Microsoft revenues top $30bn as cloud service sees continued adoption
Microsoft Corp.
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07:55 19/04/24
Software giant Microsoft's quarterly revenue and earnings beat estimates on Wednesday, thanks to the continued adoption of its cloud computing service and its Office suite of products.
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Revenues rose 14% to $30.57bn in the third quarter of its trading year, coming in ahead of analysts' average estimates of $29.84bn.
Earnings per share came to $1.14 per share, also ahead of the $1 projected on the Street, while net income rose to $8.81bn, or $1.15 per share, from the $7.42bn turned in a year ago.
Gross margins were 66.7% up from 65.4% a year earlier.
Azure, Microsoft's flagship cloud product, saw growth dip slightly to 73% in the quarter ended 31 March after seeing growth of 76% in its second trading quarter.
Microsoft's "intelligent cloud" unit, which contains its Azure services, turned in revenues of $9.65bn, up 22% year-on-year and above estimates of $9.28bn.
Executive vice president and chief financial officer Amy Hood said: "Demand for our cloud offerings drove commercial cloud revenue to $9.6 billion this quarter, up 41% year-over-year.
"We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners and targeted strategic investments."
Elsewhere, commercial sales of Office 365 increased 30% and LinkedIn, the networking site it acquired for over $26bn back in 2016, continued to grow faster than the group as a whole, with revenues climbing 27% in the third quarter.
As of 2215 BST, Microsoft shares had advanced 2.94% in after-hours trading to $128.69 each.