For those who haven’t caught up on Amazon’s recent quarterly financial results, they were surprising for a number of reasons. Amazon has long been seen as the perfect example of a company pouring its money back into growth and foregoing profits for growth. This quarter was, however, different for Amazon, with the company posting only its second-ever quarterly profit. Total net sales for the three months ending on June 30 were $23.19 billion, a 19.9% year-on-year gain that blew away financial analysts’ estimates.
But for those of us who focus on Amazon’s Web Services cloud division, the fact that this quarter was only the second time that Amazon broke out AWS revenues was the cause for delicious anticipation. And we were not disappointed. For the quarter, AWS generated $1.82 billion in revenue, a full 81.5% higher than in the second quarter of 2014. The division’s operating income was $391 million, a fairly staggering (given its already high level) 400-odd percent annual gain.