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Hello,
Thanks for your interest in our latest research. You can view a summary of our latest report below.
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This report reviews the growth and development of the webscale network operator (WNO) market. On an annualized (12 month) basis through 1Q22, webscalers represent $2.19 trillion (T) in revenues, $229 billion (B) in R&D spending, and $185B in capex, and had $670B of cash and short-term investments on the books as of March 2022.
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Webscale sector revenues grew 9.5% YoY in 1Q22, to $538.6B. This growth rate would be stellar in virtually any other industry sector, but represents a step down for webscalers. On an annualized basis, revenues through 1Q22 increased by 18.6% to reach $2.185T. All key webscalers saw revenue growth rates fall in 1Q22 sequentially, but weaker growth at Alphabet, Amazon, Apple, and Facebook (Meta) had the biggest impact on the slower industry growth. This is significant because the revenue drivers for the four companies are quite different. A weaker economic climate, inflation, and supply chain constraints were all contributors to 1Q22’s disappointment.
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Webscale capex continues to surge, despite slower revenue growth. Capex in 1Q22 was $47.0B, up 27.4% from 1Q21. That pushed the sector’s annualized capital intensity to 8.5%, from 8.2% in 4Q21. Annualized webscale capex hit $185 billion in 1Q22, up 30% YoY, and is nearly...
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Best regards,
Matt Walker
Chief Analyst
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