business increased 37% year over year in the second quarter, up from 32% in the previous quarter.

The latest results reinforce Amazon Web Services’ market understanding of tools that businesses, schools, and government agencies use to run applications and websites with computing infrastructure in remote data centers. AWS held 41% of the market in 2020, more than double that of its second largest competitor, Microsoft, according to estimates by technology company Gartner.

AWS revenue for the quarter was $ 14.81 billion, more than the consensus of $ 14.20 billion among analysts surveyed by Refinitiv. The acceleration in growth comes from comparing Amazon’s results with Q2 2020, which took into account the impact of the coronavirus pandemic. At that time, the growth rates were different across industries due to the arrival of Covid.

“We find that over the past year companies have gone to great lengths to limit their spending and operate more efficiently, as we have all gotten into some kind of unknown demand curve and some industries have been more affected than others.” Amazon’s CFO in a conference call with analysts.

AWS left operating income of $ 4.19 billion, which was above StreetAccount’s consensus of $ 4.17 billion, bringing the operating margin to 28.3%, up from 30.8% in the first quarter.

Of Amazon’s $ 113.08 billion in total revenue, 13% comes from the cloud entity and 54% of the company’s operating income comes from AWS.

In the quarter, AWS announced a collaboration with Dish Network to build a cloud-based 5G infrastructure and announced it would open data centers in Israel and the United Arab Emirates.

Amazon shares fell as much as 5% in after-hours trading after the company reported disappointing total earnings in the second quarter.

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