Amazon Web Services (AWS) has reported strong financial results for Q4 2024, including a 19% year-on-year revenue increase to $28.8bn and profitability gains. The results reflect a trend of enterprises expanding their cloud usage after a period of reduced off-premise migration due to economic pressures. AWS's full-year results also showed a significant revenue rise to $107.6bn and a recovery from previous losses with an operating income of $39.8bn. CEO Andy Jassy highlights innovation in AI technology as a key driver of growth moving forward, despite anticipating potential fluctuations in demand.
During a conference call with analysts, transcribed by financial news site The Motley Fool, Jassy said the company is anticipating some ups and downs in AWS's fortunes over the coming years, but - on the whole - he is optimistic that its cloud will be underpinning a large portion of the world's AI workloads.
At the time, the company credited this trend with the fact that enterprises were increasingly turning their attention to expanding their use of its public cloud technologies, having spent a significant chunk of 2023 scaling back their off-premise migration plans due to macroeconomic pressures.
The results suggest the company is continuing to ride the wave of the "significant reacceleration" in its growth, with the company saying it was reaping the benefits from when it posted its third-quarter results in November 2023.
AWS is a reasonably large business by most 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 say whether that will lead to unmanageable volatility.”
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