Amazon Kisses $10B Annual Cloud Revenue
Amazon Web Services came close to $10 billion revenue for the trailing 12 months -- $9.9 billion, to be precise, according to second-quarter results Amazon reported Thursday.
For the quarter ending June 30, Amazon Web Services Inc. revenue was up 58% year-over-year, to $2.9 billion, with operating income of $718 million, up 135%.
Overall, Amazon net sales were $30.4 billion for the quarter, up 31% from $23.2 billion in the year-ago quarter. Net income was $857 million, or $1.78 per diluted share, compared with $92 million, or $0.19 per diluted share in the second quarter of 2015, the company said. It is Amazon's fifth consecutive profitable quarter. (See Amazon.com Announces Q2 Sales up 31% to $30.4B.)
Amazon traded at $766 up 1.78% after hours.
In its earnings press release, the company highlighted activity in India, where it launched a new AWS Region, and introduced Prime, with Prime Video coming soon, which will include Indian content.
Media revenue, including movies as well as books, music, software and more, was $2.9 billion for the quarter in North America, up 12% year-over-year, and $2.3 billion internationally, up 9%.
Amazon plans to double its spending developing original video content in the second half of 2016 compared with the year-ago half. Company officials on the analysts' call Thursday declined to provide any specifics on that spending, other than to say the company spent $1.3 billion on original content in 2014, the last time it disclosed that spending figure.
For the third quarter, Amazon expects net sales to be between $31 billion and $33.5 billion, up 22% to $32 percent year-over-year. Operating income is expected to be between $50 million and $650 million, compared with $406 million in the third quarter of 2015.
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— Mitch Wagner, , Editor, Light Reading Enterprise Cloud