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AWS Run Rate Hits Historic $79 Billion

Mark Haranas

CRN breaks down the biggest highlights of AWS’ second quarter financial earnings results unveiled today.

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Amazon Web Services increased sales by 33 percent in its second quarter to $19.74 billion, representing an annualized run rate of approximately $79 billion.

This historic benchmark for the worldwide cloud market share leader comes as parent company Amazon pours billions into building new data centers across the globe to accommodate the high demand for AWS cloud services.

“Right now we’re at 84 [AWS] availability zones, so that’s 26 geographic regions, and we’ve got plans to the launch 24 more of those availability zones across eight regions,” said Dave Fildes, director of investor relations, during Amazon’s second quarter earnings report today.

“We’re continuing to focus on building those out for customers, working on that pipeline, and building longer commitments,” Fildes said. “Finding customers that are making longer commitments is really important.”

AWS Q2 Earnings Results

The Seattle-based cloud giant generated $19.74 billion during its second quarter compared to $14.8 billion year over year.

AWS earnings beat Wall Street’s revenue estimates of $19.56 billion for its second quarter, which ended June 30, 2022.

As of the first half of 2022, AWS generated $38.18 billion in net revenue, an increase of roughly $10 billion in sales compared to the first six months of 2021.

[Related: AWS re:Inforce 2022: 10 Biggest News And Product Launches]

For its second quarter 2022, AWS reported operating income of $5.72 billion, up 36 percent year over year.

“We’re prepared to help customers optimize their costs,” said Fildes. “But we’ll also continue to find new customers and new industries, including government agencies. If you look where our investments have been over the last few years, it’s in the growth of our sales force and our sales support. It is showing benefits and we expect that to continue.”

‘Early Days’ In Cloud Adoption

Another key investment for AWS is the hiring of additional product engineers, sales people and customer support employees, said Amazon Chief Financial Officer Brian Olsavsky.

“We know AWS is a huge opportunity. It’s early days in the [cloud] adoption curve for companies and governments,” said Olsavsky. “We invest with that confidence in mind and customers have responded and we’re going to keep investing there.”

In regard to partners, Amazon reported that the AWS Partner Network now includes more than 100,000 system integrators, resellers, MSPs and independent software vendors (ISVs) on a global basis.

Amazon’s second quarter earnings report comes just one day after wrapping up AWS’ cybersecurity event re:Inforce, which saw the company launch a slew of new products and partner program launches. AWS says it now has more than 200 products and services.

Amazon’s Earnings

For AWS parent company Amazon, the technology conglomerate generated $121.2 billion in sales during the second quarter, representing 7 percent growth year over year.

Amazon’s total operating income decreased to $3.3 billion during the quarter, compared to $7.7 billion in second quarter 2021.

The company reported a net loss of $2 billion in the second quarter, compared to generating $7.8 billion in net income during the same quarter one year ago.

“Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” said AWS CEO Andy Jassy in a statement.

Amazon provided financial guidance for its current third quarter, projecting total net sales between $125 billion and $130 billion.

Amazon stock soared more than 13 percent in after-hours trading Thursday, rising to $138.85.

Mark Haranas

Mark Haranas is an assistant news editor and longtime journalist now covering cloud, multicloud, software, SaaS and channel partners at CRN. He speaks with world-renown CEOs and IT experts as well as covering breaking news and live events while also managing several CRN reporters. He can be reached at mharanas@thechannelcompany.com.

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