Microsoft Sees Growth Amid Pandemic Computing Demands

Revenue from Microsoft's cloud division that includes its Azure enterprise business rose 17 percent in the fiscal fourth quarter.

Share on Facebook Tweet Snapchat Share Reddit Comment
Microsoft Sees Growth Amid Pandemic Computing Demands

In the personal computing segment including the Windows operating system, revenues were up 14 percent

Highlights
  • Microsoft shares dipped some 2.5 percent in after-hours trade
  • Microsoft has a market value of more than $1.6 trillion
  • Revenue from Microsoft's intelligent cloud division rose to $13.4 billion

Microsoft on Wednesday reported rising revenues in the past quarter amid strong demand for cloud computing services from pandemic-hit businesses and consumers and big gains in its Xbox gaming operations.

Profits in the quarter ending June 30 fell 15 percent to $11.2 billion (roughly Rs. 83,622 crores), the result of increased tax charges compared with a year ago.

Revenue meanwhile rose 13 percent to $38 billion (roughly Rs. 2.83 lakh crores), led by strong gains in its cloud computing and its Xbox gaming services.

Chief executive Satya Nadella said Microsoft was equipped to deal with the coronavirus pandemic with its "integrated, modern technology stack."

"We are seeing businesses accelerate the digitisation of every part of their operations from manufacturing to sales to customer service," Nadella told a conference call.

Microsoft shares dipped some 2.5 percent in after-hours trade on the results, which were largely ahead of forecasts.

Its shares have been trading at near record levels amid a surge of some 50 percent since March, giving it a market value of more than $1.6 trillion (roughly Rs. 1,19,42,000 crores).

Revenue from Microsoft's "intelligent cloud" division which includes its Azure enterprise business rose 17 percent to $13.4 billion (roughly Rs. 1 lakh crores) in the fiscal fourth quarter.

In the personal computing segment including the Windows operating system, revenues were up 14 percent to $12.9 billion (roughly Rs. 96,298 crores).

Within that segment, Xbox gaming service revenues rose 65 percent and sales for its Surface devices were up 28 percent.

Xbox hardware revenue increased 49 percent, as Microsoft boosted the number of consoles sold even with a newer version expected later this year.

"This was a breakthrough quarter for gaming," Nadella said.

"We saw record engagement and monetisation... as people everywhere turned to gaming to connect, socialise, and play."

Microsoft saw a more modest six percent revenue rise in its productivity and business operations which include the Office software suite and LinkedIn.

Daniel Ives at Wedbush Securities called the Microsoft results "robust," led by its cloud computing that benefits from the work-from-home trend.

"This current remote work from home environment is further catalysing more enterprises to make the strategic cloud shift with Microsoft the main beneficiary as evidenced by the solid results this evening," Ives said.

Earlier Wednesday, the workplace messaging platform Slack filed an EU antitrust complaint against Microsoft, alleging that the integration of the "Teams" service into the Office software suit represented unfair competition.

Microsoft said Teams was growing because it offers video, which Slack does not.


Why are smartphone prices rising in India? We discussed this on Orbital, our weekly technology podcast, which you can subscribe to via Apple Podcasts, Google Podcasts, or RSS, download the episode, or just hit the play button below.

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Realme Revealed its Next Smartphone Will Pack Quad Rear Cameras, 5G Support
OnePlus Nord Blue Marble Variant with 12GB RAM to Go on Sale in India August 6

Related Stories

 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2020. All rights reserved.
Listen to the latest songs, only on JioSaavn.com