Microsoft's Revenue Climbs up Into the Cloud

Andrew Cummings
July 19, 2019

Office 365 Commercial posted 31% revenue growth, and Office 365 Consumer reported having 34.8 million subscribers.

Despite the down quarter, Microsoft's gaming revenue rose almost 10 percent to $11.4 billion for the 2019 fiscal year, thanks to a strong holiday season.

Xbox followers will also be able to tune into a live broadcast from Microsoft's Inside Xbox team: "To kick off the week, we'll be hosting a special episode of Inside Xbox live from the Gloria Theatre in Cologne".

Microsoft Corp beat analysts' estimates for fourth-quarter revenue and profit on Thursday, even as sales growth began to slow for its cloud product Azure and Office software.

"The pressure was obviously on but they executed", said Hal Eddins, chief economist for Microsoft shareholder Capital Investment Counsel. "It's the structural victor right now - as more and more companies move to the cloud, it's largely Amazon and Microsoft in the running for those deals". Net income was $13.2 billion (GAAP), up from $8.9 billion previous year. Microsoft, like IMB, will support AT&T as the carrier works to pare down its data center operations. Microsoft rose 15 per cent in the quarter, compared with a 3.8 per cent gain in the S&P 500 Index.

This news arrives via a Twitter user by the name of GraviKnight, who uncovered confirmation of Microsoft and PlayStation's attendance via some promotional material announcing the full lineup of "Gamescom 2019 Guarantees", which also includes Bethesda, 2K Games, Capcom, EA, and more. IBM also will be helping manage AT&T's hybrid cloud infrastructure, and AT&T Business is making IBM the primary provider of software-defined networking for the company. Azure's 64% growth this quarter is still the lowest in recent times, declining from the 73% growth it experienced in FYQ3. "We'll be bringing a great line up of games to the event from developers around the world with nearly 200 gameplay stations in our booth, including the first public hands-on of both Minecraft Dungeons, Horde Mode in Gears 5 and fans in Germany can also try Project xCloud for the first time". Analysts on average had expected revenue of $10.71 billion, according to IBES data from Refinitiv. Sales from the Intelligent Cloud division, made up of Azure and server software, jumped 19 per cent to US$11.4 billion - the first quarter the unit has been Microsoft's biggest by revenue.

Last but not least, Microsoft's Search advertising business saw an increase of 9% in revenue. The older software's expiration is also helping boost sales of the Microsoft 365 bundle as the company persuades customers to switch to internet-based subscriptions rather than one-time licenses. -China trade war, said Mike Spencer, Microsoft general manager for investor relations.

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