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Microsoft Hits $ 1 Trillion Market Cap Thanks to Azure, but playing below expectations

Microsoft (NASDAQ: MSFT) has delivered its results over the three months ending March 31, 2019, and the quarter was an overall success for tech giant. Microsoft raked in revenue of $ 30.6 billion and a net income of $ 8.8 billion in the quarter, an increase of 1 4 percent year on year for revenue and a 19 percent increase for income. Earnings per share amounted to $ 1.14, which is over $ 1.00 per share analyst expected. Overall, it was a scary quarter, with all three of Microsoft's business departments reporting impressive numbers. As far as writing this article is concerned, the Microsoft store has jumped about 3 percent in the after-sales, increasing the company's market share over $ 1 trillion. Related MS Paint survives the company's Killing Spree – will remain part of Windows 10 As it has become the tradition of the quarterly reports, Microsoft's Intelligent Cloud division was the major highlight of the company. Intelligent Cloud revenue amounted to $ 9.7 billion, a result of an increase of 73 percent year-on-year in the Azure business, slightly from 76 percent Azure increased in the second quarter of 2019. Azure's wild exponential period Growth may slow down, but it should continue to be a bright spot for many years to come, as Microsoft continues to unlock various long-term corporate partnerships. The cloud-based Office 365 also continues to be a source of strength, growing 30 percent year on year, and the planned xCloud game streaming service should be a…

Microsoft (NASDAQ: MSFT) has delivered its results over the three months ending March 31, 2019, and the quarter was an overall success for tech giant. Microsoft raked in revenue of $ 30.6 billion and a net income of $ 8.8 billion in the quarter, an increase of 1

4 percent year on year for revenue and a 19 percent increase for income. Earnings per share amounted to $ 1.14, which is over $ 1.00 per share analyst expected. Overall, it was a scary quarter, with all three of Microsoft’s business departments reporting impressive numbers. As far as writing this article is concerned, the Microsoft store has jumped about 3 percent in the after-sales, increasing the company’s market share over $ 1 trillion.

Related MS Paint survives the company’s Killing Spree – will remain part of Windows 10

As it has become the tradition of the quarterly reports, Microsoft’s Intelligent Cloud division was the major highlight of the company. Intelligent Cloud revenue amounted to $ 9.7 billion, a result of an increase of 73 percent year-on-year in the Azure business, slightly from 76 percent Azure increased in the second quarter of 2019. Azure’s wild exponential period Growth may slow down, but it should continue to be a bright spot for many years to come, as Microsoft continues to unlock various long-term corporate partnerships. The cloud-based Office 365 also continues to be a source of strength, growing 30 percent year on year, and the planned xCloud game streaming service should be a reliable source of revenue.

For some time, Microsoft’s Surface tablets were somewhat albatross, but they were actually one of the highlights of the company’s quarter Q2 2019 and they continued to sell well in the third quarter. Surface revenue increased by 21 percent year-on-year due to continued sales of 2018’s new Surface Pro 6 and Surface Laptop 2. The Surface Line will receive another increase later this year with the release of the new Surface Hub 2S and Surface Hub 2X . 19659004] The most important spot on Microsoft’s spreadsheet last quarter was reliable old Windows, with OEM Pro revenue of 5 percent and non-Pro revenue down a worrying 11 percent. Microsoft blamed this on the Chromebooks and chip delays competition that occurred in computer and Windows sales. Well, it seems that these chip issues have been resolved, as Windows OEM revenue grew by 9 percent and non-Pro revenue increased by 18 percent year on year.

Microsoft’s Xbox gaming division grew by 5 percent over the third quarter of 2018, thanks to a 12 percent increase in revenue from services such as Xbox Live Gold and Xbox Game Pass. Microsoft now has 63 million Xbox Live subscribers, a number that should continue to grow as they take the service to other platforms like iOS and Android. This sounds great, but the Xbox revenue actually fell below Microsoft’s expectations, according to the company’s finance director Amy Hood, which was largely due to a disappointment from both the first and third party titles. The issues are likely to get worse before they get better, as Microsoft expects game revenue to fall year on year in Q4 as the Xbox One starts slipping.

Related Windows 10 “Sets” is officially dead

It’s hard to find anything negative to say about Microsoft’s Q3 performance or future, as this is clearly a company that shoots on all cylinders. Yes, the Xbox department is not as strong as it can be, but it goes through a rebuilding phase, with significant investments to be paid in the future. During Microsoft’s revenue talks, Amy Hood identified what the key drivers will be.

“If we assume that the macro environment is consistent, many of the key sources in our business should be intact. Revenue growth continues to be driven by the transition to cloud services. In our commercial operations, strong implementation should lead to continued high teens in our server products and cloud services. Office 365, Dynamics 365 and LinkedIn should continue to drive double-digit sales growth in our productivity and business segment. “

Microsoft’s outlook for the rest of 2019 remains stable and the company expects between $ 32.2 billion and $ 32.9 billion in revenue during the third quarter. Given how smoothly the Microsoft money machine is currently running, it seems very likely that they will meet and exceed these estimates.

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