Amazon.com (AMZN) is jumping higher this morning (+4%) after reporting impressive Q4 earnings results last night. Before getting into the results, Amazon has been pretty busy in recent months, so let's recap a bit. It closed on its acquisition of Whole Foods in August 2017. Upon closing, Whole Foods began offering lower prices on a selection of best-selling grocery staples across its stores, with more to come.
In addition, Amazon has announced it's looking for a location to build its second headquarters in North America, also known as HQ2. It has whittled the list down to 20 metro areas after reviewing 238 proposals from across the US, Canada, and Mexico. Amazon expects to invest over $5 billion and create as many as 50,000 high-paying jobs at its new second home. So as you can imagine, cities have been tripping over themselves to offer incentives to Amazon to win the coveted HQ2 prize.
Taking a look back at 2017, more than five billion items shipped with Prime worldwide last year. More new paid members joined Prime in 2017 than any previous year, both worldwide and in the US. Fire TV Stick and Echo Dot were the best-selling products in 2017 across all of Amazon. Customers purchased tens of millions of Echo devices last year. Amazon celebrated the 10th anniversary of Kindle by releasing the all-new Kindle Oasis, the most advanced Kindle with a 7-inch, 300 ppi display, waterproof design. Since the Kindle launch in November 2007, customers have purchased tens of millions of Kindle e-readers.
In terms of its video services, Amazon announced that the Prime Video app is now available on Apple TV in over 100 countries. Amazon Studios' Original movie The Big Sick was nominated for an Academy Award. The Amazon Original Series The Marvelous Mrs. Maisel won two Golden Globes. NFL Thursday Night Football on Amazon Prime Video saw a total of 18.4 mln views in 11 games. Prime members in more than 200 countries and territories streamed games on living room devices, including smart TVs and Fire TVs, as well as the Prime Video mobile app and the web.
Amazon Web Services (AWS) announced several enterprise customer wins during the quarter: Expedia, Ellucian, and DigitalGlobe are going all-in on AWS; Disney and Turner named AWS their preferred public cloud provider; Symantec will leverage AWS as its strategic infrastructure provider for the vast majority of its cloud workloads; Expedia, Intuit, the NFL, Capital One, DigitalGlobe, and Cerner announced they've chosen AWS for machine learning and artificial intelligence. AWS now operates 52 Availability Zones across 18 infrastructure regions globally.
Let's take a quick look at the numbers. Non-GAAP EPS came in at a robust $2.19, backing out the tax reform benefit, which was quite a bit better than market expectations. Revenue increased 38% YoY to $60.5 bln, at the higher end of prior guidance of $56.0-60.5 bln. Looking ahead to Q1, AMZN expects revenue of $47.75-50.75 bln, which was in-line with market expectations.
Breaking down the segments, AMZN reports earnings using three main business segments: North America, International, and Amazon Web Services (AWS). In the North America segment, revenue grew 42% YoY to $37.3 billion. International revenue grew 29% to $18.04 billion. AWS revenue grew 45% to $5.11 billion.
In sum, this was an impressive quarter for AMZN. After a miss in Q2, the company has posted impressive EPS upside in Q3 and now in Q4. And Q4 is always a key quarter for AMZN as holiday sales are a big part of its business. Also, from a broader perspective, we get the sense that investors are impressed that, despite its already large size, Amazon is still able to post impressive growth numbers.