Microsoft Crosses $80 On Top- And Bottom-Line Q1 Beat

Microsoft Crosses $80 On Top- And Bottom-Line Q1 Beat

The company has delivered early: In its Q1 2018 earnings released today, the company has shared its cloud annualized run rate has hit $20.4 billion. As usual, things like Surface, Office 365, cloud services like Azure, and Windows all saw growth.

Revenue rose 12 per cent to US$24.54b.

Notably, however, Google managed to overtake Microsoft both in revenue and profit, generating $6.7 billion in profit on $27.7 billion revenue.

As you can see from the image above, the biggest areas of growth, in terms of percentage, are Azure, Dynamics 365, and Office 365 commercial.

Office consumer products and cloud services revenue increased by 12% (10% in CC), and there are now 28 million consumer Office 365 subscribers.

Though those two sources of income are up, revenue from the overall personal computing market remains relatively stagnant. Operating income, on the other hand, grew by 26% (26% in CC). Windows OEM was up 4%, which is expected in the current PC market. Windows commercial products grew by 7%, or 6% in constant currency. As for the Xbox division, revenue increased by only 1 percent, Xbox software and services revenue growth saw an increase of 21 percent offset by lower hardware revenue. Notably, Surface sales has gone up for the first time in a long while.

The tech giant kicked off its fiscal 2018 with an impressive three months, including earnings of 84 cents per share on an adjusted basis. Meanwhile, revenue is slated to come in at $28.15 billion.

Intelligent Cloud revenue rose 14% to $6.9 billion, including a 17% increase in server products and cloud revenue and a 1% increase in Enterprise Services revenue.

"We're seeing customers, as they continue to use Azure, start to consume the premium services", like AI and data analytics software that are much more profitable, Hood said in an interview.

If you're interested in Microsoft's earnings and want to find out more, tune into the company's earnings call at 2:30pm PT.

Looking at Microsoft's past year, the company pushed heavily on its cloud business, including Microsoft Azure - which saw a revenue rise of 97 percent year-over-year last quarter.

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