Microsoft Shares Wobble Despite 16% Lift In Revenues
Apr 27 2018
Wall Street was looking for continued growth in Microsoft's cloud businesses, mainly the MicrosoftAzure cloud platform and the Office 365 productivity suite.
In terms of guidance, analysts are expecting Microsoft to forecast $28.01 billion in revenue for its fiscal fourth quarter, according to Thomson Reuters.
The personal computer software business, once Microsoft's mainstay, has been eroding for years, as people spend more of their computing time on smartphones.
LinkedIn revenues of $1.33bn were up 37 per cent from $976m previous year.
Microsoft'scommercial cloud sales rose 58% to $6 billion, the company said in slides posted on its website.
"Our recent data center expansion, including the United Arab Emirates and Switzerland, brings our total number of regions to 50, more than any other cloud provider".
"Dynamics products and Cloud servicesrevenue increased 17 per cent, driven by Dynamics 365 revenue growth of 65 per cent", the company said. "As long as we see the demand signals globally grow, we will continue to see that number grow", she said in an interview.
On the conference call, Hood gave an optimistic first look at the fiscal year that starts July 1, noting that the "key drivers of our business should remain intact".
While Microsoft reorganized its engineering divisions, its financial reporting segments remain the same. This segment includes the MicrosoftAzure cloud, which had a 93% revenue gain from the same period of 2017 - though Microsoft doesn't break out specific revenue figures for the service.
LinkedInrevenue rose 37% year over year and gamingrevenue rose 18% driven by Xbox software and services revenue growth of 24%, primarily on the strength of third-party titles. Analysts had estimated $8.73 billion.
Its Intelligent Cloud business, including the Azure cloud-computing service and server programs such as SQL Server, saw sales surge 17% to $7.896 billion.