Microsoft’s bold bet on cloud pays off as software giant reports US$20.49bn Q3 revenues

18 Apr 2013

Microsoft CEO Steve Ballmer

Microsoft said the bold bets it took on cloud are beginning to pay dividends. The company today reported third-quarter revenues of US$20.49bn and a US$6bn profit.

The revenues are up US$3bn on 2012 and the profit is up by around US$1.3bn.

“The bold bets we made on cloud services are paying off as people increasingly choose Microsoft services, including Office 365, Windows Azure, Xbox LIVE, and Skype,” said Steve Ballmer, chief executive officer at Microsoft.

“While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term.”

Microsoft’s Business Division reported revenues of US$6.3bn, up 8pc, driven by sales of the new Office technology.

The software giant’s Server & Tools business reported an 11pc growth in revenues to US$5.04bn, which has been driven by double-digit revenue growth in SQL Server and System Center.

The Windows Division posted a 23pc increase in revenues to US$5.7bn.

Microsoft’s Online Services Division reported an 18pc increase in revenues to US$832m. The company said online advertising revenue grew 22pc.

The company’s Entertainment and Services division reported revenues of US$2.5bn, up 56pc. Microsoft revealed that Xbox Live now has 46m members worldwide, an 18pc increase.

Microsoft also revealed its CFO Peter Klein will leave the company at the end of the year. Klein has been at Microsoft for 11 years, four of which he has spent in the CFO role.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years