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AWS now makes up over half of all Amazon revenue

(Image credit: Image Credit: Gil C / Shutterstock)

Amazon's cloud business AWS is earning the company big bucks. It has just published its financial reports (opens in new tab) for the fourth quarter of last year, and it says its revenue is up 45 per cent.

Sales are up from $5.11 billion last year, to $7.43 billion today, even beating analysts estimates which expected $7.29.  AWS (Amazon Web Services) now represents 10 per cent of the entire company's quarterly sales.

But besides revenue, profit is also a huge deal, and AWS nailed it there, as well. Operating income was $2.18 billion, also beating analysts' estimates of $2.09bn.

More than half (58 per cent) of Amazon's overall operating income came from AWS. Its operating margin was 29 per cent, down from 31 per cent the quarter before.

"We are getting more and more creative around getting efficiency up and getting our cost of acquisition down," Amazon's chief financial officer, Brian Olsavsky, told analysts on the company's quarterly earnings call on Thursday.

Looking at the company as a whole, holiday quarter sales hit $72.4 billion, up 20 per cent compared to the same period last year. That brings Amazon's total revenue for the year up to $232.9 billion.

However, growth is slowing down. It is now 20 per cent, down to 38 per cent year-on-year.

Amazon's total profit for 2018 is greater than $10 billion.

Image Credit: Gil C / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.