Amazon reveals AWS is a US$5bn business

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Amazon reveals AWS is a US$5bn business

Amazon has revealed for the first time that its cloud business Amazon Web Services (AWS) is a US$5 billion business.

Amazon broke out the numbers for its cloud computing unit, Amazon Web Services, for the first time, saying revenue in the unit rose almost 50 percent to US$1.57 billion.

The unit accounted for about 7 percent of the company's total revenue.

"Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating,” said Jeff Bezos, founder and CEO of Amazon.com. 

Amazon.com as a whole reported higher-than-expected quarterly revenue as sales rose from North America, its biggest market, and its fast-growing cloud-computing services unit.

Amazon reported a loss of US$57 million, or 12 cents per share, for the first quarter compared with a profit of US$108 million, or 23 cents per share, a year earlier.

Revenue rose 15 percent to US$22.7 billion.

Analysts on average had expected a loss of 12 cents per share and revenue of US$22.39 billion. Amazon's shares were trading at US$398 after the bell.

Amazon said it expected net sales to grow 7-18 percent in the current quarter to US$20.6 billion-US$22.8 billion.

The company forecast an operating loss of US$500 million to an operating income of US$50 million for the quarter.

Analysts on average were expecting second-quarter revenue of US$22.11 billion, according to Thomson Reuters I/B/E/S.

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