Microsoft up in the clouds on first-quarter earnings beat

Microsoft up in the clouds on first-quarter earnings beat

Microsoft up in the clouds on first-quarter earnings beat

Tech giant Microsoft has announced its 2018 Q1 results (which may sound odd, but is how Microsoft structures its finances), surpassing Wall Street expectations with revenues of $24.5bn (£18.7bn) and earnings per share of $0.84, and sending its stock price up by nearly four per cent in after-hours trading. It reported $24.5 billion in overall revenue, which is a 12 percent increase from this time past year. The firm said its "cloud technologies" now accounts for some $20bn, driven largely by Azure revenues which saw an increase of 90 per cent compared to this time previous year.

In after-hours trade, shares jumped 4.6% to US$82.34. It is a particular strength of Microsoft's given its history of selling software to corporate customers.

Microsoft's focus on leveraging cloud services looks like it is paying off. This division did show a sharp development of 28% from productivity and business process unit of the division.

Microsoft squarely beat analysts' expectations for the quarter as the company reported earnings per share of 84 cents against 72 cents expected by the market while revenue came in at $24.54 billion against the expectation for $23.56 billion.

Microsoft purchased LinkedIn, the professional social network, in December for $27 billion, in part, to boost the Dynamics business.

Chief Executive Officer Satya Nadella has turned Microsoft into a cloud-computing powerhouse, recently reshuffling the sales force and investing in new products and services.

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The biggest contribution to this fruitful increase is given by the cloud business, as it brought $6.9 billion of the entire earnings.

"T$3 op of mind for every CEO is empowering their own employees for the modern workplace", Nadella said. A year ago, Microsoft recorded $2.3 billion in capital expenses.

Microsoft built its infrastructure to support distributed computing. The overall market has continued to contract, and Microsoft's Surface devices fluctuate in popularity based on competition and when new devices hit store shelves.

After their acquiring Microsoft did put in effect some plans with LinkedIn however, there are still many plans pending from a year ago which need to be put in place.

The "intelligent cloud" unit that delivers artificial intelligence to a wide range of products saw its revenues grow 14 percent to $6.9 billion in the quarter.

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