Amazon Web Services a $5 billion business and growing

Amazon has increased its operating cash flow by nearly 50% to $7.84 billion in the past 12 months – in comparison, the company's cash flow was $5.35 billion for the year ended March 31, 2014.

In a statement, the company said Amazon Web Services is a significant reason for this significant business growth.

"Amazon Web Services is a $5 billion business and still growing fast — in fact it's accelerating," says Jeff Bezos, Amazon founder and CEO.

"Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon. We strive to focus relentlessly on the customer, innovate rapidly, and drive operational excellence.

"We manage by two seemingly contradictory traits: impatience to deliver faster and a willingness to think long term. We are so grateful to our AWS customers and remain dedicated to inventing on their behalf.

Free cash flow was $3.16 billion for the year ended March 31, 2015, compared with $1.49 in the previous year.

Net sales for the company increased 15% to $22.72 billion in the first quarter. In 2014, net sales for the first quarter totalled $19.74 billion.

Excluding the $1.3 billion unfavourable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 22% compared to first quarter 2014.

Operating income increased 74% to $255 million in the first quarter, compared with operating income of $146 million in first quarter 2014.

Net loss was $57 million in the first quarter, or $0.12 per diluted share, compared with net income of $108 million, or $0.23 per diluted share, in first quarter 2014.

Looking to the second quarter, Amazon predicts net sales to be between $20,6 billion and $22.8 billion, or to grow between 7% and 18% compared with second quarter 2014.

Operating income (loss) is expected to be between $(500) million and $50 million, compared to $(15) million in second quarter 2014.