Amazon's web services business now generates more than $5 billion a year, but the company still isn't turning a profit.
The ecommerce giant broke out the numbers for Amazon Web Services, commonly known as AWS, for the first time on Thursday when it reported its first-quarter earnings. AWS generated about $1.6 billion in the the first three months of 2015, generating a profit of $265 million.
[seealso URL= "http://sale-online.click/2015/03/31/amazon-smart-home/"]
CEO Jeff Bezos lauded AWS as an example of a non-core business that Amazon had invested in and turned into a profitable division.
Amazon Web Services is a $5 billion business and still growing fast — in fact, it’s accelerating. Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon. We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence. We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term.
That comment seemed directed at the critiques that Amazon seems to inevitably face each quarter when the company as a whole fails to turn a profit. The retail giant posted a net loss of $57 million during the first quarter of 2015, compared to a $108 million profit during the same period last year.
The retailer's sales were up 15% from last year for a total of $22.7 billion, compared with $19.74 billion at the same time last year. Its revenue and earnings both about matched analysts' expectations.
Despite the company's overall loss, Amazon shares were up about 4.8% Thursday in after hours trading, adding to a year that has already been strong. Amazon's stock is up about 25% overall since the start of 2015.
