Cloud, PC Trends Positive — Microsoft Earnings Preview

Cloud, PC Trends Positive — Microsoft Earnings Preview

Surface revenue jumped 25 per cent to $1.1 billion, "driven by strong performance of the latest editions of Surface" says Microsoft, while gaming revenues increased by 39 per cent.

Microsoft's revenue exceeded $100bn for the first time in fiscal year 2018, the company reported Thursday, as the legacy software company's efforts to reinvent itself as a major player in cloud computing continued to pay off. Microsoft's Surface business also saw significant growth for the quarter, posting a 25 percent gain over the same time a year ago.

"We had an incredible year, surpassing $100 billion in revenue as a result of our teams' relentless focus on customer success and the trust customers are placing in Microsoft", said Microsoft CEO Satya Nadella. We're investing aggressively in content, community, and cloud services across every end-point to expand usage and deepen engagement with gamers.

Even Bing, Microsoft's search engine that most people consider a bit of a flop when compared to Google, did well, growing 17% year on year in the fourth financial quarter of 2018.

In the company's Productivity and Business Processes division, which includes Office 365 and LinkedIn, revenue increased 13 percent over previous year to $9.7 billion.

Donald Trump knew about Russian Federation meddling 2 weeks before inauguration
Facing criticism, including from members of his own party, the president on Tuesday said he misspoke during the news conference. Russia's President Vladimir Putin , US President Donald Trump (R) and First lady Melania Trump during a meeting in Helsinki.

Several key businesses in Microsoft's portfolio saw sales gains during the quarter, including its expanding commercial cloud business, which jumped 53 percent to $6.9 billion. Without that, the company would have been looking at a net income of $30.3 billion, up 18 percent on 2017.

Notably, Azure - considered the leading rival to the dominant Amazon Web Services - saw revenue growth of 89% from the same period in 2017, though Microsoft doesn't disclose specific financials for the service. Meanwhile, Microsoft's Intelligent Cloud business, which includes its server products and cloud services, rose by 23 percent. This included Windows OEM revenue, which increased by 7%, and OEM pro revenue growing by 14%.

Switching gears to the More Personal Computing category, revenue increased by 17 percent, moving up to $10.8 billion.

Other standouts include revenue from LinkedIn, up 37% from the same time previous year, and gaming revenue, up 39%, with Xbox software and services up 36%.

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