AWS Earnings Takeaways: Slow 2023 Ahead, Amazon Layoffs
Here are the five biggest AWS highlights from the company’s $21 billion fourth quarter 2022 results, which saw Amazon CEO Andy Jassy speaking heavily about AWS’ future.
AWS: Faster Sales Growth And Greater Profitability Than Amazon
Although AWS’ sales only increase 20 percent year over year—a much lower growth rate compared to previous quarters over the past several years—AWS is helping Amazon in a big way when it comes to overall profitability.
For parent company Amazon, total sales increased 9 percent year over year to $149.2 billion in fourth quarter 2022.
Amazon’s operating income decreased to $2.7 billion in the fourth quarter, compared with $3.5 billion year over year. AWS alone reported operating income of $5.2 billion for fourth quarter 2022, which helped Amazon tremendously.
Looking at full year 2022, Amazon generated $514 billion in sales, up 9 percent year over year compared to $470 billion in 2021.
AWS grew sales in 2022 at a much higher rate than its parent company, with total annual revenue reaching a record $80.1 billion, representing a 29 percent compared to 2021.
Operating income at AWS in 2022 was $22.8 billion, compared to Amazon reporting total operating income of $12.2 billion for the full year, meaning AWS is helping its parent company stay in the black.