Economy

Microsoft Sales Top Estimates With More Clients Signing Up for Cloud

Microsoft Sales Top Estimates With More Clients Signing Up for Cloud

Shares of Microsoft Corp were set to open at a record high on Friday, after the company reported another blockbuster quarter, backed by growth in its legacy software business and Azure cloud computing services. Dynamics 365 revenue grew by 61% (56% CC), and all Dynamics products and services grew by 11% (8% CC).

"We're investing aggressively to build Azure as the world's computer", Nadella said, referring to Microsoft's cloud computing platform that competes with services run by Amazon and Google.

Looking at Microsoft's individual businesses, we see the following.

The company reported $110.4 billion in revenue over the past 12 months, marking the first time it has passed the $100 billion mark.

"Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation", he added.

The Redmond tech company announced a revenue bump of more than 17 percent to $30.1 billion for its fourth quarter of the year, continuing its recent trend of beating Wall Street analyst expectations almost every period.

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The More Personal Computing group logged $10.8bn in revenues up 16 per cent from the year-ago quarter.

"Surface notebook revenue increased 25 per cent driven by strong performance of the latest editions of Surface against a low prior year comparable", the company said. Notably, this is Microsoft's first earnings report since announcing its intent to acquire code-sharing startup GitHub for $7.5 billion.

Other standouts include revenue from LinkedIn, up 37% from the same time a year ago, and gaming revenue, up 39%, with Xbox software and services up 36%. Azure grew by 89% (85% CC), Server products grew by 8% (6% CC), Enterprise Mobility install base grew by 55% to 82 million, and server products and cloud services grew by 26% (24% CC). Gaming revenue was also healthily increased, up 39 percent to $2.3 billion.

Finally, in addition to its Q4 release, Microsoft provided a look at how it performed for the entirety of the 2018 fiscal year.

Revenue at Microsoft's productivity and business processes unit, which includes Office 365, rose 13.1 percent to $9.67 billion, topping analysts' average expectation of $9.65 billion, according to Thomson Reuters I/B/E/S.