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Amazon reports ‘better than expected' results following heavy investment cloud technology

Amazon has reported a loss of $57m (£38m) in the first quarter of 2015, while revenues jumped 15% despite major investment in the development of its cloud services.

The retail giant said revenue from sales of Amazon web services (AWS) for the first three months of 2015 was $1.57bn.

Founder Jeff Bezos called AWS a ‘$5bn business’ and he noted that it is ‘still growing fast,’ while sales of its web services offering increased by 49% from a year earlier.

Revenue increase was better-than-expected, rising by 15% to $22.7bn, boosted by sales in North America.

For the first time, the figures confirm that Amazon’s cloud business is the biggest of its kind in terms of revenue.

Bezos said: “We’re putting a lot of capex (capital expenditure) there, and we think over time we will be able to generate significant free cash flow,”

This was posted in Bdaily's Members' News section by Ellen Forster .