Microsoft’s revenue increased 14% to $36.9 billion for the quarter ended 31 December 2019, as compared to the corresponding period of last fiscal year.
Among other highlights, the US-based software giant’s operating income was $13.9 billion and increased 35%; net income was $11.6 billion and increased 38% based on generally accepted accounting principles (GAAP) and 36% non-GAAP.
According to Reuters, the quarterly sales and profit beat Wall Street expectations, driven by the first acceleration of Azure cloud computing revenue growth in eight quarters amid a pitched battle with Amazon.com.
Microsoft announced the opening of two data centre regions in SA in March last year. In July, it announced the availability of Office 365 services in its local data centre regions.
Diluted earnings per share was $1.51 and increased 40% GAAP and 37% non-GAAP, says the company.
The strong performance in the quarter was helped by the continued growth streak in Microsoft's cloud business.
“We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success,” says Satya Nadella, CEO of Microsoft.
“Along with our expanding opportunity, we are working to ensure the technology we build is inclusive, trusted and creates a more sustainable world, so every person and every organisation can benefit.”
Microsoft returned $8.5 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2020.
“Strong execution from our sales teams and partners drove commercial cloud revenue to $12.5 billion, up 39% year-over-year,” says Amy Hood, executive vice-president and chief financial officer of Microsoft.
The company notes revenue in productivity and business processes was $11.8 billion and increased 17% (up 19% in constant currency), with the following business highlights:
- Office commercial products and cloud services revenue increased 16% (up 18% in constant currency) driven by Office 365 commercial revenue growth of 27% (up 30% in constant currency).
- Office consumer products and cloud services revenue increased 19% (up 20% in constant currency) with continued growth in Office 365 consumer subscribers to 37.2 million.
- LinkedIn revenue increased 24% (up 26% in constant currency).
- Dynamics products and cloud services revenue increased 12% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 42% (up 45% in constant currency).
Meanwhile, revenue in Intelligent Cloud was $11.9 billion and increased 27% (up 28% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 30% (up 32% in constant currency) driven by Azure revenue growth of 62% (up 64% in constant currency).
- Enterprise services revenue increased 6% (up 7% in constant currency).
Microsoft says revenue in personal computing was $13.2 billion and increased 2% (up 3% in constant currency).
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