Microsoft has reported stronger than expected earnings in the June quarter, helped by substantial growth in its cloud computing division.
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“The past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations”, said CEO Satya Nadella in a statement.
Chief Executive Officer Satya Nadella has been trying to reorient Microsoft’s business around cloud and productivity services as traditional software sales shrink. Also up was Microsoft’s Intelligent Cloud revenue – climbing seven percent in the final quarter of its fiscal year to reach $6.7 billion.
The revenue generated by cloud services in the cloud for businesses ( “Intelligent Cloud”) increased 7% to $ 6.7 billion in the fourth quarter.
The latest financial report from the Redmond, Washington, software company shows its Azure cloud-computing business more than doubled in sales from the last quarter. Surface revenue grew 9%, propelled by Surface Pro 4 and Surface Book, and the number of monthly active users on Xbox Live reached 49 million.
Azure revenue grew 102% with Azure compute usage more than doubling year-over-year. Microsoft explains that this information is specifically provided for investors in order to better understand the performance of the company during the said period.
Last year, SAP booked annual cloud revenues of 2.3 billion euros and total group operating profit of 6.35 billion euros. – Microsoft today announced revenue of $22.6 billion for its fourth fiscal quarter of 2016 which ended on Jun. 30.
Microsoft’s Windows 10 Mobile and its subsequent smartphone business are in a dire need of a savior. Windows Phone revenue plummeted 71 percent and last week, Microsoft admitted that it won’t hit its self-imposed deadline of getting Windows 10 onto a billion devices by 2018.
Excluding certain items, profit rose to 69 cents a share from 62 cents a year earlier, easily topping analysts’ estimates of 58 cents a share.
Net income was $3,1bn, or $0,39/share, including the Nokia-related charges, compared with a loss of $3,2bn a year earlier. As of today, July 19, when it reported its Q4 FY 2016 earnings, Microsoft was at a $12.1 commercial cloud run rate, execs said. Cloud computing is one such popular technology that has made tremendous impact in the way business is conducted.
Without any attractive Windows Phones in its portfolio, it’s unlikely that Microsoft will see growth in this division for a while.
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Microsoft Corporation is a company that is engaged in developing, licensing and supporting a range of software products and services.
