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Microsoft reports better-than-expected quarterly revenue, profit

Posted by: Admin | Posted on: January 31st, 2018 | 0 Comments

(Reuters) – Microsoft Corp (MSFT.O) reported better-than-expected quarterly revenue and profit on Wednesday, helped by robust demand for its cloud computing services and flagship Azure product, which has recorded dramatic growth over several quarters.

Microsoft took a $13.8 billion charge in the second quarter that resulted in a loss, but excluding items it earned 96 cents per share, beating analysts’ average expectation of 86 cents.

Revenue climbed 12 percent to $28.92 billion, beating analysts’ expectations of $28.40 billion.

Since Chief Executive Officer Satya Nadella took the helm in 2014, Microsoft’s cloud business – which includes products such as Office 365, Dynamic 365 and Azure computing platform – has emerged as a major growth driver.

Revenue from the intelligent cloud segment rose 15.3 percent to $7.80 billion in the second quarter, including 98 percent growth for Azure. Analysts on average had expected $7.51 billion, according to Thomson Reuters I/B/E/S.

This is the 10th consecutive quarter of more than 90 percent revenue growth for Azure, which directly competes with Inc’s (AMZN.O) Amazon Web Services.

The company posted a net loss of $6.30 billion, or 82 cents per share, in the second quarter ended Dec. 31, compared to a profit of $6.27 billion, or 80 cents per share, a year earlier. []

Shares of the technology giant fell 1 percent in late trade.

Reporting by Pushkala Aripaka in Bengaluru; Editing by Bernard Orr

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