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Amazon (AMZN) Q1 Earnings In-Depth: Web Services Up 64%

E-Commerce giant Amazon AMZN just released its first quarter fiscal 2016 earnings results. While Amazon made its claim to fame as an online shopping marketplace, one of the most notable aspects of today’s report was the latest data from Amazon Web Services. 

(Also Read: The Complete Guide To Everything Owned By Amazon)

Web Services is a collection of enterprise-level platforms designed for websites and companies that can’t afford the time or money it takes to develop their own server farms. In other words AWS provides cloud-based storage and templates for companies to quickly boost their computing capabilities.

Launched a decade ago, AWS has really exploded in popularity over the past few years. In 2015, revenue from Web Services grew 70% to $7.88 billion from $4.64 billion in 2014. Margins in the e-commerce can be thin, and AWS has proven to be much more profitable for the company.

According to today’s report, for the first quarter of 2016, Amazon Web Services brought in $2.566 billion in revenue, representing growth of 64% year-over-year. After expenses, AWS was responsible for $604 million in operating income, up over 200% from the same quarter last year.

Make sure to check back later for more commentary of the growth of Amazon Web Services! Also, make sure to check out our full report on Amazon’s earnings: Amazon Crushes Q1 Earnings, Stock Soars 11%.

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