Microsoft’s profits continue to grow.

Microsoft posted record profits and sales on Tuesday despite investor concerns that the tech boom caused by the pandemic may be over.

As the first tech company to report earnings for the three months ended December, Microsoft said it had revenue of $51.7 billion, up 20% from a year earlier and profits up 21%. to $18.8 billion. The company has seen particularly strong growth in its cloud services while closing long-term customer deals.

Although it beat Wall Street expectations, the company’s stock fell nearly 5% in aftermarket trading but recovered by the end of the day. The drop was most likely due to stock market turmoil and some results that didn’t sit well with optimistic investors.

On a call with investors, executives shared an upbeat outlook for the next quarter, sending Microsoft’s stock price higher. Satya Nadella, chief executive officer of Microsoft, said demand for the service remains strong.

Coming out of the pandemic, we are seeing a lot of constraints in the economy, and the only resource that can help boost productivity while reducing costs is digital technology, he said.

Microsoft has $125 billion in cash, nearly $70 billion of which it hopes to spend to buy video game maker Activision in a deal. announced this month. Bank of America analysts called the purchase a “savvy move” and “strategically and financially positive that could boost Microsoft’s cross-platform gaming business.” .

Sales of Microsoft’s cloud services to commercial customers, including subscriptions to Office 365 and Azure, its cloud computing platform, grew 32 percent to $22.1 billion. Revenue is ready for further growth when price increase for Office 365, which includes Word and the communications app Teams, will take effect in March. According to Wedbush Securities, the price hike could generate an additional $5 billion in revenue this year.

Azure is the second largest cloud platform, after Amazon Web Services. It’s part of a fundamental shift in how companies are moving more of their businesses online. Azure grew 46%, reflecting how customers across industries are entering into larger, longer transactions.

Brett Iversen, Microsoft’s head of investor relations, said that despite the turmoil in the stock market, the company remains focused on long-term opportunities to cut “external noises.” short term over which we have little control. ”

Iversen said Microsoft’s Windows business was particularly strong, with sales increasing 25% as business customers bought new computers for their employees.

Despite chip shortages that limited supply of new Xbox consoles during the holiday season, the company’s games business grew 8%, part of the personal computer business, grew 15% to 17, 5 billion USD.

The so-called Great resignation Among workers also helped LinkedIn, the professional social network, see a 37% increase in revenue. Microsoft’s profits continue to grow.

Fry Electronics Team

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