Microsoft profits exceed $100 billion for the first time

Lloyd Doyle
July 20, 2018

Microsoft Corp (MSFT.O) 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 reported $30.085 billion in revenue, a 17% increase over the same quarter's $25.605 billion from past year.

Microsoft now has three reporting segments: Productivity and Business Processes (covering Office, Exchange, SharePoint, Skype, and Dynamics), Intelligent Cloud (including Azure, Windows Server, SQL Server, Visual Studio, and Enterprise Services), and More Personal Computing (covering Windows, hardware, and Xbox, as well as search and advertising).

Microsoft's cloud trip has been expensive but is proving to be worth the price.

Intelligent Cloud revenues were $9.6bn, up 20 per cent. Server business revenues were up 24 per cent.

All in all, a familiar tale: cloud services are growing (although Microsoft remains reluctant to offer concrete numbers on Azure), and Microsoft seems to be successfully converting customers away from perpetual licenses and over to Office 365.

Revenue for LinkedIn, the professional social networking site, increased 37% to $1.4bn, though the division saw an overall operating loss of $182m.

Microsoft returned $5.3 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2018, an increase of 16 per cent compared to the fourth quarter of fiscal year 2017.

Office 365 consumer costumers grew to 31.4 million, and Office products and cloud services revenue grew by 8% (6% CC).

"The company drove double-digit revenue growth in every business, which demonstrates to me the firm's balance", Moorhead said. Satya Nadella, chief executive, said last night that Microsoft's early investments in...

Moves into business services and cloud computing have reduced Microsoft's dependence on Windows, the dominant software for personal computers that has been overtaken in the consumer market by mobile devices powered by Google or Apple software. Nadella spoke optimistically, however, of the "increasingly vital role the developers play" and the opportunity through GitHub to "bring our tools and services to a new audience".

Other reports by Iphone Fresh

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