{"id":7603,"date":"2017-07-26T04:36:13","date_gmt":"2017-07-26T04:36:13","guid":{"rendered":"https:\/\/rsoftsolution.com\/blog\/microsoft-earnings-beat-expectations-thanks-to-strong-cloud-performance.html"},"modified":"2017-07-26T04:36:13","modified_gmt":"2017-07-26T04:36:13","slug":"microsoft-earnings-beat-expectations-thanks-to-strong-cloud-performance","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/microsoft-earnings-beat-expectations-thanks-to-strong-cloud-performance.html","title":{"rendered":"Microsoft earnings beat expectations thanks to strong cloud performance"},"content":{"rendered":"


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Following its longstanding tradition of reporting quarterly earnings for its fourth financial quarter of the year in July, Microsoft today announced<\/a> non-GAAP revenue of $24.7 billion and GAAP earnings per share of $0.83 (and non-GAAP earnings per share of $0.98) for the last three months. Operating income was $7.0 billion non-GAAP.<\/p>\n

Wall Street expected revenues of around $24.3 billion, which was pretty aggressive to begin with given that this called for a 7 percent year-over-year growth. As for earnings per share, Wall Street\u2019s crystal ball readers called for $0.71 \u2014 or a 3 percent year-over-year growth.<\/p>\n

Clearly, Wall Street didn\u2019t do a good job with its predictions, but Microsoft had a great quarter. Unsurprisingly, its stock<\/a> is up after the earnings release.<\/p>\n

As usual, all eyes are on how Microsoft\u2019s Azure cloud computing platform performed. While Azure\u2019s growth has slowed down a tiny bit over the last few quarters (and we\u2019re still talking close to 100 percent annual growth), it\u2019s one of the main drivers of Microsoft\u2019s top-line growth. In the last quarter, Microsoft reported $6.8 billion in revenue for its \u201cIntelligent Cloud\u201d business (which includes more than just Azure) and said its annual cloud run rate was $15.2 billion. This quarter, this area delivered revenues of $7.4 billion (up 11 percent from last year) and the commercial cloud annualized run rate is now up to 18.9 billion.<\/p>\n

\"\"<\/a><\/p>\n

\u201cInnovation across our cloud platforms drove strong results this quarter,\u201d said Satya Nadella, chief executive officer at Microsoft, in a canned statement. \u201cCustomers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge.\u201d<\/p>\n

Additional highlights here are a 15 percent growth in server products and cloud services and Azure growing at a more than healthy 97 percent year-over-year (with Azure compute usage also doubling from last year).<\/p>\n

Microsoft also said that its installed base for its Enterprise Mobility product has now hit more than 50 million.<\/p>\n

Microsoft\u2019s gross margins in this area also got a healthy boost. After the release, Stephanie Rodriguez, Microsoft\u2019s Director of Investor Relations, told me that that she sees two drivers for this: the introduction and customer adoption of higher-value services and Microsoft\u2019s ability to improve its own efficiencies as its product portfolio gains scale. \u201cThis was a really big quarter for us in terms of our commercial base,\u201d she told me. \u201cWhat we saw was increased customer commitment to commercial cloud and really great renewals.\u201d<\/p>\n

In the last quarter, Microsoft\u2019s More Personal Computing segment took a hit because the company sold significantly fewer Surface devices than in previous quarters. Over the last few months, Microsoft launched a number of new devices, including a new Surface Pro and its first real laptop. These didn\u2019t go on sale until late in the quarter, though. Analysts expected about $8.61 billion in sales for this segment and Microsoft delivered $8.8 billion, down 2 percent.<\/p>\n

The reason for this, Microsoft argues, is lower phone revenue (\u201cphone revenue was immaterial and declined $361 million,\u201d Microsoft writes), though this was offset by growth in search, Windows and gaming revenue. The number of Xbox Live active users is holding steady at about 53 million and search revenue grew 10 percent year-over-year (likely driven by the integration of Bing into Windows 10).<\/p>\n

Office 365 and the rest of Microsoft\u2019s productivity tools have also long been a fast-growing segment for the company. This quarter, Microsoft reported revenue of\u00a0$8.4 billion (up 21 percent) for this area. In our conversation, Rodriguez noted that Office 365 now also has 27 million customers on the consumer side.<\/p>\n

LinkedIn revenue was also up in the last quarter and went from $975 million in Q3 to $1.065 billion in the last quarter.<\/p>\n

<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/kIckmRVgnjw\/<\/p>","protected":false},"excerpt":{"rendered":"

Following its longstanding tradition of reporting quarterly earnings for its fourth financial quarter of the year in July, Microsoft today announced non-GAAP revenue of $24.7 billion and GAAP earnings per <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-7603","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t