Nadella also shared that Windows 10 was now powering more than 200 million devices, a number that Microsoft hopes will hit $1 billion in the next few years.
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The company’s net income fell to US$5.00 billion, or 62 cents United States per share, in its second-quarter ended December 31 from US$5.86 billion, or 71 cents USA per share, a year earlier.
Microsoft Corp reported quarterly revenue and profit that beat analysts’ expectations, driven by aggressive cost cutting and growing demand for its cloud products and services.
The quarter highlighted continued weakness in Microsoft businesses tied to a sluggish personal computer market, including sales of traditional Office software and Windows operating systems to businesses.
Productivity and Business Processes (PBP), including Office, consumer Office, and Dynamics: $6.7 billion compared to $6.3 billion in revenue last quarter.
Microsoft Xbox Live users grew 30% this year, to over 48 million users.
The latest cloud revenue figures show a $1.2 billion rise on the previous quarter, which saw $8.2 billion revenue on cloud deals.
Mr Nadella said companies were using its cloud services to drive transformation.
Microsoft’s server products and cloud services revenue grew 10 percent this quarter, alongside a big Azure revenue increase of 140 percent.
The segment consisting of Windows, hardware, search, and gaming pulled in $12.7 billion in revenue, marking a decline of 5% year over year (down 2% in constant currency).
Microsoft just released its earnings report for the last quarter, and the major takeaway is that Windows Phone sales were beyond bleak, while Surface revenue performed pretty decently.
Shares were up more than three per cent to United States dollars 53.64 in after-market trade, with analysts rejecting the notion that Microsoft was somehow past its sell-by date.
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“Our commercial business executed well as our sales teams and partners helped customers realise the value of Microsoft’s cloud technologies”. Office 365 now has 20.6 million subscribers. Microsoft’s phone revenue fell a whopping 49% in constant currency, though.
