Microsoft announced $25.7 billion in revenue and $6.3 billion in profit thanks to a strong cloud business.
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Microsoft made $1.35 billion in revenue from Microsoft Surface tablets alone in the last quarter, largely due to the new Surface Pro 4 and the Surface Book laptops, the company reported.
Revenue from the company’s increasingly important “Intelligent Cloud” business, which includes products such as servers and platforms such as Azure cloud infrastructure and services, rose 5 percent to $6.3 billion. Microsoft has previously predicted that its cloud revenue will rise to $20 billion in 2018.
Amazon-which also presented its earnings this afternoon-revealed today that its competing cloud computing product, Amazon Web Services, is seemingly growing at a slower rate than Microsoft’s product, despite being the industry leader.
Microsoft has released its latest set of financial results, with overall revenues falling by 10% year on year, but a strong set of figures for its cloud services.
The number of people using Xbox Live online service for digital content and video game play climbed 30 percent to a record high of 48 million, Microsoft said. “Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices”, added Nadella.
The Surface division was one of the highlights of Microsoft’s most recent quarter.
As with Apple and other United States companies operating internationally, “currency headwinds” took a toll on Microsoft’s earnings.
Microsoft generates more than half of its revenue from outside the US.
PC sales remain a drag on the company, with revenue continuing to decline quicker than expected.
All of this is despite the fact that Microsoft launched two Windows 10 Mobile phones at the end of 2015, the Microsoft Lumia 950 and Lumia 950 XL.
In all, Microsoft said its second-quarter net income declined to $5 billion, or 62 cents a share, down from $5.86 billion, or 71 cents a share, a year earlier.
However, Microsoft is seeing some success in mobile software such as Skype, which Nadella said in an earnings call had been downloaded more than 900 million times on iOS and Android devices, while Office mobile apps have been downloaded over 340 million times.
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‘Our commercial business executed well as our sales teams and partners helped customers realize the value of Microsoft’s cloud technologies’.
