AWS Q2 Earnings Not Offered by Amazon
Q2 results from Amazon were not announced by the company, even as it pushes to broaden its cloud computing business. This has left many analysts guessing at how much Amazon Web Services has contributed to the company’s second-quarter earnings.
Amazon’s revenues rose by 22 percent over Q2 2012; a loss of $7 million, or two cents a share, was reported, compared to the same quarter last year.
The CFO at Amazon, Tom Szkutak, said: “We're off to a very good start and continue to invest in that business.” He added that AWS business is developing, and the company is introducing new services and providing price reductions.
Szkutak stated: “In terms of AWS, the business is growing very, very strongly. We've got a great team that's innovating on behalf of customers, launching the services, becoming more productive, which allows us to be able to lower prices.”
He continued: “We've had many price reductions since we started with AWS and we share that very visibly and so we're excited about that business. And even though we were off to a very good start, it's a very big opportunity and we continue to invest in that business and we're very excited to do it. We think it's a great long-term opportunity and we've great team working on it.”
AWS revenue is not broken down by Amazon, though earlier this year, it was estimated by Macquarie Securities Group that revenue for AWS last year was $2 billion, and the firm also expected that AWS is set to generate revenues of $3.8 billion this year.
Across the company, Amazon revenue this quarter was $15.7 billion, which shows a growth of 22 percent in comparison to $12.8 billion in the same quarter last year. There was a 26 percent fall in operating income to $79 million in Q2, compared to $107 million in the same quarter last year.
Federal Risk Authorization Management Program (FedRAMP) security certification was granted to Amazon in May this year, and presents the opportunity of AWS public cloud expansion to serve government agencies with strict security and compliance requirements for operating sensitive government applications and protecting data.
Security features were also recently unveiled by AWS, and these will provide customers with “more granular security controls over their AWS deployments, applications and sensitive data,” according to a company press release regarding its earnings report.
Prices were also cut on Amazon EC2 Dedicated virtual servers, or instances, which operate hardware focused on a single customer’s cloud.
Amazon predicts that it will develop operating revenue of between $15.45 billion and $17.15 billion in Q3, which is a jump from 12 to 24 percent, compared to the same quarter last year. The operating loss is expected to be between $65 million and $440 million. (CY) Link