COVID-19 lends silver lining to Microsoft's cloud business in Q4

COVID-19 lends silver lining to Microsoft's cloud business in Q4

COVID-19 lends silver lining to Microsoft's cloud business in Q4

However, Azure saw its revenue growth slow to just 47%, from 59% in the previous quarter.

However, the group's forecast for some versions of its Office software slightly missed expectations because of weak sales to struggling small and mid-sized businesses. Though LinkedIn revenue grew 10% in the most recent quarter, the company said earlier in the week that it would cut about 960 jobs, or around 6% of the unit's workforce.

The revenue growth was powered by its More Personal Computing unit as more people worldwide used its products to work on Windows PCs and play games on Xboxes during lockdowns.

Microsoft returned $8.9 billion to shareholders in the form of share repurchases and dividends in the fourth quarter of fiscal year 2020.

Microsoft's "Smart Cloud" enterprise, which includes Azure, server merchandise, company and cloud solutions, brought in $13.37 billion in Q4 income, marginally beating analyst anticipations. Both figures exceeded analysts' estimates of $1.36 per share $35.5 billion, respectively.

Microsoft's "commercial cloud" revenue, which combines Azure, Office 365, Dynamics 365, and other cloud services, was $14.3 billion for the fourth quarter, up 30% from the same quarter a year ago.

The revenue in Productivity and Business Processes was $11.8 billion and increased 6 per cent.

Satya Nadella, chief executive, said that this year's crisis had added momentum to a strong change to cloud computing, with quite a few businesses for the initially time looking at switching to digital technologies in purchase to make their enterprises far more resilient.

"The last five months have made it clear that tech intensity is the key to business resilience", he said. He goes on to state Microsoft remains in the special position of being able to "help every organization transform and reimagine how they meet customer needs", to put it simply support remote operate in the brand-new truth.

Office Commercial products and cloud services revenue increased 5 per cent, driven by Office 365 Commercial revenue growth of 19 per cent.

Microsoft's total revenue rose 13% to $38.03 billion in the quarter, beating estimates of $36.5 billion, according to IBES data from Refinitiv. Windows OEM revenue was up 7% while Windows commercial revenue increased 9%.

Operating expenses for the quarter were $12.3 billion, a 13% increase. Ms Hood told analysts on a conference call to expect a similar level of spending in the current quarter.

Microsoft shares have climbed about 34% since the beginning of the year.

The economic downturn was nearly instant and is expected to last for many months, few could have predicted such a positive outcome for Microsoft.

Teams and Skype now work together. In response, Microsoft said it is committed to providing customers a variety of choices and that it looks forward to providing additional information to the regulator. Ms Hood reiterated that the company's newest Xbox console is running on time for a holiday-season release.

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