Skies are Azure and the cloud is still golden in Microsoft Q3 results

25 Apr 2019

Microsoft building, California. Image: wolterke/Depositphotos

Microsoft’s monster gains show the company is an unstoppable cloud and edge force.

Microsoft has reported more than $30bn in third-quarter revenues, driven largely by considerable gains in productivity and cloud.

The major turnaround spearheaded by Microsoft CEO Satya Nadella is a far cry from several years ago when investments and acquisitions in mobile all came a cropper for the Redmond-based software giant and everyone seemed in a rush to write off the company.

‘We are accelerating our innovation across the cloud and edge’
– SATYA NADELLA

However, in its latest Q3 financials, Microsoft proved that not only is it first and foremost a cloud giant, it is an unstoppable cloud software giant.

“Leading organisations of every size in every industry trust the Microsoft cloud,” Nadella said.

“We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow.”

Gold lining in the cloud

The company’s Intelligent Cloud business jumped 22pc to reach $9.7bn. This was mostly due to its Azure platform enjoying 73pc revenue growth.

The company’s More Personal Computing business saw revenues rise 8pc to reach $10.7bn, including a 21pc increase in sales of Surface devices.

Microsoft’s Productivity and Business Processes group – home for Office and LinkedIn – reported a 14pc rise in revenues to $10.2bn. LinkedIn, in particular, saw revenues rise by 27pc with engagement levels growing 24pc.

Simply put, the company is flush with cash and was able to report a net income of $8.8bn, up 19pc on last year.

“Demand for our cloud offerings drove commercial cloud revenue to $9.6bn this quarter, up 41pc year over year,” said Amy Hood, executive vice-president and chief financial officer of Microsoft.

“We continue to drive growth in revenue and operating income with consistent execution from our sales teams and partners, and targeted strategic investments.”

Microsoft building, California. Image: wolterke/Depositphotos

Updated, 10.25am, 25 April 2019: This article was updated to correct a typo and clarify that Microsoft’s Productivity and Business Processes group reported revenues of $10.2bn, not $109.2bn.

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

editorial@siliconrepublic.com