Microsoft thanks the cloud for a far brighter outlook

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Microsoft has posted the results of the fourth quarter of its 2018 financial year, running up until June 30, 2018.

Microsoft today announced FY18 Q4 earnings results with a revenue of $30.1 billion and operating income of $10.4 billion. Net income, meanwhile, was up 10 percent to $8 billion.

Microsoft's More Personal Computing business continues to be the main driver for revenues, earning $10.8 billion and up 17% year-over-year. This reporting structure has been retained even though the Windows division has been reorganized with responsibilities split between different groups.

"With GitHub we recognise the increasingly vital role the developers play in value creation and growth in the area of the intelligent cloud and intelligent edge", Nadella said. Office commercial as a whole grew 38% (35% CC), which is driven by the Office 365 seat growth of 29%. Dynamics revenue was also up 11 percent.

Revenue in a productivity and business processes category that included career-focused social network LinkedIn was up 13 percent in the quarter to $9.7 billion (roughly Rs. 66,800 crores), according to Microsoft. Together with Windows Cloud, it has raked in revenues to the tune of $23 billion. This included Windows OEM revenue, which increased by 7%, and OEM pro revenue growing by 14%.

Microsoft hits $100bn in revenue for the first time thanks to cloud, Surface growth
Microsoft posts bumper Q4, with Windows, Surface, Azure all up

Microsoft's earnings once again grew on the strength of its cloud services. Microsoft's Enterprise Mobility suite now has 82 million seats, up 55 percent year on year.

Moving forward this will be Microsoft's primary vehicle for revenue and margin growth.

Surface revenue grew by a huge 25% (21% CC), with Microsoft saying that the latest editions are performing strong over a weaker quarter a year ago.

Intelligent Cloud revenues in 2018 were $32.2bn, a 15 per cent improvement from $27.4bn a year ago. Gaming revenue increased 39% to $2.3bn, with the company's number of Xbox Live monthly active users increasing to 57 million. Search revenue was up 17 percent, with, as ever, the twin factors of increased revenue per search and increased search volume to thank.

Helped by a boom in demand for cloud-based software, Microsoft has more than doubled in value since Satya Nadella took over as chief executive in 2014 and refocused the software behemoth on newer businesses.

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