Published: Fri, July 20, 2018
Money | By Armando Alvarado

Microsoft Beats Estimates on Cloud Services, Gaming, and Software Growth

Microsoft Beats Estimates on Cloud Services, Gaming, and Software Growth

Microsoft's overall revenue for the fourth fiscal quarter reached $30.1 billion, up 17 percent YoY and beating analysts' predictions of $29.2 billion.

These bumper numbers can largely be credited to the seemingly unstoppable growth of the company's cloud biz, which is up 23 per cent compared to past year. With a revenue of $30.1 billion (up 17%), you wouldn't blame Microsoft's chief executive officer Satya Nadella for declaring it "an incredible year".

Revenue in Personal Computing was $10.8 billion and increased 17 per cent. Gaming revenue increased 39 per cent, with Xbox software and services revenue growth of 36 per cent. Windows OEM revenues were up 7 per cent, while commercial products and cloud services revenues were up 23 per cent. Microsoft's gaming revenues were up 38 per cent, and Surface revenue was up 21 per cent, search revenues were up 16 per cent.

In the company's Productivity and Business Processes division, which includes Office 365 and LinkedIn, revenue increased 13 percent over previous year to $9.7 billion.

It's that time of the year again, when Microsoft is releasing its earnings report for the fourth quarter of its 2018 fiscal year, or the second quarter of the calendar year.

Moves into business services and cloud computing have reduced Microsoft's dependence on Windows, the dominant software for personal computers that has been overtaken in the consumer market by mobile devices powered by Google or Apple software.

'Doctor Who' Season 11: New Female Doctor Jodie Whittaker
Jodie Whittaker has ruled out the possibility of a gender pay gap controversy with the BBC's sci-fi series Doctor Who . Doctor Who is set to hit our screens with a brand new look. "It's a big, inclusive, mainstream, accessible series".

Several key businesses in Microsoft's portfolio saw sales gains during the quarter, including its expanding commercial cloud business, which jumped 53 percent to $6.9 billion.

"We're investing aggressively to build Azure as the world's computer", Nadella said, referring to Microsoft's cloud computing platform that competes with services run by Amazon and Google.

Productivity group revenue was up 13 percent to $9.7 billion, with operating income up 20 percent at $3.5 billion.

The Redmond tech company announced a revenue bump of more than 17 percent to $30.1 billion for its fourth quarter of the year, continuing its recent trend of beating Wall Street analyst expectations almost every period.

Microsoft also reported strong growth from other areas of its business, including social networking, gaming, and hardware. Net income, meanwhile, was up 10 percent to $8 billion.

Like this: