Net income came in at $3.1 billion. Notably, revenue for Azure alone grew 102% (108% in constant currency) year over year.
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A quick refresher on definitions: Microsoft’s commercial cloud includes revenues from Azure; its Office 365 business services (Exchange Online, SharePoint Online, Skype for Business Online); Dynamics CRM Online and its Enterprise Mobility + Security Suite (EMS).
There were strong results in the server department, with server products growing 5 percent, but Microsoft was expectedly challenged in the personal computing space as worldwide PC sales continue to fall. Trust Co Of Virginia Va boosted its stake in MSFT in the latest quarter, The investment management firm added 5,568 additional shares and now holds a total of 219,968 shares of Microsoft Corporation which is valued at $11,869,473. In its report for the third quarter, Microsoft posted revenue from its business known as Intelligent Cloud that was up 3% ending at $6.1 billion. Without the charge, the company’s earnings per share would have been $0.62.
As a result, it’s not too surprising that Microsoft isn’t hiding the facts that its gaming hardware business is down nine percent (but overall Xbox Live user number is up).
“This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations”, said chief executive Satya Nadella. That said, the company’s revenue declines still haven’t leveled off, despite the rise in its newer businesses. For Microsoft, the use will be experienced as it moves away from siloed offerings and the focus turns to collaborative tools and services along with cloud business.
The earnings for Microsoft had $22.6 billion of non-GAAP revenue and $20.6 billion of GAAP revenue with a per-share non-GAAP profit of 69 cents per share and 39 cents per share for GAAP.
“You’ll see us doing much more of this with other customers”, Nadella said.
Investors are optimistic on Mr. Nadella’s strategy of getting rid of phone business and focusing on Cloud business. revenue from the reporting segment that includes Windows and mobile phones fell 6.3% to $40.46 billion.
Windows 10 also drove gains in search advertising revenue, which grew 16% excluding traffic acquisition costs. Fourth quarter revenue came in at $20.6bn (€18.7bn), down seven per cent annually.
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For Microsoft, meanwhile, cloud computing has been the company’s biggest source of growth in recent quarters.
