Amazon posts 14% growth in AWS revenue

Commerce giant Amazon posted lower-than-expected income in the fourth quarter but saw solid year-over-year growth within its cloud platform, Amazon Web Services. WHY IT MATTERS: The company missed earnings estimates due to both a $2.3 billion loss on electric vehicle manufacturer Rivian and economic uncertainty causing consumers to be more careful with their spending, Chief Financial Officer Brian Olsavsky said Thursday during the Q4 earnings call. [caption id="attachment_57365174" align="alignright" width="292"] Photographer: James MacDonald/Bloomberg [/caption] BY THE NUMBERS: Amazon reported for Q4: Net income plummeted 98% YoY to $278 million; Worldwide net sales grew 8.6% YoY to $149.2 billion; Operating expenses increased 9.3% YoY to $146.5 billion; and AWS revenue increased 14% YoY to $21.4 billion. NOTEWORTHY: AWS will continue to see growth, Olsavsky said, as banks and fintechs continue to move their data centers from on-premises to the cloud. In addition, the company expects new workloads to come to the cloud soon. “Some of the key benefits of being in the cloud compared to managing your own data center are the ability to handle large demand swings and to optimize costs relatively quickly, especially during times of economic uncertainty,” he said. “Our customers are looking for ways to save money, and we spend a lot of our time trying to help them do so.” FLASHBACK: The company recently cut 18,000 employees due to the growing sentiment of a potential recession further into the year, primarily in “stores, device businesses and human resource teams,” according to the earnings presentation. Several other tech companies have seen similar layoffs due to a slowdown in e-commerce spending following the COVID-19 pandemic. FUTURE LOOK: The company’s belief in the future of AWS is unwavering — even amid economic uncertainty — both for its cloud capabilities and its cost-saving implications, Olsavsky said during the call. “Ninety percent to 95% of the global IT spend remains on-premises. I really do believe in the next 10 to 15 years that most of it will be in the cloud if we continue to have the best customer experience,” he said. “It means we have a lot of growth in front of us in the AWS business.” [stock_market_widget type="inline" template="generic" assets="AMZN" markup="Shares of {name} ({symbol}) are trading at {price} ({change_pct}) as of {last_update}" api="yf"]. Bank Automation Summit US 2023, March 2-3 in Charlotte, is a crucial event on automation technology in banking and will feature a fireside chat with Brinda Bhattacharjee of Goldman Sachs & Co . Register here. <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home" href="https://bankautomationsummit.com/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Home&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1675366705933.1675372185276.790&__hssc=41615677.2.1675372185276&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link Learn more">Learn more and <a class="fui-Link ___m14voj0 f3rmtva f1ern45e f1deefiw f1n71otn f1q5o8ev f1h8hb77 f1vxd6vx f1ewtqcl fyind8e f1k6fduh f1w7gpdv fk6fouc fjoy568 figsok6 f1hu3pq6 f11qmguv f19f4twv f1tyq0we f1g0x7ka fhxju0i f1qch9an f1cnd47f fqv5qza f1vmzxwi f1o700av f13mvf36 f9n3di6 f1ids18y fygtlnl f1deo86v f12x56k7 f1iescvh ftqa4ok f50u1b5 fs3pq8b f1hghxdh f1tymzes f1x7u7e9 f1cmlufx f10aw75t fsle3fq" tabindex="-1" title="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register" href="https://bankautomationsummit.com/register/?utm_source=Editorial&utm_medium=BAN_Site&utm_campaign=Editorial&utm_content=Register&__hstc=41615677.3fe700e68891f0bfd867036c89aa2d86.1650376353803.1675366705933.1675372185276.790&__hssc=41615677.2.1675372185276&__hsfp=2478973190" target="_blank" rel="noopener noreferrer" aria-label="Link register for Bank Automation Summit US 2023">register for Bank Automation Summit US 2023 .

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