Microsoft hits $100bn in revenue for the first time thanks to cloud, Surface growth
MICROSOFT SURPASSED $100bn in revenue for the first time in fiscal 2018 as the firm’s cloud-first focus continues to pay off.
For the fourth quarter that ended on June 30, Redmond reported revenue of $30.1bn (around £23bn), up 17 per cent compared to $25.6bn in the year-ago quarter, and net income of $8.9bn.
These bumper numbers can largely be credited to the seemingly unstoppable growth of the company’s cloud biz, which is up 23 per cent compared to last year. Microsoft’s bork-prone Azure service grew a whopping 89 per cent year over year.
“We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft,” the firm’s CEO Satya Nadella, said in a statement.
“Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.”
Microsoft’s Personal Computing group, which includes Windows, Surface and Xbox, also performed well during Q4 and saw growth of 17 per cent during the three month period.
Surface revenue jumped 25 per cent to $1.1 billion, “driven by strong performance of the latest editions of Surface” says Microsoft, while gaming revenues increased by 39 per cent.
Microsoft is also benefitting from the fact that PC sales growing for the first time in six years, as Windows OEM Pro revenue is up 14 per cent year over year. Non-pro versions of Windows OEM licenses declined by 3 per cent, which Microsoft credited to “continued pressure in the entry-level price category.”
Revenue for LinkedIn increased 37 per cent to $1.4bn, though the division saw an overall operating loss of $182m. Thursday’s results didn’t account for Microsoft’s $7.5bn acquisition GitHub, which was announced in June but is still pending. µ
Source : Inquirer