Amazon Web Services (AWS) CEO Matt Garman delivers a keynote address during the AWS re:Invent conference in Las Vegas on Dec. 3, 2024.
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Amazon said Thursday that revenue growth from its cloud-computing business slowed slightly to just under 19% year over year in the fourth quarter, barely missing analysts’ estimates.
The company said in a statement that Amazon Web Services generated $28.79 billion in revenue. Analysts polled by StreetAccount had expected $28.84 billion. AWS growth in the third quarter was just above 19%.
AWS remains larger than any other cloud infrastructure provider, ahead of Microsoft and Google. Its two closest peers also missed expectations on cloud revenue for the fourth quarter.
Amazon now gets 15% of total revenue from AWS. The division remains a key provider of cash for the company, supplying just over half of its profit. AWS operating income totaled $10.63 billion, up 48% and above StreetAccount’s $10.45 billion consensus.
During the quarter, AWS’ leader, Matt Garman, told CNBC that Apple has used Amazon’s custom chips to run artificial intelligence models and experimented with next-generation Amazon AI training processors.
At its annual Reinvent conference in Las Vegas in December, AWS announced a “Buy with AWS” button that software companies can add to their websites for simpler purchasing.
“AWS is a reasonably large business by most folks standards, and though we expect growth will be lumpy over the next few years as enterprise adoption cycles, capacity considerations, and technology advancements impact timing, it’s hard to overstate how optimistic we are about what lies ahead for AWS customers and business,” Andy Jassy, Amazon’s CEO and the original head of AWS, said on a conference call with analysts.
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