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Microsoft's cloud and LinkedIn grow steadily, while Surface falters
Once again, Microsoft's cloud business is trucking along nicely, growing 27 percent over last year to reach revenues of $10.8 billion, according to its Q1 2020 earnings report. That's been a common refrain for the company for the past few years, but now it's also seeing consistent growth in LinkedIn, which saw a revenue jump of 25 percent from a year ago. The only notable blip in an otherwise stellar earnings report is Surface sales, which fell 4 percent from a year ago. That makes plenty of sense, since potential buyers were likely waiting for the arrival of new computers this fall.
Microsoft's 'record' quarter driven by big growth in Azure and gaming
Microsoft just released financial results for the past quarter, the first quarter of its fiscal year, and the company's many different business units all appear to be firing on all cylinders. Overall revenue increased 19 percent year-over-year to reach $29.1 billion, while net income of $8.8 billion represented a 34 percent increase over the prior year. It's hard to point to one specific category behind the positive results, or even just a handful -- literally every segment Microsoft broke out in its earnings release showed positive growth.
Microsoft's strong quarter was powered by the cloud, Surface and Xbox
It's honestly getting a bit tough to write about Microsoft's quarterly earnings without sounding like a broken record. For years, its booming cloud business has pushed revenues higher, and the same is true for the past fourth quarter. The company reports that its revenue is up 17 percent from last year, reaching $30.1 billion compared to just $25.6 billion. Mostly, that's due to the continued strength of its cloud segment, which is up 23 percent ($9.6 billion) compared to last year. Additionally, its More Personal Computing group, which includes Windows, Surface and Xbox, increased by 17 percent ($10.8 billion). Drilling down a bit, the Surface line continued to have a strong year with 25 percent revenue growth, while gaming revenues increased by a surprising 39 percent. The company points to third-party titles as a big reason for the growth. But really, it's probably all about Fortnite.
Microsoft's Surface revenue up 32 percent alongside its booming cloud
Perhaps the biggest surprise from Microsoft's third quarter earnings: Its Surface business is still going strong with nearly $1.1 billion in revenue. That's up 32 percent from last year, when sales dipped to $831 million. By this time last year, the Surface Laptop and Pro hadn't launched yet, which didn't leave much fresh hardware for consumers to pick up. The company's cloud business is still ballooning, unsurprisingly -- it's now up another 17 percent from last year. Overall, Microsoft reported revenue of $26.8 billion (up 16 percent), with a net income of $7.4 billion (a 35 percent increase).
Microsoft's cloud business just keeps growing
If there's one major takeaway from Microsoft's earnings reports over the last few years, it's this: The cloud is everything for Microsoft. And, based on the company's financials for the second quarter of 2018, its success in the cloud doesn't appear to be slowing down anytime soon. Microsoft reported a 12 percent revenue jump for the period, reaching $28.9 billion up from $25.8 billion a year ago. And mostly, that growth was driven by the company's investments in cloud services.
Surface, LinkedIn, and cloud revenue are bright spots for Microsoft
Good news for Microsoft: Its Surface revenues have rebounded from last quarter's slump, when sales fell 26 percent over the previous year. For the fourth quarter, Microsoft reports that Surface sales only fell 2 percent year-over-year. Sure, decreases aren't generally good, but in this case it's a sign that sales have actually picked back up. It's not a huge surprise why: Microsoft revealed the Surface Laptop and Surface Pro in June. Even though they arrived during the tail-end of the quarter, they likely added a bit to the company's ledger. Overall, Microsoft reported revenues of $23.3 billion for the fourth quarter, a 13 percent increase over last year, and it also doubled its profits, reaching $6.5 billion.
Microsoft's Surface business is still booming
Microsoft's Surface concept has gone from being a joke to becoming a significant part of its business. Sales of Surfaces devices jumped 38 percent during the last quarter (Q1 2017) reaching $926 million, compared to a year ago when they were just $672 million, according to Microsoft's latest earnings report. The company points to increased sales of the Surface Pro 4 and Surface Book for the drive. CEO Satya Nadella also noted that enterprise orders of 500 or more Surface devices have increased by 70 percent.
Microsoft's Surface sales up 29 percent, phones down 49 percent
Sales of the Surface Pro 4 and Surface Book led to a 29 percent increase in overall Surface family revenue ($1.35 billion compared to $1.1 billion), Microsoft announced in its Q2 2016 earnings report. Its overall phone revenue, however, fell 49 percent. Given our disappointment with the Lumia 950 and 950 XL, Microsoft's mobile performance wasn't too surprising. Its new devices weren't really flagship models meant to compete with the iPhone 6S and the best of Android. Microsoft's overall revenue for its More Personal Computing division (which includes Surface and phone sales) fell 5 percent.
Microsoft has record Q1, rakes in $17.37 billion in revenue (updated: Skype plans revealed)
Q1 of 2012 (don't ask...) was good to Microsoft. Very good in fact. The company posted a record first quarter revenue of $17.37 billion, a 7-percent increase over the same period last year and slightly higher than the $17.26 billion that was expected. The big hero was Office which accounted for $5.62 billion of that income, though sales of Windows stayed flat and fell somewhat short of expectations. The company's $5.74 billion in net income was also a significant jump of 6-percent over the same time last year. For a few more of the financial particulars check out the earnings report after the break and the spartan spreadsheets at the source link. Update: Wondering what Microsoft plans to do with the newly acquired Skype? Well, details are thin, but during today's earnings call the company revealed it did plan to integrate the VoIP service and its technologies into Lync, Live Messenger and Xbox Live. Soon you may not only have to listen to your friend gloat after every kill in Call of Duty, you might have to watch him do a celebratory dance in his Lazy Boy too.
Microsoft announces a record first-quarter revenue of $16.20 billion, $5.41 billion in profit
Microsoft just beat analyst expectations, announcing $16.20 billion in revenue for the first quarter of its 2011 fiscal year, with $5.41 billion in profit. Microsoft cites Office 2010, the sustained "PC refresh cycle," and 38 percent growth in the Xbox 360 biz for its good news, with overall revenue up 25 percent over the same quarter last year and a 51 percent gain in profit. The Xbox 360 has been at the top of the console heap for four months running, which can't hurt. Microsoft will have an earnings call to discuss its results at 5:30PM EDT, so we'll be keeping our ears peeled for Steve Ballmer to pull a Steve Jobs, hijack the call, and rag hard on the competition -- if only we lived in a world of such beautiful symmetry.
