Amazon (NASDAQ:AMZN) is gearing up to announce its third-quarter 2023 results on October 26. The e-commerce giant is expected to continue benefiting from its strong presence in the rapidly expanding cloud market, mainly through its cloud computing division, Amazon Web Services (AWS).
AWS has been a key revenue driver, thanks to its growing popularity and strong adoption. In the second quarter of 2023, AWS brought in revenues of $22.1 billion, contributing 17% to Amazon’s net sales and marking a 12% YoY increase.
The quarter under review likely witnessed the growth of AWS, driven by an expanding customer base and attractive long-term deal discounts. The Consensus Estimate for AWS’s net sales in the third quarter of 2023 stands at $23.19 billion, reflecting a 12.9% improvement from the corresponding figure in the previous year.
Factors contributing to this positive trend include the continued expansion of data center networks, increased AWS regions, and availability zones. In the third quarter, Amazon launched an infrastructure region in Tel Aviv, Israel, comprising three availability zones.
Furthermore, AWS’s comprehensive cloud services portfolio is expected to have further solidified its performance in the third quarter, helping maintain its customer base and attracting new clients. During this period, AWS was chosen by several prominent organizations as their preferred cloud provider, including PT Telekomunikasi Selular (Telkomsel), Abdul Latif Jameel, BMW Group, Dr. Reddy’s Laboratories, and FanDuel. Additionally, Occidental selected AWS to enhance operational efficiencies and transition its core production applications to the cloud, aiding its digital transformation.
Sumitomo also opted for AWS to support its digital transformation by migrating its SAP environments. Amazon’s Q3 results are highly anticipated, with AWS expected to remain a pivotal driver of the company’s continued growth in the cloud market.
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