- Microsoft’s earnings are on a positive path as its cloud services have been thriving lately.
- The growth had slowed down but is now on an accelerating trend.
- The global shift to remote working has largely contributed to the rise in revenue
Microsoft has been in the news lately making several updates to its platform and related apps. It now appears that their efforts are not in vain. Its revenue is looking good as it is on a rising trend.
The increase in revenue can be largely attributed to its Cloud Services since remote working took the centre stage at the start of the pandemic.
Microsoft shares increased by 1% on Tuesday during the first-quarter earnings report. The company’s Cloud segment; Azure public cloud, GitHub, SQL Server,enterprise services, System Center, Windows Server and Visual Studio all delivered $16,96 billion.
The figure is a 31% increase from the previous year. The Cloud services have grown in the last year over 50%.
According to Microsoft, this figure is more than what they expected a few months ago although it did not disclose in detail Azure revenue.
The introduction of Surface devices also played a huge role in the increase in revenue as the company plans to commercialize its Office 365 subscriptions.
The figures so far according to Refinitiv include;
Earnings: $2.27 per share, adjusted, vs. $2.07.
Revenue: $45.32 billion, vs. $43.97 billion.
The company’s total revenue rose to 22% from year to year but in the last quarter, the growth was 21%. It also reported a $20.5 billion after taxes which was a whopping 48% growth.
Given that Windows 11 is packed with new features, the company will continue to reap more benefits. It continues to align its products and services to serve users in the pandemic. The results have even exceeded analyst expectations.
What other Microsoft features or applications do you think have played a part in its rise in revenue? Share your thoughts in the comment section.