Microsoft Corporation (NASDAW:MSFT) today reported of a strong growth in its commercial cloud computing business that have boosted Microsoft’s Q4 revenue way above Wall Street expectations sending shares rallying +4%
The boost in revenue comes from a $12.1 billion ‘run rate’ growth in commercial cloud revenue, a high margin influx from $8 million recorded a year earlier.
Revenue for the ‘intelligent cloud’ business which included it’s Azure cloud platform climbed 7% to $6.7 billion as revenue for the cloud platform grew by an astonishing 102%.
Despite revenues running high, operating profit dropped 17% down to $2.19 billion.
Microsoft’s Chief executive, Satya Nadella said:
“This past year was pivotal in both our own transformation and in partnering with our customers who are navigating their own digital transformations, the Microsoft Cloud is seeing significant customer momentum and we’re well positioned to reach new opportunities in the year ahead.”
Overall adjusted revenue for the biggest technology firm in the world increased by $420 million to $22.6 billion on top of a $3.1 billion profit for the three months ending June levelling out to 39 cents per share. This marks an improvement from last year’s results which saw the company lose $3.2 billion – 40 cents per share – as sales in the Nokia phone purchase fell 70% resulting in a $7bn loss.
Microsoft therefore beat estimates of 58 cents per share, reporting a total income of 69 cents per share.
Microsoft stated that the 7% drop in year-over-year revenue standing at $20.6 billion, was due to the net revenue deferral from windows 10 of $2 billion. Yet revenues still attained a high figure as numbers on the online version of Office increased 59%. The highs meant that sales in PC software took a hit of 4%.
For the full fiscal year, Microsoft reported earnings per share of $2.10 GAAP as non GAAP revenue stood at $92 billion alongside an operating income of $27.9 billion.
At 10:35am EDT Microsoft traded at 56.35 + 3.26 (6.13%)
20/07/2016
