Tech

Microsoft meets expectations with $23.6B in revenue, Azure revenue up 93%

Like every quarter, Microsoft just reported earnings for the last quarter. The company reported non-GAAP revenue of $23.6 billion and non-GAAP earnings per share of $0.73. Wall Street’s cadre of crack analysts expected the company’s earnings per share to come in at around $0.70, with revenue hitting about $23.6 billion. LIn the year-ago quarter, Microsoft reported earnings per share of $0.62.

“Our results this quarter reflect the trust customers are placing in the Microsoft Cloud,” said Microsoft CEO Satya Nadella in the earnings announcement. “From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft’s cloud platforms to power their digital transformation.”

Here are the highlights from today’s report:

Cloud: Total revenue from Microsoft’s “Intelligent Cloud” business hit $6.8 billion this quarter. Microsoft expects its cloud-computing business to hit a $20 billion run rate by 2018. That’s up 11 percent from last year, when this number was $6.1 billion. Most importantly, though, Azure revenue was up 93 percent.

This was also the first full quarter since Microsoft’s massive $26 billion acquisition of LinkedIn closed. The expectation here was that LinkedIn would contribute about $950 million to Microsoft’s productivity and business processes segment and those numbers came in a bit higher at $975 million. This segment tends to be dominated by revenue from products like Office and Dynamics. Here, Microsoft reported revenue of $8 billion, compared to $6.5 billion a year ago.

Since launching the Surface line, Microsoft’s own devices have made up an increasingly important part of the company’s revenue (though revenue from phones, of course, has been tanking for a few quarters now and continues to do so). The More Personal Computing segment, which includes Windows, devices, gaming and search, reported revenue of $8.8 billion, compared to $9.5 billion a year ago. This drop in revenue was mostly driven by lower Surface revenue, which decreased by a whopping 26 percent.

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