After accounting for almost $2 billion in deferred revenue and a few hundred million more in restructuring and integration charges among other adjustments, Microsoft reported non-GAAP earnings per share of $0.78 and revenues of $25.69 billion.
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However, Nadella said businesses are piloting Windows 10, which he expects will drive deployments beyond 200 million active devices.
Microsoft saw its Productivity and Business Processes revenue fell 2% but increased 5% in constant currencies to $6.7 billion as Office and cloud services revenue was driven by growth in Office 365, which saw nearly a 70% constant currency revenue increase. Office 365 almost doubled its revenue and increased its consumer subscriber count, while Azure cloud sales were up 140 percent.
Revenue for the Intelligent Cloud division grew 5% to hit $6.3 billion, compared with $5.9 billion in the same quarter a year ago.
Microsoft on Thursday reported better-than-expected adjusted earnings and revenue for its latest quarter, as its cloud business continued to drive growth.
Fortunately for the computing giant, its Surface, Windows 10 and cloud computing business remain strong.
“One thing we’re noticing is that with anyone who moves to the cloud, there is a real opportunity for us to expand to multiple workloads over time”, said Nadella on the call.
Microsoft has disclosed its financial results for the previous quarter, showing that the firm’s shift to cloud-based services is starting to pay off. Revenue from more traditional productivity tools was less impressive, however, and the personal computing platforms showed a slight dip. The disclosure by Hood implies that the total value of Microsoft’s smartphone business, in terms of revenue, will be approximately $636 million by the end of March 2016.
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. Net income in the period declined to $5 billion. The weak PC market led to a 5 percent fall in Windows OEM revenue at constant exchange rates, and revenue from mobile phones fell 49 percent.
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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.
