It's earnings season, and the quarterly results posted by (NASDAQ:AMZN) had its shareholders doing a happy dance. The online retailer booked revenue of $25.4 billion and net income of $79 million, both of which comfortably beat Wall Street's estimates. But which business segment in particular was responsible for the company's impressive quarter?

Listen to the entire podcast by clicking here. A full transcript follows the video.


Sean O'Reilly: The earnings came out, I was sitting at the hotel that morning, and a big, wry smile cracked across my face. I was like "Dammit, Jeff Bezos!"

Dylan Lewis: Happy to be a shareholder, I'm sure, for a lot of Fools. Revenue of $25.4 billion, up 23% year over year, and up 30% if you exclude some of the unfavorable impact from some foreign exchange on the currency side.

O'Reilly: That darn dollar.

Lewis: Yeah. Net income, $79 million, or $0.17 per share, which is up from a loss of $0.95 per share during the Q3 of 2014.

O'Reilly: Hold on, Dylan. Does that say "net income"?

Lewis: Yes. Analysts were expecting a loss of $0.17 per share and revenue of about $24.9 billion.

O'Reilly: So they were way off.

Lewis: They beat on both. For them to be net income positive is shocking.

O'Reilly: It's a big deal.

Lewis: Not something that we're used to seeing from Amazon.

O'Reilly: Net income, as we both know, does not actually matter to a company like Amazon. Let's talk about operating income, cash flow.

Lewis: Yeah. Operating income was well above the prior guidance. It came in at $406 million, a swing of almost $1 billion over last year.

O'Reilly: I can't even whistle loud enough for that.

Lewis: Yeah, shocking. Of course, the stock popped about 10% after hours.

O'Reilly: Naturally, because that's what Amazon does.

Lewis: All in all, destroyed.

O'Reilly: I think I know why. Is it because of AWS?

Lewis: It's because of AWS. They started breaking out Amazon Web Services about two reports ago. It's been less than a year that we've been able to track it.

O'Reilly: In fact, when they started talking about it separately, the stock popped.

Lewis: The fact that they identified it as a business segment and mentioned it was like, "This is great." AWS just continues to grow. They had a revenue of $2 billion, growing 78% year over year.

O'Reilly: Okay. Real quick, just for our listeners that may or may not be familiar, what is AWS in four sentences?

Lewis: It's basically web hosting and cloud aspect of the business server providing for other companies. They're providing all the infrastructure for companies to run their tech.

O'Reilly: So they own a bunch of servers in a warehouse.

Lewis: Yes, basically.

Dylan Lewis has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.