Microsoft beats 4Q expectations as annual revenue tops $100 billion

Microsoft beats 4Q expectations as annual revenue tops $100 billion

For the fourth quarter that ended on June 30, the tech giant reported revenue of $30.1 billion and net income of $8.9 billion.

These bumper numbers can largely be credited to the seemingly unstoppable growth of the company's cloud biz, which is up 23 per cent compared to previous year.

Notably, Azure - considered the leading rival to the dominant Amazon Web Services - saw revenue growth of 89% from the same period in 2017, though Microsoft doesn't disclose specific financials for the service.

"Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation", he added.

Microsoft's Surface business also saw significant growth for the quarter, posting a 25 percent gain over the same time past year. Windows OEM revenues were up 7 per cent, while commercial products and cloud services revenues were up 23 per cent. Microsoft's gaming revenues were up 38 per cent, and Surface revenue was up 21 per cent, search revenues were up 16 per cent.

"In gaming, we're pursuing our expansive opportunity from the way games are created and distributed, to how they're played and viewed, surpassing ten billion revenue this year for the first time".

Microsoft beats 4Q expectations as annual revenue tops $100 billion

Microsoft shares today are down 53 cents, or half a percent, at $104.60.

Analysts surveyed in advance by Yahoo Finance expect Microsoft to post earnings of $1.08 on $29.2 billion in revenue.

Productivity group revenue was up 13 percent to $9.7 billion, with operating income up 20 percent at $3.5 billion.

Microsoft also reported strong growth from other areas of its business, including social networking, gaming, and hardware. This is mostly being driven by more income from Xbox software and related services, which itself has grown by 36% thanks to the strength of recent third-party titles. Alex Zukin, an analyst at Piper Jaffray, told the Associated Press that the "threat of Amazon" would work in Microsoft's favor as e-commerce companies seek a cloud computing platform that is not run by a competitor. The division's revenue was up 37 percent in the quarter.

For the quarter, Microsoft showed strong growth in all three of its major reporting areas - especially in cloud computing, where Wall Street most wants to see growth.

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