Tech

Madhya Pradesh

Rajasthan

Poll in 1 seat deferred

Chhattisgarh

Telangana

Mizoram

»
1-min read

Microsoft Beats Wall Street Targets on Cloud Services Revenue

The company's flagship Azure cloud product recorded revenue growth of 89 percent in the fourth quarter ended June 30. Its shares rose nearly 4 percent in after-hours trading.

Reuters

Updated:July 20, 2018, 11:13 AM IST
facebookTwittergoogleskypewhatsapp
Microsoft Beats Wall Street Targets on Cloud Services Revenue
Microsoft Beats Wall Street Targets on Cloud Services Revenue (Image: AFP)
Loading...
Microsoft on Thursday posted quarterly profit and revenue that beat analysts' estimates, as more businesses signed up for its Azure cloud computing services and Office 365 productivity suite. The company's flagship Azure cloud product recorded revenue growth of 89 percent in the fourth quarter ended June 30. Its shares rose nearly 4 percent in after-hours trading. Much of Microsoft's recent growth has been fuelled by its cloud computing business, which has benefited from companies rushing to shift their workloads to the cloud to cut data storage and software costs.

"The combination of the cloud, which is a megatrend that's going to last for years to come, and the execution, this is a company that knows how to sell and be innovative - it's hard to argue with anything here," said Tom Taulli, InvestorPlace.com analyst. Microsoft shares have risen 180 percent since Satya Nadella took over as chief executive in 2014, refocusing the company on cloud computing rather than PC software. Its market cap edged above $800 billion for the first time earlier this month.

Azure has a 16 percent share of the global cloud infrastructure market, making it the second-biggest provider of cloud services after Amazon.com Inc's Amazon Web Services, according to April estimates by research firm Canalys. 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.

"This was another gem of a quarter from Microsoft as Nadella's cloud vision is coming to fruition on the heels of massive Azure growth and secular tailwinds," said Daniel Ives at research firm GBH Insights. Revenue for the company's LinkedIn business and job network grew 37 percent from the year-ago quarter, while its Dynamics 365 online business application suite posted a 61 percent increase.

The combination of those two services highlights Microsoft's rise as an alternative to Salesforce.com, which dominates the customer relationship management market, said Johnny Won, founder of Hyperstop, a tech consultancy firm. "It seems like this is actually a formidable threat to Salesforce," Won said. Overall, the Redmond, Washington-based software maker's revenue rose 17.5 percent to $30.09 billion, above expectations of $29.21 billion.

Net income rose to $8.87 billion, or $1.14 per share, from $8.07 billion, or $1.03 per share, in the year-ago fourth quarter. Excluding certain items, Microsoft earned $1.13 per share, while analysts had expected $1.08.
(Get detailed and live results of each and every seat of the state Assemblies in Madhya Pradesh, Rajasthan, Telangana, Chhattisgarh and Mizoram to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you put on the psephologist's hat. Know interesting facts and trivia about the elections. Elections = News18)
| Edited by: ---
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results