Cloud, business services lift Microsoft earnings

Microsoft is benefitting from the work-from-home trend by delivering more cloud computing services
Microsoft is benefitting from the work-from-home trend by delivering more cloud computing services.

Microsoft on Tuesday reported a jump in profits in the recently ended quarter, keeping strong momentum from accelerated gains in cloud computing during the pandemic.

Profits for the fiscal fourth quarter rose 47 percent to $16.5 billion and grew 21 percent to $46.2 billion.

"We are innovating across the technology stack to help organizations drive new levels of tech intensity across their business," said Satya Nadella, chairman and chief executive officer of Microsoft.

"Our results show that when we execute well and meet customers' needs in differentiated ways in large and growing markets, we generate growth, as we've seen in our commercial cloud – and in new franchises we've built, including gaming, security, and LinkedIn, all of which surpassed $10 billion in annual revenue over the past three years."

The results included a 20 percent rise in revenue in Microsoft's Office commercial products and , and a 46 percent increase in revenue for its LinkedIn professional social network.

Microsoft boosted its "intelligent cloud" revenue by 30 percent, a key segment for the company which has shifted its emphasis from consumer to enterprise services.

Analyst Dan Ives at Wedbush Securities said that amid a move to cloud computing and a hybrid work trend "the company continues to be a major beneficiary of this trend on its flagship Azure/Office 365 franchise."

Microsoft shares dipped some 2.8 percent in after-hours trade.

© 2021 AFP

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