Amazon AWS: AWS on track for annualized revenue run rate of $100 billion

Apr 29, 2024 | Posted by Abdul-Rahman Oladimeji

Amazon Web Services (AWS) is set for an annualized revenue run rate of $100 billion as its first quarter has seen revenue of $25 billion, representing Year-on-Year (YoY) revenue growth of 17.2 percent, up from 13.2 percent in Q4 of 2023.

CEO Andy Jassy told investors during the earnings call: "It's useful to remember that year-over-year percentages are only relevant relative to the total base from which you start. And given our much larger infrastructure cloud computing base, at this growth rate, we see more absolute dollar growth again quarter over quarter in AWS than we can see elsewhere."

According to Brian Olsavsky, CFO of Amazon, Q1 of 2024 saw a CapEx of $14 billion, which the company expects to be the low quarter of the year. "We anticipate our overall capital expenditures to meaningfully increase year over year in 2024, primarily driven by higher infrastructure CapEx to support growth in AWS, including generative AI. Before the pandemic, companies were marching to modernize their infrastructure, moving from on-premises infrastructure to the cloud to save money, innovated at a more rapid rate, and to drive more developer productivity. The pandemic and uncertain economy that followed distracted from that momentum, but it's picking up again."