We’ll learn more about how much revenue Amazon’s cloud computing business generates for the company later this week.
For the first time, Amazon will break out Amazon Web Services financial results starting with Q1 2015 in its earnings call on Thursday.
“We just think it’s an appropriate way to look at our business for 2015,” Amazon CFO Tom Szkutak said earlier this year in regard to showing AWS financials.
Amazon has never disclosed AWS financials and lumps them under an “other” category for North American sales — which also includes advertising services and co-branded credit card agreements — that generated $1.67 billion during the last quarter, up from $1.17 billion a year ago.
However, analysts from Deutsche Bank estimate that yearly revenues from AWS are about $6 billion — ten times that of Microsoft’s own cloud computing arm. And last month, analysts at Robert W. Baird said it was valuing Amazon Web Services at $40 to $50 billion, or $95 per share, on a standalone basis, TheStreet reported.
This past November, AWS chief Andy Jassy showed the chart below that revealed AWS revenue growth of more than 40 percent year-over year. He also noted how AWS is the “fastest-growing enterprise IT company in the world.”
Previously, Amazon has said that it has more than one million active AWS customers, and that usage grew 90 percent in the Q4 2014 compared to the year earlier.
Other tech giants like Microsoft and Google also do not specify exact financials from their cloud services in earnings reports.
Seeking Alpha notes that “if AWS revenues are higher than expected, Amazon shares will likely hit an all-time high.” We’ll be reporting on Amazon’s financials on Thursday afternoon, so check back then for more details.
