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Microsoft’s quarterly profit grows 30% – thanks in large part to the cloud division of Azure
Microsoft publishes financial report for the third quarter, in which it shares its successes. The company’s revenue exceeded the expected figures by 12% – $ 37.2 billion instead of $ 35.7 billion. Net profit of the IT giant grew by 30% to $ 13.9 billion.
Mike Blake, Reuters
Xbox Gaming and Azure Cloud are the main drivers of growth. Cloud business revenue is up 48%, up one percent from the previous quarter. CFO Amy Hood explained to Reuters that the development is associated with an increase in the number of long-term contracts.
The company also boasted of growing Dynamics 365 (a set of business applications to simplify work). Hood said division revenue was 38% higher than expected.
Microsoft also converted some of its products to subscription format. As Reuters notes, investors favor this approach because it provides a stable source of income. The cost of recurring contracts with big business has not changed.
Intelligent Cloud also showed strong growth, with revenues growing by 20% (to $ 13 billion). Revenue of the personal computers division (including Windows and Xbox consoles) grew by 6% to $ 11.8 billion.