Published: Sat, July 21, 2018
Markets | By Erika Turner

Microsoft thanks the cloud for a far brighter outlook

Microsoft thanks the cloud for a far brighter outlook

Microsoft Corp (MSFT.O) on Thursday posted quarterly profit and revenue that beat analysts' estimates, as more businesses signed up for its Azure cloud computing services and Office 365 productivity suite. In the fourth quarter, revenue grew by a whopping 39 percent over the previous year to reach $2.29 billion.

"Exceptional sales execution delivered double-digit revenue growth across all segments and strong progress against our strategic priorities, anchored by commercial cloud revenue growing 53% year-over-year to $6.9 billion", CFO Amy Hood said in a statement. LinkedIn has seen record levels of postings seeking employees due to a robust United States job market, according to Microsoft chief financial officer Amy Hood. Part of Nadella's plans to retool Microsoft included pivoting its resources from its Windows operating system software to its newer Azure cloud computing business.

Net income rose to $8.87 billion, or $1.14 per share, from $8.07 billion, or $1.03 per share, in the year-ago fourth quarter.

"Our hybrid value proposition has continued to resonate, so there are a bunch of workloads that are migrating to the cloud", the Microsoft boss said.

Other notable reports from various internal Microsoft divisions include a 38 percent increase in Office 365 commercial revenue, a 37 percent increase in LinkedIn revenue, a 61 percent increase in Dynamics 365 revenue, a 14 percent increase in Windows 10 Pro licensing to OEM customers, and a 25 percent increase in Surface revenue - thanks, the company claims, to considerably improved interest in its latest products compared to the models available the year prior.

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Justifying its decisions by saying, Google said that open source platforms need to balance the needs of everyone to be successful. Prevented Android phone makers from selling devices that run "forked" versions of the operating system.

For the quarter, Wall St was looking for $1.08 a share on revenue of $29.2 billion. with Microsoft reporting $1.13 per share at the $30.1 billion. Corporate Windows revenue was up 14 percent, slightly ahead of the overall corporate PC market, with consumer revenue down 3 percent. Microsoft also recently acquired GitHub.

Nadella said Office 365 has more than 135 million users, and that a mobile version of Outlook is used on more than 100 million devices powered by Android or Apple software.

In recent weeks, Microsoft has announced several expansions of cloud deals with prominent business players, including GE and Amazon competitor Walmart.

Notably, this marks the end of Microsoft's 2018 fiscal year.

Intelligent Cloud revenues were $9.6bn, up 20 per cent. Server business revenues were up 24 per cent.

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