Amazon’s Results : cloud is strategic

The cloud weighs more and more heavily in the business of Amazon, which nevertheless meet the international challenges, including its multimedia offering.
Amazon’s Results

The course of action is Amazon soared Thursday in exchanges of after-hours trading on the Nasdaq: + 6.80% to 416.50 dollars, for a capitalization of around 181 billion. The US company had just announced its financial results for Q1 2015. Despite the unfavorable impact of exchange rates, revenues increased by 15% from one year to the next, to 22.717 billion dollars, surpassing the expectations of investors. As for operating income, revenues increased significantly (+ 74% to $ 255 million). But the net result is negative $ 57 million loss, or 12 cents a share, contrasting with the 108 million recorded in the same period in 2014. Efforts abroad are not strangers. But Amazon still struggling to impose its content offering: the overall sales volume decline to 5.289 billion dollars. It is nevertheless offset by other products, including tablets and e-readers (CA’s $ 15.628 billion). North America – USA, Canada – still carries the activity of Amazon, with billings totaling 13.406 billion dollars (+ 24% YoY) and an operating profit of $ 517 million . It is more complicated abroad: CA declined (- 2%, to 7.745 billion US dollars) as operating income (- 76 million).

Cloud: a 5 billion business

Note that these indicators do not include the Amazon Web Services cloud branch, for the first time in the separate financial summary (PDF, 18 pages). It weighs more than $ 5 billion over 12 months. If we go back to fiscal 2013, we see that Amazon Web Services is becoming more profitable. In Q1 2015, operating income totaled $ 265 million, against 660 million in 2014 as a whole.
In recent weeks, Amazon Web Services has unsheathed the Analytical offers cloud Amazon Machine Learning mode, launched offers unlimited storage for certain types of files to Cloud Drive, open an application marketplace for virtual desktops Workspaces and announced EC2 container service compatible Docker. Amazon also advanced its pawns in electronic commerce, in connection with the physical trade. Illustration with the launch in the US, the Dash button, which is affixed to a product to buy it automatically by clicking on it.

Twenty marks are for the moment in the loop. Amazon also offers a complementary service: Dash Replenishment Services, which exploits the potential of connected objects to automatically manage inventory; capsules for coffee machines, cartridges for water filter jugs, detergent for washing machines, etc.

Amazon has also expanded its marketplace to local services by enabling users to find, close to home, professionals to perform interior work, maintain a garden, perform car maintenance or provide tutoring. The forecast for the current quarter show an annual increase in revenues in the range of 7% to 18% and an EBIT in the range of – 500 million to $ 50 million (15 million profit in 2014).

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